DOLLY VARDEN SILVER CORPORATIONA Young Silver Company Holds 100% of a Major British Columbia Property with Eskay Creek Gold-Silver Potential November 10, 2012
FORWARD LOOKING INFORMATIONCertain of the statements and information herein constitute “forward-looking statements” or “forward-looking information. Anystatements 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” orvariations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or beachieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may beforward-looking statements or information. Forward looking statements or information relate to, among other things: theCompany’s business objectives and plans.Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factorsthat could cause actual events or results to differ from those reflected in the forward-looking statements or information,including, without limitation, the need for additional capital by the Company through financings, and the risk that such fundsmay not be raised; the speculative nature of exploration and the stages of the Company’s properties; the effect of changes incommodity 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 thefactors that may affect any of the Company’s forward-looking statements or information. Although the Company has attemptedto identify important factors that could cause actual results to differ materially, there may be other factors that cause results notto be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-lookingstatements or information.The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinionsof management as of the date hereof, and other than as required by applicable securities laws, the Company does not assumeany obligation to update forward-looking statements and information if circumstances or management’s assumptions, beliefs,expectations or opinions should change, or changes in any other events affecting such statements or information. Paul McGuigan, P Geo, V.P. of Exploration has reviewed and approved the content contained in this presentation.
Past-producing silver mine withPrecious metal-rich Eskay Creek potential
Two strategies for creating value• Confirm and expand historic silver resources with the goal to define 40 to 50 million ounces of Silver and re-activate the historic Dolly Varden silver mines, in northwestern BC• Explore a major untested Eskay Creek-type gold & silver target at Dolly Varden (Eskay Creek production of 3.6 million oz. Gold, 180 million oz. Silver)• Management team and a strategic partner are experienced in both Eskay Creek-type exploration and re-activating past producing mines
Experienced Management & Board of Directors John King Burns • Former CFO of Drexel Burnham Lambert Commodity Group Chairman • Former managing director of Barclays Metals Group • 30+ years of extensive capital markets and resource sector experience Ron F. Nichols, P Eng. . • 30+ years (20 years with Cominco) of exploration and development President & CEO experience including Valley Copper and Snip Mines in BC • Recently re-started Ag-Cu-Pb-Zn La Negra Mine, Mexico and silver Shafter Mine, Texas Paul J. McGuigan, P Geo. . • Principal of Cambria Geosciences Inc., formerly with Esso Resources VP Exploration • 35+ years of experience in mineral exploration and mining operations • Active in BC exploration since 1974 Allen Ambrose, P Geo. . • 30+ years of exploration and mining experience Director • Co-discoverer of Brisas del Cuyuni gold deposit • Director/Co-founder of multiple resource companies incl. Minera Andes Allan Marter • 30+ years experience as a Chartered Accountant and CFO of various Director mining companies, including 7 years as President of EURO Resources S.A. • Former Director of Minera Andes • Experienced in exploration, development and operational stages. Theo Sanidas • 10+ years of mining industry experience Director • Extensive capital markets background • Experience with M&A, financing and corporate restructuring activities
Capital structureDolly Varden Silver Corporation - TSX-V:DVIssued Common Shares 100,437,000 Options:- 500,000 @ $0.20 6,350,000 @ $0.25 750,000 @ $0.35 7,600,000 Warrants :- 5,000,000 @ $0.10 4,303,000 @ $0.15 793,000 @ $0.25 7,200 @ $0.40 10,103,200 Fully Diluted Shares O/S 118,140,200 Basic cash* $2.4 MM Market Cap (Basic @ $0.22/share) Approx. $22 MM * Cash position would increase by $3.016 million if all warrants and options exercised Project potential scope & size will allow company to create significant value
Strategic Partner – Hecla Mining Company • Acquired 20 million shares for a 19.9% interest • Hecla has the right to maintain their 19.9% interest • Hecla has right to nominate one person to the DV Board of Directors • Hecla will nominate one person to DV Technical Committee • Strong strategic partner with 100 years of silver mining experience • Flagship Greens Creek mine in same geologic setting as Dolly’s Precious Metal Rich VMS target creates synergies for exploration.
