ANNUAL INFORMATION FORM

ALEXCO RESOURCE CORP.
Suite 1150, 200 Granville Street
Vancouver, British Columbia, V6C 1S4
Telephone: (604) 633-4888
Facsimile: (604) 633-4887
E-Mail: info@alexcoresource.com
Website: www.alexcoresource.com

For the year ended June 30, 2008

Dated September 26, 2008

TABLE OF CONTENTS

	Page
PRELIMINARY NOTES	1
GLOSSARY OF TECHNICAL TERMS	3
CORPORATE STRUCTURE	8
GENERAL DEVELOPMENT OF THE BUSINESS	8
Three Year History and Significant Acquisitions	8
DESCRIPTION OF THE BUSINESS	12
Mineral Exploration and Development	12
Bellekeno Property	12
McQuesten Property	19
Brewery Creek Property	22
Environmental Consulting Services	24
General	24
Keno Hill Project	25
Risk Factors	25
Exploration and Development	26
Keno Hill District	26
Capitalization and Commercial Viability	26
Environmental Consulting Services	27
Environmental Risks and Other Regulatory Requirements	27
Potential Profitability Of Mineral Properties Depends Upon Factors Beyond the Control of the Company	28
First Nation Rights and Title	28
Title to Mineral Properties	28
Securities of the Company and Dilution	28
Operating Hazards and Risks	29
Competition	29
DIVIDENDS	29
DESCRIPTION OF CAPITAL STRUCTURE	29
MARKET FOR SECURITIES	29
Trading Price and Volume	29
Securities Not Listed or Quoted	30
DIRECTORS AND OFFICERS	30
Name, Occupation and Security Holding	30
Cease Trade Orders, Bankruptcies, Penalties or Sanctions	32
Conflicts of Interest	33
PROMOTERS	33
AUDIT COMMITTEE INFORMATION	34
Audit Committee Charter	34
Composition of the Audit Committee	39
Reliance on Certain Exemptions	40
Audit Committee Oversight	40
Pre-Approval Policies and Procedures	40
External Auditor Service Fees (By Category)	40

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LEGAL PROCEEDINGS	41
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	41
TRANSFER AGENTS AND REGISTRARS	42
MATERIAL CONTRACTS	42
INTERESTS OF EXPERTS	42
Names of Experts	42
Interests of Experts	43
ADDITIONAL INFORMATION	43

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PRELIMINARY NOTES

In this Annual Information Form, Alexco Resource Corp. is referred to as the "Company" or “Alexco”. All information contained herein is as at September 26, 2008, unless otherwise specified. All dollar amounts in this Annual Information Form are expressed in Canadian dollars unless otherwise indicated.

Cautionary Statement Regarding Forward-Looking Statements

This Annual Information Form contains forward-looking statements concerning the Company's plans for its properties, operations and other matters, made as at the date hereof. Forward-looking statements may include, but are not limited to, statements with respect to future remediation and reclamation activities, future mineral exploration, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing of activities and the amount of estimated revenues and expenses, the success of exploration activities, permitting time lines, requirements for additional capital and sources and uses of funds. Any statements 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”, “is expected”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends” “strategy”, “goals”, “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”.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of exploration activities; actual results of remediation and reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other commodities; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development activities.

Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in this Annual Information Form under the heading “Description of the Business – Risk Factors” and elsewhere.

The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change, except as required by applicable law. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

Cautionary Note to U.S. Investors – Information Concerning Preparation of Resource Estimates

This Annual Information Form has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. Unless otherwise indicated, all resource and reserve estimates included in this Annual Information Form have been prepared in

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accordance with Canadian National Instrument 43-101 (“NI 43-101”) and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. NI 43-101 permits the disclosure of an historical estimate made prior to the adoption of NI 43-101 that does not otherwise comply with NI 43-101, using the historical terminology, if the disclosure: (a) identifies the source and date of the historical estimate; (b) comments on the relevance and reliability of the historical estimate; (c) states whether the historical estimate uses categories other than those prescribed by NI 43-101 and if so includes an explanation of the differences, and (d) includes any more recent estimates or data available. Such historical estimates are presented concerning certain of the Company’s properties described herein.

Canadian standards, including NI 43-101, differ significantly from the requirements of Industry Guide 7 promulgated by the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC's disclosure standards under Industry Guide 7 normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. U.S. Investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Under Canadian rules, estimated “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable.

Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of “reserves” are also not the same as those of the SEC’s Industry Guide 7, and reserves reported by the Company in compliance with NI 43-101 may not qualify as “reserves” under Industry Guide 7 standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U. S. standards.

Qualified Person Under NI 43-101

Except where specifically indicated otherwise, technical information included in this Annual Information Form regarding Alexco’s mineral properties has been prepared by or under the supervision of Stanton Dodd, LG (Wash), Vice President, Exploration for Alexco and a Qualified Person as defined by NI 43-101.

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GLOSSARY OF TECHNICAL TERMS

The following is a glossary of certain mining terms used in this Annual Information Form:

Acre	An area of 4,840 square yards or 43,560 square feet.
Alteration	Any change in the mineralogical composition of a rock that is brought about by physical or chemical means.
Anomaly	Having a geochemical or geophysical character which deviates from regularity.
Assay	In economic geology, to analyze the proportions of metal in a rock or overburden sample; to test an ore or mineral for composition, purity, weight or other properties of commercial interest.
Au	Gold.
Bedrock	Solid rock underlying surficial deposits.
Calcite	Calcium carbonate, CaCO3, with hexagonal crystallization; a mineral found in limestone, chalk and marble.
Chalcopyrite	Copper iron sulphide mineral (CuFeS2). A common copper ore.
CIM	Canadian Institute of Mining and Metallurgy.
Clastic	A sedimentary rock composed of fragments from pre-existing rock.
Deposit	A mineralized body which has been physically delineated by sufficient drilling, trenching, and/or underground work, and found to contain a sufficient average grade of metal or metals to warrant further exploration and/or development expenditures; such a deposit does not qualify as a commercially mineable ore body or as containing ore reserves, until final legal, technical, and economic factors have been resolved.
Dip	The angle at which a stratum is inclined from the horizontal.
Fault	A fracture in a rock along which there has been relative movement between the two sides either vertically or horizontally.
Feldspar	A group of common sodium-potassium-calcium aluminosilicate minerals.
Fold	A bend in strata or any planar structure.
Fracture	Breaks in rocks due to intensive folding or faulting.
g/t Au	Grams per tonne gold.

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Geophysical Survey	The exploration of an area by exploiting differences in physical properties of different rock types. Geophysical methods include seismic, magnetic, gravity, induced polarization and other techniques, and geophysical surveys can be undertaken from the ground or from the air.
Grade	The amount of valuable metal in each tonne of ore, expressed as grams per tonne (g/t) for precious metals, as percent (%) for copper, lead, zinc and nickel.
Hectare	An area equal to 100 meters by 100 meters.
Host	A rock or mineral that is older than rocks or minerals introduced into it.
Igneous	A classification of rocks formed from the solidification from a molten state.
Intrusion	The process of emplacement of magma in a pre-existing rock. Also, the igneous rock mass so formed.
km	Kilometers.
m	Meters.
Mineral Reserve, Proven Mineral Reserve, Probable Mineral Reserve	Under CIM standards, a Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by a preliminary feasibility study or feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined.
	The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" used in this Annual Information Form are mining terms defined under CIM standards and used in accordance with NI 43-101. Mineral Reserves, Proven Mineral Reserves and Probable Mineral Reserves presented under CIM standards may not conform with the definitions of “reserves” or “proven reserves” or “probable reserves” under United States standards. See "Preliminary Notes – Cautionary Note to U.S. Investors – Information Concerning Preparation of Resource Estimates".
	Mineral Reserves under CIM standards are those parts of Mineral Resources which, after the application of all mining factors, result in an estimated tonnage and grade which, in the opinion of the qualified person(s) making the estimates, is the basis of an economically viable project after taking account of all relevant processing, metallurgical, economic, marketing, legal, environment, socio-economic and government factors. Mineral Reserves are inclusive of diluting material that will be mined in conjunction with the Mineral Reserves and delivered to the treatment plant or equivalent facility. The term ‘Mineral Reserve’ need not necessarily signify that extraction facilities are in place or operative or that all governmental approvals have been received. It does signify that there are reasonable expectations of such approvals.

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	Under CIM standards, Mineral Reserves are sub-divided in order of increasing confidence into Probable Mineral Reserves and Proven Mineral Reserves. A Probable Mineral Reserve has a lower level of confidence than a Proven Mineral Reserve.
	Proven Mineral Reserve: A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that the economic extraction can be justified.
	Probable Mineral Reserve: A Probable Mineral Reserve is the economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that the economic extraction can be justified.
Mineral Resource, Measured Mineral Resource, Indicated Mineral Resource, Inferred Mineral Resource	Under CIM standards, Mineral Resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.
	The terms "mineral resource", "measured mineral resource", "indicated mineral resource", and "inferred mineral resource" used in this Annual Information Form are mining terms defined under CIM standards and used in accordance with NI 43-101. They are not defined terms under United States standards and generally may not be used in documents filed with the United States Securities and Exchange Commission by U.S. companies. See "Preliminary Notes – Cautionary Note to U.S. Investors Information Concerning Preparation of Resource Estimates".
	A mineral resource estimate is based on information on the geology of the deposit and the continuity of mineralization. Assumptions concerning economic and operating parameters, including cut-off grades and economic mining widths, based on factors typical for the type of deposit, may be used if these factors have not been specifically established for the deposit at the time of the mineral resource estimate. A mineral resource is categorized on the basis of the degree of confidence in the estimate of quantity and grade or quality of the deposit, as follows:
	Inferred Mineral Resource: Under CIM standards, an Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

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	Indicated Mineral Resource: Under CIM standards, an Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
	Measured Mineral Resource: Under CIM standards, a Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
Mineralization	The concentration of metals and their chemical compounds within a body of rock.
Ore	A metal or mineral or a combination of these of sufficient value as to quality and quantity to enable it to be mined at a profit.
Ounce or oz	A troy ounce or twenty penny weights or 480 grains or 31.103 grams.
Outcrop	An exposure of bedrock at the surface.
Pyrite	A mineral composed of iron and sulphur (FeS2).
Quartz	A mineral composed of silicon dioxide.
Reconnaissance	A general examination or survey of a region with reference to its main features, usually preliminary to a more detailed survey.
Sediment	Solid material that has settled down from a state of suspension in a liquid. More generally, solid fragmental material transported and deposited by wind, water or ice, chemically precipitated from solution, or secreted by organisms, and that forms in layers in loose unconsolidated form.
Silicified	The introduction of, or replacement by, silica, generally resulting in the formation of fine- grained quartz, chalcedony or opal, which may fill pores and replace existing minerals.
Sill	A tabular body of igneous rock conforming to the last strata.
Strike	Direction or trend of a geologic structure.

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Sulphide	Group of minerals in which one or more metals are found in combination with sulphur.
Tonne	Metric unit of weight equivalent to volume multiplied by specific gravity; equivalent to 1.102 tons or 1,000 kilograms (2,204.6 pounds).
Vein	Thin sheet-like intrusion into a fissure or crack, commonly bearing quartz.
Volcanic	Descriptive of rocks originating from volcanic activity.

Metric Equivalents

The following table sets forth the factors for converting Imperial measurements to metric equivalents:

To Convert From Imperial	To Metric	Multiply By
Feet	Meters	0.305
Meters	Feet	3.281
Miles	Kilometers (“km”)	1.609
Kilometers	Miles	0.6214
Acres	Hectares (“ha”)	0.405
Hectares	Acres	2.471
Grams	Ounces (Troy)	0.03215
Grams/Tonnes	Ounces (Troy)/Short Ton	0.02917
Tonnes (metric)	Pounds	2,205
Tonnes (metric)	Short Tons	1.1023

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CORPORATE STRUCTURE

The Company was incorporated under the Business Corporations Act (Yukon) on December 3, 2004 under the name "Alexco Resource Corp." Effective December 28, 2007, it was continued under the Business Corporations Act (British Columbia).

The Company's head office is located at Suite 1150, 200 Granville Street, Vancouver, British Columbia, V6C 1S4, Canada, and its registered and records office is located at 10th Floor, 595 Howe Street, Vancouver, British Columbia, V6C 2T5, Canada.

