Excellon Continues to Advance Mallay Towards Restart

The October 14, 2025 news release provides a comprehensive update on the rehabilitation and restart activities at the Mallay silver-lead-zinc mine in Peru. Key points include: * Rehabilitation: Phase one is complete, with over 2,800 metres of mine access rehabilitated on the 4090 and 4150 levels. * Drilling: The company is moving from rehabilitation to resource definition and expansion drilling. A definition drill program is set to commence on the 4090 level, expected to define mineralization for the first two years of production. Two larger drill programs are budgeted to start in Q4 2025: a 13,000-metre program at the Isguiz Extension and a 3,500-metre program at the Shafra Zone. * Technical Studies: An updated NI 43-101 Mineral Resource Estimate is targeted for publication in Q4 2025. * Operational Readiness: All operating permits are in place, and the company has recently received explosives for underground use. * Financial Position: As of September 30, 2025, Excellon has over $20 million in cash and available liquidity, confirming that the planned drilling programs and the Mallay restart are fully funded.

The news is a Non-Material - Positive update. It confirms that the company is executing on the plan it laid out after acquiring the Mallay mine and raising significant capital.

Analysis of progression: Tracing the company's trajectory over the past two years reveals a dramatic and successful strategic pivot. 1. Mid-2023 Crisis: The company was on the brink, with a failed acquisition of the La Negra mine, challenging market conditions, and a significant convertible debenture maturity looming. 2. Late 2023 - Early 2024 Restructuring: Management successfully restructured its debt, significantly cleaning up the balance sheet, albeit through dilution and parting with interests in its Kilgore and Silver City projects. This was a critical survival step. 3. Late 2024 - Present Pivot to Peru: The company identified and acquired the past-producing Mallay mine, completely shifting its focus to a near-term production restart story. This was supported by a series of de-risking events: * Financing: Successfully raised C$8 million in May 2025 and another C$12 million in September 2025, both with participation from strategic investor Eric Sprott. * Partnership: Secured a loan facility of up to US$7.5 million and a 100% offtake agreement with mining major Glencore in August 2025.

The latest news confirms that the capital raised is being deployed effectively and operational milestones are being met as planned. The completion of Phase one rehabilitation is a tangible sign of progress. The clearly defined upcoming catalysts, particularly the NI 43-101 resource estimate and the commencement of major drill programs, provide a clear roadmap for value creation.

However, the update is not "Material" because it is an expected progress report. The market was aware of the acquisition, the financings, and the general restart plan. This news confirms execution is underway, which is positive, but it does not fundamentally alter the investment thesis or introduce new, unexpected information. A slight miss is the timeline for the NI 43-101, which was previously guided for "end of August" (Aug 6 release) and is now "Q4 2025," but this is a minor delay in the grand scheme. The key takeaway is that the company is funded and advancing towards its goal of becoming a producer again.

Excellon Resources Inc. is a mining company transitioning into a silver producer. After ceasing operations in Mexico and restructuring its balance sheet, the company has pivoted its strategy to focus on restarting its newly acquired, 100%-owned Mallay Property in Peru.

The flagship project is the Mallay Mine, a past-producing, fully permitted underground silver-lead-zinc mine. It was previously operated by Buenaventura from 2012-2018 and has significant existing infrastructure, including a 600 tpd processing plant. Excellon's strategy is to leverage this infrastructure for a low-capital, near-term restart, targeting a ramp-up to capacity by Q2 2026. The property also includes the Tres Cerros and Shafra exploration targets, which offer potential for resource growth and gold discovery.