Excellon Provides Operational and Financial Updates; Mill Pre-Commissioning Campaign Targeted for June
Excellon Provides Operational and Financial
Updates; Mill Pre-Commissioning Campaign
Targeted for June
Toronto, Ontario--(Newsfile Corp. - May 27, 2026) -
Excellon Resources Inc. (TSXV: EXN) (OTC
Pink: EXNRF) (FSE: E4X2)
("
Excellon
" or the "
Company
") is pleased to provide an update on
operational activities at its 100%-owned Mallay silver-lead-zinc mine ("
Mallay
") in central Peru, as well
as recent financial updates.
Highlights:
Mill ready for pre-commissioning.
All critical refurbishment and wet commissioning milestones
completed; bulk-sample campaign targeted for June 2026.
~15,000 tonnes stockpiled from Isguiz vein and Footwall Zone.
Surface stockpile provides
representative feed for the pre-commissioning bulk-sample campaign.
Infill drilling informing updated restart planning.
Results from the ~2,500-metre program are
being integrated into the geological model; the Company expects to have an updated restart plan
and schedule in early Q3/26.
Drilling underway to test mineralized extensions:
Two rigs active at site targeting extensions
of the Isguiz system at depth, the Pierina gold target and Mallay Deeps — a downhole
electromagnetics ("
DHEM
") exploration target; a third rig is expected at Shafra in June.
Operational team strengthened.
New Operations Manager appointed at Mallay; technical
capacity expanded in the resource modelling, mine planning, and contract management areas.
Dewatering of the 400-ramp advanced.
Rehabilitation of the 400-ramp is now underway,
providing access to Isguiz below the 4090 level.
Zero lost-time injuries year-to-date.
Approximately 250,000 person-hours worked across all site
personnel and contractors since restart.
Shawn Howarth, President and CEO, commented,
"The work completed over the last several
months, including finishing mill refurbishment, assay lab upgrades, completion of our initial infill drill
program and the expansion to three drill rigs, positions us to begin testing the process plant in a
measured way. We are treating June as a bulk-sample exercise designed to validate metallurgy,
recoveries, and concentrate quality. At the same time, we are advancing resource definition and testing
extensions of the Isguiz system at depth, the Pierina gold target, and the broader Shafra Zone.
With this
drilling we aim to build a larger resource base at Mallay and identify new zones of mineralization. Current
silver prices are materially above the US$30/oz assumption used in our February 2026 Mineral
Resource Estimate, reinforcing the economic rationale for this work and the strategic value of what we
are building."
Paul Keller, Chief Operating Officer, commented,
"June's pre-commissioning campaign reflects a
methodical approach to advancing the Mallay restart. Underground, we are taking steps to ramp-up
development, rehabilitate the 400-ramp and optimize contracted mine operations.
The infill drilling to-
date is central to the next iteration of our mine planning, and we will continue to sequence development,
drilling, and processing in a way that supports a sustainable operation."
Mill Pre-Commissioning
Refurbishment of the Mallay process plant, including the crushing, grinding, and flotation circuits, has
been completed. Load testing of the crushing circuit and wet commissioning of the grinding and flotation
circuits has also been completed.
Figures 1 & 2: Recent Mallay Site Visit (left); Process Plant Refurbishments Completed (right)
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1601/299015_excellimg1.jpg
The pre-commissioning campaign planned for June will treat the surface stockpile through the process
plant as a controlled bulk sample. Designed capacity of the process plant is approximately 600 tonnes
per day. The ~15,000 tonne stockpile provides a meaningful volume of feed from across the mine's
active vein and Footwall Zone sources to test the full plant flowsheet under various operating conditions.
As the stockpile was accumulated during early-stage mine development, the grade profile reflects the
sequencing and accessibility of working areas and may not reflect an optimized production blend.
The
objective is to validate metallurgical assumptions, generate concentrate suitable for shipment under the
Company's offtake arrangement, and inform the design of subsequent operating campaigns. Preliminary
revenues from concentrate produced during this phase will be reported following analysis and
settlement.
Mine Development and Stockpile
Mine development and production have continued across the 4075, 4090 and 4150 levels, drawing
mineralized material from the Maricruz, María, Isguiz, Maribel, and Dayana veins as well as adjacent
Footwall Zone material. Approximately 15,000 tonnes of mineralized material has been delivered to the
surface stockpile since the reopening of Mallay.