At the end of its most recently completed financial year, the Company had the following wholly-owned subsidiaries:

• Alexco Resource Canada Corp. (formerly 650399 B.C. Ltd.), organized under the laws of British Columbia (“Alexco Canada”);

• Elsa Reclamation & Development Company Ltd., organized under the laws of Yukon (“ERDC”);

• Access Mining Consultants Ltd., organized under the laws of Yukon (“Access”); and

• Alexco Resource U.S. Corp., organized under the laws of Colorado (“Alexco US”).

Unless the context otherwise indicates, reference to the term the “Company” or “Alexco” in this Annual Information Form includes Alexco Resource Corp. and its subsidiaries.

GENERAL DEVELOPMENT OF THE BUSINESS

Three Year History and Significant Acquisitions

On March 15, 2005, the Company completed a series of transactions pursuant to which it acquired a number of property interests and rights to certain operating contracts in Yukon and British Columbia.

Pursuant to a sale and assignment agreement with Quest Mortgage Corp. (formerly Viceroy Minerals Corporation) (“Viceroy”) dated February 1, 2005 (the “Viceroy Agreement”), the Company acquired certain assets of Viceroy comprising its Brewery Creek mine near Dawson City, Yukon Territory and a $2,500,000 payment from Viceroy with which the Company funded replacement security under a related water license. The assets included mining assets and infrastructure/equipment located on the Brewery Creek property, all rights, title and interest of Viceroy in and to the 708 quartz mining claims and 93 mining leases on the Brewery Creek property and all rights, title and interest of Viceroy in and to the agreements, accords, memoranda and licenses relating to the Brewery Creek property, described under “Description of the Business – Mineral Exploration and Development – Brewery Creek Property” below. The Company issued to Viceroy 2,686,567 common shares of the Company at a deemed price of $0.67 per share and assumed all liabilities and obligations of Viceroy with respect to its Brewery Creek property interests, including the obligation to complete the closure reclamation of the Brewery Creek property.

Pursuant to a sale and assignment agreement with NovaGold Canada Inc. (“NovaGold Canada”) (a wholly-owned subsidiary of NovaGold Resources Inc. (“NovaGold”)) dated February 1, 2005 (the “NovaGold Agreement”), the Company acquired all of the issued and outstanding shares of Alexco Canada (at the time, 650399 B.C. Ltd.) in exchange for the issuance to NovaGold Canada of 4,104,478 common shares of the

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Company at a deemed price of $0.67 per share and a $599,812 cash payment to NovaGold Canada. The Company also agreed to cause the payment by Alexco Canada to NovaGold Canada of approximately $137,000 to be paid to Alexco Canada by the Canada Revenue Agency as a refundable mineral tax credit for the period from December 1, 2003 to November 30, 2004. Alexco Canada holds interests in the McQuesten, Sprogge, Harlan and Klondike properties in Yukon and royalty interests in the Kiniskan Lake and Manson Creek claims and the Telegraph Creek/Iskut River claims in British Columbia, described under "Description of the Business – Mineral Exploration and Development" below.

Pursuant to a sale and assignment agreement with Asset Liability Management Group ULC (“ALM”) dated February 1, 2005 (the “ALM Agreement”), the Company acquired certain rights, title and interest of ALM in and to certain contracts and arrangements of ALM including current technical support and service contracts with various mine operating and exploration companies and any intellectual property used in connection therewith (including rights to secure certain patents). In exchange, the Company issued to ALM 1,940,299 common shares of the Company at a deemed price of $0.67 per share. Alexco also agreed to assume all liabilities and obligations of ALM under the contracts and arrangements to a maximum of the value of the remaining work to be performed under such contracts. ALM was at the time, and remains as at the date hereof, approximately 70% owned by Clynton Nauman, President and Chief Executive Officer and a director of Alexco, and 30% owned by Bradley Thrall, Chief Operating Officer of Alexco.

The net assets acquired by the Company under the Viceroy Agreement, NovaGold Agreement and ALM Agreement were valued at their estimated fair value. With respect to the assets acquired by the Company for the Viceroy Agreement and the NovaGold Agreement, the fair value approximated the book values for the assets. With respect to the assets acquired by the Company from ALM, the fair value was determined by the directors with the benefit of independent financial advice.

The above-described sale and assignment agreements were completed concurrently with an organization agreement dated February 1, 2005 with Viceroy, NovaGold Canada, Alexco Canada and ALM. The Company completed a seed capital private placement financing for gross proceeds of $3.6 million by the issuance of 5,264,000 common shares of the Company effective March 15, 2005.

Effective September 16, 2005, the Company entered into a letter agreement with NovaGold Canada granting NovaGold Canada a back-in right to acquire a 70% interest in the sulphide project and a 30% interest in the oxide project with respect to the Brewery Creek property. Under the terms of the letter agreement, within 60 days of the Company incurring a minimum of $750,000 in expenditures on the Brewery Creek property, the Company was required to deliver to NovaGold Canada a report as to the results of such expenditures. NovaGold Canada then had 60 days following receipt of the report to give notice that it wished to exercise the back-in right by paying $500,000 to the Company over a four year period and incurring $1,750,000 in expenditures on the Brewery Creek property over a five year period. The Company delivered the report in January 2008, having completed the requisite expenditures. NovaGold Canada did not elect to exercise within the ensuing 60 days, and the back-in right accordingly expired.

In June 2005, the Company was selected as the preferred purchaser of the assets of United Keno Hill Mines Limited and UKH Minerals Limited (collectively, “UKHM”) by a court appointed interim receiver and receiver-manager of UKHM. In February 2006, following negotiation of a Subsidiary Agreement between the Government of Canada, the Government of Yukon and the Company, the Supreme Court of Yukon approved the purchase of the assets of UKHM by Alexco through its wholly owned subsidiary, ERDC. “Final Closing” of this acquisition was conditional upon issuance of a water license to the Company by the Yukon Water Board to set the standards for care and maintenance activities to be carried out at Keno Hill. This water license was issued in November 2007 and Final Closing was effected in December 2007, resulting in the transfer to the Company of ownership and title to the Keno Hill mining claims and the other UKHM

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assets. In addition, under the terms of the Subsidiary Agreement the Company is indemnified by the Government of Canada for all liabilities, including environmental liabilities, arising directly or indirectly as a result of the pre-existing condition of the Keno Hill mining claims and other assets acquired from UKHM. The Subsidiary Agreement provides that ERDC may bring any mine into production on the UKHM properties by designating a production unit from the mineral property interests relevant to that purpose and then assuming responsibility for all costs of the production unit’s water related care and maintenance and water related components of closure reclamation. The Subsidiary Agreement further requires ERDC to pay into a separate reclamation trust a 1.5% net smelter return royalty, to an aggregate maximum of $4 million for all production units, from any future production from the UKHM properties, commencing once earnings from mining before interest, taxes and depreciation exceed actual exploration costs, to a maximum of $6.2 million, plus actual development and construction capital.

Since 2006, the Company has carried out exploration activities on several of its Keno Hill properties, but the primary focus has been on the Bellekeno property. A NI 43-101 compliant resource estimate was produced for the Bellekeno deposit in January 2008, yielding total inferred resources of 537,400 tonnes grading 1,016 grams per tonne silver, 13.5% lead, 10.7% zinc and 0.4 grams per tonne gold, for an aggregate silver equivalent grade of 2,216 grams per tonne. And in July 2008, Alexco released a NI 43-101 compliant preliminary economic assessment for the Bellekeno resource (see “Description of Business – Mineral Exploration and Development – Bellekeno Property”). The assessment outlines a project with average annual mine production of 3.3 million ounces of silver (“Ag”), 30.1 million pounds of lead (“Pb”) and 24.5 million pounds of zinc (“Zn”) over an initial 5 year mine life, and in a base case economic analysis using three year average prices for Ag, Pb and Zn and the $USD/$CAD exchange rate, the assessment indicated a pre-tax net present value (“NPV”) of US$87.0 million (8% discount rate), with a pre-tax internal rate of return (“IRR”) of 55.5% and a payback period of 1.6 years. Preliminary mine planning and engineering studies and requisite permit applications were also completed by Alexco in preparation for driving a new underground decline and rehabilitating and extending the historic underground workings at Bellekeno, to allow for further underground exploration and definition drilling of the Bellekeno resource (which remains open at depth). A mining contractor was engaged for this purpose, a portal was collared in June 2008, and development of the decline commenced in July.

Also under the Subsidiary Agreement, ERDC is retained through the Government of Yukon as a paid contractor responsible on a continuing basis for the environmental care and maintenance and ultimate closure reclamation of the former UKHM properties. The Subsidiary Agreement provides that ERDC is responsible for the development of the ultimate closure reclamation plan for fees of 65% of agreed scheduled rates, and this plan development is currently ongoing. Upon acceptance and regulatory approval, the closure reclamation plan will be implemented by ERDC at full negotiated contractor rates. During the period required to develop the plan, ERDC is also responsible for carrying out the environmental care and maintenance of the UKHM properties for a reducing fixed annual fee adjusted each year for certain operating and inflationary factors.

Further particulars relating to the acquired mineral property interests located in the Keno Hill district, including the above-referenced technical reports, are described below under "Description of the Business – Mineral Exploration and Development". Further particulars relating to the care and maintenance and closure reclamation activities being conducted by the Company in the Keno Hill district under the Subsidiary Agreement are described below under "Description of the Business – Environmental Consulting Services – Keno Hill Project".

On June 30, 2006, the Company completed the acquisition of Access, a privately owned mid-tier environmental consulting firm headquartered in Whitehorse, Yukon Territory. Originally formed in March

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1995, Access provided locally-experienced professional project management and environmental services for industrial land and resource development projects in northern Canada. The Company acquired 100% of the shares of Access for $2,000,000; 50% of the Access shares were acquired for $1,000,000 in cash and the remaining 50% of the Access shares were acquired for 383,978 common shares of the Company, being $1,000,000 in common shares of the Company valued at the volume weighted average price for the 10 trading days of the common shares of the Company on the Toronto Stock Exchange prior to June 27, 2006. The two founders and principals of Access joined the senior management team of Alexco, continuing with Access’ management group as they profitably grow the Access business as a wholly owned subsidiary of the Company.

On February 16, 2007, the Company expanded its services business into the United States through the establishment of Alexco US, combined with the acquisition of certain intellectual property and project rights from Green World Science of Nevada, Inc. (“Green World”) as well as the addition of the principals of Green World to the Alexco US management team.

The assets acquired from Green World included six patents registered in the U.S., some of which are registered or are in the process of being registered in Canada and other countries (the “Patents”). The Patents pertain to the in situ immobilization of metals and are specifically suited to mine closure related remediation, and have terms that expire variously between 2015 and 2020. Two of the Patents, as registered in Canada, were previously under license to the Company. The acquisition of the Patents, together with the interests of Green World in certain ongoing projects, provided Alexco US with immediate remediation services revenue and cash flow, and laid the foundation on which it could further develop and establish its U.S. based business over the next several years. The consideration paid for the assets included 264,895 common shares of the Company valued at $1,645,000 and a cash payment of $443,000.

On January 26, 2006, the Company completed its initial public offering of 2,000,000 common shares at a price of $1.50 per share to raise gross proceeds of $3,000,000. The Company completed a listing of its common shares on the Toronto Stock Exchange under the trading symbol "AXR" on January 26, 2006. On September 20, 2007, the Company began trading its common shares on the American Stock Exchange under the symbol “AXU”.

Looking to the Company’s 2009 fiscal year, the results from its summer 2008 Keno Hill district exploration program are in the process of being compiled and are expected to be released publicly over the course of the next three to four months. Those results are expected to include a NI 43-101 compliant resource estimate for the Onek property, which is located just over one kilometer from Bellekeno. Once completed, Alexco intends to update the July 2008 Bellekeno preliminary economic assessment to incorporate the Onek resource into the mine plan with the objective of extending the plan’s current life of mine and further improving the overall economics. At the same time, Alexco intends to conduct underground exploration and definition drilling of the Bellekeno resource, which remains open at depth, as soon as the currently-in-progress development of the exploration decline and rehabilitation of historical workings has been completed. The preliminary economic assessment will also then be updated to incorporate any extension or upgrade of the Bellekeno resource that results from that underground drilling.

