Excellon Reports Q3 2025 Financial Results and Provides Mallay Restart and Corporate Updates
Excellon Reports Q3 2025 Financial Results
and Provides Mallay Restart and Corporate
Updates
Toronto, Ontario--(Newsfile Corp. - November 20, 2025) -
Excellon Resources Inc. (TSXV: EXN)
(OTC Pink: EXNRF) (FSE: E4X2)
("
Excellon
" or the "
Company
") is pleased to report the filing of its
financial results for the three and nine-month periods ended September 30, 2025, provide an update on
progress towards restarting the past-producing Mallay silver-lead-zinc mine ("
Mallay
") in Peru and other
corporate updates.
All financial information is expressed in Canadian dollars unless otherwise noted.
Q3 2025 Highlights – De-risking the Mallay Restart
Phase One Rehabilitation Completed:
Over 2,800 metres of mine access rehabilitated across
the 4090 and 4150 levels at Mallay, re-establishing underground access, services and dewatering
and allowing the Company to transition from rehabilitation to definition drilling and restart planning.
Restart Funding Secured:
Closed a LIFE private placement of common shares for gross
proceeds of $12 million on September 9, 2025, and closed a US$7.5 million offtake-backed pre-
export finance facility to fund the restart of Mallay and near-mine/district exploration.
Stronger Balance Sheet and Liquidity:
Cash and cash equivalents increased during the
quarter, with the Company ending Q3 2025 with $24 million in cash and available liquidity
(including the undrawn pre-export finance facility), providing a robust capital base to advance
restart and drilling activities.
Mallay Resource and Restart Planning Advancing:
Remodeling of historical drilling is well
advanced, with an updated NI 43-101 mineral resource estimate for Mallay targeted for Q4 2025.
Work is now focused on definition drilling from the 4090 level and planning a staged restart of
mining and milling.
Isguiz and Shafra Drill Programs Designed to Extend Mineralization and Support Future
Mine Planning:
A 40-hole (~13,000 metre) drill program at the Isguiz vein system and a 6-hole
(~3,500 metre) initial program at the Shafra Zone are planned to commence in Q4 2025, testing
down-dip/lateral extensions of known mineralization and a gold-rich intrusive-related target with the
potential to add tonnes and extend mineralized zones beyond the historically mined and drilled
footprint, supporting longer-term mining planning.
Permits in Place for Restart:
All key mining and environmental permits required to restart mining
and processing at Mallay remain in good standing, and the Company recently received explosives
permits for underground operations, supporting restart readiness.
Shawn Howarth, President and Chief Executive Officer, commented:
"The third quarter was about
de-risking the Mallay restart – reopening the mine, putting the Glencore facility in place and raising $12
million in equity. We now move into an execution phase in Q4 and Q1 2026, focused on the updated
Mineral Resource Estimate, definition drilling and advancing a phased restart towards the mill's
historical nameplate capacity of 600 tonnes per day, subject to a production decision and positive
technical results."
Mallay Restart Outlook – Path to Near-Term Production
With Phase One underground rehabilitation completed, Excellon is executing a staged plan to restart
Mallay and return the Company to silver production.
Q4 2025:
Updated Mineral Resource: Publication of an updated NI 43-101 Mineral Resource
Estimate for Mallay is targeted for Q4 2025, based on remodeling of historical drilling and current
metal price assumptions.
Q4 2025:
Definition Drilling from 4090 Level: Underground definition drilling from the 4090 level is
expected to begin in Q4 2025, targeting accessible areas of mineralization along the Clavos 2, 3
and 6 structures to delineate an initial inventory for a staged restart.
Q4 2025 / Early 2026:
Isguiz Extension: Approximately 13,000 metres in 40 holes designed to
test down-dip and lateral continuity up to ~300 metres below current workings, with a view to
defining additional mineralized material to support longer-term mine planning. Shafra Zone:
Approximately 3,500 metres in six holes to test a gold-enhanced silver-lead-zinc system and
broader intrusive-related bulk-tonnage target; initial drilling will be followed by down-hole
geophysics to refine follow-up targets.
2026:
Staged Restart and Ramp-Up: Subject to positive drilling and mine planning, Excellon
intends to pursue a phased restart of mining from the 4090 level, with a targeted ramp-up, if a
production decision is made, towards the historical nameplate capacity of 600 tonnes per day of
the Mallay mill.
