The Dolly Varden property contains the Dolly Varden and Torbrit Mines that were significant silver producers until 1959. Additional historic mineral resources have been delineated and developed underground at the North Star and Wolf Mines. These mines lie in similar Jurassic volcanic and sedimentary strata to the Eskay Creek deposit that is located 120 km NNW of the Property. Government and academic studies have shown that the geologic setting at Dolly Varden is the silver-rich analogue to Eskay Creek (Dunne and Pinsent, British Columbia Ministry of Energy, Mines and Petroleum Resources, Paper 2002-1).

2011 Diamond Drilling Program

The goal of the 2011 drilling was to confirm and seek extensions to the Wolf mine silver deposit. Drilling mostly focused on the westerly and downdip extensions of the Wolf No. 2 deposit, beyond the area of historic mineral resource estimates, as reported in the most recent NI 43-101 report (Garrow, 2011 as filed on SEDAR). Also targeted were strata in the hanging wall of the No. 2 deposit for precious metal mineralization similar to Eskay Creek.

Significantly, the Company’s 2011 program at the Wolf has intersected two styles of silver mineralization in close proximity to each other (the Length cited in Tables 1 & 2 are core lengths-the true thickness is not known):

1. At the Wolf No. 2 Zone, a sub-vertical, NNE trending, high-level feeder vein system, cross-cuts the local stratigraphy. In its central portion, it is composed of wide, well-banded and brecciated quartz-carbonate-barite-sulphide-rich stockwork vein, which includes native silver, ruby silver, galena, sphalerite, tetrahedrite and possibly argentite. Results for this style of mineralization are summarized in Table 1.
2. In the hanging wall of No. 2 Zone, mineralized hydrothermal eruption breccias, and sulphide debris flows, and sulphide replacements in heterolithic volcanic breccia are conformable to the local sedimentary and volcanic strata. See Table 2.

Drilling in diamond drill holes 116 to 118 and 120 targeted the area of the known No. 3 vein area; however, only low-grade silver mineralization was intersected.

Assays of the 2011 core samples were performed by ACME Analytical Laboratories Ltd., Vancouver, B.C. Native silver is relatively abundant, therefore, silver was assayed by screening and assaying for metallics at plus 200 mesh, followed by fire assay on a 30g sub-sample of minus 200 mesh. Base metals were analyzed by ICP-MS using a 4 acid digestion. All samples were check-assayed using a 50g sub-sample with a gravimetric finish, with exceptionally good agreement. A quality control program of blanks, duplicates and standards was fully implemented.

Data verification of historical technical information was supervised by the Company’s QP. The location of historical location survey stations, underground development, drilling collars and mineral resource blocks were verified by surveyors from McElhanney Land Surveys Ltd.

Geological Setting

Jurassic-age intermediate to mafic volcaniclastic rocks of the Betty Creek Formation, Hazelton Group host the bulk of the silver mineralization at the Wolf deposit. Mineralization occurs in three main, north north-east-oriented tabular bodies – labeled the No. 1, 2, and 3 Zones. These have been exposed by previous underground mine development on up to five levels. Host lithologies include large volumes of epiclastic tuffaceous breccias and sandstones, with lesser volumes of argillaceous tuffs, heterolithic volcanic conglomerate, and crystal ash to lapilli tuff. Bedded argillaceous silt and sandstones belonging to the Salmon River Formation overlie the volcaniclastic rocks in close proximity to the Wolf mine.

Exploration guidelines on the Property target an Eskay Creek type deposit that is a striking example of a class of high-sulphidation VMS deposits that form near sub-aqueous hot-spring vents where base and precious metal-rich hydrothermal fluids exhale onto the seafloor under shallow depths of seawater. At the Eskay Creek deposit, stratiform (bedded) layers of precious metal-rich chemical sediments and massive sulphides accumulate near vent areas and become the source for clastic sulphide debris in adjacent areas. The bedrock in the vent areas are underlain by precious metal rich feeder veins, stockwork veins and strong alteration.

These two mineralization styles have now been documented at the Wolf Mine for the first time and show striking similarities to the precious metal mineralization types at Eskay Creek mine. In addition, the presence of silver-bearing mineralization at the sediment – volcanic contact at Wolf implies that hydrothermal activity overlaps the deposition of the Jurassic age Betty Creek and Salmon River Formations, a key similarity to Eskay Creek.

Sulphide fragments and quartz-rich, hydrothermal breccia clasts are present in the overlying sandstone, volcanic conglomerate and tuffaceous rocks located in vicinity to the main mineralized zones. This indicates erosion of previously deposited mineralization and that hydrothermal activity was concurrent with deposition of the hanging wall volcaniclastic host rocks. These discoveries lend support to the shallow sub- aqueous hot spring deposit model described above and provide very promising exploration targets for the upcoming 2012 drilling season.

President’s Message

Ron Nichols, President, CEO, states that he is pleased and encouraged by the positive results that were produced from the fall season of drilling. “The results from the Wolf #2 zone are in keeping with the historical grades and widths reported from historic programs. The 2011 drilling was focused mainly on extending drill coverage below the known historical resource blocks, and have the potential to add significantly to the total silver resource at the Wolf. We intend on compiling our recent results with the historic information as a first step towards commissioning an NI 43-101 resource estimate for the Wolf deposit.” It is also exciting to discover evidence from the 2011 drill program that mineral deposit forming processes similar in style to the Eskay Creek deposit were at work in the Wolf area. Our plans for 2012 are to move forward on both of our stated objectives:

1. To expand and confirm the historical silver mineral resources principally from additional testing at Wolf and Torbrit.
2. To continue our exploration over several other targets areas, towards identifying an Eskay Creek style deposit.

About Dolly Varden Silver Corporation

Dolly Varden Silver Corporation controls a total 9,374 hectares of mineral tenures in the Upper Kitsault Valley, located 40 kilometers southeast of Stewart B.C. The property covers an historic area which has reported production of 20 million ounces of high-grade silver from two deposits, the Dolly Varden and Torbrit mines. Two other silver deposits, the North Star and Wolf have been outlined by diamond drilling and underground development, but have not yet seen production.

A NI 43-101 compliant technical report on the property is filed on SEDAR and provides additional detail on the geologic potential of the Company’s property.

Paul McGuigan, P.Geo., Vice President of Exploration, has acted as the Qualified Person as defined in National Instrument 43-101 for this disclosure and has approved the technical information contained in this release.

Forward-Looking Information

Certain of the statements and information in this press release constitute “forward-looking statements” or “forward-looking 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 relate to, among other things the Company’s business objectives.

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, the 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 if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.