Dolly Varden Silver Corporation (TSX-V: DV) (OTCQX: DOLLF) is pleased to announce the closing of the second and final tranche of its previously announced bought deal financing for additional gross proceeds of $4,500,000 from the issuance of 3,600,000 FT Shares (as defined below). The aggregate gross proceeds to the Company from the completion of the Offering (including the gross proceeds raised from the completion of the first tranche of the Offering on September 4, 2024) is $32,200,000, from the issuance of:

1. 11,500,000 common shares of the Company at a price of $1.00 per Common Share for gross proceeds of $11,500,000, issued under a prospectus supplement dated August 21, 2024 to the Company’s final short form base shelf prospectus dated April 25, 2023, including the full exercise of the over-allotment option under the Prospectus Offering; and
2. 16,560,000 Common Shares that qualify as “flow-through shares” within the meaning of subsection 66(15) of the Income Tax Act (Canada) at a price of $1.25 per FT Share for gross proceeds of $20,700,000, on a bought deal private placement basis, including the full exercise of the over-allotment option under the Private Placement Offering.

The Offering was completed on a bought deal basis pursuant to an underwriting agreement dated August 21, 2024 between the Company and a syndicate of underwriters co-led by Research Capital Corporation, as co-lead underwriter and sole bookrunner, and Haywood Securities Inc., as co-lead underwriter, and including Raymond James Ltd. Eventus Capital Corp. is a special advisor to the Company.

The net proceeds from the sale of Common Shares will be used for working capital and general corporate purposes. The gross proceeds from the sale of FT Shares will be used for further exploration, mineral resource expansion and drilling in the combined Kitsault Valley project, located in northwestern British Columbia, Canada, or any other eligible Canadian property of the Company, as well as for working capital as permitted, as Canadian Exploration Expenses as defined in paragraph (f) of the definition of “Canadian exploration expense” in subsection 66.1(6) of the Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Tax Act that will qualify as “flow-through mining expenditures” and “BC flow-through mining expenditures” as defined in subsection 4.721(1) of the Income Tax Act (British Columbia), which will be incurred on or before December 31, 2025 and renounced with an effective date no later than December 31, 2024 to the initial purchasers of FT Shares.

The FT Shares issued pursuant to the closing of the second tranche of the Private Placement Offering are subject to a hold period in Canada expiring on January 28, 2025. The Common Shares issued pursuant to the Prospectus Offering are not subject to a statutory hold period.

In connection with the closing of the second tranche of the Offering, the Underwriters received a cash fee equal to $225,000, representing 5.0% of the gross proceeds of the second tranche of the Private Placement Offering.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.

About Dolly Varden Silver Corporation

Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also contains the Big Bulk property which is prospective for porphyry and skarn style copper and gold mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).