Excellon Resources Advances Mallay Silver Mine Towards a Near-Term Restart

Executive Summary

• Excellon Resources announced the acquisition of the fully‑permitted, past‑producing Mallay Mine in Peru and outlined a plan to restart production at 600 tonnes per day (TPD) by Q2 2026.
• The company detailed ongoing underground rehabilitation (4150 & 4090 levels), upcoming NI 43‑101 resource update (expected end‑August), and extensive in‑mine exploration programs targeting the Isguiz Vein extension and the newly identified “Shafra Zone.”
• Additional portfolio updates were provided for Tres Cerros (Peru), Kilgore Gold Project (Idaho) and Silver City Project (Germany), including plans to update the Kilgore PEA and evaluate a potential spin‑out of Silver City.

Key Details

• Mallay Mine Restart
• Target ramp‑up to nameplate capacity of 600 TPD by Q2 2026.
• Underground contractor advancing 70–80 m per day on rehabilitation of the 4150 and 4090 levels; completion expected within 3‑4 months.

• Rehabilitation will enable restart in zones that do not require dewatering, leveraging existing US$115 million processing infrastructure.

• NI 43‑101 Resource Estimate

• Updated Mallay NI 43‑101 resource work is underway and slated for completion by end of August 2025 to support detailed scheduling.

• In‑Mine Exploration – Isguiz Vein Extension

• Block model being finalized with a cut‑off grade reflecting current metal prices (silver cut‑off roughly double the historic level).

• Planned drilling below the 4090 level to confirm down‑dip extensions and lateral growth.

• Shafra Zone (Pierina System)

• Historic surface sampling shows +0.5 g/t Au on ~30 % of sites, with a high of 62 g/t Au.
• Re‑assay program launched covering >30 legacy drill holes to validate historic gold values and define grade distribution.

• Zone dimensions: approx. 590 m × 600 m, composed of alternating limestone and crackle‑brecciated limestone with quartz/calcite veinlets.

• Tres Cerros Gold‑Silver Project (Peru)

• Large greenfield target (~2.5 km × 0.5 km corridor) with high‑sulphidation epithermal signatures and robust geophysical anomalies.

• Ongoing surface mapping, hyperspectral satellite validation, and evaluation of additional geophysical surveys to guide future drilling.

• Kilgore Gold Project (Idaho)

• Plan to update the Preliminary Economic Assessment (PEA) reflecting higher gold prices and recent drill results.
• Current indicated resources: 44.6 Mt @ 0.58 g/t Au (825,000 oz); inferred resources: 9.4 Mt @ 0.45 g/t Au (136,000 oz).

• Exploring partnership or transaction options while maintaining focus on Mallay restart.

• Silver City Project (Germany)

• Evaluating strategic alternatives, including a possible spin‑out to unlock value from the high‑grade epithermal silver discovery.

• Leadership Quote (optional)

  “We are entering a growth phase with a clear strategy, strong team, and exceptional assets,” – Shawn Howarth, President & CEO.

• Qualified Persons

• Paul Keller, P.Eng., COO – reviewed technical information.

• Steven L. Park, M.Sc., C.P.G. – reviewed scientific/technical data for Shafra Zone and Tres Cerros.

• Forward‑Looking Statements – The release contains numerous forward‑looking statements regarding timelines, resource estimates, exploration results, permitting, and strategic options that are subject to risks and uncertainties.