Toronto, Ontario--(Newsfile Corp. - August 6, 2025) - Excellon Resources Inc. (TSXV: EXN) (OTC Pink: EXNRF) (FSE: E4X2) ("Excellon" or the "Company") is pleased to provide the following update to shareholders from the President & CEO.
Dear Shareholders and Investors,
The past few months have marked a transformative new chapter for Excellon. With the acquisition of the fully permitted, past-producing Mallay Mine in Peru, Excellon is positioned to become the next emerging global silver producer. This marks just the beginning of our broader growth strategy. While Mallay offers near-term production and exceptional in- and near-mine exploration potential, our broader portfolio - including the Tres Cerros Gold-Silver Property (Peru), Kilgore Gold Project (Idaho) and Silver City Project (Germany) - presents significant opportunities to unlock further value through discovery, development and strategic advancement.
We are very excited about the milestones and value opportunities before us.
Our team will be focused on four core areas that we believe will deliver significant value for our shareholders in the coming months.
Mallay Mine Restart:
Our objective is to return Mallay to nameplate capacity of 600 TPD, by Q2 2026.
Mine rehabilitation is progressing well. An experienced underground mining contractor has commenced rehabilitation of the 4150 and 4090 levels and is advancing 70-80 metres of rehabilitation per day. This pace keeps us on schedule to complete the mine rehabilitation activities within the next three to four months, consistent with prior guidance.
Image One: Access to 4150 Level and Rehabilitation Underway.
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Image Two: 4090 Level Access Rehabilitation
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Once rehabilitation is complete, we plan to assess a mine restart within previously-developed zones where mineralized material is readily accessible and do not require dewatering. This restart approach allows us to leverage a fully permitted, operational 600 tonne-per-day (TPD) processing facility which reflects more than US$115 million in historical investment. Excellon has additional video footage of the mill operating and the rehabilitation process underway, on its website under https://excellonresources.com/projects/advanced-development/mallay-mine/snapshot/. With all necessary permits in place, we are targeting a ramp-up to nameplate capacity by Q2 2026.
Image Three: 600 TPD Mill and Related Surface Infrastructure
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Updated Mallay NI 43-101 Mineral Resource Estimate:
An updated NI 43-101 Mineral Resource Estimate for Mallay - work that is currently underway - will support detailed scheduling and planning for the restart of the Mallay Mine and Excellon's planning horizon. This work is expected to be completed by the end of August.
Beyond Mallay - In-Mine Exploration Opportunities:
We will be advancing new zones of mineralization that will feed the Mallay mill for years to come.
When we conducted due diligence on the Mallay Mine, we identified an opportunity that others had overlooked. Historical performance understated the potential and scope of Mallay's geology. We acquired Mallay because we believe there is significant resource growth and mineralized upside - and that opportunity is now within reach.
Our geological team has two priorities in the near-term:
- Isguiz Vein Extension: The Isguiz Vein, historically the primary Ag-Pb-Zn mineralized system mined by Buenaventura, remains open both above and below the lowest access (4090) level. We are currently finalizing a new Block Model of the Mallay orebody using a cut-off grade that reflects current metal prices which, in the case of silver, is double what it was when the mine ceased production in 2018. We believe there is potential for a greater resource base, which will be further evaluated in the upcoming NI 43-101 Mineral Resource Estimate.
Not only will this deliver additional mineralized material in and around historic upper-level workings; but, as has been confirmed by prior drilling, the mineralization at Isguiz appears to widen substantially with depth. Once underground rehabilitation is completed, we intend to commence drilling below the 4090 level to both confirm these down-dip extensions and expand mineralization, both laterally and to depth.
- "Shafra Zone" (also known as the Pierina System): Approximately ~500 metres east of the main Isguiz vein system, the Shafra Zone is a priority gold exploration target defined by historical sampling and early fieldwork that is not reflected in historical resources. While initially recognized by Buenaventura, the Shafra Zone received very little attention until Excellon's geologists noticed significant gold values in pyritic halos surrounding the (traditional target) Ag-Pb-Zn veins running alongside a large surface depression in limestones adjacent to the main Isguiz mineralization. Excellon's geologists have re-sampled the surface of this depression (the Shafra Zone), and have confirmed two broad zones exhibiting strongly anomalous gold values - approximately 30% of sample sites recorded +0.5 g/t Au; highest value 62 g/t Au1. These results are historical in nature, have not been independently verified by Excellon and should not be relied upon. Excellon has initiated a re-assay program to validate this legacy data.
