December 1, 2022

Dear Shareholders, Stakeholders and Friends of Dolly Varden Silver,

First off, I would like to thank our shareholders for the company’s strong performance in 2022 and would like to highlight Dolly Varden Silver’s robust financial position and why this will enable another successful year for the company in 2023. The recently concluded financing of C$22.6M which included participation from our key strategic corporate investor Hecla Mining, is a testament to the strong technical opportunities in our assets and commitment from shareholders to the company and the highly prospective project. With a robust $28M in the treasury, we will be putting $21M of that directly in the ground towards exploration in 2023. This strong cash position is unique in comparison to many of our peers and separates us from the pack, as we are fully funded for all exploration expenditures in the coming year. In addition to our fully funded 2023 exploration program, it is important to note that we have drill assays pending for over 50 holes and that we anticipate beginning reporting very soon.


We are in one of the richest and most prospective camps on the planet, and I believe we have only identified the low hanging fruit of our assets and are in pursuit of the much larger potential system that is feeding the existing resources we have currently outlined. Utilizing modern exploration, consolidating the system, and pairing this with our highly skilled technical exploration team, I believe we have everything we need to uncover this world-class potential. This is further evident by our first season results at Homestake which have yielded significant high-grade drill assays, increasing our confidence in both grade and continuity and enabling us to guide future drilling and exploration.  The results we have reported to date have exceeded our high internal expectations in multiple parts of the property. Starting at Torbrit, the large high-grade past producing silver mine on the property continues to show expansion potential highlighted by our 50 meters of 414 g/t silver that was reported outside the existing resource.  The acquisition of Homestake was firmly validated when we released 27 g/t gold and 463 g/t silver over 9 meters and it has generated new exploration targets that are wide open for expansion. The most impressive part of the reported 2022 drill results in my opinion have come from our highly successful and ambitious step out program at Wolf. Not only are we hitting down plunge, 19 meters of 584 g/t silver, we are also hitting down dip 412 g/t silver over 12 meters. Results to date at Wolf have more than doubled the strike length of the deposit as well as extending high-grade silver mineralization over 750 meters down dip. With over half our drill holes to report in Q1 we eagerly await their release to market and are keen to follow on what has been the most successful exploration season in the history of the company.

Best regards,

Shawn Khunkhun