Dolly Varden – Solid Foundation % owned • property acquired in Spring 2011 • 9,400 hectares (94 Km2) • 2 historically active mines • 2 deposits with development • native land claims settled
Dolly Varden – Rich History M Oz Ag* • Historical production*Historical production • Well understood targets • Region with world-class projects • Experienced senior management
Dolly Varden – Rich History Eskay Creek Major nearby projects: Snip KSM • Eskay Creek (Barrick) Historic Production Brucejack - Snowfields 3.6MM oz Au + 180MM oz Ag Silbak Premier • Silback Premier (Ascot) Historic Production Dolly Varden 2.2MM oz Au + 44.2MM oz Ag BC Moly • Brucejack (Pretium) • KSM (Seabridge Gold) • BC Moly (Avanti) Surrounded by world-class projects
Located in the Stewart Complex Eskay Creek Hazelton Group Arc assemblage (green) KSM Brucejack Host to base and precious metal deposits 220M+ oz Ag produced historically Granduc Silbak-Premier 7M+ oz Au produced historically Wolf Torbrit typical mineralization for the region Dolly Varden / North Star Big Bulk BC Moly
World-class Gold - Silver VMS deposits with plus1 million oz. gold in production & reserves* Deposit Operator Country Tonnage Grade (M t) Au(g/t) Ag(g/t) Canadian VMS Deposits Eskay Creek Barrick Canada 2.5 44.4 2087.7 LaRonde Agnico Eagle Canada 43.5 4.2 52.1 Horne Noranda Mines Canada 54.3 6.1 13.0 Bousquet Agnico Eagle Canada 29.7 5.3 2.1 International VMS Deposits Hassai La Mancha Sudan 6.2 10.0 — Greens Creek Hecla USA - Alaska 11.2 4.2 560.9 Abyz Kazakhmys Kazakhstan 4.4 6.5 61.0 Boliden AB Boliden Sweden 8.3 15.1 48.3 Norton Mt. Morgan Australia 80.7 3.7 0.7 Goldfields *Dubé et al, Geological Survey of Canada
Excellent infrastructure – via Alice Arm • 2011 logistics base and camp built in the settlement of Alice Arm • Property is 30 Km from tidewater at Alice Arm • 30 Km from power grid • Access to rail and deepwater shipping • All-weather road access • 7 Km of existing underground development good logistics for rehabilitation, development and exploration
Foundation for Dolly Varden’s plansHistorical resource estimate*: Extensive exploration by5.7M oz. Ag Proven + Probable previous owners:8.8M oz. Ag PossibleThe qualified person has not done sufficient work to • 631 diamond drill holesclassify the Historical Estimates as current mineralResources or Reserves. Furthermore, the issuer is not • 44,090 meters of drillingtreating these Estimates as current Mineral Resourcesor Mineral Reserves. • 7 km underground*Derry Michener Booth & Wahl (1986) development • 1980’s Engineering studies on mine, mill,Purchase of Property for and tailings design$2.5 million translates intoAcquisition cost of $0.20 per oz. ofSilver extensively mapped by current management
Creating significant additional value Targeted exploration programs SILVER GOLD-SILVER Validation and expansion Identification of new, of historic silver major Eskay Creek-type resource estimates to 40 gold and silver deposits to 50 million oz.
“the best new mines are often found near old mines”
Historic mineral resources* (dilution at 10 – 16%) Location Historic Tonnes Silver Contained Resource Grade Silver Classification (g/t) (ounces) Dolly Varden Mine – (a) Proven & 42,638 754.3 1,034,000 Probable (P & P) North Star Mine – (b) P&P 128,437 401.5 1,657,867 Torbrit Mine – (c) Possible 786,531 312.0 7,889,700 Wolf No.1 Zone – (d) P&P 77,932 395.0 989,626 Wolf No.2 Zone – (e) P&P 218,512 285.9 2,008,839 Wolf No.2 Zone – (f) Possible 100,295 279.4 901,031 Total P&P 5,690,331 Possible 8,790,731 All cut off grades 171 g/t silver * Derry Michener Booth & Wahl (1986) See Note 4 and additional disclosure on Pg 15 Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, Canada Sept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR.