With respect to its consulting services group, the Company remains engaged in the on-going environmental care and maintenance program and reclamation and closure projects at Keno Hill under its contract through ERDC with the Yukon Government and in accordance with the Subsidiary Agreement, and continues to service its private sector client base in the Yukon through Access. Similarly, the Company intends to continue expanding its environmental services activities over the 2008 calendar year, in the North where it can leverage recent increases in staff with environmental, permitting and management expertise, and also in

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the United States as it realizes the benefits of business development efforts undertaken over the past year through its Alexco US subsidiary.

DESCRIPTION OF THE BUSINESS

The Company operates two principal businesses: mineral exploration and development in Canada, primarily in Yukon Territory; and provision of consulting and project management services in respect of environmental permitting and compliance and site remediation and reclamation, both in Canada and the U.S. At June 30, 2008, the Company had 73 permanent and seasonal employees. A total of 45 were employed in the mineral exploration and development business and a total of 20 were employed in the environmental consulting services business, with the remaining 8 employed in respect of executive management and administrative support.

Mineral Exploration and Development

The Company's principal mineral exploration activities in the Yukon are currently being carried out within the Keno Hill district. The Company’s material property within the Keno Hill district is the Bellekeno property. It holds several other property interests within the district, including but not limited to Onek, Lucky Queen, Silver King and Husky, which may potentially become material properties depending on the results of exploration programs the Company may carry out on them in the future. The Company’s other material property interests in the Yukon are the McQuesten property and the Brewery Creek property.

Other non-material property interests of the Company include the Sprogge, Harlan and Klondike properties in the Yukon, and certain 1% net smelter return royalties in respect of the Telegraph Creek, Iskut River, Kiniskan Lake and Manson Creek properties in British Columbia.

Bellekeno Property

The Company’s 100% owned Bellekeno Property comprises 713 surveyed quartz mining leases, 794 unsurveyed quartz mining claims and two crown grants, and is subject to the capped 1.5% net smelter return royalty provided for under the Subsidiary Agreement in respect of any future production from the UKHM properties (see “General Development of the Business – Three Year History and Significant Acquisitions”). The Bellekeno Property has been the subject of three technical reports, all filed on SEDAR and all independently prepared and NI 43-101 compliant. The most recent of these technical report is the preliminary economic assessment dated June 30, 2008 and entitled “Bellekeno Preliminary Economic Assessment Technical Report – Keno Hill Mining District, Yukon”, prepared by SRK Consulting (Canada) Inc. The detailed disclosure contained in that technical report is hereby incorporated by reference, and the summary section from that report is reproduced as follows:

Executive Summary

Introduction

This preliminary economic assessment technical report (“PEA”) was prepared for Alexco Resource Corp. (“Alexco”) by SRK Consulting (Canada) Inc. (“SRK”) to provide an initial overview of the economic potential of extracting and processing mineralized material from the Bellekeno polymetallic deposits.

Wardrop Engineering Inc. (“Wardrop”) completed the metallurgical, mineral processing and economic analysis sections of this report with input contributions from SRK and Alexco.

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Numerous Alexco personnel, particularly Tim Hall, Manager Project Development, provided significant information and technical input into the report. Diane Lister of Altura Environmental Consulting produced the environmental section of the report.

Location and Land Holdings

The Bellekeno deposit is located in the historic Keno Hill Mining District that envelopes the villages of Elsa and Keno City (63° 55’N, 135° 29’W), in central Yukon Territory. The region has been mined intermittently for over 90 years. The closest town is Mayo, approximately 55 kilometres to the south of the project via an all-weather road. Whitehorse is approximately 460 km south of Mayo.

The land controlled by Alexco, following the issuance of a Care and Maintenance Water License in late November 2007, comprises 713 surveyed quartz mining leases, 794 unsurveyed quartz mining claims and two crown grants. The total area is approximately 23,350 hectares. Mineral exploration at Keno Hill is permitted under the terms and conditions set out by the Yukon Government in a Class IV Quartz Mining Land Use Permit – LQ-00240, issued in June 2008, and governs all exploration activities on the property including advanced exploration for the Bellekeno deposit. The permit supersedes the earlier mining land use permits for the property. The mineral resources and the underground infrastructure of the Bellekeno Project reported herein are all located within six contiguous Quartz claims inside the large Keno Hill property.

The climate of the Bellekeno area is characterized by a sub-arctic continental climate with cold winters and warm summers. Average temperatures in the winter are between -15o and -20o C while summer temperatures average around 15o C. Exploration and mining can be conducted year-round. The landscape around the Bellekeno project is characterized by rolling hills and mountains up to 1,200 metres in elevation. Vegetation is abundant.

Exploration

On June 19, 2008, Alexco announced it was granted a Class IV Quartz Mining Land Use Permit – LQ0024, allowing the development of an exploration decline in the central portion of the Bellekeno deposit. Procon Mining and Tunnelling Ltd. (“Procon”) was awarded a contracted to drive approximately 650 m of decline and ancillary development that will access old workings and establish diamond drilling locations for a 10,000 m exploration and definition diamond drilling program. The Bellekeno exploration program also includes the mining of a bulk sample for metallurgical testing and the rehabilitation of the old 625 portal workings. A “Type B” water license is being pursued by Alexco to allow for mine dewatering.

Metallurgy and Mineral Processing

Test results indicate that the mineralization of the Bellekeno deposit responds well to a lead and zinc differential flotation process using a cyanide-free zinc mineral suppression regime. Silver minerals are intimately associated with lead minerals and will be recovered as a silver-lead concentrate. A separate zinc concentrate will also be produced from the Bellekeno operation.

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The design capacity of the process plant will be 408 tonnes per day (“t/d”). Overall plant availability is estimated to be 92%. Run-of-mine (ROM) material from different mineralized zones is planned to be processed by conventional crushing, grinding, and flotation followed by concentrate dewatering. The estimated power requirement for the surface plant and facilities is approximately 1.3 MW. As a part of the scope of work, Wardrop assessed the opportunity to reuse the existing mill facilities near the town of Elsa. The study also shows a preliminary assessment of potential process plant locations and a comparison of concentrate haulage routes.

Metallurgical performance estimated from test work and assumed for this report is based on test work completed by SGS Lakefield in 2007 and by Process Research Associates (“PRA”) in 1996. Table 1.1 shows the assumed metallurgical recoveries used in this report.

Table 1.1: Summary of Metallurgical Recoveries

Mineralization Zone	Product	Grade				Recovery
		Ag (g/t)	Pb (%)	Zn (%)	Au (g/t)	Ag (%)	Pb (%)	Zn (%)	Au (%)
99 and Southwest Zones	Pb/Ag Conc Zn Conc Tailing Feed	4,782 1,159 87 1,221	72.0 2.6 0.5 16.6	1.5 52.0 0.2 4.9	0.6 0.5 0.1 0.3	87.1 8.0 4.9 100.0	96.5 1.3 2.2 100.0	6.9 90.2 2.9 100.0	50.0 17.0 33.0 100.0
East Zone	Pb/Ag Conc Zn Conc Tailing Feed	7,021 60 69 232	60.0 0.4 0.3 1.8	6.0 55.0 1.0 19.0	10.5 0.3 0.4 0.6	72.2 8.5 19.3 100.0	80.0 7.4 12.6 100.0	0.8 96.0 3.2 100.0	41.5 18.1 40.4 100.0

Resources

The resources used in the mine plan and subsequent economic analysis in this report are all in the inferred mineral resource category. The 99 and Southwest zones are similar in high silver and lead content. The East zone varies from 99 and Southwest with significantly lower silver and lead grades but much higher zinc grades. Table 1.2 summarizes the Bellekeno mineral resource statement.

Table 1.2: Consolidated Mineral Resource Statement* for the Bellekeno Deposit, (SRK Consulting, January 28, 2008)

Category	Zone	Tonnage [t]	Ag [g/t]	Pb [%]	Zn [%]	Au [g/t]	AgEq [g/t]
Inferred	99† Southwest‡** East‡**	55,700 302,100 179,600	1,593 1,357 263	11.1 20.4 2.0	5.5 5.5 21.3	0.0 0.4 0.6	2,375 2,494 1,698
Total Inferred		537,400	1,016	13.5	10.7	0.4	2,216

* Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates.
† Reported at a cut-off of 15 troy ounces per ton silver. Silver grades capped at 100 troy ounces per ton.
‡ Reported at a cut-off of 1000 grams per tonne silver equivalent. Grades not capped.
** Metal price and recovery factor assumptions for resource are: US$8.00 Silver troy ounce, US$1.00/kg (US$0.45 per pound) Lead, US$1.65/kg (US$0.75 per pound) Zinc, metallurgical recovery factors have been assumed to be 100%. Gold was not used in silver equivalent calculation.

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Mining

The Bellekeno project is comprised of a series of at least 11 veins in the Southwest, 99 and East zones. Most of the historical mining at Bellekeno occurred in the 99 zone. The veins have variable dip, strike and thickness. Dips range from 60° to 80° to the east or west. The average strike direction is approximately 030 azimuth. Vein thickness varies from a few centimetres to several metres.

Based on the preliminary geotechnical and physical characteristics of the veins, a mining method review was conducted and cut and fill, shrinkage stoping and long hole mining methods were considered the most appropriate at Bellekeno. Cut and fill and shrinkage stoping methods typically offer a high degree of selectivity that generally translates into high mineralization extraction and low waste dilution. Long hole mining is planned only for pillar extraction in certain areas. The percent of total life of mine (“LOM”) tonnes by mining method are shown in Table 1.3.

Table 1.3: LOM Tonnes by Mining Method

Mining Method	Percent of Total Tonnes
Cut & Fill Shrinkage Long Hole (pillar recovery)	78 % 20 % 2 %
Total	100 %

The LOM planned tonnes and grades were estimated using a 14% dilution factor and a 100% extraction of the resource above the cut-off grade. These factors were applied universally for all mining methods and mining areas as there is not enough information currently available to do a detailed extraction and dilution analysis. The factors used, increase the resource tonnage in the mine plan by 14% and decrease the resource grade by 12%.

Mine production is planned to be 250 t/d in the first two years of operation with mill feed coming from the SW and 99 zones. Planned production increases to 400 t/d when 150 t/d is added in years 3, 4 and 5 when mining in the East zone is scheduled. Table 1.4 shows the LOM production schedule.

Table 1.4: LOM Production Schedule

		Production Year
Source	Unit	1	2	3	4	5	Total [t]
SW and 99 Zone production East Zone production	t t	91,000 0	91,000 0	91,000 55,000	91,000 55,000	44,000 95,000	408,000 205,000
Total Mine production	t	91,000	91,000	146,000	146,000	139,000	613,000
Mill Head Grades
Zinc mill head grade	%	4.9%	4.9%	10.2%	10.2%	14.6%	9.6%

Lead mill head grade
Gold mill head grade
Silver mill head grade %
g/t
g/t 16.6%
0.22
1,221 16.6%
0.22
1,221 11.1%
0.34
850 11.1%
0.34
850 6.4%
0.45
542 11.7%
0.33
890

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The mine will be accessed from a new decline currently being driven and from the 625 portal (currently being rehabilitated). Personnel and material will be transported in and out of the mine using either the decline or the 625 level.

Economic Analysis

Operating costs on a $/tonne milled basis are presented in Table 1.5. The project operating costs were estimated from a number of sources including cost estimating guides, contractor and vendor quotes, previous studies and experience. Unit costs for the mill and general and administration (“G&A”) reduce in years 3 to 5 as planned production increases and economies of scale are realized.

Table 1.5: Bellekeno Project Unit Operating Cost Summary ($/t milled)

	Year
Operation ($/tonne milled)	1	2	3	4	5
Mine Operating	79.26	79.26	79.26	79.26	79.26
Mine Development	32.19	52.73	41.18	32.96	34.51
Processing	64.67	64.67	45.91	45.91	45.91
General & Administrative	36.93	36.93	23.08	23.08	23.08
Total Unit Operating Costs	213.05	233.60	189.43	181.21	183.84

Capital costs estimates for the project are shown in Table 1.6. Indirect capital costs for construction were assumed to be 17% of total construction capital. A contingency rate of 25% of total construction capital was also applied. Using these factors, the total construction capital cost was estimated to be $56.3M. Construction capital costs included associated earthworks, concrete, structural steel, power supply and water supplies. Sustaining capital, made up of mine equipment, closure costs and exploration development, was estimated to equal $14.3M. The total capital cost of the project was estimated to be $70.6M.

