Excellon Provides Corporate Update
www.excellonresources.com
EXCELLON PROVIDES CORPORATE UPDATE
Toronto, Ontario – September 12, 2022 – Excellon Resources Inc. ( TSX:EXN; NYSE:EXN; FRA:E4X2)
(“Excellon” or the “Company”) is pleased to provide an update on ongoing value-driving initiatives.1
Ongoing initiatives:
• Evaluating a spin-out of Excellon’s highly prospective Silver City Project in Saxony, Germany to
Excellon shareholders as a new growth-focused greenfields exploration company (“SpinCo”).
• Pursuing acquisition opportunities with potential to further enhance value through Excellon’s
operating experience, particularly in Mexico.
• Advancing planned drilling at Kilgore aimed at further defin ing areas of high-grade
mineralization, while also testing mineralized potential at depth and on strike.
• Exploring partnership opportunities to pivot Platosa from production to a potentially exciting
exploration prospect.
Shawn Howarth, President and CEO, commented:
“The Company is at an inflection point, where to continue growing we need to capitalize on opportunities
that drive additional value. A spin-out of Silver City would fit that strategy and provide Excellon
shareholders with direct exposure to district-scale exploration focused in a historically prolific mining
region.”
Mr. Howarth added, “Kilgore is a cornerstone exploration project in our portfolio that will benefit from
continued advancement , including the ongoing drill program . Acquiring advanced development or
producing assets with further potential to benefit from an experienced operational management team
would be another way to grow value and attract liquidity to the Company and will be rigorously pursued.”
Spin-Out of the Silver City Project
Excellon is considering the structure and timing of a spin-out of its Silver City Project in Saxony, Germany
as a European-focused exploration company. In connection with the prospective spin-out, the Company
expects that SpinCo would conduct a financing to fund working capital and continuing exploration
activities. Additionally, the Company's intention would be to seek a listing for Spin Co shares on a
recognized Canadian stock exchange, subject to fulfilling all of the applicable regulatory and listing
requirements.
Further details will be provided in due course.
Expected benefits of SpinCo for Excellon shareholders include:
• Valuation reset expected for Silver City as a publicly traded European-focused exploration
company;
1 This press release contains forward-looking statements about expected future actions, events and performance. Please refer to the Cautionary
Statements at the end of this press release.
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• New market opportunity for investors seeking direct exposure to a pure -play, high-grade
district-scale silver exploration project in a favourable jurisdiction; and
• Potential for improved trading liquidity for SpinCo as a separate public company.
Silver City was mined for high -grade silver for over 800 years until the late 19 th century. Excellon holds
exploration licenses totaling 340 km 2 over a major epithermal silver system that has been encountered
on almost every drill hole, with high -grade intersections including 1,043 g/t AgEq over 1.3 metres ,
1,042 g/t AgEq over 0.45 metres and 1,633 g/t AgEq over 0.35 metres. The exploration team and
institutional support for Silver City in Saxony, Germany is exceptional.2
Drilling Update at the Kilgore Project
Excellon is drilling the fifth hole at Kilgore for a total of approximately 1,500 metres drilled since the start
of its 2022 exploration program. While assays are pending, the Company has been encouraged by the
drilling to date. Drill core has generally aligned with expected lithology per the Company’s geological
models and visible gold was observed in the first hole of drilling.
Goals for exploration in 2022 include:
1) Oriented drilling to better understand the geometry and resolution of mineralization within
existing high-grade mineralized structures;
2) Step-out drilling to better understand potential mineralized extensions of the currently defined
grade shell, particularly in areas at depth where the Company believes disseminated
mineralization may continue into the sedimentary package; and
3) A re -evaluation of exi sting core combined with a rigorous property -wide geophysics and soil
sampling program aimed at generating new drill targets to add to prior exploration successes to
date at the project.
Assays for drilling to date have been sent to ALS in Nevada and Vancouver for processing, with results
expected in due course.
Mexico Operations
Operations in Mexico are planned to be wound down responsibly, with the cooperation of the employees
and local community. Production at Platosa will continue to the end of September, with remaining ore
processed and care and maintenance preparations to be completed through the month of October. The
Company remains committed to Mexico , supported by a strong operating team that was forged by
successfully addressing Platosa’s unique and complex set of operating challenges, from mining and
dewatering to geology and ground control, over the 17-year life of the Platosa Mine. Excellon’s team has
proven resilient at managing challenging mining operations and improving working conditions and
productivity. The Company is actively reviewing acquisition and partnership opportunities to generate
new value for Excellon shareholders and continue its business in Mexico on a new asset base , with
untapped potential, that could benefit from an improved and effective management philosophy. The
Company is also reviewing partnership opportunities to advance exploration at Platosa, where Jaboncillo
(manto) and PDN (skarn) remain compelling, drill-ready targets.
