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Excelsior Mining Provides Mine Construction Progress Report

Mine Development & Operations

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NEWS RELEASE

Excelsior Mining Provides Mine Construction Progress Report

January 31, 2019

Excelsior Mining Corp. (TSX: MIN) (FSE: 3XS) (OTCQX: EXMGF) ("E xcelsior" or the “Company”)

is pleased to provide a construction progress report for the Gu nnison Copper Project (“Gunnison”), in

southeast Arizona. Photos of the construction process can be fo und on the Company’s website. First

copper production is scheduled for Q4 2019.

Construction Highlights:

 A new access road south of the I10 Highway has been installed. Access to the production

wellfield has been improved and overall transport efficiencies have been upgraded. The

Gunnison Copper Project remains one of the most easily accessible mining projects in the world;

the project benefits from direct access to all critical infrastructure components such as road, rail,

power and water.

 The drilling campaign program is advancing with five drill rig s currently on site. Collar drilling and

cement casing of the of the initial wells is on-going in advanc e of down-hole activities, such as

the installation of pumps and instrumentation. Drilling of the entire wellfield, which will consist of

approximately 41 production wells and 22 compliance wells, is expected to be completed by July

2019.

 Construction of the pipeline corridor connecting the processin g facilities at the Johnson Camp

Mine to the wellfield has commenced. Jack and bore, the method of horizontal drilling that is

being employed to install a pipeline under the I10 Highway, is underway. Crews have completed

the launch and receiving pits; horizontal boring is scheduled t o mobilize in March. The entire

two-mile high-density polyethylene (HDPE) pipeline corridor is expected to be completed by May

2019.

 Staff ramp-up in expectation of production continues; a notabl e recent hire is Brent Berg, who is

the new Environment, Health & Safety (EH&S) Manager . Mr. Berg was the former President of

Cameco Resources, one of the largest in-situ uranium mining companies in the United States.

During the construction process, Excelsior will remain committed to our core value of achieving technical

and financial excellence, said Chief Operating Officer, Roland Goodgame. “We will continue to make

safety our leading priority as the security and wellbeing of our workers is critical to the ultimate success

of the project. Our commitment to safety extends to all those within the local communities as we advance

the Gunnison Copper Project towards producer status later this year.”

About Excelsior Mining

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

advancing the Gunnison Copper Project in Cochise County, Arizon a. The project is a fully-permitted,

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advanced staged, low cost, environmentally friendly in-situ rec overy copper extraction project. The

Feasibility Study projected an after-tax NPV of US$ 807 million and an IRR of 40% using a US$ 2.75 per

pound copper price and a 7.5% discount rate.

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.

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 4 3-101 Technical Report, Feasibility

Study” dated effective December 17, 2016.

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

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: 604 723 1433

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 results of the Feasibility Study, including operating and capital cost estimates and

the economic benefits from the G unnison Copper Project; (ii) the details of the various construction activities that

are being or will be undertaken on the Gunnison Copper Project and their timeline for completion; (iii) the potential

for cost savings; and (iv) the ability to mine the Gunnison Copper Project using in-situ recovery mining techniques.

In certain cases, forward-looking information can be identif ied by the use of words such as "plans", "expects" or

"does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate",

or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could",

"would", "might", "occur" or "be achieved" suggesting fu ture outcomes, or other expectations, beliefs, plans,

objectives, assumptions, intentions or statements about future events or performance. Forward-looking information

contained in this news release is based on certain fa ctors and assumptions regardi ng, among other things, the

estimation of mineral resources and mineral reserves, the realization of resource and reserve estimates, copper

and other metal prices, the timing and amount of future de velopment expenditures, the estimation of initial and

sustaining capital requirements, the estimation of labour and operating costs, the progress of construction activities,

receipt of and compliance with necessary regulatory ap provals, the estimation of insurance coverage, and

assumptions with respect to currency fluctuations, environm ental risks, title disputes or claims, and other 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 implied by the forward-looking information. Such factors include risks

inherent in the construction of mineral deposits, including risks relating to changes in project parameters as plans

continue to be redefined including the possibility that mining operations may not commence at the Gunnison Copper

Project, risks relating to variations in mineral resources and reserves, grade or recovery rates, risks relating to the

ability to access infrastructure, risks relating to changes in copper and other commodity prices and the worldwide

demand for and supply of copper and related products, ri sks related to increased competition in the market for

copper and related products, risks related to current global financial conditions, uncertainties inherent in the

estimation of mineral resources, acce ss and supply risks, reliance on key pers onnel, operational risks inherent in

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the conduct of mining activities, including the risk of acci dents, labour disputes, increases in capital and operating

costs and the risk of delays or increased costs that might be encountered during the construction process, regulatory

risks, financing, capitalization and liquidity risks, risks related to disputes co ncerning 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 that could cause actual actions, events or results

to differ materially from those described in forward-lo oking information, there may be other factors that cause

actions, events or results not to be as anticipated, esti mated or intended. Accordingl y, 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 obligation to

publicly update or revise any forward-looking information.