Dolly Varden Silver - May 2025 Roundup

• Dolly Varden Silver quadrupled tenure area through acquisition of Hecla's 77,000-hectare Kinskuch Property for $5 million in shares, creating district-scale land position
• Acquired three additional high-grade silver properties totaling over 23,000 hectares for approximately $1.6 million, including historic Porter Idaho mine
• Commenced fully-funded 35,000-meter drill program with four rigs targeting Wolf, Homestake Silver, and exploration targets across expanded project portfolio
• Consolidated contiguous claim package now encompasses approximately 100,000+ hectares in Golden Triangle with multiple mineralization styles and infrastructure access
• Strategic positioning near Ascot's Premier mill and Stewart deep-water port creates potential processing and logistics advantages for future development scenarios

Dolly Varden Silver Corporation executed an aggressive consolidation strategy in May 2025, transforming from a focused explorer into a district-scale Golden Triangle player through systematic acquisitions totaling approximately $6.6 million in consideration. The company expanded its land holdings from approximately 16,300 hectares to over 100,000 hectares through four separate transactions, while simultaneously launching a 35,000-meter drill program targeting high-grade silver and gold mineralization across multiple deposits. These strategic moves positioned Dolly Varden as a dominant landholder in the southern Golden Triangle, with exposure to epithermal silver-gold systems, porphyry copper-gold targets, and historic high-grade producers, all supported by existing road infrastructure and proximity to processing facilities.

May 5: Hecla Mining Kinskuch Property Acquisition

Dolly Varden announced a definitive agreement to acquire 100% of Hecla Mining Company's Kinskuch property, dramatically expanding the Kitsault Valley Project from 16,300 to approximately 77,000 hectares. The transaction valued at $5 million was structured through the issuance of 1,351,963 common shares to Hecla, with the vendor retaining a 2% net smelter return royalty subject to a 50% buyback right for $5 million.

The acquisition consolidated a district-scale claim package covering the Kitsault Valley, Big Bulk, and Kinskuch projects, tripling the total strike length of favorable Jurassic-age Hazelton Group volcanic rocks. The property includes the past-producing Esperanza Mine from 1910, featuring quartz-carbonate veins with similar silver grades to the historic Dolly Varden Mine, located two kilometers north of the company's Alice Arm camp along existing road infrastructure.

Strategic value extends beyond land consolidation, as the southwestern portion of the acquired claims positions within seven kilometers of Goliath Resources' recently discovered Surebet Zone gold mineralization, while the southern extension toward Big Bulk provides exposure to potential gold-copper porphyry systems trending toward the Kitsault molybdenum porphyry deposit.

May 7: 2025 Exploration Program Launch

The company outlined its fully-funded 2025 exploration strategy, commencing a minimum 35,000-meter diamond drilling program with four rigs targeting expansion of high-grade mineralization at Wolf and Homestake Silver deposits. The program allocation splits approximately 60:40 between southern Dolly Varden properties, including Big Bulk copper-gold porphyry target, and northern Homestake Ridge properties.

Wolf Vein drilling prioritizes southwestern extension step-outs from hole DV24-421, which intersected 379 g/t silver, 0.64% lead, and 0.66% zinc over 21.69 meters, including higher-grade intervals of 1,804 g/t silver, 4.36% lead, and 3.10% zinc over 1.67 meters. Structural and alteration studies indicate increasingly robust mineralization with higher-temperature signatures toward the southwest, approaching the projected basin-bounding fault system connecting to the Torbrit Silver Deposit.

Homestake Silver targets focus on expanding the gold and silver-rich plunge zone, building on successful 2024 results including hole HR24-431 with 21.55 g/t gold and 27 g/t silver over 8.72 meters, and HR24-433 returning 35.05 g/t gold and 114 g/t silver over 2.32 meters. The program includes both step-out drilling and local infill work supporting future resource calculations.

May 8: Porter Project Silver Mine Acquisition

Dolly Varden entered a definitive agreement with Strikepoint Gold to acquire the Porter Project for $1.1 million, satisfied through 295,699 common shares at $3.72 per share. Located 35 kilometers northwest of the Kitsault Valley Project and four kilometers from Stewart, the property encompasses 15 contiguous claims and 46 crown grants totaling 3,192 hectares.

The Porter Project contains two historic silver-rich vein systems: the Silverado mine and Prosperity-Porter Idaho mines, separated by 2,350 meters of unexplored trend beneath Mount Rainey. Historic production from the Porter Idaho system between 1929-1931 yielded 27,123 tonnes of direct-shipping ore grading 2,542 g/t silver and 1 g/t gold, totaling approximately 2.2 million ounces of recovered silver transported via aerial tramway to Stewart port.

The property contains a historical mineral resource estimate of 394,700 tonnes grading 868 g/t silver, 3.37% lead, and 1.41% zinc in the indicated category, plus 88,900 tonnes grading 595 g/t silver in the inferred category, totaling approximately 12.7 million contained ounces. Previous exploration includes 11,703 meters across 73 diamond drill holes and 1,768 meters in 226 percussion holes, providing substantial technical database for future programs.

May 15: MTB Metals Portfolio Acquisition

The company announced a definitive agreement to acquire MTB Metals' interests in four properties totaling over 20,000 hectares for up to 500,000 common shares valued at $3.59 per share, plus 1% net smelter return royalties. The transaction includes assumption of MTB's obligations under existing option and joint venture agreements.

