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Excelsior Mining Successfully Concludes Permitting Process

Permits & Approvals

NEWS RELEASE

Excelsior Mining Successfully Concludes Permitting Process

October 16, 2018

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

announces that the Class III Underground Injection Control Area Permit for the Gunnison Copper Project

(the “UIC Permit”) is now active and good for production of up to 125 million pounds of pure copper

cathode per annum. All required state and federal operating per mits have now been successfully

obtained.

Stephen Twyerould, President & CEO, said, “I’m extremely proud of our team that have worked so

diligently with regulatory agencies, community and stakeholders to deliver this significant milestone. It

represents a tremendous value-creation step as we continue movi ng towards production in what will be

one of the most environmentally friendly and cost-effective copper projects in North America.”

The Chairman of Excelsior Mining, Mark Morabito, added, “With the appeal process officially exhausted,

we now have a fully permitted project that is genuinely on the cusp of achieving low cost copper

production through the most environmentally friendly process av ailable within the industry today. I

congratulate the entire Excelsior team on achieving this positi ve outcome, and I look forward to seeing

Excelsior unlock the true value of this tremendous asset.”

To recap Excelsior’s permitting process, in September, 2017, th e Arizona Department of Environmental

Quality (“ADEQ”) issued an Aquifer Protection Permit for Gunnis on Copper Project; this completed the

Arizona State permitting process. On June 22, 2018 the Environm ental Protection Agency (the “EPA”)

issued Excelsior the UIC Permit with an effective date of August 1, 2018. An appeal (the “Appeal”) of the

UIC Permit was subsequently filed by a coalition of non-governm ental organizations (the “Petitioners”)

(See Excelsior Mining news release dated August 6, 2018 – “Excelsior Provides Permitting Update”). All

appeals are reviewed by the Environmental Appeals Board (the “EAB”). Excelsior announced on October

5, 2018 that a Settlement Agreement (the “Agreement”) had been concluded that would result in the

dismissal of the Appeal. As per the terms of the Agreement, Exc elsior, the EPA, and the Petitioners

submitted to the EAB a joint motion to dismiss the Appeal (see Excelsior news release dated October 5,

2018 – “Excelsior Mining Confirms Agreement to Dismiss UIC Perm it Appeal”). The EAB has now

accepted the joint motion dismissing the Appeal, and the EPA has lifted the stay, thereby resulting in the

UIC Permit becoming effective. The permitting process is now co mpleted with all key operating permits

in place and effective.

Excelsior will be ready to commence construction upon the compl etion of its project financing plan. The

Gunnison Copper Project remains on-track to be the next new copper producer in the United States, with

initial production scheduled for 2019.

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. The Feasibility Study

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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 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: 604 723 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, stat ements with respect to:; (i) economic b enefits from the

Gunnison Project; (ii) the commencement of commercial production from the Gunnison Project; and (iii) the ability to mine the Gunnison Project

using 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", "m ight" or "will be taken", "occur" or "be ac hieved" suggesting

future outcomes, or other expectations, be liefs, plans, objectives, assumptions, intent ions or statements about future events o r performance.

Forward-looking information contained in th is news release is based on certain factor s and assumptions regarding, among other t hings, 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 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 estimation of insurance c overage, and

assumptions with respect to currency fluct uations, environmental risks, ti tle disputes or claims, and other similar matters. Wh ile 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 an d development of mineral deposits, including risks relating

to changes in project parameters as plans continue to be redefi ned 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 curren t 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 per sonnel, operational risks inherent in the conduct of mining acti vities, including

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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, financing, capitalization and liquidi ty risks, including the risk that the fi nancing necessary to

fund the exploration and development activities at the Gunnison Proj ect may not be available on satisfactory terms, or at all, risks related to

disputes concerning proper ty titles and interest, environment al 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 informati on is made as

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

update or revise any forward-looking information.