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Dolly Varden Property, BC: Significant Silver Grades Intersected During Surface and Underground Exploration at the Torbrit and Dolly Varden Mines

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/08/13 -- Dolly Varden Silver Corp. (TSX VENTURE: DV)(OTCBB: DOLLF) (the "Company") is pleased to release the results of its fall 2012 Exploration Program on the Dolly Varden property (the "Property"), located near tidewater in northwestern BC, Canada. Access to the Property for the 2012 season was from a helicopter staging area 17 km upstream from the Company's Alice Arm exploration camp.

Subsequent to a strategic investment by a strategic investor in late August 2012, the Company combined the proceeds of a new financing with a portion of the Company's existing working capital and initiated a $3.5 million dollar exploration program. Beginning in mid-September 2012, the Company contracted for surface diamond drilling, underground sampling and a Geotech ZTEM airborne geophysical survey. Location of the surface trace of the silver-bearing stratabound zones of the Dolly Varden, North Star and Torbrit Mines is shown on the attached geological plan.

All assays, check re-assays and quality control results have now been obtained by the Company's geologists. Results are reported herein for the diamond drilling and underground sampling.

Geophysical and geological modeling is in progress and will be discussed in a later news release.

TORBRIT MINE: UNDERGROUND PROGRAM - SEPTEMBER-OCTOBER 2012

Rehabilitation of Torbrit Mine and Permitting

A crew of Company underground shift bosses and miners conducted a helicopter-supported program of scaling, debris clearing, re-timbering and track repair in October 2012. Access was achieved to the highest priority areas for geological mapping and sampling. Overall, rock conditions encountered in the Torbrit Mine were excellent, with little rock fall or loose rock conditions.

The Torbrit Mine is naturally drained by the 1025 Level haulage drive. Workings below, down to the 800 Level are flooded. Standing and circulating mine waters were analyzed and found to be mildly alkaline and free of dissolved heavy metal and/or particulate contamination. Accordingly, the Company geologists do not foresee any barriers for the permitting of a more extensive underground program in early 2013.

Work is underway now to plan and permit a 2013 Exploration Program on the Property, commencing in late winter with bridge repairs on the mine access road. Bridge repairs will allow road access to the Torbrit Mine and year-round operations.

Geological Mapping and Sampling of Torbrit Mine, 1025 Level

Geological mapping and underground sampling in late 2012 showed native silver, argentite, silver-sulphosalts, argentiferous galena and local sphalerite were prominent within stratiform host rocks including hydrothermal exhalite beds and hydrothermal eruption breccia. The Torbrit central zone (see attached plan) exhibits vent-proximal stockwork mineralization, quartz-, carbonate-, barite- replacements and pervasive alteration, interspersed and disrupted by chaotic hydrothermal eruption breccias. Underlying footwall stockworks and replacement bodies contain significant silver mineralization, as well. Most deposit volumes occur as multistage hydrothermal eruption breccia and related debris flows that are sourced in zones of active faulting and seafloor hydrothermal venting. Volcanic exhalative silver mineralization appears at multiple horizons, suggesting that hydrothermal venting occurred over a long time frame, within an active faulting system.

Capping the central zone are stratiform beds that are locally stacked in multiple horizons located above (northward from) the central zone. The eastern and western flanking aprons of stratiform beds dip to the northeast and the northwest, respectively, enclosing the Torbrit central zone in a gently northwest-plunging fold geometry with the central zone at its keel. In the 2012 sampling, crews accessed the 10-E-6 drift on the northwest flank and the 10-1-F drift on the northeast flank of the central zone. See the attached Torbrit 1025 Level - 2012 Underground Sampling Areas and the table of results below. Sampling was mostly conducted along the mineralization and shows good consistency from sample to sample. True widths are unknown, but the trend of the mineralization as seen in historical drill information and in limited workings, infers a 10 to 30m true width to the 10-E-6 and 10-1-F zones. Importantly, these two sampled zones are located at lower and mid-levels in the mineralized stratigraphy. Historical drilling and sampling information indicates additional zones both above and below the zones sampled in 2012.

