Dolly Varden Silver : Q2 2022 Management Discussion and Analysis

DOLLY VARDEN SILVER CORPORATION

Management's Discussion and Analysis

As of August 19, 2022

This Management Discussion and Analysis ("MD&A") of Dolly Varden Silver Corporation (the "Company" or "Dolly Varden") is for the six months ended June 30, 2022, and is prepared by management using information available as of August 19, 2022. This MD&A should be read in conjunction with the condensed interim consolidated financial statements of the Company for the six months ended June 30, 2022 and the audited financial statements of the Company for the year ended December 31, 2021, and the notes thereto, prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board. This MD&A complements and supplements, but does not form part of, the Company's condensed interim consolidated financial statements.

This MD&A contains forward-looking statements. Statements regarding the adequacy of cash resources to carry out the Company's exploration programs or the need for future financing are forward-looking statements. All forward-looking statements, including those not specifically identified herein, are made subject to cautionary language on page 18. Readers are advised to refer to the cautionary language when reading any forward-looking statements.

This MD&A is prepared in conformity with National Instrument ("NI") 51-102F1Continuous Disclosure Obligations. All dollar amounts referred to in this MD&A are expressed in Canadian dollars, except where indicated otherwise.

Overview

Dolly Varden Silver Corporation was incorporated under the Canada Business Corporations Act in the province of British Columbia (or "BC") on March 4, 2011 and is a public company listed on the TSX Venture Exchange under the symbol "DV". The Company's primary business is the acquisition and exploration of properties in Canada. In addition, the Company trades on the OTCQX trading platform in the United States under the trading symbol "DOLLF". The Company's head office Suite 3123, 595 Burrard Street, Vancouver, British Columbia, Canada, V7X 1J1. The registered address and records office of the Company is located at Suite 1700 Park Place, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8.

Dolly Varden is a mineral exploration company focused on exploration advancing the Kitsault Valley project ("KV Project"), which includes the Dolly Varden property and the Homestake Ridge property located in the Golden Triangle of British Columbia, Canada, 25 kilometres ("km") by road to tide water. The 163-square km project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past-producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, on-trend,high-grade deposits, such as Eskay Creek and Brucejack. The KV Project also contains the Big Bulk property, which is prospective for porphyry and skarn style copper and gold mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

The Company presently has two current NI 43-101Standards of Disclosure for Mineral Projects reports published on May 8, 2019 for the Dolly Varden property and January 20, 2022 for the Homestake Ridge property. The KV Project hosts the high- grade silver and gold resources of Dolly Varden and Homestake Ridge with combined resources of 34,731,000 ounces of silver and 165,993 ounces of gold in the Indicated category and 29,277,000 ounces of silver and 816,719 ounces of gold in the Inferred category.

The Company currently has no producing mines and consequently no revenue or cash flow from operations. The recovery of the amounts comprising exploration and evaluation assets are dependent upon (1) the ability of the Company to obtain necessary financing to successfully complete the exploration and development of those resources; (2) the confirmation of economically recoverable reserves; and (3) future profitable production or on selling the project. It is the intention of the Company to obtain financing through access to public equity markets, debt and partnerships or joint ventures as sources of funding for its exploration expenditures and to meet ongoing working capital requirements.

Homestake Ridge Project Acquisition

On December 6, 2021, the Company and Fury Gold Mines Ltd. ("Fury") entered into a definitive agreement pursuant to which the Company agreed to acquire all of the outstanding common shares of Fury's wholly owed subsidiary, Homestake Resource Corporation ("HRC"), which holds a 100% interest in the Homestake Ridge property, in exchange for a $5 million cash payment and the issuance of 76,504,590 common shares of the Company for a total value of $65.4 million when the

DOLLY VARDEN SILVER CORPORATION

Management's Discussion and Analysis

As of June 30, 2022

transaction was completed on February 25, 2022. The transaction was approved by the Company's shareholders on February 22, 2022. Fury now owns approximately 33% of the Company on an issued and outstanding share basis.

