Dolly Varden Makes Another New High-Grade Silver Discovery and Confirms the Earlier Discovery with an Intercept of 6.72 Metres Grading 1,272 g/t Silver-Equivalent - Expands the 2017 Exploration Program Budget

VANCOUVER, Aug. 29, 2017 /CNW/ - Dolly Varden Silver Corporation (TSX.V: DV | U.S.: DOLLF) (the "Company" or "Dolly Varden") is pleased to announce results from drilling on the Dolly Varden Silver Project in the Golden Triangle of northwestern British Columbia. Hole DV17-063 was drilled in the Central Sector and hit two zones of high-grade silver. Furthermore, the Board of Directors has approved an expansion to the 2017 exploration program budget from $3.5 million to $6.5 million.

Hole DV17-063 was drilled to test the position of the Moose-Lamb Fault and to continue down to the area of the high-grade silver hit in the Dolly Varden-Torbrit Horizon (DVTH), previously announced in hole DV17-058 (news release dated 14 August 2017). Along the projection of the Moose-Lamb Fault, hole DV17-063 intersected epithermal vein-style mineralization and further down the hole intersected the VMS-style mineralization of the DVTH. This location of the DVTH is 220 metres north and 200 metres deeper than the north side of the Torbrit Deposit.

Hole DV17-063 - Moose Zone yielded a core length of 11.00 metres (7.07 m true thickness) grading Ag 394.2 g/t, Pb 2.27 % and Zn 0.46 % for a silver-equivalent of 514.2 g/t. Within this zone interval is 4.00 metres (2.57 m true thickness) grading Ag 987.5 g/t, Pb 5.90 % and Zn 0.90 % for a silver-equivalent of 1,283.8 g/t.

The Torbrit North Zone of hole DV17-063 yielded a core length of 22.74 metres (21.37 m true thickness) grading Ag 433.3 g/t, Pb 0.74 % and Zn 0.22 % for a silver-equivalent of 476.1 g/t. Within this Torbrit North Zone interval is 7.15 metres (6.72 m true thickness) grading Ag 1,180.7 g/t, Pb 1.83 % and Zn 0.26 % for a silver-equivalent of 1,271.9 g/t.

"These drill results confirm the very high silver grades of the new discovery north of Torbrit and add an additional discovery along a major fault. Expansion of the exploration program is definitely warranted," said Gary Cope, President and CEO of Dolly Varden.

The Moose-Lamb Fault is a syn-basinal structure, striking northwest-southeast and dipping steeply to the southwest. The DVTH is a horizon of VMS (volcanogenic massive sulphide) type, with jasper and barite enriched near the top and sulphides with smoky quartz present in the lower portions.

At the end of July, the 2017 exploration program was ahead of schedule, had drilled more metres than planned and was on budget. A proposal to expand the exploration budget by a further $3 million and increase the drilling to greater than 12,000 metres was approved by the Board.

A drill hole location map of the Mine and Central Sectors area is posted on the Dolly Varden Silver Corporation website at www.dollyvardensilver.com

About Dolly Varden

Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. Dolly Varden has two projects, the namesake Dolly Varden silver property and the nearby Big Bulk copper-gold property. The Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other, on-trend, high-grade deposits (Eskay Creek, Brucejack). The Big Bulk property is prospective for porphyry and skarn style copper and gold mineralization similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

The current mineral resource estimate at Dolly Varden, effective date August 27, 2015, consists of four deposits with an Indicated Resource of 3.07 million tonnes grading 321.6 g/t Ag, for 31.8 million ounces of silver, plus an Inferred Resource of 0.9 million tonnes grading 373.3 g/t Ag, for 10.8 million ounces of silver. These resources were estimated at a cut-off grade of 150 g/t Ag. For more details, please refer to a NI 43-101 compliant Technical Report filed on www.sedar.com and on the Company's website.

Ben Whiting, P.Geo., Vice President of Exploration and Robert van Egmond, P.Geo., Chief Geologist for Dolly Varden, serve as 'Qualified Persons' under National Instrument 43-101, and have approved the scientific and technical information contained in this news release.

The Company's Common Shares are listed and traded on the TSX.V under the symbol "DV" and on the OTCBB system under the symbol "DOLLF".

FORWARD-LOOKING STATEMENTS:

This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Dolly Varden to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, the results of previous field work and programs and the continued operations of the 2017 program, interpretation of the nature of the mineralization at the project and that that the mineralization on the project is similar to Eskay and Brucejack, results of mineral resource estimate on the project, the potential to grow the project, the potential to expand the mineralization, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief about the unexplored portion of the property. These forward-looking statements are based on management's current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

Note: Mineral resources are not mineral reserves, thus have not demonstrated economic viability.

For additional information on risks and uncertainties, see the Company's most recently filed annual management discussion & analysis ("MD&A"), which is available on SEDAR at www.sedar.com and on the Company's website at www.dollyvardensilver.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

SOURCEDolly Varden Silver Corp.

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