Table 1.6: PEA Capital Cost Summary ($’000)

	Year
Capital Costs ($’000)	-2	-1	1	2	3	4	5	Total
Construction Capital
Mine Equipment Mine Development BK East Advanced Exploration Process Plant & Infrastructure	10,000	6,768 2,825 18,850						6,768 2,825 10,000 18,850
Total Direct	10,000	28,443						38,443
Indirect Contingency (25%) Initial Working Capital	2,500	6,625 8,767	4,860				-4,860	6,625 11,267 0
Total Construction Capital	12,500	43,835	4,860				-4,860	56,335
Sustaining Capital
Mine Equipment Closure Cost		500	1,020 250	2,780 250	676 250	250	250	4,476 1,750

Exploration Development		1,320	1,360	2,680	2,680			8,040
Total Sustaining Capital		1,820	2,630	5,710	3,606	250	250	14,266
TOTAL CAPITAL	12,500	45,655	7,490	5,710	3,606	250	-4,610	70,601

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The pre-tax base case financial model was calculated using the following parameters:

• Mine and mill construction start in 2009 with commissioning in 2010;
   
• Current advanced exploration costs for Bellekeno of $10 million included in the initial capital;
   
• Base case metals pricing is three-year rolling average metal prices;
   
• Base case three-year average US/Canadian exchange rate;
   
• Assumed current net smelter terms;
   
• Five-year mine life;
   
• SW+99 Zone to commence in Year 1 and East Zone comes on line in Year 3;
   
• 1.5% NSR royalty capped at $4.0 million, commencing after payback of capital;
   
• Resources as per SRK Technical Report dated January 28, 2008;
   
• Closure and reclamation costs included;
   
• The model was prepared on a pre-tax basis;
   
• Working capital recovered in year 5;
   
• Depreciation costs are not calculated.

The economic evaluation indicates a base case pre-tax internal rate of return (“IRR”) of 55.5% and a pre-tax net present value (“NPV”) of US$87 million at a discount rate of 8.0% for the Bellekeno deposit. The summary of pricing scenarios and project economics is presented in Table 1.7.

It must be noted that the economic evaluation of the Bellekeno property uses 100% inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no guarantee that the inferred mineral resources will be upgraded to a higher resource category and there is no certainty that the economic results of this PEA will be realized.

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Table 1.7: Economic Evaluation at Various Metal Prices

Parameter	Unit	Base Case 3 Year Average 1	Current Metal Prices 2	Forward Looking Metal Prices and Exchange Rates 3
Payback Period	years	1.7	1.7	1.5
IRR (pre-tax)	%	62	53	53
NPV at 8% (pre-tax)	$Million	95	74	57
Metal Prices				2010	2011	2012 and Beyond
Lead Zinc Silver Gold Exchange Rate	US$/lb US$/lb US$/oz US$/oz US$/C$	0.81 1.24 11.69 625.60 0.89	0.81 0.85 17.43 902.80 0.98	0.70 1.00 16.00 890.00 0.95	0.50 0.90 14.50 780.00 0.93	0.50 0.75 12.25 700.00 0.90

NOTE:
1.	Prices are quoted from London Metal Exchange and are rolling averages through May 2008.
2.	Current metal prices as of June 19, 2008
3.	Based on Alexco-compiled consensus long-term commodity price and exchange forecasts as of June 19, 2008 as published publicly by a basket of independent Canadian and US investment analysts

The payback period is defined as the time required after revenue is first received in Year 1 to achieve break-even cumulative cash flow. For this project, the payback period for the base case is 1.6 years. The payback period is based on the annual un-discounted cash flows. There is no consideration for inflation, interest, or depreciation in this calculation.

Conclusions

Based on this preliminary economic assessment:

• The testwork results indicate that the tested mineralization responded well to the conventional lead/zinc differential flotation process with a cyanide-free zinc mineral suppression regime.
   
• Silver and lead minerals associate intimately and will be recovered together to produce a silver-lead bulk concentrate, and zinc minerals will be concentrated into a separate zinc concentrate.
   
• Narrow-vein mining methods are applicable to the deposit with the final mining modalities requiring geotechnical confirmation.
   
• Providing that the set out design criteria and assumptions are satisfied, there is a strong indication that the project could be commercially viable.

Recommendations

It is recommended, based on the preliminary positive economic results, that a feasibility study (FS) be conducted on the Bellekeno Project.

The following general recommendations are required to carry the project to a feasibility level:

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• Continue to develop underground access for drilling, bulk sampling and mining method testing.

o Geotechnical recommendations for the development of the access ramp and exploration drifts must be followed.

• Conduct a definition diamond drilling program to attempt to upgrade resources, obtain metallurgical samples and test geotechnical and hydrogeological conditions.

• Conduct trial mining and bulk sampling in the main mineralized zones

• Conduct the necessary feasibility study-level testwork.

• Upgrade all project engineering and costs estimation to a FS level.

It is estimated that the cost to complete the necessary underground development and rehabilitation, drilling and sampling, testing and analysis and the compilation of a feasibility study will be approximately $12M.

It is also recommended that exploration targets in the Bellekeno area be further explored to determine if additional mineralized zones could be added to the property resources.

McQuesten Property

The Company’s 70% owned McQuesten property is comprised of 55 quartz mining claims and fractions, with the remaining 30% owned by a third party. In September 2007, the Company entered into an option agreement to acquire the remaining 30% interest from the third party, and issued 140,000 common shares valued at $651,000 in consideration for the granting of the option. The Company could exercise the option by providing notice no later than September 20, 2008 of its intention to exercise and subsequently issuing 210,000 common shares plus granting a net smelter return royalty to the optionor ranging from 0.5% to 2%, varying amongst the claims comprising the property. The property is subject to a second net smelter return royalty of 2% which is subject to an annual advance royalty payment of $20,000 per year.

On September 20, 2008, the Company provided notice of its intention to exercise the option, though shares had not yet been issued as at the date of this Annual Information Form.

The McQuesten property has been the subject of one technical report, which was independently prepared in compliance with NI 43-101 and was filed on SEDAR. Dated November 7, 2005 and entitled “Technical Report on the McQuesten Property”, the report was prepared by Janice Fingler, M.Sc., P.Geo. The detailed disclosure contained in that technical report is hereby incorporated by reference, and the summary section from that report is reproduced as follows:

SUMMARY

The McQuesten Property is located in the Mayo-Keno Hill District of the central Yukon Territory, and is located approximately 56 kilometres northeast of the town of Mayo and 350 kilometres due north of the town of Whitehorse. The property occupies an area of approximately 744 hectares (1838 acres) comprising three blocks of 55 non-contiguous quartz mining claims and fractional claims. The claims are currently registered in the name of 70% 650399 BC Inc., a wholly owned subsidiary of Alexco, and 30% Eagle Plains Resources, and are all in good standing.

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The author has prepared this report at the request of Alexco Resource Corporation (herewithin referred to as ‘Alexco’), in support of a prospectus and IPO prepared for the purposes of a listing application for the Toronto Stock Exchange (TSE). The report was prepared in accordance with the guidelines of National Instrument 43-101 “Standards of Disclosure for Mineral Projects” and is based on data and geological information gathered from public sources, assessment files and internal company reports and memorandum.

On February 1, 2005, Alexco entered into a sale and assignment agreement with NovaGold Canada Inc. (NovaGold) to acquire all issued shares of the company 650399 BC Ltd. (Spectrumsub). Alexco completed the acquisition through the issuance of 4,104,478 shares, the payment of CDN $599,812 cash, and the repayment of a refundable mineral tax credit from the Yukon government. Through this agreement, Alexco acquired the retained assets of Spectrumsub in British Columbia and the Yukon, including the McQuesten property, subject to underlying agreements, including a to a 2% net smelter royalty to B. Kreft and an annual advance royalty payment of $20,000.

The McQuesten Property is located within the western part of the Selwyn Basin, in northern Yukon Territory. The stratigraphy of the area consists of deformed and metamorphosed strata of basinal sediments which accumulated at the edge of the Neoproterozoic to Paleozoic continental margin. During the Jurassic to Cretaceous (160 and 130 Ma.), the area was subjected to compressional fold and thrust tectonics which generated a series of stacked thrust panels and related folds. The property straddles the trace of the Robert Service Thrust, on the northern limb of the McQuesten Anticline. In the mid-Cretaceous, renewed tectonism resulted in widespread brittle deformation and the emplacement of the Tombstone Suite of plutons. Throughout the district these plutons are related to gold mineralization in several deposits, including the Scheelite Dome, Dublin Gulch and Brewery Creek deposits.

Historically, the Mayo-McQuesten area was prospected as early as 1887 and several gold placer deposits were discovered in 1989, on nearby Duncan, Haggart and Lynx Creeks. Intermittent gold production from placer operations has continued in the area since the initial discoveries, until present. The exploration focus in the district shifted to silver in 1906, with the discoveyr of the Silver King vein on Galena Creek, located 1.6 kilometres north of the McQuesten claim boundary. With the activity at the Silver King mine, interest spread to the east towards Keno Hill where a discovery of galena carrying high-grade silver was made in 1919. Between 1919 and 1989 the Keno Hill-Galena Hill lodes were explored and developed, becoming the richest silver deposits in Canada. The deposits up to 1989 produced more than 213 million ounces of silver, with millions of pounds of lead, zinc and cadmium.

During the period between 1955 and 1981, exploration on the McQuesten property consisted of trenching and sporadic diamond drilling which was focused on Keno style silver-lead-zinc vein targets.

Historic claims underlying the current West Zone of the McQuesten Block, were optioned in 1967 by Fort George Mining and Exploration who conducted bulldozer trenching and drilled 61 metres to test the Wayne silver-lead occurrence. A shipment of 6.48 tons (dry weight) of ore grading 133.6 oz/ton Ag, 56% Pb, 4.4% Zn and 0.059 oz/ton gold was hand cobbed and shipped to the Trail smelter (Archer and Elliot, 1982). Diamond drilling of this occurrence in 1981 intersected the northwest trending Wayne Vein in several holes over a 95 metre strike length. Two gold-tungsten horizons in retrograde pyrrhotitic skarn were unexpectedly intersected in these holes, and since this time, activities have been focused on exploration for skarn hosted gold mineralization, both on the McQuesten property and the Aurex property, to the south. Within the confines of the property, the principal gold-tungsten-bismuth-arsenic mineralization occurs just north of and straddles the Silver Trail Highway.

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As the property is largely covered by overburden, recent exploration has been conducted as extensive trenching and diamond drilling programs by prior operators: Viceroy, Newmont and SpectrumGold. These activities have been focused in the western area of the McQuesten Block, in the vicinity of the historic silver-lead-zinc and gold occurrences. The results of these programs has shown the area to be underlain by an east-west trending and moderately south dipping package of siliciclastic, carbonaceous and calcareous rocks of the Upper Proterozoic Yusezyu Formation and the Mississippian Keno Hill Quartzite. Monzonite to quartz porphyry sills and dykes cut the succession along EW to ENE trends (McQuesten Dyke) and airborne magnetic signatures suggest the presence of a larger pluton at depth.

The McQuesten-Keno Hill District is an area of remarkable and diverse mineral endowment, which includes the Elsa-Keno Hill mining camp, a 23 km long x 6 km wide corridor of Ag-Pb-Zn+/- Au mineralization. There is evidence that the camp lies within a corridor of brittle deformation which extends onto the McQuesten property. This strain event may have been closely coeval with the emplacement of larger Tombstone intrusions in the area, as well as the McQuesten dyke and the interpreted deeper pluton. Most of the early brittle “vein faults” strike east-northeast, dip steeply southeast, and contain lead-zinc-silver lodes at Keno and Galena Hill, high grade silver at the Silver King Mine, and gold-arsenic-antimony-bismuth mineralization at Aurex Hill, to the south of the McQuesten map area. Murphy, 1997 noted that in the Keno area, the stockwork and en echelon arrays of the vein faults pass laterally into transverse faults, where there is potential to concentrate gold. Since local transfer zones “Transverse faults” would record much of the displacement of the brittle event, mineralization reflecting a diverse suite of elements and concentrations of gold may result.