Consolidation of the Dolly Varden and Homestake Ridge properties is the next logical step in the advancement of both properties, as it consolidates one mineralized trend, allows for potential co-development opportunities combined with capital and operating economies of scale. It also increases the resources of precious metals of the Company nearly threefold, making the combined project larger and therefore more attractive to be acquired and developed. The KV Project is now among the largest high-grade, undeveloped precious metal assets in western Canada.

Outlook

Dolly Varden is currently utilizing three diamond drill rigs, with 99 drill holes planned in the phase 1 program. To date, over 18,000 metres of drilling have been completed. Resource upgrade and expansion drilling is under way at the Homestake Ridge Main gold zone with two drills, with one drill continuing exploration and resource expansion drilling at the silver-rich Torbrit area and at the Wolf deposit.

Concurrent with the diamond drilling, geological and geophysical work along the Kitsault Valley trend is continuing to help refine targets for exploration drilling in the latter part of the summer.

The Kitsault Valley project's combined current mineral resource contains 34.7 million ounces of silver and 166,000 ounces of gold in the indicated category and 29.3 million ounces of silver and 817,000 ounces of gold in the inferred category within a 163-square-kilometre consolidated land package.

Dolly Varden Silver Corp. has released significant results from drilling at the Kitsol vein, located near the historical Torbrit mine, on the company's property in northwest British Columbia.

Highlights from drill hole DV22-283 include:

• 50.18 metres (approximately 30 m true width) averaging 414 grams per tonne silver;
• Including 7.15 m (4.29 m true width) averaging 646 g/t Ag;
• Including 11.74 m (7.04 m true width) averaging 658 g/t Ag;
• Including 5.34 m (3.2 m true width) averaging 801 g/t Ag.

Drill hole DV22-283 is a 25 m step-out along strike and down dip of a high-grade silver mineralization zone within the Kitsol vein and suggests that the thickness and grade of the Kitsol vein is increasing at depth. Within the mineralized interval, three 0.5 m long samples assayed 2,910 g/t Ag, 2,390 g/t Ag and 2,500 g/t, respectively. Additional assays are anticipated to be received and released soon.

2022 Highlights

• The Company appointed Rob van Egmond, PGeo, as vice-president of exploration.
• On August 10, 2022, the Company released results from resource infill and expansion drilling in and around the Torbrit deposit.
• On July 13, 2022 the Company announces that three drills have cored over 7,700 meters in 27 holes of the planned 99 holes. Initial work has focussed on stepping out from wide, high grade silver intercepts, particularly at the Kitsol Vein and Wolf Mine. Based on visual indicators of mineralization and veining, drills have continued to step-out in these areas, with the deepest hole at Wolf extended to 720 meters long and 400 meters at Kitsol at the Torbrit Deposit. Assays are pending for this drilling, however lab turnaround times are expected to be much improved during the 2022 season.
• In May 2022 the Company began its 2022 exploration season and announced that there is a 30,000 meter drilling program planned.

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DOLLY VARDEN SILVER CORPORATION