*Notes on Historic mineral resource estimates Comments: a: Skerl (1964) and Mann (1974) Dolly Varden Mine staff. Remaining resource blocks are in proximity to mined out stopes and downplunge extensions of mined out areas. b: Thompson & Pearson (1981) Derry Michener & Booth. Minimum mining width of 5 ft. No prior mining. c: Leigh & Thompson (1983) Derry Michener & Booth. Comprised of 18 zones. Most zones are in the hanging wall of the glory hole and mined out stopes of the 1959 operation. d: Thompson & Pearson (1981) Derry Michener & Booth. No prior mining. Tested by two levels of underground adits. e: Thompson & Pearson (1981) Derry Michener & Booth. No prior mining. Tested by three levels of undergound adits. f: Thompson & Pearson (1981) Derry Michener & Booth. No prior mining. Note 1: This resource estimate was prepared from incomplete old plans and sections, considerable verification drilling is required prior to placing reliance on this information. Note 2: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blocks with closely spaced drilling and bulk sampling data "Proven and Probable Reserves" and made allowances for mining operations and dilution. However, significant additional technical work is required. In the current terminology these blocks would be termed Measured and Indicated Mineral Resources, however, for the purposes of this Technical Report they are to be considered Geological Information only and subject to verification by drilling and sampling, prior to reclassification. Note 3: Historic Resource Classifications used in mineral resource estimates at the Dolly Varden deposits termed blocks with more widely spaced drilling "Possible Reserves". In the case of Torbrit, Thompson and Pearson (1981) reduced the confidence to Possible because the closely spaced drilling data must be subject to considerable check drilling. In the current terminology these blocks would be termed Inferred Mineral Resources, however, for the purposes of this Technical Report they are to be considered Geological Information only and subject to verification by drilling and sampling, prior to reclassification. Note 4: The Qualified Person has not done sufficient work to classify the Historical Estimates as current Mineral Resources or Mineral Reserves. Furthermore, the Issuer is not treating these Historical Estimates as current Mineral Resources or Mineral Reserves. *Notes from Geology and Mineral Exploration of the Dolly Varden Property, British Columbia, Canada Sept. 5, 2011, as revised. By Terry Garrow - Filed on SEDAR
Validation and expansion of*historic mineral resources Looking NNW Wolf Mine North Star Mine Torbrit Mine • 4 targets • Mineralization zones of 5-20m true widths Dolly Varden Mine • Potential for high grade silver at depth • Focus on Wolf, Dolly Varden, and Torbrit potential for mineral resource upgrade and expansion
Notes on Historic mineral resource Survey Branch* BC Geological estimates“the Dolly Varden deposits may be silver-rich analogues to the precious metal-rich Eskay Creek deposit” (Dunne and Pinsent (2002) of the BC Geological Survey Branch)
Areal Size Comparison to Eskay Creek*Dolly Varden feeder zone much larger than Eskay Creek feeder zone (shown at same scale)
1 Dolly Dolly Varden New VMS exploration target New VMS exploration target Varden Silver Silver Eskay Creek Deposit Model with comparable geological features at Dolly Varden vertical footwall feeders mineralize horizontal ocean-floor strata
VMS deposit identification* Looking NNW Wolf Mine Surprise 3D map-red zone • 5km strike length of strong feeder style Dolly Varden Mine alteration on the property • Potential for gold-silver VMS at depth beneath intense Red Point alteration zone potential for new Eskay Creek-type deposit