Similar relationships between gold mineralization and these regional structural elements exist on the McQuesten property and exhibit a strong control on gold values. Trench exposures and geophysical responses in the area of the McQuesten Block indicate that the stratigraphy has been cut by early and late brittle fault zones which developed within a broad ENE corridor of brittle deformation.

Gold mineralization has been found over a 1+ kilometre east-west trend within the West and East Zones of the western McMcQuesten Block. In these areas, lower grade gold mineralization is associated with multiple horizons of pyrrhotitic retrograde skarn, within which, there are narrow intervals of higher grade gold associated with later stage quartz-pyrite+/- arsenopyrite+/- galena, sphalerite veins along NE to ENE trending structures and later galena-sphalerite-siderite+/-quartz veins, breccia zones along NW trending structures. These dilational structures appear to be kinematically related to similar brittle structures hosting silver lodes in the Elsa-Keno Hill camp and gold in quartz-arsenopyrite veins on the Aurex property to the south. The associated geochemical signatures include variants of Au-Bi-+/-W+/-As+/Te+/Sb and Ag-Pb-Zn-Au+/-As, similar to several other gold deposits associated with the reduced plutons of the Tombstone suite.

The combined results of historic drilling and trenching on the western McQuesten Block has determined that gold mineralization within skarn horizons is generally of low tenor, with local higher grade intervals associated with later structures. The erratic and discontinuous gold results from widely spaced drilling in both the West and East Zones is not atypical is the geological environment, and warrants additional work to more fully understand the nature and extent of mineralization.

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The potential in the McQuesten area lies in expanding the size of the mineralized zones by further drill testing of skarn horizons along strike and in increasing the overall gold grade by definition of the higher grade gold zones both within skarn and quartizite horizons. Indications of this potential have been demonstrated by widely spaced drilling in the West Zone, where two gold bearing skarn horizons proximal to later structures have returned significant historic results such as:

3.23 g/t Au over 21.3 metres (RC97-03)
1.77 g/t Au over 35.3 metres (RC97-02)
1.37 g/t gold over 36.6 metres (MQ00-4)
3.31 g/t gold over 4.3 metres (MQ00-4)

Similarly in the East Zone, drilling has returned significant historic intercepts from four skarn horizons; however, the controls on the overall extent and tenor of gold mineralization are poorly understood:

4.10 g/t gold over 9.6 metres (D83-01)
0.54 g/t gold over 14.0 metres (D83-02)
4.10 g/t gold over 3.0 metres (D83-04)
5.60 g/t gold over 3.0 metres (D83-06)
1.51 g/t gold over 11.1 metres (D83-06)
1.11 g/t gold over 33.0 metres (RC97-06)

A gold deposit on the McQuesten Property would require higher grade mineralization associated with such traps, as well as a greater density of the traps within the succession. This structural complexity has not been fully tested within either the skarn or the competent quartzite horizons. Therefore, there remains potential on the property and flanking holdings, to delineate a series of smaller deposits along the trend which may be collectively developed as has been done at the Brewery Creek Mine.

An integrated program of soil geochemistry, ground geophysics, trenching and diamond drilling is recommended for 2006, to verify the interpreted controls on mineralization and to delineate additional higher grade traps on the property. A budget of $260, 000 is recommended.

Brewery Creek Property

The Company’s 100% owned Brewery Creek property is comprised of 801 quartz mining claims and fractions, of which 93 have been legally surveyed and converted to quartz mining leases. The Brewery Creek property is subject to two underlying royalty agreements with third parties, as follows:

(a)

A “sliding scale” royalty on the first 300,000 ounces of production from the Brewery Creek property, payable on quarterly gold production on the basis of a sliding scale ranging from USD$10 per ounce if the average gold price for the quarter is less than USD$350 per ounce up to USD$40 per ounce if the average gold price for the quarter is greater than USD$450 per ounce. As of the cessation of gold production at Brewery Creek, royalties under this agreement had already been paid on 278,484 ounces of gold production.

(b)

A 5% net profits royalty (after recapture of pre-production expenditures) on profits from gold production at Brewery Creek.

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At June 30, 2008, the Company’s only material asset retirement obligation (“ARO”) relates to reclamation and closure activities at the Brewery Creek property. These activities include site reclamation and facilities removal, and post-closure monitoring. Approximately two thirds of the Brewery Creek ARO costs pertain to post-closure monitoring expected to span roughly the next ten years, with the balance pertaining to site reclamation and facilities removal expected to be completed within the next two years. The Company has determined the Brewery Creek ARO based on an evaluation report prepared by independent advisors. In accordance with Canadian GAAP, the Company has used the various classifications of probability within that report to determine the fair value of the ARO. The report included identification of additional contingent mitigation measures that might potentially be required, assessing the likelihood of such measures being required as “possible”, “unlikely” or “very unlikely”. The ARO recorded in respect of Brewery Creek at June 30, 2008 of $814,000 sufficiently provides for all planned activities plus all contingent mitigation measures with an assessed likelihood of “possible” and “unlikely”. In the highly unlikely event that all identified contingent mitigation measures should be required, including those with an assessed likelihood of “very unlikely”, this Brewery Creek ARO would need to be increased to approximately $2.4 million.

All of the substantive reclamation work on the Brewery Creek property has been completed as per the conditions outlined in the property’s approved reclamation and closure plan. Final reclamation of the process solution ponds and the single remaining mine building will be completed once these facilities are no longer required and appropriate regulatory authorizations have been secured for their removal. Monitoring and terrestrial maintenance activities at the mine are continuing as per the schedule outlined in the Company's water use and quartz mining licenses.

The Brewery Creek property has been the subject of one technical report, which was independently prepared in compliance with NI 43-101 and was filed on SEDAR. Dated November 4, 2005 and entitled “Brewery Creek Gold Project, Yukon Territory, Canada”, the report was prepared by Ronald G. Simpson, P.Geo., of GeoSim Services Inc. The detailed disclosure contained in that technical report is hereby incorporated by reference, and the summary section from that report is reproduced as follows:

1 SUMMARY

1.1 Property, Location & Ownership

The Brewery Creek property, a past producing heap leach gold mining operation currently in final reclamation and closure , is located 55 kilometres due east of Dawson City, Yukon. The claim ownership was transferred in April 2005 from Viceroy Mining Corporation to Alexco Resource Corp. and comprises 801 contiguous quartz claims covering 12,772 hectares.

1.2 Geology and Mineralization

On the Brewery Creek Property, Tombstone Suite, Cretaceous monzonite and quartz monzonite intrudes lower Paleozoic Earn Group and Road River Group stratigraphy as a series of semi-conformable sills. Cretaceous biotite monzonite and syenite stock-like bodies occur locally in the south-central part of the property.

Fracture controlled gold mineralization is hosted within porphyritic monzonite and quartz monzonite, biotite monzonite and interbedded fine-grained, siliclastic sediments. Local replacement mineralization is also hosted within calcareous siltstones. Major ore controlling structures in intrusives are related to a post Tombstone age (91 Ma), NNW compressional event that produced ESE and NE striking conjugate shears and ENE listric normal faulting localized along graphitic argillite/intrusive sill contacts. Moderate south dipping to overturned, north dipping short limbs of south vergent folds are the main controls to mineralization in the sediments.

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1.3 Exploration Concept and Status

More than 175,000 metres of drilling and trenching were completed between 1989 and 1999, focusing primarily on defining near surface oxide resources. Mined out oxide reserves totalled 9.7 million tonnes grading 1.44 g/t Au were distributed in 7 near surface deposits along a 7 km, ENE trend. This area is referred to as the “Reserve Trend” which is central to a WNW trending gold in soil anomaly that extends more than 15 km along strike.

Remaining indicated resources are estimated at 3.98 million tonnes grading 1.135 g/t Au. An estimated 2.2 million tonnes averaging 2.01 g/t Au in the North Slope zone are classified as inferred. Exploration drilling for higher grade sulphide resources is nominal and restricted largely to the down dip extensions of SE dipping, listric normal faults. The limited drilling of these targets to date has yielded scattered but significant gold mineralization.

In 2004 work included 28 line kilometres of Induced Polarization geophysical surveys and 769 metres of diamond drilling in five holes. This was completed by SpectrumGold Inc. in a first phase partial test of deeper sulphide-associated gold targets. Exploration focused in a two kilometre square area in and adjacent to the Pacific and Blue production pits. The program was terminated prematurely due to health and safety concerns related to proximal forest fires and local, heavy smoke.

1.4 Conclusions and Recommendations

In light of new structural and geochemical models and exploration concepts, the current depth of drilling is inadequate to properly assess the sulphide potential at Brewery Creek. Subsequently, a two-phase exploration program for $2,500,000 is proposed. Preparatory geological work should focus on detailed structural and alteration mapping in order to define additional prospective targets. This should be followed by a 2700 metre drill program to assess the potential for higher grade mineralization in the Pacific, Blue and Classic Zones. A more extensive second phase drill program would include 4500 metres of diamond drilling and 2500 metres of reverse circulation drilling.

Environmental Consulting Services

General

The Company’s environmental consulting services group is in the business of managing risk and unlocking value at mature, closed or abandoned sites through integration and implementation of the Company's core competencies, which include management of environmental services, implementation of innovative treatment technologies, execution of site reclamation and closure operations, and, if appropriate, rejuvenation of exploration and development activity. The Company’s principal markets for these services are in Canada and the United States, with the Canadian market serviced primarily through Access and ERDC and the U.S. market through Alexco US. The Company provides its services to a range of industrial sectors, but with a particular focus on current and former mine sites.

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The Company offers its clients a unique combination of environmental remediation expertise in the area of site reclamation and closure, an ability to manage complex permitting and regulatory programs on a turnkey basis, and strong operations management. In addition, the Company seeks to strategically leverage off its environmental consulting services group, accessing opportunities to enhance asset value through effective liability risk management and efficient site operations. This is accomplished through unlocking potential exploration and development opportunities at contaminated or abandoned sites through cost effective and responsible environmental remediation and liability transfer.

The Company executes its environmental consulting services business plan by using and applying the intellectual property assets, including the Patents, and the specialized skill sets and knowledge which it acquired through the ALM, Access and Green World transactions (see “General Development of the Business – Three Year History and Significant Acquisitions”). While there are a significant number of firms providing environmental consulting services in North America, these assets, skill sets and knowledge provide Alexco with a strong competitive advantage. Consolidated revenues from environmental consulting services in the year ended June 30, 2008 totaled $5,736,000, an increase of 41.5% over consolidated revenues of $4,053,000 in the year preceding. During the 2008 fiscal year, the Company recorded revenues from two customers representing 10% or more of total revenue, in the amounts of $2,583,000 and $767,000 respectively. In 2007, the Company similarly had two customers representing 10% or more of total revenue, in the amounts of $1,361,000 and $467,000 respectively. The Company’s largest single customer is the Government of Yukon, with a substantial component of the revenues earned from the Government of Yukon being derived from the Keno Hill project.

Keno Hill Project

As described above (see “General Development of the Business – Three Year History and Significant Acquisitions”), under the Subsidiary Agreement, Alexco’s subsidiary ERDC is retained through the Government of Yukon as a paid contractor responsible on a continuing basis for the environmental care and maintenance and ultimate closure reclamation of the former UKHM properties.

The Subsidiary Agreement provides that ERDC is responsible for the development of the ultimate closure reclamation plan for fees of 65% of agreed scheduled rates, and this plan development is currently ongoing. Upon acceptance and regulatory approval, the closure reclamation plan will be implemented by ERDC at full negotiated contractor rates. During the period required to develop the plan, ERDC is responsible for carrying out the environmental care and maintenance of the UKHM properties for a reducing fixed annual fee adjusted each year for certain operating and inflationary factors. ERDC received and recognized 100% of the fee amount so determined during each contract year up to and including the year when Final Closing occurred. Pursuant to the Subsidiary Agreement, the portion of the annual fee amount so determined which is billable by ERDC will reduce by 15% each year until all site specific care and maintenance activities have been replaced by final reclamation activities; provided however that should a closure reclamation plan be prepared but not accepted and approved, the portion of annual fees billable by ERDC will revert to 85% until the Subsidiary Agreement is either amended or terminated. ERDC receives full contractor rates when retained by government to provide consulting services in the Keno Hill district outside the scope of the Subsidiary Agreement.