Figures 3 & 4: Stockpile At Surface (left); Process Plant Landscape Photo (right)
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1601/299015_excellimg2.jpg
Dewatering of the 400-ramp is over 70% complete and is expected to be completed in the coming
months.
The 400-ramp will provide the primary access corridor below the 4090 level and access to
additional working areas for both mining and drill platform access. The Company is also evaluating
blended owner-operator models for mine development, including the purchase of Company-owned
equipment supported by contracted labour, with the objective of improving development productivity and
reducing dependency on a single contracting approach.
Team Expansion
Excellon has appointed Remi Rondeau as Operations Manager at Mallay, reporting to the Chief
Operating Officer. Mr. Rondeau is an experienced mine operator, most recently managing underground
operations at First Majestic Silver Corp.'s San Dimas Mine in Mexico, with additional operating
experience at the La Libertad mine in Nicaragua.
Mr. Rondeau brings extensive underground mining
experience, including operating in Peru, to the role and will oversee day-to-day mine operations,
contractor productivity, and the execution of the mine development plan.
The Company has also expanded its site-level technical capacity, adding resources in resource
modelling, mine planning, and contract management to support the increasing pace of activity at the
mine. These additions reflect Excellon's commitment to building an operational team sized for the next
phase of the restart.
Drill Program Update
Excellon has completed approximately 2,500 metres of infill drilling from underground platforms,
targeting the Isguiz vein and the adjacent calc-silicate Footwall Zone above and below the 4090 level.
Assay results are being progressively returned and integrated into the geological block model. The
Company expects to provide an updated mine plan in a subsequent release as this work is completed,
providing an informed view of Mallay's production profile based on current drill data rather than historical
assumptions. Initial drill results will be reported in a subsequent release once interpretation and review
are complete.
Excellon will continue to drill Mallay and surrounding near-mine targets, which will be supported by two
underground drill rigs and a third surface rig.
Pierina gold target:
One rig to test the Pierina structure, located on the eastern flank of the
broader Shafra mineralized corridor.
Isguiz vein extension at depth:
A second rig repositioned to test the down-plunge continuity of
the Isguiz system below existing mine workings.
Mallay Deeps:
A planned 750-metre drill hole to support a DHEM program and to better
understand Mallay stratigraphy.
One hole is currently budgeted, with a second hole possible based
on results.
Shafra Zone - surface drilling:
A third drill rig is expected to test the Shafra Zone from surface,
with results expected to support follow-up geophysical interpretation and future drill targeting.
Together, these programs represent Excellon's investment in extending mine life and building a larger
resource base at Mallay, beyond the infill work that supports near-term mine planning.
Next Steps
Shareholders can expect a consistent cadence of updates from Excellon through the balance of 2026,
organized around three workstreams:
Mallay mine operational update,
reflecting results from the pre-commissioning campaign, mine
development progress, and updated mine planning (Q3/26).
Mallay drilling program,
including initial results from the Isguiz and Footwall Zone infill program,
as well as exploration results from the Pierina gold target and the Shafra Zone at depth (Q3/26).
Exploration update
at the Tres Cerros Gold-Silver exploration target, including surface sampling
program (underway) and drill target identification, in anticipation of initial drilling later this year.
Financial Updates
The Company provides the following financial and liquidity updates:
Financing
In March 2026, the Company closed upsized private placements for aggregate gross proceeds of
C$21.8 million (US$16.0 million), through the issuance of 36.4 million common shares at a price of
C$0.60 per share.
The Company's subsidiary Saxony Silver Corporation closed its previously announced C$2.125
million (US$1.5 million) private placement on May 15, 2026. The financing supports Excellon's
strategy to unlock and crystallize the full value of the Silver City Project.
Debt
The Company repaid its US$1.25 million promissory note, plus accrued interest, on maturity on
May 1, 2026.
The Company expects the remaining C$5.5 million (US$4.0 million) principal of the outstanding
convertible debentures to be converted into shares prior to maturity on August 31, 2026.
Following the conversion or maturity, the Company expects to have no outstanding debt.
Cash and Liquidity
The Company has invested US$6.8 million in development and exploration activities at the Mallay
Mine and Tres Cerros Exploration Property to-date in 2026.
As at today, the Company holds cash of US$14.8 million and has available undrawn liquidity of
US$5.0 million under the Glencore facility.
