Excellon Subsidiary Saxony Silver Announces $2.125 Million Private Placement

• Excellon Resources announced a private placement for its 75%-owned subsidiary, Saxony Silver Corp., raising $2.125 million in gross proceeds.
• The offering consists of 4,250 units at $500 per unit, including one common share and half a warrant per unit.
• Proceeds are designated for exploration activities at the Silver City Project in Germany and general corporate purposes.
• The transaction establishes a pre-money valuation of $20.8 million for Saxony Silver.
• Excellon's ownership interest in Saxony Silver will decrease from 75% to approximately 68.1% on an undiluted basis, but the release states it is non-dilutive to Excellon shareholders.
• Warrants issued have a $750 exercise price and a 36-month term.
• Closing is expected on or about May 15, 2026.

• The financing is material for the Silver City Project but routine relative to the parent company's scale.
• Raising $2.1 million is small compared to Excellon's total liquidity and market capitalization (~$211M), limiting immediate stock price impact.
• The "non-dilutive" claim applies to the parent (EXN) equity, which protects existing shareholders from direct dilution despite the subsidiary stake reduction.
• This follows a significant $21.8 million financing for the parent in March 2026 and an NI 43-101 resource update in April 2026, indicating a continued capital-raising phase to fund exploration while Mallay restarts.
• The move supports the strategic plan outlined in the February presentation to explore high-value assets like Silver City potentially for future spin-outs or partnerships.
• No immediate change to the core thesis regarding the Mallay Mine restart (target Q2 2026) is presented, making this a supportive but incremental development.

• Company: Excellon Resources Inc., a mining company focused on silver, lead, and zinc production in Peru with exploration assets in Idaho and Germany.
• Flagship Project: Mallay Mine (Peru) - A fully permitted underground silver-lead-zinc mine with existing infrastructure valued at over $115 million.
• Project Status: Currently undergoing rehabilitation of levels 4090 and 4150, targeting a staged restart to nameplate capacity of 600 tonnes per day by Q2 2026.
• Other Assets: Tres Cerros (Peru) gold-silver exploration property; Kilgore Gold Project (Idaho); Silver City Project (Germany).
• Strategy: Deliver near-term silver production from Mallay while leveraging underexplored land packages for district-scale discovery potential.