2 For further details, please refer to the Silver City Project page on the Company’s website at www.excellonresources.com (including the current
Technical Report for the Saxony Silver Project effective March 31, 2022, and Excellon’s press releases dated February 18, 2021, June 8, 2021 and
February 9, 2022, each of which is also available under the Company’s profile at www.sedar.com).
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About Excellon
Excellon’s vision is to create wealth by realizing strategic opportunities through discipline and innovation
for the benefit of our employees, communities, and shareholders. The Company is advancing a precious
metals growth pipeline that includes: Kilgore, an advanced gold exploration project in Idaho with strong
economics and significant growth and discovery po tential; an option on Silver City, a high -grade
epithermal silver district in Saxony, Germany with 750 years of mining history and no modern exploration;
and Platosa, a high-grade silver mine producing in Mexico since 2005, scheduled to wind-down in Q3 2022,
with an 11,000 hectare exploration package on Mexico’s carbonate replacement deposit (CRD) trend. The
Company is also actively seeking to capitalize on current market conditions by acquiring undervalued
projects in the Americas. Additional details on Excellon’s properties are available on the Company’s
website at www.excellonresources.com.
For further information, please contact:
Excellon Resources Inc.
Shawn Howarth, President & Chief Executive Officer
Daniel Hall, Chief Financial Officer
(416) 364-1130
www.excellonresources.com
CAUTIONARY STATEMENTS ON FORWARD-LOOKING STATEMENTS AND OTHER MATTERS
Forward-Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this press release constitute
“forward-looking statements” and “forward looking information” (collectively, “ forward-looking statements ”) within the
meaning of applicable Canadian and United States securities legislation. Generally, these forward -looking statements can be
identified by the use of forward -looking terminology such as: “ advancing”, “aimed”, “attract”, “believe”, “considering”,
“contemplating”, “continue”, “could”, “demonstrate”, “development”, “direction”, “discovery”, “drill-ready”, “drive”, “due
course”, “encouraged”, “evaluating”, “exciting”, “expect”, “ exploring”, “estimate”, “flexibility”, “focus”, “future”, “goals”,
“greenfields”, “growing”, “intention”, “initiative”, “may”, “models”, “new”, “ongoing”, “opportunities”, “option”, “pending”,
“philosophy”, “pipeline”, “pivot”, “planned”, “potential”, “processing”, “program”, “project”, “prospective”, “provide”,
“pursuing”, “re-evaluation”, “reviewing”, “risk”, “seeking”, “strategy”, “target”, “testing”, “transition”, “vision”, “will” and
“would”, or variations of such words, and similar such words, expressions or statements that certain actions, events or results can,
could, may, should, will (or not) be achieved, occur, provide, result or support in the future or which, by their nature, refer to future
events. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that
may be continuing, or that may have a future impact or effect. Forward-looking statements include, without limitation, statements
regarding ongoing initiatives (including any value or other impacts thereof); any spin-out of the Silver City Project (including
consideration thereof, the intention of the Company to seek a public listing of SpinCo and fulfilling the requirements thereof (and
there can be no assurance of such fulfilment or public listing), any related financing and purpose thereof and future operations)
and the benefits thereof to Excellon shareholders and investors (including exposure to the project, valuation re-rate, being a new
market opportunity and improved trading liquidity); acquisition and other opportunities (including untapped potential, benefits
of new management, and ways or potential to generate, grow or enhance value (with continuing business in Mexico or otherwise),
or attract liquidity) and the pursuit thereof ; mineralization, mineralized structures and grade shells (including potential, grade,
further definition, continuation and location) ; partnership opportunities and any pivot of Platosa to an exploration prospect
(including any assessment or nature thereof) ; exploration projects, programs and activities (including scale, prospects and
prospectivity, goals, successes, targets and current assessments of drilling to date ); partnership opportunities to advance
exploration at Platosa; drill-ready targets; continuing wind-down of Platosa (including completion of mined ore production and
care and maintenance preparations ); transfer of the debenture security (including effect on the wind-down of operations in
Mexico); wealth creation ; realization of strategic opportunities (and results thereof) ; future production, project economics,
development success and discovery potential; and capitalizing on current market conditions. Although the Company believes that
such statements are reasonable, it can give no assurance that such expectations will prove to be correct, and any forward-looking
statements by the Company are not guarantees of future actions, results or performance. Forward-looking statements are based
on assumptions, estimates, expectations and opinions, which are considered reasonable and r epresent best judgment based on