The Shafra Zone measures 590 metres by 600 metres and the geology is approximately 50% crackle-brecciated limestone, and 50% limestone 'latticed' with stockwork of quartz and calcite veinlets. Sparse drilling information from 280 metres below surface indicates hydrothermal alteration in felsic sills, dykes and intrusive breccias at depth with an increased presence of fine-grained sulphides.
Image Four: Shafra Zone Target
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Historical sampling of crosscuts on the Pierina vein, reported by Buenaventura in internal mine reports, recorded anomalous gold results - up to 0.98 g/t Au across 10.5 metres (weighted average). These results have not been verified by Excellon and are subject to confirmation. Historic drill cores into the Shafra Zone (targeting Ag/Pb/Zn mineralization) show broad halos of disseminated pyrite in brecciated, decarbonized, silicified limestone - potentially transitioning into skarn-style mineralization at depth. Most of this pyritic core was never cut or assayed. Excellon has initiated a re-assay program to better define grade distribution and inform a focused drill campaign.
Image Five: Historical Diamond Drilling from the Shafra Zone
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Image Six: Historical Diamond Drilling from the Shafra Zone
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The re-assay program includes over 30 legacy drill holes and is focused on zones of un-assayed pyritic halos. The Pierina system is significant as it could provide both additional tonnage and a gold credit, improving overall throughput value. Given its historic development and proximity to existing infrastructure, mineralization could be processed at Mallay.
By aggressively pursuing these in-mine zones, we aim to extend the mineral resource base and support a more robust evaluation of restart potential.
Tres Cerros Gold-Silver Project:
We believe Tres Cerros has potential to become a unique, standalone gold-silver district.
Approximately six kilometres northwest of Mallay lies our Tres Cerros exploration property - a large, greenfield gold-silver target encompassing a 2.5 km by 0.5 km corridor marked by a high-sulphidation epithermal geochemical signature and robust geophysical anomalies, coincident with auriferous fracture filled veining in basement quartzites and Au-Ag geochemical anomalies in an adjacent, down-dropped volcanic sequence. The Excellon team recently conducted follow-up field sampling to confirm hyperspectral satellite data, including spectral and geochemical analysis. Field mapping suggests the presence of diatreme structures in the volcanics coincident with spectral anomalies indicating high sulphidation alteration. The team is evaluating further geophysical surveys within the Tres Cerros corridor to orient future drill programs.
Looking ahead, we are working on obtaining the necessary permits, and we are actively engaging with local communities to advance the required exploration agreements and permits. These efforts, along with ongoing surface mapping and sampling, will further our understanding of Tres Cerros's potential. We believe this project could host a significant bulk-tonnage gold-silver system and are committed to advancing it in a responsible manner.
Excellon Portfolio - Maximizing Value in a Positive Metals Price Environment:
Beyond Mallay, we are pursuing value-enhancing strategies across our broader portfolio. At the Kilgore Gold Project in Idaho, we plan to update the Preliminary Economic Assessment (historically US$275 million NPV7% at US$1,800/oz Au2) to reflect a stronger gold price environment and drilling completed subsequent to the most recent Kilgore Mineral Resource Estimate. Kilgore hosts a large epithermal gold system with Indicated Mineral Resources1 of 44.6 million tonnes grading 0.58 g/t (containing 825,000 ounces) and Inferred Mineral Resources1 of 9.4 million tonnes grading 0.45 g/t Au (containing 136,000 ounces). Our strategy is to explore options to advance Kilgore through a potential partnership or transaction, while maintaining focus on the Mallay restart.
At the Silver City Project in Germany, we are evaluating options to unlock value from this high-grade epithermal silver discovery. Located in a historically prolific silver producing region, Silver City has returned strong early drilling results. We continue to explore a potential spin-out to create dedicated focus and unlock additional value.