Adoption of Semi-Annual Reporting
The Company has adopted the semi-annual financial reporting framework permitted under Coordinated
Blanket Order 51-933,
Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers
. The
Blanket Order allows eligible venture issuers to voluntarily move from quarterly to semi-annual financial
reporting. Accordingly, the Company does not intend to file interim financial statements and related
management's discussion and analysis for the three-month period ending March 31, 2026, or the nine-
month period ending September 30, 2026, and will continue to file audited annual financial statements
and MD&A, as well as six-month interim financial reports and MD&A, within the prescribed filing
deadlines. Excellon confirms that it meets the applicable eligibility criteria under the Blanket Order and
remains committed to timely disclosure of all material changes and significant developments in
accordance with National Instrument 51-102 - Continuous Disclosure Obligations.
Excellon intends to
return to quarterly reporting following commencement of commercial production.
Qualified Persons
Paul Keller, P.Eng., Excellon's Chief Operating Officer and a "Qualified Person" as defined by National
Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the
technical information contained in this news release related to mine development and mill activities.
About Excellon Resources Inc.
Excellon's vision is to realize opportunities through the acquisition and advancement of quality precious
and base metal assets, leveraging an experienced management team for the benefit of its employees,
communities and shareholders. The Company is focused on the potential restart of the Mallay Silver
Mine in Peru. Excellon also holds a portfolio of exploration-stage projects, including Kilgore, an
advanced gold project in Idaho, and Silver City, a high-grade epithermal silver district in Saxony,
Germany, and the Tres Cerros Gold/Silver Exploration Property in Peru, providing additional growth
upside. Additional details on Excellon's properties can be found at
www.excellonresources.com
.
For Further Information, Please Contact:
Excellon Resources Inc.
Shawn Howarth, President & Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSXV) has reviewed the adequacy or accuracy of this news
release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Forward-looking statements in this news release include, but are not limited to, statements regarding:
the scope, timing, and expected results of the planned mill pre-commissioning campaign at Mallay,
including the processing of the surface stockpile as a controlled bulk sample for metallurgical
validation; the potential generation of preliminary revenues from concentrate produced during the pre-
commissioning campaign; the expected timing and content of a revised mine plan and schedule; the
scope, progress, and expected results of the Isguiz infill and extension, Footwall Zone, Pierina, Mallay
Deeps DHEM, and Shafra Zone drill programs; the planned mobilization of a third drill rig to test the
Shafra Zone; the expected completion of dewatering and rehabilitation of the 400-ramp and the
anticipated access it will provide below the 4090 level; the evaluation of blended owner-operator mine
development models, including the potential purchase of Company-owned equipment; the expected
conversion or maturity of the outstanding convertible debentures and the Company's expectation of
having no outstanding debt thereafter; plans to extend mine life and build a larger resource base; the
anticipated cadence of future operational, drilling, and exploration updates; the Company's intention
to return to quarterly reporting following commencement of commercial production; and the
Company's broader staged restart strategy at Mallay.
Forward-looking statements are subject to numerous risks and uncertainties that may cause actual
results to differ materially, including risks related to underground access, dewatering, ground
conditions, rehabilitation, equipment availability and procurement, contractor performance and
availability, geological continuity, metallurgical variability, permitting and regulatory requirements,
community relations, commodity prices, exchange rates, financing, dilution from the conversion of
outstanding convertible debentures, and other risk factors described in Excellon's public disclosure
documents filed on SEDAR+ at
www.sedarplus.ca
. Any decision to commence or resume commercial
production at Mallay will not be based on a feasibility study of mineral reserves demonstrating
economic and technical viability, which increases the uncertainty that the Company will be able to
achieve commercial production.
The forward-looking statements herein are expressly qualified by these cautionary statements and by
the cautionary statements in the Company's continuous disclosure. Forward-looking statements are
made as of the date of this news release, and the Company disclaims any obligation to update or
revise them, whether as a result of new information, future events or otherwise, except as required by
applicable law.
All statements, other than statements of historical fact, contained, referenced or incorporated by
reference in this news release constitute "forward-looking statements" and "forward-looking
information" within the meaning of applicable Canadian and United States securities legislation.
Generally, these statements can be identified by words such as "anticipate", "believe", "continue",
"could", "estimate", "expect", "intend", "may", "plan", "potential", "schedule", "should", "target", "will"
and similar expressions, and include statements about events or results that may occur in the future.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/299015