July 21, 2021

Dear Silver Investor,

With the commencement of drilling on the Dolly Varden Silver Project we thought now would be a great time to update you on the progress we have made and our plans for this year.

Since taking over as CEO in January of 2020 a lot has changed in the world and for Dolly Varden Silver.

Despite the logistical challenges of the pandemic, last year Dolly Varden Silver was able to complete more than its 10,000 metre budgeted drill program.

With the silver price hitting a new eight-year high at $30 US, Dolly Varden’s share price and market capitalization have increased substantially which is attributable to the value and leverage our 100% silver resource provides investors.

In addition, we believe our project’s safe jurisdiction will likely become an increasingly important factor for investors in the years to come and therefore demand a higher premium in the market.

In 2020 we were able to raise greater than $26 million and I am happy to report the company presently has $22 million in cash which is expected to support our objectives for the next 24 months.

While in recent months the price of silver and our share price have both corrected, we believe in growing demand of silver due to its incredible properties required in industry as the most reflective, most electrically conductive, and most thermally conductive metal.

We are pleased to report the company has worked hard to accomplish the following since the beginning of 2020:

  • New management, director, and advisors
    • Shawn Khunkhun, CEO
    • Ann Fehr, CFO
    • Robert McLeod, Director and Technical Advisor
    • Ryan Weymark, Technical Advisor
    • Jodie Gibson, Technical Advisor
  • >$26 million raised through private placement financings
  • Eric Sprott became a 19.9% shareholder through private placements
  • Hecla Canada maintained its 11% ownership by continuing to participate in financings
  • Acquired strategic surface rights on tidewater at Alice Arm, BC
  • 2020 drilling included 11,397 metres in 40 holes with two drill rigs
  • 2020 drill highlights include:

Step-out holes at Torbrit

  • DV20-211: 351 g/t silver over 12.75 metres, including 1083 g/t silver over 2.70 metres
  • DV20-213: 135 g/t silver over 37.50 metres, including 906 g/t silver over 1.00 metre
  • DV20-222: 204 g/t silver over 15.55 metres,including 310 g/t silver over 6.00 metres

Infill holes at Torbrit

  • DV20-217: 302 g/t silver over 31.95 metres,including 642 g/t silver over 4.00 metres
  • DV20-244: 304 g/t silver over 45.82 metres, including 648 g/t silver over 6.06 metres (expanded mineralization vertically)
  • DV20-246: 306 g/t silver over 5.10 metres, including 1,290 g/t silver over 0.60 metre

With global economies expected to open further and extraordinary monetary policy causing negative real interest rates we are excited about the potential for silver prices in the next 12-18 months.

Our field work this season is well underway and includes:

  • Budgeted 10,000 metre drill program with 50% on resource expansion/upgrading and 50% on exploration, including:
    • Expansion drilling to discover mineralization at the Torbrit mine along with infill drilling to upgrade existing resources from inferred to measured and indicated classifications
    • Drilling new targets on the Western and Southern Gold Belts

We at Dolly Varden Silver look forward to reporting the results from our 2021 drill program in the coming months.

Best regards,

Shawn Khunkhun