Management's Discussion and Analysis

As of June 30, 2022

• On March 31, 2022, the Company raised $11.5 million flow-through financing through issuance of 11,274,400 common shares at $1.02 per share. Hecla exercised its anti-dilution right in respect of this financing and acquired 1,742,472 common shares of the Company at a price per common share of $0.86 for gross proceeds of $1,498,526.
• On February 25, 2022, Ivan Bebek joined the Dolly Varden team as an advisor.
• On February 25, 2022, Tim Clark, the Chief Executive Officer of Fury, and Michael Henrichsen, the Senior Vice President, Exploration of Fury, joined the Dolly Varden Board of Directors (or "Board") after Thomas Wharton, Don Birak and
  Annette Cusworth stepped down from the Board.
• On February 25, 2022, the Company acquired the Homestake Ridge property from Fury and closed a $5.3 million financing with Hecla Canada Ltd. ("Hecla") pursuant to their Investor Rights Agreement, as defined later in this document. The Company's KV Project now has combined resources of 47,180,475 ounces Indicated and 90,530,925 ounces Inferred of silver on an equivalent basis using a gold/silver ratio of 75:1 comprised of silver and gold.
• On January 31, 2022, the Company released results from resource infill and expansion drilling in and around the Torbrit deposit, including the Kitsol Vein ("Kitsol"). Silver mineralization was encountered in most areas tested, usually with significant accessory zinc and lead values and commonly over widths suggesting potential amenably to bulk underground mining. Highlights include:
• • DV21-274:12.28 m true width averaging 354 grams per tonne ("g/t") Ag at Kitsol;
  • DV21-275:18.27 m true width averaging 230 g/t Ag at Kitsol;
  • DV21-275:0.70 m drilled length averaging 1,220 g/t Ag at Torbrit North Zone;
  • DV21-277:16.00 m drilled length averaging 212 g/t Ag (including 4.70 m of 507 g/t Ag) at Torbrit: and
  • DV21-278:5.10 m drilled length averaging 364 g/t Ag at Torbrit Main.

Combined KV Project with deposits of Dolly Varden and Homestake Ridge properties:

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DOLLY VARDEN SILVER CORPORATION

Management's Discussion and Analysis

As of June 30, 2022

Mineral Properties: KV Project

The KV Project contains the Dolly Varden property with silver resources, the newly acquired Homestake Ridge property with gold, silver, copper and lead resources, and the Big Bulk property, a copper-gold porphyry system. Together the consolidated KV Project creates one large, high grade precious metals project comprising 16,300 hectares, which is 100% held by Dolly Varden. This provides the Company with economies of scale and exploration upside potential in the silver and gold-rich Dolly Varden Mining Camp, north of Alice Arm, within the regionally important and prolific Stewart Complex in northwestern BC.

Dolly Varden Property

The Dolly Varden property encompasses several historic underground workings, including production stopes from the Dolly Varden and Torbrit mines, exploration adits at North Star and Wolf, as well as several other showings and many mineralized prospects. The silver-rich deposits found on the Dolly Varden property are hosted in Jurassic-aged volcanic and sedimentary rocks (Iskut River Formation) of the Hazelton Group. They display textural and mineralogical similarity to mineralization found in the region in subaqueous, gold-and-silver-rich, hot spring-type volcanogenic massive sulfide (VMS) and epithermal style deposits, such as the Eskay Creek and Brucejack deposits, respectively. The nearby Big Bulk claims host porphyry copper-gold style mineralization.

Since acquiring the property in 2011, fieldwork was dedicated to confirming and expanding the known mineralization near the historic deposits to upgrade into a compliant and current mineral resource estimate ("Current Mineral Resource Estimate") for the Wolf, Dolly Varden, Torbrit and North Star deposits. The Company's work consisted of surface and underground mapping, underground rehabilitation, detailed sampling, data compilation from reliable historic records and over 17,000 metres of core drilling. This data was used to complete an initial Mineral Resource Estimate in 2015.

During the years ended December 31, 2011 to 2018, the Company purchased the Dolly Varden property, consisting of fee simple titles, mineral claims and mineral tenures in respect of certain lands located in the Kitsault area of BC. The property is subject to a 2% net smelter return royalty ("NSR") of which one-half (or 1%) of the NSR can be repurchased by the Company for $2,750,000 at any time.

During the year ended December 31, 2020, the Company acquired surface rights and fee simple lands where the exploration camp, offices, logging and sampling facilities are situated. The parcel of land is located at waterfront for shoreline access, current core storage areas and has related property water rights. The total property package had been previously leased annually by the Company from private owners. The transaction involved a payment of $153,000 in cash and issuance of 192,061 common shares of the Company with a value of $149,808 for a total cost of $302,808.

The Dolly Varden property 2021 exploration program is described below.

