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Excelsior Files Feasibility Study

Economic Studies

NEWS RELEASE

Excelsior Files Feasibility Study

January 18, 2017

Excelsior Mining Corp. (TSX-V: MIN) (FSE: 3XS) (OTCQX: EXMGF) ( "Excelsior" or the

“Company”) is pleased to announce that it has filed a National Instrument (“NI”) 43-101 Technical Report

dated effective December 17, 2016 on SEDAR at www.sedar.com. The Report is with respect to

Excelsior’s Feasibility Study (“FS”) on the Gunnison Copper Project in southern Arizona; the results of

which were announced in a December 5, 2016 news release.

Highlights of the Feasibility Study (United States dollars)

x N e t Present Value (“NPV”) of $1.173 billion pre-tax and $807 million post-tax

o a t 7 . 5 % d i s count rate using a life of mine (“LOM”) copper price of $2.75/lb;

x Internal Rate of Return (“IRR”) of 48% pre-tax and 40% post-tax;

x Initial construction capital costs of $46.9 million

o includes 15 % contingency, 16% EPCM, freight, mobile equipment, owner’s costs and

capital spares;

x Payback period for initial capital of 2.3 years pre-tax and 2. 8 years post-tax;

x Average life of mine operating costs of $0.65/lb;

x All-In Cost (LOM capital costs plus operating costs) of $1.23/ lb;

x 42 million pounds of copper added to the Probable Mineral Rese rve, with the total Probable

Mineral Reserve now 4.5 billion pounds of copper (782 million short tons grading 0.29%);

x Life of Mine: 24 years of commercial production;

x Staged production profile: initial production rate of 25 milli on pounds of copper cathode per annum

using the existing Johnson Camp Mine (“JCM”) facilities, followed by an intermediate expansion

stage to 75 million pounds per annum and final expansion stage to full production of 125 million

pounds per annum (includes the construction of an acid plant at full production).

Post-Tax Sensitivity Analysis*

Acid Plant Non-Acid Plant

Cu Price $3.25 $3.00 $2.75 $2.50 $2.25 $3.25 $3.00 $2.75 $2.50 $2.25

IRR 51% 45% 40% 35% 29% 51% 46% 41% 35% 28%

NPV* $1,086 $947 $807 $664 $522 $972 $831 $691 $548 $405

*million $ at 7.5% discount rate

Commenting on this news, Stephen Twyerould, President and CEO, said, “The Feasibility Study confirms

the industry-leading economics th at have always been the hallma rk of the Gunnison Copper Project.

With the successful completion of this final technical mileston e, Excelsior remains on schedule for

commercial production in 2018. The Company continues to work cl osely with the federal and state

agencies to develop safe and workable permits in a timely manner.”

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Qualified Person

Excelsior’s technical work on the Gunnison Copper Project is supervised by Stephen Twyerould, Fellow

of AUSIMM, President & CEO of Excelsior and a Qualified Person as defined by National Instrument 43-

101. Mr. Twyerould has reviewed and approved the technical information contained in this news release.

About Excelsior Mining

Excelsior Mining “ The Copper Solution Company ” is a mineral exploration and development company

that is advancing the Gunnison Copper Project in Cochise County, Arizona. The project is an advanced

staged, low cost, environmentally friendly in-situ recovery copper extraction project that is scheduled for

commercial production in 2018.

Additional information about the Gunnison Copper Project can be found in the technical report filed on

SEDAR at www.sedar.com entitled: “Gunnison Copper Project, NI 43 -101 Technical Report, Feasibility

Study” dated effective December 17, 2016.

For more information on Excelsior, please visit our website at www.excelsiormining.com.

ON BEHALF OF THE EXCELSIOR BOARD

"Stephen Twyerould"

President & CEO

For further information regarding this press release, please contact:

Excelsior Mining Corp.

Concord Place, Suite 300, 2999 North 44th Street, Phoenix, AZ, 85018.

JJ Jennex, Vice President, Corporate Affairs

T: 604-681-8030 x240

E: [email protected]

www.excelsiormining.com

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward

looking information contained in this news release includes, but is not limited to, statements with respect to: (i) the estimation of mineral resources

and mineral reserves; (ii) the robust economics and potential re turns associated with the Gunnison Project, (iii) the technical viability of the

Gunnison Project; (iv) the market and future price of copper; (v ) expected infrastructure requirements; (vi) the results of the FS including

statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, construction ti melines, permit

timelines and production timelines for the Gunnison Project, (vii) expected acid consumption rates; (viii) the use of Johnson Camp infrastructure;

(ix) the commencement of commercial production from the Gunnis on Project; and (x) the ability to mine the Gunnison Project usin g in-situ

recovery mining techniques.

In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected",

"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variation s of such words and

phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be ac hieved" suggesting

future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events o r performance.

Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other t hings, the

estimation of mineral resources and minera l reserves, the realization of resource and reserve estimates, copper and other metal prices, the

timing and amount of future development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and

operating costs, the availability of necessary financing and materials to continue to develop and construct the Gunnison Project in the short and

long-term, the progress of development activities, the receipt of necessary regulatory approvals, the completion of the permitt ing process, the

estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other

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similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove

to be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance

or achievements of the Company to be materially different from any future results, performance or achievements expressed or imp lied by the

forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating

to changes in project parameters as plans continue to be redefine d including the possibility that mining operations may not com mence at the

Gunnison Project, risks relating to variations in mineral resources and reserves, grade or recovery rates resulting from current exploration and

development activities, risks relating to the ability to access infrastructure, risks relating to changes in copper and other c ommodity prices and

the worldwide demand for and supply of copper and related products, risks related to increased competition in the market for copper and related

products and in the mining industry generally, risks related to curr ent global financial conditions, uncertainties inherent in the estimation of

mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining acti vities, including

the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered

during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and per mits, financing,

capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Gunnison

Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, environmental risks

and the additional risks identified in the “Risk Factors” section of the Company’s reports and filings with applicable Canadian securities regulators.

Although the Company has attempted to identify important factors t hat could cause actual actions, events or results to differ m aterially from

those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated

or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as

of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligati on to publicly

update or revise any forward-looking information.

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 ad equacy or accuracy of this release, and no securities

regulatory authority has either approved or disapproved of the contents of this release.