Risk Factors

The Company faces a number of significant risk factors related to its business activities, which are discussed in greater detail below. Such risk factors could materially affect the Company's future financial results, and could cause events to differ materially from those described in forward-looking statements relating to the Company. While the significant risk factors which the Company believes it faces are discussed below, they do not comprise a definitive list of all risk factors related to the Company's operations.

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Exploration and Development

Mineral exploration and development involves a high degree of risk and few properties which are explored are ultimately developed into producing mines. With respect to the Company’s properties, should any ore reserves exist, substantial expenditures will be required to confirm ore reserves which are sufficient to commercially mine, and to obtain the required environmental approvals and permitting required to commence commercial operations. Should any mineral resource be defined on such properties there can be no assurance that the mineral resource on such properties can be commercially mined or that the metallurgical processing will produce economically viable and saleable products. The decision as to whether a property contains a commercial mineral deposit and should be brought into production will depend upon the results of exploration programs and/or technical studies, and the recommendations of duly qualified engineers and/or geologists, all of which involves significant expense. This decision will involve consideration and evaluation of several significant factors including, but not limited to: (1) costs of bringing a property into production, including exploration and development work, preparation of appropriate technical studies and construction of production facilities; (2) availability and costs of financing; (3) ongoing costs of production; (4) market prices for the minerals to be produced; (5) environmental compliance regulations and restraints (including potential environmental liabilities associated with historical exploration activities); and (6) political climate and/or governmental regulation and control.

The ability of the Company to sell, and profit from the sale of any eventual production from any of the Company’s properties will be subject to the prevailing conditions in the marketplace at the time of sale. Many of these factors are beyond the control of the Company and therefore represent a market risk which could impact the long term viability of the Company and its operations.

Keno Hill District

While the Company has conducted exploration activities in the Keno Hill district, further review of historical records and additional exploration and geological testing will be required to determine whether any of the mineral deposits it contains are economically recoverable. There is no assurance that such exploration and testing will result in favourable results. The history of the Keno Hill district has been one of fluctuating fortunes, with new technologies and concepts reviving the district numerous times from probable closure until 1989, when it did ultimately close down for a variety of economic and technical reasons. Many or all of these economic and technical issues will need to be addressed prior to the commencement of any future production on the Keno Hill properties.

Under the terms of the Subsidiary Agreement, ERDC is responsible for carrying out the environmental care and maintenance of the UKHM properties during the period required to develop and obtain acceptance and regulatory approval for the Keno Hill district closure reclamation plan, for a fixed annual fee that reduces by 15% each year until all site specific care and maintenance activities have been replaced by final reclamation activities. The Company could incur significant costs while undertaking such care and maintenance activities, should it take a longer period than anticipated to obtain acceptance and approval for the closure reclamation plan and commence reclamation activities.

Capitalization and Commercial Viability

The Company will require additional funds to further explore, develop and mine its properties. The Company has limited financial resources, and there is no assurance that additional funding will be available to the Company to carry out the completion of all proposed activities, for additional exploration or for the substantial capital that is typically required in order to place a property into commercial production. Although the Company has been successful in the past in obtaining financing through the sale of equity securities, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favourable. Failure to obtain such additional financing could result in the delay or indefinite postponement of further exploration and development of its properties.

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Environmental Consulting Services

A material decline in the level of activity or reduction in industry willingness to spend capital on mine reclamation, remediation or environmental services could adversely affect demand for the Company's services. Likewise, a material change in mining product commodity prices, the ability of mining companies to raise capital or changes in domestic or international political, regulatory and economic conditions could adversely affect demand for the Company's services.

Two of the Company’s customers, including the Government of Yukon, accounted for a combined 58% of revenues in 2008 (45% in 2007). The loss of, or a significant reduction in the volume of business conducted with, either or both of these customers could have a significant detrimental effect on the Company’s environmental consulting services business.

The patents which the Company owns or has access to or other proprietary technology may not prevent the Company's competitors from developing substantially similar technology, which may reduce the Company's competitive advantage. Similarly, the loss of access of any of such patents or other proprietary technology or claims from third parties that such patents or other proprietary technology infringe upon proprietary rights which they may claim or hold would be detrimental to the Company's reclamation and remediation business.

The Company may not be able to keep pace with continual and rapid technological developments that characterize the market for the Company's mine reclamation and remediation services and the Company's failure to do so may result in a loss of its market share. Similarly, changes in existing regulations relating to mine reclamation and remediation activities could require the Company to change the way it conducts its business.

Environmental Risks and Other Regulatory Requirements

The current or future operations of the Company, including development activities, commencement of production on its properties and activities associated with the Company's mine reclamation and remediation business, require permits or licenses from various federal and local governmental authorities, and such operations are and will be governed by laws and regulations governing prospecting, development, mining, production, taxes, labour standards, occupational health, waste disposal, toxic substances, land use, environmental protection, mine safety and other matters. Companies engaged in the development and operation of mines and related facilities and in mine reclamation and remediation activities generally experience increased costs and delays as a result of the need to comply with the applicable laws, regulations and permits. There can be no assurance that all permits which the Company may require for the conduct of its operations will be obtainable on reasonable terms or that such laws and regulations would not have an adverse effect on any project which the Company might undertake.

Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. Parties engaged in mining operations or in mine reclamation and remediation activities may be required to compensate those suffering loss or damage by reason of such activities and may have civil or criminal fines or penalties imposed upon them for violation of applicable laws or regulations.

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Amendments to current laws, regulations and permits governing operations and activities of mining companies and mine reclamation and remediation activities, or more stringent implementation thereof, could have a material adverse impact on the Company and cause increases in capital expenditures or production costs or reduction in levels of production at producing properties or require abandonment or delays in the development of new mining properties.

Potential Profitability Of Mineral Properties Depends Upon Factors Beyond the Control of the Company

The potential profitability of mineral properties is dependent upon many factors beyond the Company’s control. For instance, world prices of and markets for gold and silver are unpredictable, highly volatile, potentially subject to governmental fixing, pegging and/or controls and respond to changes in domestic, international, political, social and economic environments. Another factor is that rates of recovery of mined ore may vary from the rate experienced in tests and a reduction in the recovery rate will adversely affect profitability and, possibly, the economic viability of a property. Profitability also depends on the costs of operations, including costs of labour, equipment, electricity, environmental compliance or other production inputs. Such costs will fluctuate in ways the Company cannot predict and are beyond the Company’s control, and such fluctuations will impact on profitability and may eliminate profitability altogether. Additionally, due to worldwide economic uncertainty, the availability and cost of funds for development and other costs have become increasingly difficult, if not impossible, to project. These changes and events may materially affect the financial performance of the Company.

First Nation Rights and Title

First Nation land claims in Yukon Territory remain the subject of active debate and litigation. The Keno Hill project lies within the traditional territory of the First Nation of Na-Cho Nyak Dun. There can be no guarantee that the nature of land claims in Yukon Territory will not create delays in project approval, unexpected interruptions in project progress or result in additional costs to advance the project.

Title to Mineral Properties

The acquisition of title to mineral properties is a complicated and uncertain process. The properties may be subject to prior unregistered agreements of transfer or land claims, and title may be affected by undetected defects. The Company has taken steps, in accordance with industry standards, to verify mineral properties in which it has an interest. Although the Company has made efforts to ensure that legal title to its properties is properly recorded in the name of the Company, there can be no assurance that such title will ultimately be secured.

Securities of the Company and Dilution

To further the activities of the Company to acquire additional properties, the Company will require additional funds and it is likely that, to obtain the necessary funds, the Company will have to sell additional securities including, but not limited to, its common stock or some form of convertible securities, the effect of which would result in a substantial dilution of the present equity interests of the Company's shareholders.

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Operating Hazards and Risks

In the course of exploration, development and production of mineral properties, certain risks, and in particular, unexpected or unusual geological operating conditions including rock bursts, cave-ins, fires, flooding and earthquakes may occur. It is not always possible to fully insure against such risks and the Company may decide not to insure against such risks as a result of high premiums or other reasons. Should such liabilities arise, they could reduce or eliminate any future profitability and result in increasing costs and a decline in the value of the securities of the Company.

Adverse weather conditions could also disrupt the Company's mine reclamation and remediation business and/or reduce demand for the Company's services.

Competition

Significant and increasing competition exists for mining opportunities internationally. There are a number of large established mining companies with substantial capabilities and far greater financial and technical resources than the Company. The Company may be unable to acquire additional attractive mining properties on terms it considers acceptable and there can be no assurance that the Company's exploration and acquisition programs will yield any new reserves or result in any commercial mining operation.

DIVIDENDS

The Company has not paid any dividends on its common shares since its incorporation. Any decision to pay dividends on common shares in the future will be made by the board of directors on the basis of the earnings, financial requirements and other conditions existing at such time.

DESCRIPTION OF CAPITAL STRUCTURE

The authorized capital of the Company consists of an unlimited number of common shares, without par value.

There are no special rights or restrictions of any nature attached to any of the common shares, which all rank equally as to all benefits which might accrue to the holders of the common shares.

MARKET FOR SECURITIES

Trading Price and Volume

The common shares of the Company are listed and posted for trading on the Toronto Stock Exchange (“TSX”) under the symbol “AXR”. The following table sets out the market price range and trading volumes of the Company’s common shares on the TSX for the periods indicated.

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Period	Volume	High ($)	Low ($)
June 2008	605,100	$3.70	$3.15
May 2008	607,700	$4.33	$3.60
April 2008	843,700	$4.62	$3.89
March 2008	672,900	$4.80	$3.85
February 2008	916,000	$4.99	$4.01
January 2008	1,455,300	$5.81	$4.00
December 2007	1,265,600	$5.44	$3.73
November 2007	1,208,500	$5.95	$4.70
October 2007	1,671,300	$6.16	$4.92
September 2007	1,460,100	$5.15	$3.51
August 2007	1,899,400	$5.72	$3.11
July 2007	971,200	$6.16	$5.26

On September 20, 2007, the common shares of the Company were listed and began trading on the American Stock Exchange (“AMEX”) under the symbol “AXU”.

Securities Not Listed or Quoted

The only classes of securities of the Company that are not listed or quoted on a marketplace are its stock options and warrants. During the fiscal year ended June 30, 2008, stock options and warrants were issued as follows:

Date of Issuance	Class of Security	Number Issued	Issuing Price per Security
October 9, 2007	Stock Options	150,000	$2.50
December 11, 2007	Warrants	85,800	$0.67
February 11, 2008	Stock Options	232,500	$2.23
May 21, 2008	Stock Options	15,000	$1.78

The issuing price per security is the fair value of that security as estimated by the Company based on the Black-Scholes option pricing model.

DIRECTORS AND OFFICERS

Name, Occupation and Security Holding

The name, province or state, country of residence, position or office held with the Company and principal occupation during the past five years of each director and executive officer of the Company are described as follows.

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Name and Address(1)	Office or Position Held	Principal Occupation During the Past Five Years	Previous Service as a Director
Clynton R. Nauman Washington, USA	President, Chief Executive Officer and Director(4)	President and Chief Executive Officer of the Company, since December 2004; Chief Executive Officer of Asset Liability Management Group ULC, since February 2003.	Since December 3, 2004
Michael Winn California, USA	Chairman and Director(2)(3)(4)(5)	President of Terrasearch Inc., a consulting company that provides analysis on mining and energy companies, since 1997.	Since January 11, 2005
Rick Van Nieuwenhuyse British Columbia, Canada	Director(4)	President and Chief Executive Officer of NovaGold, a company engaged in the business of mining and mineral exploration and development, since May 1999.	Since January 11, 2005
David Searle British Columbia, Canada	Director(2)(3)(4)(5)	Lawyer with Fasken Martineau DuMoulin LLP, October 2001 to August 2006.	Since May 12, 2006
George Brack British Columbia, Canada	Director(2)(3)(5)	Managing Director and Industry Head – Mining with Scotia Capital Inc., since December 2006; President of Macquarie North America Ltd. from January 1999 to November 2006.	Since December 11, 2007
Bradley Thrall Washington, USA	Chief Operating Officer	Chief Operating Officer of the Company, since December 2004; President of Asset Liability Management Group ULC, since September 2002.	N/A
David Whittle British Columbia, Canada	Chief Financial Officer and Corporate Secretary	Chief Financial Officer and Corporate Secretary of the Company, since October 2007; Chief Financial Officer of Hillsborough Resources Limited, a mining company, from August 2004 to August 2007; Chartered Accountant in public practice prior to August 2004.	N/A
Stanton Dodd Washington, USA	Vice President, Exploration	Vice President Exploration of the Company, since March 2008; Senior Project Geologist for NovaGold from January 2002 to March 2008.	N/A

(1)	The information as to the jurisdiction of residence and principal occupation, not being within the knowledge of the Company, has been furnished by the respective individuals individually.
(2)	Member of the Audit Committee.
(3)	Member of the Corporate Governance Committee.
(4)	Member of the Environmental and Safety Committee.
(5)	Member of the Compensation Committee.

