Dolly Varden Silver Corporation Announces Closing of Financing and Warrant Exercises

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2013) -

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Dolly Varden Silver Corporation ("Dolly Varden" or the "Company") (TSX VENTURE:DV)(OTCBB:DOLLF) is pleased to announce that it has completed its non-brokered private placement previously announced on December 28, 2012 (the "Flow-Through Financing"). The Company raised $532,000 through the issue of 2,660,000 flow-through common shares of the Company.

The Company is also pleased to announce that, as of January 7, 2013, an aggregate of 1,910,000 Dolly Varden warrants were exercised for gross proceeds to the Company of $286,500.

Pursuant to the ancillary rights agreement between the Company and Hecla Canada Ltd. ("Hecla"), in connection with the Flow-Through Financing and the warrant exercises, Hecla has exercised its pre-emptive right to maintain its pro rata 19.9% interest in the Company and will acquire 662,508 flow-through common shares of the Company and 475,711 common shares of the Company for aggregate gross proceeds to the Company of $208,615. The price for the flow-through common shares to be issued to Hecla is $0.20 per share, based on the offering price under the Flow-Through Financing, and the price for the common shares to be issued to Hecla is $0.16 per share, based on the Discounted Market Price (as defined in the policies of the TSX Venture Exchange) of the Company's common shares on the date of exercise of the warrants.

Pursuant to the Flow-Through Financing, finders received aggregate cash commissions of $47,349 and also received an aggregate of 212,800 finder's warrants. Each finder's warrant is exercisable at $0.20 per share until December 28, 2014.

All of the shares issued under the Flow-Through Financing and the exercise of Hecla's pre-emptive right are subject to four month statutory hold periods from the date of issue in accordance with applicable Canadian securities laws.

The proceeds of the Flow-Through Financing, exercise of warrants and exercise of Hecla's pre-emptive right will be used to advance the exploration and development of the Company's Dolly Varden Silver project in British Columbia and for general working capital.

About Dolly Varden

Dolly Varden Silver Corporation is a Canadian based mineral exploration company focused on the exploration and development of the Dolly Varden Silver project located in northwestern British Columbia. The Company's common shares are listed and traded on the TSX-V under the symbol DV and in the U.S. under the symbol DOLLF. The Dolly Varden Silver project consists of 9,400 hectares which includes four well defined high grade silver deposits, two of which have seen historic production totaling 20 million ounces. All four deposits have remaining historic silver resources and are situated in the same geologic setting as the past-producing Eskay Creek deposit. The Company has two strategies for creating value at the Dolly Varden Silver project: to confirm and expand the existing historic silver resources with the goal to re-start the historic deposits; and to explore a major untested Eskay Creek-type gold and silver rich VMS target at the Dolly Varden Silver project.

FORWARD-LOOKING STATEMENTS:

Certain of the statements and information in this press release constitute "forward-looking statements" or "forwardlooking information" Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "believes", "plans", "estimates", "intends", "targets", "goals", "forecasts", "objectives", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward looking statements or information related to, among other things the proposed use of proceeds by the Company.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, need for additional capital by the Company through financings, and the risk that such funds may not be raised; the speculative nature of exploration and the stages of the Company's properties; the effect of changes in commodity prices; regulatory risks that development of the Company's material properties will not be acceptable for social, environmental or other reasons and the efforts and abilities of the senior management team. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.

The Company's forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information.