Dolly Varden Silver Closes $34 Million Bought-Deal Financing

On October 23, 2025, Dolly Varden Silver announced the closing of its previously announced bought-deal private placement, raising total gross proceeds of $33,973,000. This represents an upsize from the initially announced $30 million financing on October 1, 2025.

The financing consisted of three tranches: - 2,906,000 common shares at a price of $6.50 per share for gross proceeds of $18,889,000. - 750,000 charity flow-through shares at a price of $9.42 per share for gross proceeds of $7,065,000. - 990,000 flow-through shares at a price of $8.10 per share for gross proceeds of $8,019,000.

The proceeds from the flow-through shares will be used for exploration, mineral resource expansion, and drilling at the company's Kitsault Valley project. The proceeds from the common shares will be used for working capital and general corporate purposes.

The closing of this upsized financing is a materially positive event. It provides the company with a substantial treasury, removing any near-term financing risk and fully funding its aggressive exploration strategy well into 2026.

The financing was strategically announced on October 1, the same day the company released exceptional drill results from the Homestake Silver deposit (120m of 3.34 g/t Au). The ability to upsize the deal from $30M to nearly $34M indicates very strong investor demand, validating the market's positive reception of the company's recent exploration success and corporate strategy.

While the common share price of $6.50 represented a ~9% discount to the market price at the time of announcement, the stock has since pulled back to $6.00. This places the financing price above the current market price, which could create a short-term price ceiling. However, the key takeaway is that the company's treasury is now robust, with approximately $86.5M in cash (pro-forma based on the June 30, 2025 cash balance of $52.5M plus the $34M raise). This allows management to focus entirely on executing its exploration plans, particularly on analyzing the results from the recently completed 56,000-metre drill program.

The financing solidifies Dolly Varden's position as one of the best-funded junior explorers in the Golden Triangle.

Dolly Varden Silver is a mineral exploration company focused on its 100%-owned Kitsault Valley Project, located in the prolific Golden Triangle of British Columbia, Canada. Through a series of acquisitions in 2025, the company has consolidated a district-scale land package of approximately 100,000 hectares. The project hosts five past-producing, high-grade silver mines (including Dolly Varden and Torbrit) and two advanced-stage precious metal deposits: the silver-rich Wolf Vein and the gold-rich Homestake Silver deposit. The company's strategy is to aggressively explore and expand these known deposits while testing large-scale targets, such as the Big Bulk copper-gold porphyry system.