Each of the Company’s directors is elected by the Company’s shareholders at an annual meeting to serve until the next annual meeting of shareholders or until a successor is elected or appointed. The board of directors appoints the Company’s executive officers annually after each annual meeting, to serve at the discretion of the board of directors.

Based on information provided by such persons, as at the date hereof the directors and executive officers of the Company as a group beneficially owned, directly or indirectly, or exercised control or direction over, an aggregate of 4,416,300 common shares of the Company (including 1,940,299 shares owned by ALM), representing approximately 12.3% of the issued and outstanding common shares of the Company. In

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addition, the directors and executive officers of the Company as a group held stock options for the purchase of an aggregate of 2,007,500 common shares in the capital of the Company, representing approximately 58.5% of all outstanding options.

Cease Trade Orders, Bankruptcies, Penalties or Sanctions

Other than as disclosed below, to the knowledge of the Company, none of the Company's directors or executive officers is, as at the date of this Annual Information Form, or has been, within ten years before the date of this Annual Information Form, a director, chief executive officer or chief financial officer of any company (including the Company) that:

(a)	was subject to an Order (as defined below) that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or
(b)	was subject to an Order that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer;

“Order” means a cease trade order, an order similar to a cease trade order, or an order that denied the relevant company access to any exemption under securities legislation and, in each case, that was in effect for a period of more than 30 consecutive days.

Other than as disclosed above, none of the Company's directors or executive officers or, to the Company's knowledge, any shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company:

(a)	is, as at the date of this Annual Information Form, or has been within the 10 years before the date of this Annual Information Form, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or
(b)	has, within the 10 years before the date of this Annual Information Form, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the proposed director; or
(c)	has been subject to:
	(i)	any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or
	(ii)	any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

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David Whittle was a director of Image Innovations Holdings Inc. (“Image”), a company incorporated in the United States. Image and its subsidiaries filed voluntary petitions for relief under Chapter 11, Title 11 of the United States Code on July 6, 2006. Image’s Joint Chapter 11 Liquidating Plan was confirmed by the Bankruptcy Court on August 21, 2007, and Image is currently in the process of seeking the entry of a Final Decree closing the Chapter 11 cases.

Conflicts of Interest

The directors of the Company are required by law to act honestly and in good faith with a view to the best interest of the Company and to disclose any interests which they may have in any project or opportunity of the Company. If a conflict of interest arises at a meeting of the board of directors, any director in a conflict will disclose his interest and abstain from voting on such matter. In determining whether or not the Company will participate in any project or opportunity, that director will primarily consider the degree of risk to which the Company may be exposed and its financial position at that time.

To the best of the Company's knowledge, there are no known existing or potential conflicts of interest among the Company, its promoters, directors, officers or other members of management of the Company as a result of their outside business interests except that certain of the directors, officers, promoters and other members of management serve as directors, officers, promoters and members of management of other public companies, and therefore it is possible that a conflict may arise between their duties as a director, officer, promoter or member of management of such other companies.

The directors and officers of the Company are aware of the existence of laws governing accountability of directors and officers for corporate opportunity and requiring disclosures by directors of conflicts of interest and the Company relies upon such laws in respect of any directors’ and officers’ conflicts of interest or in respect of any breaches of duty by any of its directors or officers. Such directors or officers in accordance with the Business Corporations Act (British Columbia) are required to disclose all such conflicts and to govern themselves in respect thereof to the best of their ability in accordance with the obligations imposed upon them by law.

PROMOTERS

NovaGold Canada and ALM took the initiative in founding the Company and arranging for its organization and financing and, accordingly, may be considered promoters of the Company within the meaning of securities legislation of British Columbia.

As at the date hereof, NovaGold Canada held 6,352,978 common shares of the Company, representing approximately 17.7% of the issued and outstanding common shares of the Company.

As at the date hereof, ALM held 1,940,299 common shares of the Company, representing approximately 5.4% of the issued and outstanding common shares of the Company.

See “General Development of the Business – Three Year History and Significant Acquisitions” and “Interest of Management and Others in Material Transactions” with respect to transactions entered into by the Company involving NovaGold Canada and ALM.

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AUDIT COMMITTEE INFORMATION

Audit Committee Charter

The following is the text of the Audit Committee's Charter:

I.          MANDATE

The Audit Committee (the “Committee”) of the Board of Directors (the “Board”) of Alexco Resource Corp. (the “Company”) shall assist the Board in fulfilling its financial oversight responsibilities. The Committee’s primary duties and responsibilities under this mandate are to serve as an independent and objective party to monitor:

1.	The quality and integrity of the Company’s financial statements and other financial information;
2.	The compliance of such statements and information with legal and regulatory requirements;
3.	The qualifications and independence of the Company’s independent external auditor (the “Auditor”); and
4.	The performance of the Company’s internal accounting procedures and Auditor.

II.          STRUCTURE AND OPERATIONS

A.          Composition

The Committee shall be comprised of three or more independent members.

B.          Qualifications

 Each member of the Committee must be a member of the Board.

A majority of the members of the Committee shall not be officers or employees of the Company or of an affiliate of the Company.

Each member of the Committee must be able to read and understand fundamental financial statements, including the Company’s balance sheet, income statement, and cash flow statement.

C.          Appointment and Removal

In accordance with the By-Laws of the Company, the members of the Committee shall be appointed by the Board and shall serve until such member’s successor is duly elected and qualified or until such member’s earlier resignation or removal. Any member of the Committee may be removed, with or without cause, by a majority vote of the Board.

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D.          Chair

Unless the Board shall select a Chair, the members of the Committee shall designate a Chair by the majority vote of all of the members of the Committee. The Chair shall call, set the agendas for and chair all meetings of the Committee.

E.          Sub-Committees

The Committee may form and delegate authority to subcommittees consisting of one or more members when appropriate, including the authority to grant pre-approvals of audit and permitted non-audit services, provided that a decision of such subcommittee to grant a pre-approval shall be presented to the full Committee at its next scheduled meeting.

F.          Meetings

The Committee shall meet at least four times in each fiscal year, or more frequently as circumstances dictate. The Auditor shall be given reasonable notice of, and be entitled to attend and speak at, each meeting of the Committee concerning the Company’s annual financial statements and, if the Committee feels it is necessary or appropriate, at every other meeting. On request by the Auditor, the Chair shall call a meeting of the Committee to consider any matter that the Auditor believes should be brought to the attention of the Committee, the Board or the shareholders of the Company.

At each meeting, a quorum shall consist of a majority of members that are not officers or employees of the Company or of an affiliate of the Company.

As part of its goal to foster open communication, the Committee may periodically meet separately with each of management and the Auditor to discuss any matters that the Committee believes would be appropriate to discuss privately. In addition, the Committee should meet with the Auditor and management annually to review the Company’s financial statements in a manner consistent with Section III of this Charter.

The Committee may invite to its meetings any director, any manager of the Company, and any other person whom it deems appropriate to consult in order to carry out its responsibilities. The Committee may also exclude from its meetings any person it deems appropriate to exclude in order to carry out its responsibilities.

III.          DUTIES

A.          Introduction

The following functions shall be the common recurring duties of the Committee in carrying out its purposes outlined in Section I of this Charter. These duties should serve as a guide with the understanding that the Committee may fulfill additional duties and adopt additional policies and procedures as may be appropriate in light of changing business, legislative, regulatory or other conditions. The Committee shall also carry out any other responsibilities and duties delegated to it by the Board from time to time related to the purposes of the Committee outlined in Section I of this Charter.

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The Committee, in discharging its oversight role, is empowered to study or investigate any matter of interest or concern which the Committee in its sole discretion deems appropriate for study or investigation by the Committee.

The Committee shall be given full access to the Company’s internal accounting staff, managers, other staff and Auditor as necessary to carry out these duties. While acting within the scope of its stated purpose, the Committee shall have all the authority of, but shall remain subject to, the Board.

The Committee shall be given all funding as the Committee determines necessary for the payment of: (i) compensation to any registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services; (ii) compensation to advisors employed by the Committee; and (iii) ordinary administrative expenses.

B.          Powers and Responsibilities

The Committee will have the following responsibilities and, in order to perform and discharge these responsibilities, will be vested with the powers and authorities set forth below, namely, the Committee shall:

Independence of Auditor

1)	Review and discuss with the Auditor any disclosed relationships or services that may impact the objectivity and independence of the Auditor and, if necessary, obtain a formal written statement from the Auditor setting forth all relationships between the Auditor and the Company, consistent with Independence Standards Board Standard 1.
2)	Take, or recommend that the Board take, appropriate action to oversee the independence of the Auditor.
3)	Require the Auditor to report directly to the Committee.
4)	Review and approve the Company’s hiring policies regarding partners, employees and former partners and employees of the Auditor and former independent external auditor of the Company.

Performance & Completion by Auditor of its Work

5)	Be directly responsible for the oversight of the work by the Auditor (including resolution of disagreements between management and the Auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or related work.
6)	. Review annually the performance of the Auditor and recommend the appointment by the Board of a new, or re-election by the Company’s shareholders of the existing, Auditor.

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7)	Pre-approve all auditing services and permitted non-audit services (including the fees and terms thereof) to be performed for the Company by the Auditor unless such non-audit services:
	(a)	which are not pre-approved, are reasonably expected not to constitute, in the aggregate, more than 5% of the total amount of revenues paid by the Company to the Auditor during the fiscal year in which the non-audit services are provided;
	(b)	were not recognized by the Company at the time of the engagement to be non-audit services; and
	(c)	are promptly brought to the attention of the Committee by Management and approved prior to the completion of the audit by the Committee or by one or more members of the Committee who are members of the Board to whom authority to grant such approvals has been delegated by the Committee.

Internal Financial Controls & Operations of the Company

8)	Establish procedures for:
	(a)	the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls, or auditing matters; and
	(b)	the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters.

Preparation of Financial Statements

9)	Discuss with management and the Auditor significant financial reporting issues and judgments made in connection with the preparation of the Company’s financial statements, including any significant changes in the Company’s selection or application of accounting principles, any major issues as to the adequacy of the Company’s internal controls and any special steps adopted in light of material control deficiencies.
10)	Discuss with management and the Auditor any correspondence with regulators or governmental agencies and any employee complaints or published reports which raise material issues regarding the Company’s financial statements or accounting policies.
11)	Discuss with management and the Auditor the effect of regulatory and accounting initiatives as well as off-balance sheet structures on the Company’s financial statements.
12)	Discuss with management the Company’s major financial risk exposures and the steps management has taken to monitor and control such exposures, including the Company’s risk assessment and risk management policies.

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13)	Discuss with the Auditor the matters required to be discussed relating to the conduct of any audit, in particular:
14)	The adoption of, or changes to, the Company’s significant auditing and accounting principles and practices as suggested by the Auditor or management.
15)	Any difficulties encountered in the course of the audit work, including any restrictions on the scope of activities or access to requested information, and any significant disagreements with management.

Public Disclosure by the Company

16)	Review the Company’s annual and quarterly financial statements, management discussion and analysis (MD&A) before the Board approves and the Company publicly discloses this information.
17)	Review the Company’s financial reporting procedures and internal controls to be satisfied that adequate procedures are in place for the review of the Company’s public disclosure of financial information extracted or derived from its financial statements, other than disclosure described in the previous paragraph, and periodically assessing the adequacy of those procedures.
18)	Review any disclosures made to the Committee by the Company’s Chief Executive Officer and Chief Financial Officer during their certification process of the Company’s financial statements about any significant deficiencies in the design or operation of internal controls or material weaknesses therein and any fraud involving management or other employees who have a significant role in the Company’s internal controls.

Related Party Transactions

19) Review all related party or conflict of interest transactions of the Company and make appropriate recommendation to the Board of Directors.

