Excellon Restarts Mining at Mallay and Highlights Emerging "Footwall Zone" Upside

The news release dated February 5, 2026, confirms that Excellon has officially restarted underground mining activities at its 100%-owned Mallay silver-lead-zinc mine in Peru. Key operational highlights include the completion of 350 metres of underground development and the identification of a new "Footwall Zone" located parallel to the primary Isguiz system. This new zone, based on historical results such as hole MLL17-77 (4.4m @ 118 g/t Ag, 3.07% Pb, 3.67% Zn), suggests the potential for wider mining intervals and improved productivity. The company has commenced a 10,000-metre diamond drill program, with one rig currently on-site and two more expected by the end of February. Furthermore, Excellon is issuing 475,000 shares at a deemed price of $0.59 to settle $280,250 in accounts payable for services rendered.

This update is Material - Positive as it signals the transition from a care-and-maintenance/rehabilitation phase to active production. - Operational De-risking: The restart of mining on the 4090 and 4150 levels validates the rehabilitation work completed in late 2025. The move to stockpiling material for mill commissioning is a critical milestone toward achieving the 600 tonnes per day (tpd) nameplate capacity. - Resource Upside: The identification of the Footwall Zone provides a potential near-mine target that could increase the resource base without requiring significant new infrastructure. - Fiscal Management: While the share issuance for debt settlement (at $0.59) is slightly dilutive, it preserves cash during the capital-intensive ramp-up phase and indicates that service providers are willing to accept equity at current market prices, suggesting confidence in the stock's value. - Execution vs. Projections: The company is largely following the timeline established in mid-2025, although the "staged approach" suggests that "steady-state" production is still several months away.

Excellon Resources is a silver producer and explorer with a focus on Peru. Its flagship project is the Mallay Mine, a past-producing underground mine acquired in mid-2025. Mallay features a fully permitted 600 tpd mill and substantial existing underground infrastructure (over US$115M in historical investment). The company also holds the Tres Cerros project (gold-silver), located 6km from Mallay, which it is positioning as a potential bulk-tonnage discovery.