The Company has not completed a feasibility study on Mallay. Any decision to commence or
resume production will not be based on a feasibility study, which increases the uncertainty that
planned operations will be economically or technically viable.
Q3 2025 Liquidity
The Company has approximately $24 million in available liquidity through cash and an undrawn loan
facility with Glencore, at September 30, 2025.
Cash and cash equivalents balance of $13.5 million at the end of the quarter.
Undrawn pre-Export Finance loan facility with Glencore for up to US$7.5 million, bearing interest at
SOFR + 5%, with a six-month grace period on principal following initial drawdown.
Working capital improved at September 30, 2025, reflecting the equity financings and acquisition
of Minera CRC, the Peruvian entity that owns Mallay and the Tres Cerros gold-silver exploration
property.
The information contained in this news release should be read in conjunction with the Company's
unaudited condensed consolidated financial statements and management's discussion and analysis for
the three and nine-month periods ended September 30, 2025, which are available on Excellon's website
and under the Company's profile on SEDAR+.
Corporate Updates
Annual and Special Meeting Results
The Company held its annual and special meeting of shareholders on November 18, 2025.
Shareholders approved all matters presented for their consideration, including the Company's Share
Incentive Plan as set out in the Company's Notice of Meeting and Management Information Circular
dated October 6, 2025.
Grant of Deferred Share Units and Stock Options
Following the approval of the Share Incentive Plan, the Company has granted a total of 504,853 deferred
share units ("DSUs") to non-executive directors in respect of directors' fees, and 150,000 DSUs to Mike
Hoffman in connection with his appointment to the Board as announced on July 3, 2025, in each case
pursuant to the Share Incentive Plan. Each vested DSU entitles the holder thereof to receive upon
settlement a cash payment equal to the market value of one common share in the capital of the
Company, or, at the discretion of the board of directors of the Company, one common share in the
capital of the Company or any combination thereof. The DSUs vest one year from the date of grant in
accordance with the Share Incentive Plan and TSXV policies.
The Company has also granted 200,000 stock options to Capital Analytica pursuant to the Share
Incentive Plan in accordance with the investor relations agreement announced on July 3, 2025. The
options are exercisable at $0.26 per common share, vest in four equal quarterly instalments over the next
12 months, and expire two years from the date of grant.
Qualified Person
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 release.
Additional technical information on the Mallay Mine and Tres Cerros Exploration Property is available in
the technical report titled "NI 43-101 Technical Report on the Tres Cerros Au-Ag Project and Mallay Mine
Property" dated June 24, 2025, prepared for Excellon Resources Inc. and filed on SEDAR+ under the
Company's profile.
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 the Tres Cerros
Gold/Silver Exploration Property in Peru; Kilgore, an advanced gold project in Idaho; and Silver City, a
high-grade epithermal silver district in Saxony, Germany, 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 Regulations Services Provider (as that term is
defined in the polices of the TSXV) has reviewed the adequacy or accuracy of this news
release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
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.
This news release contains "forward-looking statements" and "forward-looking information" (together,
"forward-looking information") within the meaning of applicable Canadian securities legislation and
the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of
historical fact, are forward-looking information and are based on expectations, estimates and
projections as at the date of this news release.
Forward-looking information in this release includes, but is not limited to, statements regarding: the
potential restart of the Mallay Mine and related timelines; the timing, scope and results of
rehabilitation, dewatering, definition and exploration drilling; the publication of an updated NI 43-101
mineral resource estimate for Mallay; anticipated mine life extension and exploration potential at
Isguiz, Shafra and Tres Cerros; the expected ramp-up of the Mallay mill towards 600 tonnes per day;
the availability and use of proceeds from the Glencore facility and recent equity financings; and the
Company's future financial position, strategies and objectives.
Forward-looking statements are inherently subject to known and unknown risks, uncertainties and
contingencies that may cause actual results to differ materially, including: the inability to complete a
restart of the Mallay Mine; risks related to rehabilitation, dewatering and underground access;
geological/grade continuity risk and the ability to convert or reclassify resources; assay/QAQC
variability and data verification (including reliance on historical information generated by third parties);
regulatory and permitting risks; financing risks; commodity price and market volatility; general
economic conditions; and the risk factors set out in the Company's Annual Information Form dated
March 31, 2025, MD&A and other public disclosure. Any decision to commence or resume
production at Mallay will not be based on a feasibility study, which increases the uncertainty that the
Company will be able to achieve commercial production or demonstrate economic viability.
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.
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https://www.newsfilecorp.com/release/275264