Closing Remarks
I am encouraged by the progress we've made and opportunities that lie ahead. Excellon is entering a growth phase, with a clear strategy, strong team, and exceptional assets. We will continue to execute with discipline, a commitment to safety, and strong community partnerships at the core of everything we do.
Thank you for your continued support and confidence as we work to unlock Excellon's full potential.
Sincerely,
Shawn Howarth
President & Chief Executive Officer
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.
Steven L. Park, M.Sc., C.P.G., an independent consulting geologist and a "Qualified Person" within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information related to the Shafra Zone and the Tres Cerros Au-Ag Project in this news release.
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
info@excellonresources.com
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" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation.
Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as: "actively", "advance", "anticipated", "assess", "believe", "cause", "commence", "completion", "conditions", "consideration", "continues", "development", "due course", "expectation", "exploration", "extend", "extension", "flexibility", "focused", "forward", "further", "future", "if", "implement", "liquidity", "looking", "maturity", "may", "negotiations", "occur", "opportunities", "options", "outcome", "outstanding", "potential", "providing", "reach", "restructuring", "risk", "subject to", "to be", "update", "vision", "waive", "when", "will", and "would", or variations of such words, and similar such words, expressions or statements that certain actions, events or results can, could, may, should, to, will, would (or not) be achieved, occur, provide, result, complete or support in the future or which, by their nature, refer to future events. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect.
Forward-looking statements include, but are not limited to, statements regarding the timing, scope and success of the restart of the Mallay Mine; completion and results of the NI 43-101 Mineral Resource Estimate; expected silver-equivalent production rates; the timing and advancement of underground rehabilitation; the potential expansion of mineral resources at Mallay; results of the re-assay program on legacy drill core; the potential of the Shafra Zone and Isguiz Vein to contribute future mine life and mill feed; timing and plans for in-mine exploration and resource drilling; the outcome of permitting and community engagement at Tres Cerros; the timing of surface and subsurface exploration programs; the completion of an updated Preliminary Economic Assessment for the Kilgore Gold Project; and evaluation of strategic alternatives for Kilgore and the Silver City Project, including a potential spin-out. statements regarding the proposed restart of the Mallay Mine; the Company's path back to production and beyond; building a foundation for potential production and discovery across the district; timing and completion of a NI 43-101 Mineral Resource Estimate; timing and completion of underground rehabilitation; timing of production restart; timing and completion of in-mine exploration drilling; anticipated drill program for Tres Cerros in 2026; and the Company's objectives, goals and future plans and strategies. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct, and any forward-looking statements by the Company are not guarantees of future actions, results or performance. Forward-looking statements are based on assumptions, estimates, expectations and opinions, which are considered reasonable and represent best judgment based on available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. Forward-looking statements are inherently subject to known and unknown risks, uncertainties, contingencies and other factors which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other factors include, among others, the inability of the Company to complete a restart of the Mallay Mine; risks related to rehabilitation, development and ramp-up of mining operations (including unanticipated costs or delays); commodity price fluctuations and global demand for silver, lead and zinc; operational and technical challenges in restarting an underground mine; regulatory and permitting risks; general economic and market conditions; the inability of the Company to complete the interest payment in Common Shares on the terms proposed or at all; the inability of the Company to complete the Debt Settlement on the terms proposed or at all; the "Risk Factors" in the Company's annual information form dated March 31, 2025 (the "2025 AIF"), and the risks, uncertainties, contingencies and other factors identified in the Company's Management's Discussion and Analysis, and accompanying financial statements, for the year ended December 31, 2024, and the Company's other applicable public disclosure (collectively, "Company Disclosure"). The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers should consult the more complete discussion of the Company's business, financial condition and prospects that is provided in the 2025 AIF and the other Company Disclosure. The forward-looking statements referenced or contained in this news release are expressly qualified by these Cautionary Statements as well as the Cautionary Statements in the other Company Disclosure. Forward-looking statements contained herein are made as of the date of this news release (or as otherwise expressly specified) and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1 Historical sampling by Compañía de Minas Buenaventura S.A.A. (Buenaventura), unpublished internal reports, 2012 - 2016
2 Source: "Independent Technical Report and Mineral Resource Estimate for the Kilgore Project", Clark County Idaho, USA, August 26, 2019.
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SOURCE: Excellon Resources Inc.
