Excellon Drilling Confirms Grade and Width Below the 4090 Level at Mallay Silver Mine

Excellon Resources Inc. (EXN) has released assay results from 15 underground drill holes totaling approximately 4,400 meters across two drill chambers on the 4090 Level at its 100%-owned Mallay Ag-Pb-Zn mine in Peru. With approximately 9,000 meters drilled to date, the company is currently awaiting step-out assays.

Key intercepts from the program include:

• MLL26-010: 5.00 m @ 255 g/t Ag, 2.39% Zn, 3.02% Pb (398 g/t AgEq), including 3.40 m @ 290 g/t Ag, 3.43% Zn, 4.33% Pb (495 g/t AgEq) in the Isguiz vein.
• MLL26-004: 12.55 m @ 96 g/t Ag, 2.18% Zn, 0.65% Pb (178 g/t AgEq), including 4.00 m @ 166 g/t Ag (236 g/t AgEq), demonstrating depth continuity below the 4090 Level.
• MLL26-011: 2.3 m @ 248 g/t Ag, 0.86% Zn, 1.74% Pb (314 g/t AgEq) in the Maria vein, approximately 280 meters below the 4090 Level, within a broader 11.1 m @ 115 g/t AgEq.
• MLL26-009: 4.00 m @ 138 g/t Ag, 3.80% Zn, 1.04% Pb (279 g/t AgEq), approximately 140 meters below the 4090 Level, flanked by 5.45 m @ 87 g/t AgEq in the footwall and 2.75 m @ 118 g/t Ag, 4.53% Zn, 3.33% Pb (334 g/t AgEq) in the hangingwall.
• MLL26-015: 4.30 m @ 137 g/t Ag, 5.22% Zn, 1.72% Pb (337 g/t AgEq) within a wider 11.7 m @ 166 g/t AgEq, plus 0.7 m @ 76 g/t Ag, 7.06% Zn, 4.58% Pb (398 g/t AgEq) in the Isguiz vein.
• MLL26-006: 11.4 m @ 69 g/t Ag, 5.43% Zn, 1.32% Pb (267 g/t AgEq) in the calc-silicate (CCS) halo, representing the widest CCS intercept to date.
• MLL26-005: 7.7 m @ 50 g/t Ag, 1.99% Zn, 0.78% Pb (129 g/t AgEq) passing directly into 6.65 m of Isguiz @ 237 g/t AgEq, creating over 14 meters of continuous mineralization.

Excellon intends to incorporate these results into an updated mine plan and schedule targeted for year-end 2026. The company will also assess CCS material for future resource model inclusion. Four step-out targets totaling approximately 8,000 meters are currently underway or queued.

Excellon Resources Inc. (EXN) released non-earnings drill results from its mine-restart operations, a company with a market capitalization of approximately C$190 million. The company’s stock is currently trading at C$0.43, down from a February 2026 peak of C$0.68, placing it roughly mid-range for the year.

The drill results serve as a confirmation against the existing expectation anchor of 420 g/t AgEq Indicated grade and 344 g/t AgEq Inferred grade. Hole MLL26-010 returned 398 g/t AgEq, matching the anchor, while MLL26-004 returned 178 g/t AgEq over 12.55 meters, which is below the anchor but well above the 120 g/t AgEq cut-off. No prior 2026 assay batch has been released for this specific drilling, although a May 2026 update noted that approximately 2,500 meters of infill was being integrated into the model.

The release included genuinely new and differentiated intercepts outside the current Mineral Resource Estimate (MRE) and adjacent to already-planned development. These included 11.4 meters at 267 g/t AgEq of CCS halo at MLL26-006 and more than 14 meters of continuous vein-plus-halo at MLL26-005. Converting this material would widen mining widths, supporting the explicit rationale for the company’s mechanization transition. This represents a potential multi-quarter value lever, though it remains unquantified and requires a resource update and metallurgical testing.

The results are supportive but not transformative to the investment thesis. They de-risk the below-4090 development case and add a possible future resource-expansion angle. There is no change to the 890 kt Indicated and 362 kt Inferred MRE, and no reserves or economic studies exist.

Excellon Resources Inc. (EXN) owns the Mallay Silver-Lead-Zinc Mine in central Peru, a past-producing asset that is fully permitted and currently in the process of restarting. An NI 43-101 report effective 18 Feb 2026 outlines an Indicated resource of 890 kt @ 195 g/t Ag, 3.33% Pb, 4.83% Zn (420 g/t AgEq; 5.57 moz Ag, 12.01 moz AgEq) and an Inferred resource of 362 kt @ 149 g/t Ag, 2.67% Pb, 4.32% Zn (344 g/t AgEq; 4.00 moz AgEq). The company reports no reserves, no PEA/PFS/FS, and no demonstrated economic viability.

Operations at the site feature a 600 tpd nameplate concentrator, which produced its first concentrate on 5 Aug 2026 following a pre-commissioning restart on 2 Jul 2026. Approximately 12,000 t of material had been processed to that date, with operations running at a controlled rate of ~400 tpd. The facility produces lead-silver and zinc concentrates backed by a US$7.5M pre-export facility with Glencore, which remained undrawn at 31 May 2026 under terms of SOFR+5%.

The company’s exploration portfolio includes the Tres Cerros Au-Ag property, which is contiguous to Mallay and spans ~11,000 ha plus an additional 1,132 ha added in Jan 2026. Seven targets have been defined on the property, with grab samples returning up to 14 g/t Au and 9,050 g/t Ag, though these are described as selective and non-representative. A DIA submission is targeted for end-2026, with first drilling planned for H1 2027 subject to permits. The portfolio is rounded out by the Kilgore gold project in Idaho and the Silver City epithermal silver project in Saxony, Germany, held via ~68.1% ownership of Saxony Silver Corp.

Financial context from prior periods shows a Q3-2025 (9M) net loss of US$3.166M and an operating cash outflow of US$1.881M. At that time, the company held US$10.063M in cash against total debt of US$12.195M and total equity of US$24.585M, with 320.2M shares outstanding. Subsequent funding activities included a C$12M LIFE placement in Sep 2025 and a C$21.8M placement at C$0.60 in Mar 2026, which included C$5.0M from Eric Sprott. As of 31 May 2026, the company reported US$14.8M in cash plus US$5.0M undrawn. Management has adopted semi-annual reporting.