Manner of Carrying Out its Mandate

20)	Consult, to the extent it deems necessary or appropriate, with the Auditor but without the presence of management, about the quality of the Company’s accounting principles, internal controls and the completeness and accuracy of the Company’s financial statements.
21)	Request any officer or employee of the Company or the Company’s outside counsel or Auditor to attend a meeting of the Committee or to meet with any members of, or consultants to, the Committee.
22)	Have the authority, to the extent it deems necessary or appropriate, to retain independent legal, accounting or other consultants to advise the Committee advisors.

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23)	Meet, to the extent it deems necessary or appropriate, with management and the Auditor in separate executive sessions at least quarterly.
24)	Have the authority, to the extent it deems necessary or appropriate, to retain independent legal, accounting or other consultants to advise the Committee advisors.
25)	Make regular reports to the Board.
26)	Review and reassess the adequacy of this Charter annually and recommend any proposed changes to the Board for approval.
27)	Annually review the Committee’s own performance.
28)	Provide an open avenue of communication among the Auditor the Board.
29)	Not delegate these responsibilities other than to one or more independent members of the Committee the authority to pre-approve, which the Committee must ratify at its next meeting, non-audit services to be provided by the Auditor.

F.         Limitation of Audit Committee’s Role

While the Committee has the responsibilities and powers set forth in this Charter, it is not the duty of the Committee to plan or conduct audits or to determine that the Company’s financial statements and disclosures are complete and accurate and are in accordance with generally accepted accounting principles and applicable rules and regulations. These are the responsibilities of management and the Auditor.

Composition of the Audit Committee

The members of the Audit Committee are Michael Winn, George Brack and David Searle. All of the members are financially literate and independent for the purposes of Multilateral Instrument 52-110 ("MI 52-110").

Mr. Winn is a financial expert, in that he has an understanding of generally accepted accounting principles and financial statements; is able to assess the general application of accounting principles in connection with the accounting for estimates, accruals and reserves; has experience analyzing or evaluating financial statements that entail accounting issues of equal complexity to the Company's financial statements (or actively supervising another person who did so); and has a general understanding of internal controls and procedures for financial reporting and an understanding of audit committee functions.

Mr. Winn does not have an accounting designation; instead his expertise is derived from his high level involvement in the financial matters of public corporations. Mr. Winn is currently President of Terrasearch Inc., a consulting company that provides analysis on mining and energy companies. Mr. Winn has worked in the oil and gas industry since 1983 and the mining industry since 1992. He completed graduate course work in accounting and finance and received a BSc in geology from the University of Southern California. Mr. Winn has the business expertise to understand and evaluate financial statements and the accounting principles applied to natural resource companies’ financial statements.

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Mr. Brack is Managing Director and Industry Head – Mining of Scotia Capital Inc. Prior to joining Scotia Capital, he held the position of President of Macquarie North America Ltd., an investment banking firm specializing in mergers and acquisitions as well as other advisory functions for North American resource companies. Mr. Brack has also held positions with Placer Dome as Vice President Corporate Development, and with CIBC Wood Gundy where he was Vice President of the Investment Banking Group. Mr. Brack is financially literate, possessing extensive experience in corporate finance and investment banking, particularly with respect to the mining sector.

Mr. Searle is a lawyer and a recently retired partner at Fasken Martineau DuMoulin LLP and brings to the Board 44 years of experience practicing law in western and northern Canada. He has extensive experience in environmental assessment, the permitting of major projects and in the area of mine closure and reclamation. Mr. Searle regularly appeared in all three northern jurisdictions before the Boards that conduct environmental assessments and issue water licenses and land use permits and has extensive experience dealing with contaminated sites in British Columbia. Mr. Searle is financially literate in that he has the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised by the Company's financial statements.

Reliance on Certain Exemptions

At no time since the commencement of the Company's most recently completed financial year has the Company relied on the exemption in Section 2.4 of MI 52-110 (De Minimis Non-audit Services), Section 3.2 of MI 52-110 (Initial Public Offerings), Section 3.3(2) of MI 52-110 (Controlled Companies), Section 3.4 of MI 52-110 (Events Outside Control of Member), Section 3.5 of MI 52-110 (Death, Disability or Resignation of Audit Committee Member), Section 3.6 of MI 52-110 (Temporary Exemption for Limited and Exceptional Circumstances) or Section 3.8 of MI 52-110 (Acquisition of Financial Literacy), or an exemption from MI 52-110, in whole or in part, granted under Part 8 of MI 52-110 (Exemptions).

Audit Committee Oversight

At no time since the commencement of the Company's most recently completed financial year was a recommendation of the Committee to nominate or compensate an external auditor not adopted by the board of directors.

Pre-Approval Policies and Procedures

The Audit Committee nominates and engages the independent auditors to audit the financial statements, and approves all audit, audit-related services, tax services and other services provided by the Company’s independent auditors, PricewaterhouseCoopers LLP, Chartered Accountants. Any services provided by PricewaterhouseCoopers LLP that are not specifically included within the scope of the audit must be pre-approved by the audit committee prior to any engagement. The audit committee is permitted to approve certain fees for audit-related services, tax services and other services pursuant to a de minimus exception before the completion of the engagement. No fees paid to PricewaterhouseCoopers LLP in either of the fiscal years ended June 30, 2008 or 2007 were approved pursuant to the de minimus exception.

External Auditor Service Fees (By Category)

PricewaterhouseCoopers LLP, Chartered Accountants, serve as the independent auditors for the Company and have acted as the Company's independent auditor for the fiscal years ended June 30, 2008 and June 30, 2007. The chart below sets forth the total amount billed the Company by PricewaterhouseCoopers LLP for services

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performed in these periods and breaks down these amounts by category of service (for audit fees, audit-related fees, tax fees and all other fees):

External Auditor Service Fees (By Category)

Financial Year Ended	Audit Fees	Audit-Related Fees	Tax Fees	All Other Fees
June 30, 2008	$280,000	$71,452	$nil	$nil
June 30, 2007	$107,000	$84,352	$nil	$70,270

“Audit Fees” are the aggregate fees billed by PricewaterhouseCoopers LLP for the audits of the Company’s consolidated annual financial statements and internal control over financial reporting that are provided in connection with statutory and regulatory filings or engagements.

“Audit-Related Fees” are fees charged by PricewaterhouseCoopers LLP for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported under “Audit Fees”. This category includes but is not limited to fees billed for independent accountant review of the interim financial statements, advisory services associated with the Company’s financial reporting and fees charged for services rendered in connection with registration statements and other securities offering documents.

“Tax Fees” are fees for professional services rendered by PricewaterhouseCoopers LLP for tax compliance, tax advice on actual or contemplated transactions.

“All Other Fees” include all fees charged by PricewaterhouseCoopers LLP for products or services other than those charged for “Audit Fees”, “Audit-Related Fees” and “Tax Fees”.

LEGAL PROCEEDINGS

The Company is not a party to any legal proceedings and is not aware of any such proceedings known to be contemplated.

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

The directors, executive officers and principal shareholders of the Company or any associate or affiliate of the foregoing have had no material interest, direct or indirect, in any transactions in which the Company has participated within the three most recently completed financial periods prior to the date of this Annual Information Form or in the current financial year, and do not have any material interest in any proposed transaction, which has materially affected or is reasonably expected to materially affect the Company, except as set out elsewhere in this Annual Information Form or as follows:

The Company has entered into the agreements described under "General Development of the Business – Three Year History and Significant Acquisitions" with NovaGold Canada, Viceroy and ALM. NovaGold Canada is a principal shareholder of the Company and certain of the directors and/or officers of NovaGold Canada, Viceroy and ALM were at the time directors and/or officers of the Company.

Certain directors and/or officers of the Company have subscribed for common shares of the Company pursuant to the public and private placement financings of the Company, as has NovaGold Canada.

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During the year ended June 30, 2007, the Company recorded $273,000 in contractors expenses and the purchase of mobile equipment from ALM (2006 – $338,000). At June 30, 2007, accounts payable and accrued liabilities included $nil owing to ALM (2006 – $43,000). There were no transactions with ALM during the year ended June 30, 2008.

The Company incurred $97,000 during the year ended June 30, 2008 (2007 – $83,000; 2006 – $nil) for rent of office space under an agreement with Access Field Services, a company owned by certain officers of Access. At June 30, 2008, accounts payable and accrued liabilities include $nil due to Access Field Services (2007 and 2006 – $nil).

During the year ended June 30, 2008, the Company incurred technical service fees with NovaGold totaling $696,000 (2007 – $946,000; 2006 – $470,000), which have been capitalized to mineral properties and deferred exploration costs. NovaGold is related as it is the parent company of NovaGold Canada, a shareholder with significant influence over the Company. NovaGold Canada also held a right to back in to the Company’s Brewery Creek property, which right it permitted to expire during the year ended June 30, 2008. As at June 30, 2008, accounts payable and accrued liabilities include $58,000 (2007 – $91,000; 2006 – $161,000) due to NovaGold.

TRANSFER AGENTS AND REGISTRARS

The registrar and transfer agent for the common shares of the Company in British Columbia and Ontario is Computershare Investor Services Inc., Vancouver, British Columbia.

MATERIAL CONTRACTS

The Company has no material contracts other than contracts entered into in the ordinary course of business.

INTERESTS OF EXPERTS

Names of Experts

The following persons are independent and are “qualified persons” as defined in NI 43-101, and are the qualified persons responsible for the preparation of the Bellekeno preliminary economic assessment technical report (see “Description of Business – Mineral Exploration and Development – Bellekeno Property”):

Gordon Doerksen, P.Eng., of SRK Consulting (Canada) Inc.
G. David Keller, P.Geo., of SRK Consulting (Canada) Inc.
Joe Sedlacek, P.Eng., of SRK Consulting (Canada) Inc.
Hassan Ghaffari, P.Eng., of Wardrop Engineering Inc.
Diane Lister, P.Eng., of Altura Environmental Consulting

Janice Fingler, M.Sc., P.Geo., an independent consulting geologist and “qualified person” as defined in NI 43-101, is the author responsible for the preparation of the McQuesten technical report (see “Description of Business – Mineral Exploration and Development – McQuesten Property”).

Ronald G. Simpson, P.Geo., of GeoSim Services Inc., an independent consulting geologist and “qualified person” as defined in NI 43-101, is the author responsible for the preparation of the Brewery Creek technical report (see “Description of Business – Mineral Exploration and Development – Brewery Creek Property”).

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Stanton Dodd, LG (Wash), a “qualified person” as defined in NI 43-101, is the Company’s Vice President, Exploration, and except where specifically indicated otherwise is the person responsible for the technical information included in this Annual Information Form regarding Alexco’s mineral properties.

The audited financial statements of the Company have been subject to audit by PricewaterhouseCoopers LLP, Chartered Accountants.

Interests of Experts

Based on information provided by the experts, other than with respect to Stanton Dodd as described below and PricewaterhouseCoopers LLP, Chartered Accountants as auditors, none of the experts named under "Names of Experts", when or after they prepared the statement, report or valuation, has received any registered or beneficial interests, direct or indirect, in any securities or other property of the Company or of one of the Company's associates or affiliates (based on information provided to the Company by the experts) or is or is expected to be elected, appointed or employed as a director, officer or employee of the Company or of any associate or affiliate of the Company.

Stanton Dodd is the Company’s Vice President, Exploration, and accordingly is not considered independent as defined in NI 43-101. Mr. Dodd has been granted stock options of the Company, representing less than one percent of the issued and outstanding common shares of the Company.

The auditors of the Company are PricewaterhouseCoopers LLP, Chartered Accountants, of Vancouver, British Columbia. PricewaterhouseCoopers LLP, Chartered Accountants, report that they are independent of the Company in accordance with the Rules of Professional Conduct of the Institute of Chartered Accountants of British Columbia, Canada.

ADDITIONAL INFORMATION

Additional information relating to the Company may be found on SEDAR at www.sedar.com.

Additional information, including directors' and officers' remuneration and indebtedness, principal holders of the Company's securities, and securities authorized for issuance under equity compensation plans, where applicable, is contained in the Company's information circular for its most recent annual general meeting of securityholders that involved the election of directors.

Additional financial information is provided in the Company's consolidated financial statements and management's discussion and analysis for its most recently completed financial year, being the year ended June 30, 2008.