Alexco Resource Corp.

Alexco Resource Corp. is an environmental services/junior exploration company nearing production at its wholly owned
Keno Hill silver district. Alexco is also receiving revenue for cleanup of the district and has unfettered access to develop the district indemnified from all prior environmental liability. The district has historically produced over 200 million ounces of silver and we believe it may be among the highest grade silver districts in the world with potential to replicate production reminiscent of the Silver Valley in northern Idaho. Catalysts for appreciation in the next 12 months include:

• Commencement of underground bulk sampling
• Resource upgrade at Bellekeno and Onek
• Positive mine decision in late 2008
• Ongoing district wide exploration

Alexco’s environmental business possesses important patents for solving complex groundwater issues. This provides the Company with an uncommon asset and ability for business development, in-house environmental expertise, and revenues from outside the mining industry. We are initiating coverage of Alexco with a Buy rating, an $8.00 price target, with a Low risk assessment.

Investment Thesis
Alexco Resource Corp. (AMEX: AXU, TSX: AXR) is a junior exploration resource company with world-class assets and a unique business model that is not yet fully appreciated. Alexco has 100% ownership of the world-class high-grade Keno Hill silver district in the Yukon Territory, Canada (Figure 1). They also operate a niche environmental business with important proprietary patents and processes, providing cash flow as well as in-house environmental permitting and management expertise. The combination of these two fully symbiotic assets creates an entirely unique dimension of value uncommon in the mining or environmental remediation industries.