TORBRIT MINE LEVEL 1025: UNDERGROUND CHIP SAMPLING PROGRAM FALL 2012---------------------------------------------------------------------------- Ag Length Ag (oz/short Pb ZnDRIFT NAME INTERVAL RESULTS (m)(i) (gpt) ton) (%) (%)----------------------------------------------------------------------------10 - E - 6: North Wall 10E6 Weighted Average 1 56.5 266.5 7.773 0.51 0.24 Including 41.5 314.6 9.176 0.51 0.2510 - 1 - A: West Wall 101A Weighted Average 1 1.8 327.5 9.552 0.17 0.0310- 1 - A: East Wall 101A Weighted Average 2 3.9 359.9 10.497 0.21 0.04 Including 1.1 772.0 22.517 0.45 0.0310 - 1 - F: South Wall 101F Weighted Average 1 3.8 718.0 20.942 0.77 0.2110 - 1 - F: North Wall 101F Weighted Average 2 12.6 310.5 9.056 1.91 0.16 3.8 814.0 23.742 2.71 0.1510 - 1 - F: NW Wall 101F Weighted Average 3 77.6 246.8 7.198 0.84 0.06Including 1 10 580.6 16.934 1.09 0.10Including 2 14.7 308.3 8.991 1.10 0.0310 - 1 - F: NE Wall 101F Weighted Average 4 68.55 237.3 6.921 0.79 0.03 Including 9.7 371.3 10.831 0.56 0.0310 - 1 - F: West Wall 101F Weighted Average 5 22.2 220.0 6.416 0.29 0.05 Including 8.6 414.9 12.101 0.18 0.08----------------------------------------------------------------------------(i) Lengths are sampled length along drift wall and stopes and do not represent true thicknessesWeighted Average = length-weighted average of abutting horizontal chip samples taken at 1 m height from drift floor.



Diamond drilling and additional underground sampling is planned for early in 2013 to add to the information above.

DOLLY VARDEN MINE: 2012 DIAMOND DRILLING PROGRAM

Dolly Varden Silver Corporation drilled a total of 1,728 meters in 6 drill holes at the Dolly Varden deposit in 2012. These drill holes tested a number of projected down dip extensions of mineralization in an area where historical production (from Garrow, 2011) was approximately 1.5 million ounces of silver at a grade of 35.8 ounces per ton (1,227 g/tonne). The 2012 drill holes were targeted beneath historical mineral resource blocks. The Company considers the historical mineral resource blocks as geological information only and as a guide to verification drilling.

Drill holes are shown on the attached Location Plan of 2012 Diamond Drilling, and significant mineralized intercepts are shown on the attached Longitudinal Projection - Dolly Varden Mine. The following table summarizes the length-weighted average assay results of the mineralized intercepts in each drill hole:

DOLLY VARDEN MINE: DIAMOND DRILL RESULTS SUMMARY - FALL 2012---------------------------------------------------------------------------- True Ag Ag Width (g/ (oz/shortDDH # FROM TO (m) tonne) ton) Pb % Zn %----------------------------------------------------------------------------DV12 - 1 394.54 403.72 8.20 19 0.55 0.01 0.11Including 397.6 398.6 0.89 52.9 1.54 0.04 0.55DV12 - 2 209.65 212.4 2.20 860 25.1 0.18 0.81Including 210.6 212.4 1.44 1289 37.6 0.23 0.99DV12 - 3 254 259.6 3.90 24 0.7 0.04 2.46 270.8 279.1 6.30 19.8 0.58 0.07 12.3DV12 - 4 77.6 83.15 5.30 536 16.5 0.97 1.74Including 79.65 80.7 1.00 1786 55 3.44 4.63DV12 - 5 83.74 88.9 4.80 100 2.92 0.75 5.17Including 84.3 85.85 1.44 252 7.35 2.28 13.9DV12 - 6 91.05 105.6 12.90 41 1.2 0.1 0.47Including 91.05 92.7 1.46 154 4.49 0.06 0.23----------------------------------------------------------------------------



Drilling in the Dolly Varden Mine area in 2012 was successful in confirming the grade and tenor of mineralization indicated in historical drilling and historic mineral resource estimates above 450 m in elevation, with well-mineralized intercepts in holes DV12-2, DV12-4, and DV12-5.

