Dolly Varden Sells B.C. Mineral Claims and Real Estate Holdings

DOLLY VARDEN RESOURCES INC. 1710 - 1177 West Hastings Street, Vancouver, BC, Canada V6E 2L3 Telephone: (604) 640-6357 Telefax: (604) 681-0139

NEWS RELEASE

December 20, 2010 TSXV Symbol - DLV

DOLLY VARDEN SELLS B.C. MINERAL CLAIMS AND REAL ESTATE HOLDINGS

Dolly Varden Resources Inc. (“Company”) has entered into a Letter of Intent dated December 17, 2010 in which it has agreed to sell, for $3,000,000 cash, three categories of assets, being:

1. all of the Company’s remaining British Columbia mineral properties, being a block of mineral properties in northeast British Columbia, in the Kitsault area - which includes the contiguous claims around the old Dolly Varden silver mine as well as the 7 claims to the east that have been referred to as the “Big Bulk” claims;

2. some fee simple title surface lands owned by the Company in or near the old Alice Arm townsite;

3. the Company’s interests in a Mineral Claims Sale Agreement that the Company earlier executed in favour of Quadra Coastal Resources Ltd. - in which the Company earlier agreed to sell to Quadra Coastal Resources Ltd. its northeastern British Columbia mineral claims which have been commonly known as its “Maple Bay” claims.

The agreement expressed in the Letter of Intent is subject to settlement and signing of final documentation and the acceptance of the agreement for filing by the TSX Venture Exchange. The deadline for the signing and closing of the formal agreement is January 31, 2011.

DOLLY VARDEN RESOURCES INC.

Clinton Smyth President & Director

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

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