2012 exploration program completed*Dolly Varden Mine – Diamond Drilling • Oriented core - diamond drilling completed 6 drill holes for a total of 1,728 meters, during a weather shortened season. • Additional drill pads constructed for use next yearRed Point Surface Exploration • Surface mapping and sampling employed to gather lithogeochemical and trace element information on the Red Point alteration – feeder system • Historical diamond drill core recovered for further studiesSurface Exploration & Airborne Surveys • ZTEM + Magnetic Helicopter-borne geophysical surveys completed early October 2012 • Data delivery pending & Modeling underway on 2010 and 2012 Airborne programs • Geological mapping and sampling in Moose Lamb, area east of Torbrit: Extensive alteration and mineralization similar to nearby Torbrit discovered • Geological mapping and sampling in Surprise area, west of Wolf: a basis for further value creation
2012 exploration program completed*Torbrit Mine Rehabilitation • Underground access safely achieved for majority of 1025 level and upper sub- levels • Historical survey control re-established and transformed to 2012 survey base • Historical underground development & stoping data assembled and 3D modeled employing the 2012 survey base – guide to confirmation drillingTorbrit Mine Exploration & Permitting • Underground mapping and sampling done in selected areas • Surface diamond drill pads constructed for use in pending definition drilling phase • Environmental water sampling conducted with favorable good quality water discharge results on Torbrit underground • Rehabilitation of 1025 level and favorable water sampling results will allow for Permitting of underground development and diamond drilling a basis for further value creation
Torbrit Mine*2012 Underground Mapping and Sampling
2012 Exploration targets*Dolly Varden – Torbrit – Red Point
Dolly Varden to Torbrit – Longitudinal Section*
Use of Proceeds – Stage One Program*Dolly Varden 2012 Work Program BudgetRoad & Bridges - Km 1 to 24 $ 824,750.00Preparation & Mobilization $ 75,000.00Program Support & Logistics $ 1,018,000.00Geoscience Program $ 341,000.00Drill Program – 8845 meters $ 2,641,450.00Geotechnical & Environmental Program $ 298,000.00Road & Bridges - Km 24 to Torbrit $ 33,000.00Geotechnical & Environmental Program $ 172,800.00Airborne Geophysical Program $ 210,000.00Underground Rehab & Prep Work - Torbrit $ 950,000.00 Total Recommended Program: $ 6,564,000.00
2012-13 Objectives – Longer Term Milestones2012-2013 Objectives • Increase silver resources at Dolly Varden and Torbrit deposits by drilling down plunge of known Historic resource blocks. • Limited infill drilling and underground sampling to begin to convert Wolf historic resources, and 2011 drill results to 43-101 compliant categories. • Refine Eskay target on Redpoint with geochemistry, alteration studies and geophysics (VTEM) prior to drill testing (minimum 3 holes in 2012)Longer Term Milestones (success contingent) • SILVER MINERAL RESOURCES: Increase Historic resources at all 4 deposits from current 14 million ounces to 45 to 50 million ounces of NI 43-101 compliant resources. • ECONOMIC STUDIES: Success contingent on defining 45 million + ounces, initiate scoping & feasibility studies to determine the economic viability of a 1,000 to 1,500 tonne per day operation. • EXPLORE ESKAY TARGETS; Continue to develop Eskay targets towards discovery
Corporate Overview • Evaluating the re-start of historic Dolly Varden silver mines, BC • Exploring a major untested Eskay Creek-type gold and silver target • Senior management team is experienced in both Eskay Creek-type exploration and the re-activation of old mines • 2012-13 proposed diamond drill program of 8,900 m to confirm and expand silver resources and define and drill Eskay-type targets.
Corporate Overview Contact Information Dolly Varden Silver Corporation TSX-V:DV Suite 910 – 355 Burrard Street Vancouver, British Columbia, www.dollyvardensilver.com Canada, V6C 2G8 Tel: 778-383-3083 Toll free: 1-855-381-3530 Ron F. Nichols President, CEO & Director Direct line: 604-398-4345 Investor Relations Strata Star – Gary Lindsey Tel: 1-720-273-6224 Email: firstname.lastname@example.org