One hole (DV12-3) was drilled to test the projected down dip extension of the mineralized zone at greater depth. This hole encountered two significant zinc-rich intercepts between the elevations of 385 and 400 m, separated by a fault and a screen of altered tuffs. These zones are interpreted as a massive sulphide facies of the more silver-rich Dolly Varden mineralization horizon.

DOLLY VARDEN MINE : 2012 DRILL HOLE LOCATIONS AND ORIENTATIONS---------------------------------------------------------------------------- Collar Coordinates (m) DEPTH ----------------------------------DDH # EAST NORTH ELEVATION (m) AZIMUTH DIP----------------------------------------------------------------------------DV12-1 467533 6171151 629.5 560.83 185 -68.8DV12-2 467701 6170940 629.3 301.75 175.1 -51.5DV12-3 467701 6170940 629.1 377.95 175.1 -64.1DV12-4 467841 6170797 564.8 152.4 160.1 -54.2DV12-5 467841 6170798 564.4 167.64 160 -66DV12-6 467841 6170798 564.1 167.64 170.1 -84.6----------------------------------------------------------------------------Datum: UTM Zone 09 NAD 83



Drill hole DV12-1 was located some distance to the northwest of other drilling carried out in 2012. Although this hole intercepted the DVT horizon at an elevation of about 260 m and demonstrates that the mineralized horizon extends to considerable depth, assays from this intercept were relatively low, although anomalous, and confirms the position of the important North Star fault.

GEOLOGICAL SETTING

Jurassic-age intermediate to mafic volcaniclastic rocks of the Betty Creek Formation, Hazelton Group host the bulk of the silver deposits at the Dolly Varden, North Star, Torbrit and Wolf Mines. 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 Betty Creek volcaniclastic rocks.

The Company is targeting an Eskay Creek type deposit that is a striking example of a class of high-sulphidation VMS deposits. These deposits 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 both Torbrit, North Star and Wolf Mines, showing striking similarities to the precious metal mineralization types at Eskay Creek mine.

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 and sampling. Some of the re-opened Torbrit Mine workings saw the first documented geological mapping and sampling since Newmont Mining Corp.'s 1967 mapping program conducted shortly after mine closure at the Torbrit in 1960.

"The results from Torbrit and Dolly Varden Mine 2012 program are in keeping with the historical grades and widths reported from historic programs. The 2012 Dolly Varden drilling was focused mainly on confirming and extending drill coverage within and below the known historical mineral resource blocks, and has the potential to add significantly to the total silver resource at the Dolly Varden.

"It is also exciting to discover evidence from the 2012 Torbrit underground sampling program that mineral deposit forming processes similar in style to the Eskay Creek deposit were at work in the Torbrit area, adding to previous confirmations of the similar valid interpretations at the North Star and Wolf Mines. Our plans for 2013 are to move forward surface and underground diamond drilling at the Torbrit, in particular, to build NI 43-101 compliant mineral resource estimates of the thick silver-mineralized block in both the central and flanking zones.

"Surface work planned for 2013 will also target the Red Point zone, where an extensive, strongly altered and highly anomalous gold-silver outcroppings of rock may be the exposure of a footwall stockwork feeder zone for an associated precious metal-rich VMS deposit located higher in the volcanic stratigraphy."

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 STATEMENT:

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 and exploration plans.

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 or on the Company's plans for exploration, work program permitting or road and underground facilities construction or repair.

To view Figures 1-4, please visit the following link: http://media3.marketwire.com/docs/dv208_F1-4.pdf.

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



Contacts:
Strata Star
Gary Lindsey
Investor Relations
1-720-273-6224
gary@strata-star.com

Dolly Varden Silver Corporation
Ron Nichols, P. Eng.
CEO and President
1-778-383-3083 or Toll Free: 1-855-381-3530
www.dollyvardensilver.com



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