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June 13, 2016 – Vancouver, BC: Dolly Varden Silver Corporation (TSX.V: DV | U.S.: DOLLF) (the “Company” or “Dolly Varden”) announces that it has entered into definitive agreements for new senior secured term loans with three lenders, Sprott Resource Lending Partnership, an additional Sprott affiliate, and The K2 Principal Fund L.P. (collectively, the “New Lenders”). These loans (collectively, the “New Loan”) will provide an aggregate of CDN$2,500,000 in funds to the Company. Approximately $2,100,000 of the proceeds will be used immediately to repay the Company’s existing senior secured loan (the “Old Loan”) from Hecla Canada Ltd. and Robert L. Gipson (together, the “Prior Lenders”). Any excess proceeds of the New Loan will be used to pay the finder’s fee (described below) and for working capital purposes. Unless required earlier by the Prior Lenders, the Company expects that on or about June 28, 2016, the Old Loan will be repaid in full and the Company will receive the excess proceeds from the New Loan.

“The decision for this new loan was made after very careful consideration. The new short-term lending facility pays off the Company’s existing loan and bears a lower interest rate but, most importantly, it allows us greater flexibility for loan repayment. Our goal is to become debt free so that we can focus on value creation for all stakeholders through exploration of the Dolly Varden silver project. We are extremely grateful for the support of our new lenders,” said Rosie Moore, Director and Interim CEO and President of Dolly Varden.

On Sept 30, 2015, Dolly Varden entered into a credit agreement for the Old Loan for up to CDN$2,000,000, which amount was fully drawn. The Old Loan bears interest at an annual rate of five percent (5%), has a term of one year, to October 1, 2016 and, under certain circumstances, is prepayable with no penalty. The Old Loan will be repaid in full from the proceeds of the New Loan after the required notice period, unless requested earlier by the Prior Lenders.

The New Loan will be secured and will bear interest at a rate of four percent (4%) per year. Repayment of the New Loan is due in six (6) months and the New Loan may be prepaid at any time, with no penalty. In connection with the New Loan a total of 2,500,000 warrants (“Warrants”) will be issued to the New Lenders within five business days of the Company receiving the proceeds of the New Loan. Each Warrant will entitle its holder to purchase one common share in the capital of Dolly Varden for a period of two years for a price equal to the greater of CDN$0.30, or the minimum price permitted by the TSX Venture Exchange on the date of issue.

In connection with the New Loan, the Company entered into a finder’s fee agreement with Eventus Capital Corp. pursuant to which the Company has agreed to pay a finder’s fee of 2.5% on the portion of the New Loan principal sourced by New Lenders introduced by the finder to the Company. The finder’s fee will be paid in cash from the proceeds of the New Loan.

“We wish to thank Hecla Canada Ltd. and Robert L. Gipson for their support, especially during 2015 which was a very difficult year for Dolly Varden and the junior minerals market in general. The funds provided under the Old Loan were a lifeline that allowed the Company to undertake exploration activities in 2015, which discharged the Company’s flow-through obligations. We sincerely hope that both will remain supportive shareholders of Dolly Varden as we strive to create value for all stakeholders,” concluded Rosie Moore.

About Dolly Varden – Dolly Varden Silver Corporation is a mineral exploration company focused on the exploration of the Dolly Varden silver property located in northwestern British Columbia, Canada. The entire Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other, on-trend, high-grade deposits (Eskay Creek, Brucejack). The Company’s common shares are listed and traded on the TSX Venture Exchange under the symbol DV and on the OTCBB system under the symbol DOLLF.

FORWARD-LOOKING STATEMENTS:
This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, the successful negotiation of definitive Loan documents, the approval of the New Loan and Warrants by securities and regulatory authorities, the issuance of the Warrants, the availability of funds under the New Loan, the draw down on the New Loan, the use of proceeds of the New Loan and the Company’s plans for further exploration. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

For additional information on risks and uncertainties, see the Company’s most recently filed annual management discussion & analysis (“MD&A”), which is available on SEDAR at www.sedar.com and on the Company’s website at www.dollyvardensilver.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information:
Dolly Varden Silver Corporation
Rosie Moore, Director and Interim CEO & President
1-604-925-5881 or 1-604-512-1277
www.dollyvardensilver.com

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