Alexco Resource Sells Percentage of Keno Hill's Silver Production to Silver Wheaton

Alexco Resource Corp. entered into a silver purchase agreement with Silver Wheaton Corp. on October 2, 2008, under which Silver Wheaton will purchase 25 per cent of the life of mine silver produced by Alexco from its Keno Hill Silver District in Canada's Yukon Territory.

Alexco will receive an up-front deposit payment from Silver Wheaton of US$50 million, plus a further payment of the lesser of US$3.90 (increasing by 1 per cent per annum after the third year of full production) and the prevailing market price for each ounce of silver delivered.

On December 23, 2008, the first US$15 million of the up-front payment was received, and the remaining US$35 million will be paid on a monthly draw-down basis to build out the Bellekeno mine infrastructure and processing facility, commencing once Alexco has made a positive development decision and subject to certain other conditions.

Alexco was advised in this transaction by Josh Lewis of Fasken Martineau DuMoulin LLP. Gareth Howells and Grant Macdonald of Macdonald & Company in Whitehorse acted as Yukon counsel to Alexco.

Erik Goldsilver and Bruce Bell of Cassels Brock & Blackwell LLP acted for Silver Wheaton and Paul Lackowicz of Lackowicz Shier & Hoffman in Whitehorse acted as Yukon counsel for Silver Wheaton.