The American Creek Property, centered on the past-producing Mountain Boy high-grade silver mine, encompasses 2,602 hectares with documented production from the 1910s through 2000s featuring silver grades ranging from 8,000 to 17,000 g/t. Previous drilling reported by MTB Metals included hole DDH-MB-2006-10 intersecting 5.10 meters of 5,258 g/t silver and DDH-MB-2006-19 with 6.1 meters of 2,260 g/t silver. The property maintains road access and sits 20 kilometers from Stewart's deep-water port and six kilometers from Ascot's Premier mill.

The Theia Property adds 9,235 hectares contiguous with the northern Homestake Ridge boundary, increasing total project area to over 86,000 hectares and extending prospective Hazelton Group rock exposure where receding glaciers reveal new mineralized trends. Previous work outlined a 500-meter silver-bearing trend highlighted by surface samples returning 39,293 g/t silver from epithermal veins.

May 26: Kinskuch Property Closing

Dolly Varden completed the Kinskuch Property acquisition from Hecla Mining, finalizing the $5 million transaction through issuance of 1,351,963 common shares. The closing formally expanded the Kitsault Valley Project to 77,000 hectares, tripling favorable Jurassic-age Hazelton Group volcanic rock strike length by adding the Illiance trend to the existing Kitsault Valley trend.

The acquisition provides access to the underexplored Illiance trend, which has seen limited modern exploration work restricted to localized diamond drilling on the three-kilometer Illy epithermal system. The property includes the past-producing Esperanza Mine along the Kitsault Valley access road, featuring quartz-carbonate veins in Upper Hazelton sedimentary rocks similar to the historic Dolly Varden Mine.

Hecla's increased ownership position strengthens the strategic partnership, with the major shareholder maintaining designated representation on Dolly Varden's Technical Committee to collaborate on unlocking value across the expanded land package.
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May 28: Drill Program Commencement

The company confirmed its 2025 exploration program was fully operational with four diamond drills active across the Kitsault Valley Project. Two rigs commenced operations in early May at Moose Vein and Red Point exploration targets, with all four rigs subsequently focused on Wolf Vein step-outs targeting structural intercepts where mineralization widens with higher-temperature alteration signatures.

Current drilling prioritizes aggressive westerly step-outs from the 120-meter extension achieved in hole DV24-421, which intersected the previously reported high-grade silver, lead, and zinc mineralization. Alteration and structural studies support the interpretation that Wolf vein mineralization strengthens toward the southwest as it approaches the basin-bounding fault system connecting to the Torbrit Silver Deposit.

The Moose Vein program, located 1.5 kilometers north of Wolf, targets down-plunge mineralization projections building on 2023 results from hole DV23-371, which intersected 712 g/t silver over one meter within a broader 7.55-meter interval grading 269 g/t silver. Red Point drilling steps out from hole DV24-400's intersection of 21.10 g/t gold over 0.50 meters within a 20.15-meter zone averaging 0.79 g/t gold.

Strategic Implications

The May 2025 acquisition campaign fundamentally transformed Dolly Varden's strategic position from a focused single-project explorer to a district-scale consolidator controlling over 100,000 hectares across multiple mineralization styles in the Golden Triangle. The expanded portfolio provides exposure to epithermal silver-gold systems, porphyry copper-gold targets, and volcanogenic massive sulfide prospects, reducing single-asset risk while maintaining focus on precious metals within a proven geological district.

Infrastructure advantages position the consolidated land package strategically, with road access to multiple properties, proximity to Stewart's deep-water port, and accessibility to Ascot's recently completed Premier mill. This infrastructure connectivity creates optionality for future development scenarios and potential toll processing arrangements, reducing traditional Golden Triangle development risks associated with remote locations and limited processing capacity.

The partnership with Hecla Mining strengthens through increased ownership and technical collaboration, providing access to a major mining company's expertise while maintaining Dolly Varden's operational control. Hecla's representation on the Technical Committee facilitates knowledge transfer and strategic guidance across the expanded project portfolio, particularly valuable given the company's extensive Golden Triangle experience.

Financial structure changes through share issuances totaling approximately 2.1 million shares across all transactions represent manageable dilution relative to the asset value acquired, while maintaining strong balance sheet position to fund the expanded exploration mandate. The royalty structures on acquired properties provide vendors with ongoing exposure to potential discoveries while preserving Dolly Varden's development optionality through buyback provisions.

Forward Outlook

• Drill results from the 35,000-meter program expected throughout summer and fall 2025, with priority announcements from Wolf Vein step-outs and Homestake Silver expansion drilling
• Resource update potential for Wolf and Homestake deposits following completion of infill and step-out drilling programs, supporting future development studies
• Exploration results from newly acquired properties expected in late 2025, including initial drilling programs on American Creek and systematic evaluation of Porter Project expansion potential
• Regulatory approvals pending for remaining MTB Metals transaction completion expected by end of May, finalizing the strategic consolidation initiative
• Integration of acquired property databases and geological models throughout 2025 to identify district-scale targets and optimize future drilling allocation across the expanded portfolio

Dolly Varden Silver's May 2025 activities represent a disciplined consolidation strategy that fundamentally repositioned the company within the Golden Triangle exploration landscape. The systematic acquisition of over 80,000 additional hectares for $6.6 million in share consideration demonstrates effective capital allocation, securing district-scale land control at relatively modest cost while maintaining financial flexibility for aggressive exploration. The concurrent launch of a substantial 35,000-meter drill program across multiple high-grade targets positions the company to capitalize on its expanded asset base, with near-term catalysts spanning the remainder of 2025 that could significantly enhance the investment proposition for natural resource investors seeking leveraged exposure to precious metals discovery in a proven geological district.