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available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be
incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. The
assumptions, estimates, expectations and opinions referenced, contained or incorporated by reference in this press release which
may prove to be incorrect include those set forth or referenced in this press release, as well as those stated in the Company press
releases referenced in this press release (collectively, “Referenced Press Releases”), the Company’s annual information form dated
March 31, 2022 (“2022 AIF”), the current technical reports for the Company’s projects (collectively, the “Technical Reports”), the
Company’s Management’s Discussion and Analysis for the year ended December 31, 2021 and the quarters already ended in 2022
(collectively, the “ FYE2021 and 2022 MD&A ”), read together with the accompanyin g financial statements, and the Company’s
other applicable public disclosure, all available on the Company’s website at www.excellonresources.com and under its profile at
www.sedar.com. Forward -looking statements are inherently subject to known and unknown risks, uncertainties, contingencies
and other factors which may cause the actual results or performance of the Company to be materially different from any future
results or performance expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other
factors include, among others, the “Risk Factors” in the 2022 AIF, and the risks, uncertainties, contingencies and other fact ors
identified in the Referenced Press Releases , the Technical Reports and the FYE2021 and 2022 MD&A (read together with the
accompanying financial statements) and the Company’s other applicable public disclosure. The foregoing list of risks,
uncertainties, conti ngencies and other factors is not exhaustive; readers should consult the more complete discussion of the
Company’s business, financial condition and prospects that is provided in the 2022 AIF and the other aforementioned documents.
The forward -looking sta tements referenced or contained in this press release are expressly qualified by these Cautionary
Statements as well as the Cautionary Statements in the Referenced Press Releases, the 2022 AIF, the Technical Reports and the
FYE2021 and 2022 MD&A (and accom panying financial statements) and the Company’s other applicable public disclosure.
Forward-looking statements contained herein are made as of the date of this press release (or as otherwise expressly specified)
and the Company disclaims any obligation to update any forward -looking statements, whether as a result of new information,
future events or results or otherwise, except as required by applicable laws.
Mineral Resources
Until mineral deposits are actually mined and processed, mineral resources must be considered as estimates only. Mineral resource
estimates that are not classified as mineral reserves do not have demonstrated economic viability. The estimation of mineral
resources is inherently uncertain, involves subjective judgement about many relevant factors and may be materially affected by,
among other things, environmental, permitting, legal, title, taxation, socio -political, marketing, or other relevant risks,
uncertainties, contingencies and other factors described in the foregoing Cautionary Statements. The accuracy of any mineral
resource estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments use d
in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis
of drilling results and statistical inferences that may ultimately prove to be inaccurate. The quantity and grade of “inferre d”
mineral resource estimates are uncertain in natu re and there has been insufficient exploration to define “inferred” mineral
resource estimates as an “indicated” or “measured” mineral resource and it is uncertain if further exploration will result in
upgrading “inferred” mineral resource estimates to an “indicated” or “measured” mineral resource category. It cannot be assumed
that all or any part of a “inferred”, “indicated” or “measured” mineral resource estimate will ever be upgraded to a higher category
including a mineral reserve. The mineral resource estimates declared by the Company were estimated, categorized and reported
using standards and definitions under applicable Canadian securities laws governing the public disclosure of scientific and
technical information concerning mineral projects. Accor dingly, information describing mineral resource estimates for the
Company’s projects may not be comparable to similar information publicly reported in accordance with the applicable
requirements of the United States Securities and Exchange Commission, and so there can be no assurance that any mineral
resource estimate for the Company’s projects would be the same had the estimates been prepared per such requirements.
Qualified Persons
Mr. Paul Keller, P. Eng., Chief Operating Officer of the Company and a Qualified Person as defined in NI 43‐101 (a “QP”), reviewed,
verified and approved the scientific and technical information relating to operations contained in this press release. Mr. Jo rge
Ortega, M.Sc., P.Geo., Vice President Exploration and a QP, reviewed , verified and approved the scientific and technical
information relating to geological interpretation and results contained in this press release.