Excellon Provides Operational and Financial Updates; Mill Pre-Commissioning Campaign Targeted for June

The most recent release (May 27, 2026) confirms that Excellon Resources has completed critical mill refurbishment and wet commissioning milestones at its Mallay Mine in Peru. A bulk-sample campaign utilizing a ~15,000-tonne surface stockpile is scheduled for June 2026 to validate metallurgy and concentrate quality. The company reports a cash position of US$14.8 million with an additional US$5.0 million undrawn liquidity under the Glencore facility. Management expects to convert remaining C$5.5 million in convertible debentures into shares by August 31, 2026, eliminating outstanding debt. Operational updates include two active drill rigs targeting Isguiz extensions and Pierina gold targets, with a third rig expected at the Shafra Zone in June.

This news is categorized as Routine - Positive. While confirming operational progress toward production is favorable, it does not introduce genuinely new valuation drivers or unexpected catalysts that would materially re-rate the stock relative to prior expectations. The restart timeline and mill refurbishment were previously communicated in the February 2026 Mineral Resource Estimate (MRE) and subsequent operational updates (November 2025). The market has already priced in the restart narrative, evidenced by the price appreciation from $0.14 in May 2025 to a high of $0.68 in February 2026.

The confirmation that the mill is ready for commissioning reduces execution risk regarding production delays, which supports the stock price stability. However, the conversion of C$5.5 million in debentures into shares by August represents near-term dilution, a factor investors must weigh against the debt elimination benefit. The cash position ($19.8M total liquidity) is sufficient to fund operations through the commissioning phase but does not signal an immediate need for further equity financing unless production ramp-up costs exceed projections.

• Flagship Project: Mallay Mine (Peru). A fully permitted underground silver-lead-zinc mine with historical production of >18M AgEq ounces.
• Status: Restart phase targeting 600 TPD capacity by Q2-Q3 2026.
• Resources: Indicated resources of 5.57 Moz Ag (890kt @ 195g/t Ag) and Inferred resources of 1.74 Moz Ag (362kt @ 149g/t Ag).
• Other Assets: Tres Cerros Gold-Silver Project (Peru), Kilgore Gold Project (Idaho, USA), Silver City Project (Germany).
• Infrastructure: Existing processing plant valued at >US$115 million acquired during the April 2025 acquisition.