Alexco Announces Securityholders’ Approval of Plan of Arrangement at Special Meeting and Provides Transaction Update

VANCOUVER, BC, August 30, 2022 /PRNewswire/ – Alexco Resource Corp. (US NYSE: AXU) (TSX: AXU) (“Alexco” or the “Company”) announced today that securityholders of the Company (as defined below) have approved the previously announced acquisition of Alexco by 1080980B.VS. ltd. (“108“), a subsidiary of Hecla Mining Company (NYSE: HL) (“Hecla“) by means of a plan of arrangement (the “Arrangement“) at a special meeting of securityholders held earlier today (the “Meeting“).

The special resolution approving the Arrangement was approved by (i) 92.04% of the votes cast by Alexco shareholders (the “Alexco shareholders“) present or represented by proxy at the Meeting; (ii) 92.92% of the votes cast by Alexco shareholders, option holders, restricted stock unit holders and unitholders of Alexco Deferred Stock (collectively, “Security holders“), voting as a single class, present or represented by proxy at the Meeting; and (iii) 91.50% of the votes cast by Alexco Shareholders other than the votes attached to the Alexco shares to be excluded in under NI 61-101 – Protection of holders of minority securities in special transactions.

Pursuant to the arrangement, Alexco shareholders will receive 0.116 common shares in the capital of Hecla for each Alexco share held (the “Consideration“). Information regarding the procedure for the exchange of shares for consideration is provided in the Company’s management information circular dated July 28, 2022linked to the Assembly (the “Circular“). The circular and the cover letter (the “transmittal letter“) are available on SEDAR under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at https://alexcoresource.com/investors/special-meeting-of-shareholders/. If you are a holder of Alexco Restricted Stock Units, you will need to wait to submit your Letter of Transmittal until you have received the details from the Company after the effective date of the arrangement for your shares. ‘Alexco.

The arrangement remains subject to the approval of the Supreme Court of British Columbia (there “To research“) and satisfaction or waiver of other terms of use. July 27, 2022, the Commissioner of Competition issued an advance ruling certificate. The Court hearing for the final Order approving the Arrangement is currently scheduled for September 1, 2022 and closing of the Arrangement is expected to be completed on September 7, 2022. Following completion of the Arrangement, Alexco Shares are expected to be delisted from the Toronto Stock Exchange and NYSE American. A request should also be made for the Company to cease to be a reporting issuer in the applicable jurisdictions upon closing of the Arrangement.

Additional information regarding the terms of the Arrangement are set out in the Circular which is available under Alexco’s profile at www.sedar.com.

About Alexco

Alexco is a Canadian primary silver company that owns and operates the majority of the historic Keno Hill Silver District in from Canada Yukon Territoryone of the richest silver mines in the world.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements relating to future events or future performance. All statements, other than statements of historical fact, included herein are forward-looking statements. Forward-looking statements herein include, but are not limited to, statements regarding the completion and timing of the Arrangement; the satisfaction or waiver of the conditions precedent of the transaction; consideration receivable by Alexco shareholders; the expected benefits of the arrangement; the timing, receipt and expected court approval, and other regulatory consent and approval; delisting of Alexco shares; and the intention that Alexco cease to be a reporting issuer. These forward-looking statements reflect management’s current beliefs and are based on assumptions made by the Company and information currently available to it, including assumptions about Alexco’s ability and Hecla receive, in a timely manner and on satisfactory terms, necessary regulatory, judicial and other third party approvals; the timely satisfaction or waiver of the closing conditions of the Arrangement and the completion of the Arrangement on the terms provided; expected performance of the terms of the Arrangement Agreement, as assigned and amended (the “Arrangement Agreement”) and related agreements; the adequacy of our and at Hecla financial ressources; favorable equity and debt markets; and the stability of financial capital markets. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or other future events, to differ materially from the results, performance or future achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, among others: the risk that the Arrangement will not close when expected or at all or on the terms and conditions set forth in the Arrangement Agreement; bankruptcy of the Company and Hecla to obtain necessary approvals from regulators, courts and other third parties, or to otherwise satisfy the conditions of completion of the Arrangement, in a timely manner, or at all, may result in the non-completion of the arrangement according to the terms proposed; or not at all ; changes in laws, regulations and governmental practices; if a third party makes a Superior Proposal (as defined in the Arrangement Agreement), the Arrangement may not be completed and the Company may be required to pay the Termination Fee (as defined in the Arrangement Agreement ); if the Arrangement is not completed and the Company remains an independent entity, there are risks that the announcement of the Arrangement and the allocation of substantial resources of the Company to the completion of the Arrangement could have an impact on the Company’s current business relationships and could have a material adverse effect on the Company’s current and future business, financial condition and prospects; future prices of silver, gold, lead, zinc and other commodities; market competition; and the geopolitical, economic and legal climate that allows Alexco and Hecla Operate in; and additional risks and uncertainties identified in documents filed by Alexco with the Canadian securities regulators on SEDAR in Canada (available at www.sedar.com) and with the SEC on EDGAR (available at www.sec.gov/edgar.shtml). These forward-looking statements are made as of the date hereof and, except as required by applicable securities laws, the Company undertakes no obligation to update or revise them to reflect new events or circumstances.

SOURCE Alexco Resource Corp.

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