Homestake Ridge Property

On February 25, 2022, Dolly Varden acquired the Homestake Ridge property. The Homestake Ridge property consists of a 7,500-hectare project area hosting three known deposits that make up the Current Mineral Resource Estimate. Mineralization in the main deposits is interpreted to be structurally controlled epithermal veins and breccia systems within the prospective Jurassic Hazelton, the formation hosting the deposits in the Dolly Varden property area. In addition to epithermal style mineralization, Homestake Ridge also hosts stratabound volcanogenic style mineralization and intrusion related alteration and stock work veining.

Gold mineralization was first discovered at the Homestake Ridge Project over 100 years ago with several exploration adits and trenches exposing vein and breccia style mineralization at surface. Mineralization was of significant grade and thickness that the property has been the subject of numerous exploration programs since the 1920s, including prospecting, mapping, soil sampling, exploration drilling and airborne geophysics that have advanced the project and defined the trend of structurally controlled mineralization within the northern continuation of the Jurassic Hazelton formation from the Dolly Varden project. The 15 kilometres of prospective Hazelton formation on the combined Homestake Ridge and Dolly Varden projects has been the focus for historical exploration.

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DOLLY VARDEN SILVER CORPORATION

Management's Discussion and Analysis

As of June 30, 2022

Since 2008, significant diamond drilling at Homestake Ridge has led to definition of a current NI 43-101-compliant Mineral Resource Estimate that is summarized in the Homestake Ridge Project Acquisition section. The advanced stage project has had a previous economic analysis completed on it in 2020. The exploration potential along the Homestake Ridge trend was tested with deeper historic drilling near the mineral resource and indicates the mineralization continues to depth and along strike. Recent analysis of historic airborne geophysics data from the Homestake Project has defined exploration targets along trend of Homestake deposits to the south.

The 5.4 km distance between the deposits at Homestake Ridge and the deposits at Dolly Varden are, in the Company's opinion, prospective for further discovery of silver and gold mineralization as the area is on a magnetic, stratigraphic and anomalous silver and gold geochemical trend within the Kitsault Valley. Geophysics interpretation has defined several target zones below a sediment cover to test along this trend in future exploration.

Mineral Resource Estimates of Dolly Varden and Homestake Ridge Properties

Dolly Varden Resource Estimate

An updated NI 43-101-compliant Mineral Resource Estimate was released on May 8, 2019 prior to the exploration season. The updated Mineral Resource Estimate was completed by Steven Nicholls, MAIG and Andrew J. Turner, P.Geo. of APEX Geosciences Ltd., independent geological consultants and Qualified Persons (as defined in NI 43-101) and covered the four known deposits on the Dolly Varden property. The data used was up to the end of the 2018 drilling campaign.

Category* Deposit	Cut-off**	Tonnes	Silver	Contained
(g/t Ag)	(g/t)	oz*** Ag
	Torbrit	150	2,623,000	296.8	25,025,000
	Dolly	150	156,000	414.2	2,078,000
	Varden
Indicated	Wolf	150	402,000	296.6	3,834,000
North	150	236,000	262.8	1,994,000
	Star
	Total		3,417,000	299.8	32,931,000
	Indicated
	Torbrit	150	1,185,000	278.0	10,588,000
	Dolly	150	86,000	271.5	754,000
	Varden
Inferred	Wolf	150	9,500	230.6	70,000
North	150	4,800	223.6	35,000
	Star
	Total		1,285,300	277.0	11,447,000
	Inferred

• Indicated and Inferred Mineral Resources are not Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There has been insufficient exploration to define the Inferred resource as an Indicated or measured Mineral Resource, and it is uncertain if further exploration will result in upgrading the resource to a Measured Resource category. There is no guarantee that any part of the Mineral Resource discussed herein will be converted into a Mineral Reserve in the future.
• A 150 g/t Ag cut-off was chosen to reflect conceptual underground mining and processing cut-off grade.
• Contained oz may not add due to rounding.

Please refer to the Company's continuous disclosure documents available on SEDAR for more detailed technical information regarding the Mineral Resource Estimate, which is subject to the qualification statements and notes set forth in the final report posted on www.sedar.com.

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