Excellon Defines Multi-Stage Gold-Silver System Linking Pierina, Shafra and Mallay Deeps at Mallay Mine

The news release from November 26, 2025, titled "Excellon Defines Multi-Stage Gold-Silver System Linking Pierina, Shafra and Mallay Deeps at Mallay Mine," provides an update on the updated geological interpretations and exploration priorities at the Mallay Silver Mine in Peru.

Key highlights include: - Pierina Vein Extension: New interpretations suggest the Pierina vein extends below the current 4090 level. - Shafra Zone Gold Potential: Surface sampling at the Shafra Zone confirms a gold-silver-base metal footprint, indicating strong gold potential near the surface. - Mallay Deeps Target: A conceptual target for intrusive-related feeder zones at depth has been identified. - Integrated System: The company now recognizes a multi-phase mineralizing system linking Pierina, Shafra, and Mallay Deeps. - Planned Drilling: An exploration program of 3,500 metres of underground drilling from the 4090 level is planned.

CEO Shawn Howarth states that these integrated targets create an "exciting exploration pipeline" aligned with their broader restart and growth strategy. Disclaimers note that surface grab samples are not necessarily representative and the Mallay Deeps target is exploration-target in nature with insufficient work to define a resource.

This news is a positive update on Excellon's exploration efforts at the Mallay Silver Mine, but it is classified as "Routine - Positive" rather than "Material."

Positive aspects: - Enhanced Geological Understanding: The integration of Pierina, Shafra, and Mallay Deeps into a multi-stage mineralizing system provides a more comprehensive and potentially larger-scale understanding of Mallay's resource potential. This is crucial for future resource definition and mine planning. - Confirmation of Gold Potential: Highlighting "strong gold potential at Shafra, near surface" adds another valuable commodity to the mine's prospectivity, which could improve overall economics. - Exploration Pipeline: The identification of "plausible intrusive-related feeder zones at depth" and the planned underground drilling contribute to a robust exploration pipeline, aiming to extend the mine life beyond currently defined zones.

Routine aspects and comparison to previous news: - The planned 3,500 metres of underground drilling at Shafra was previously announced in the Q3 2025 financial results (November 20, 2025) as part of "Shafra drill programs planned with 6 holes (~3,500m)." This latest news provides more geological context and specifies that the drilling will be from underground (4090 level), but the scope of drilling remains consistent with prior announcements. - This news is an exploration update and does not provide new resource estimates, production figures, or financial results. It reinforces the ongoing exploration strategy rather than announcing a new, transformational development like the Mallay acquisition, the Glencore financing, or the completion of major mine rehabilitation phases (all previously announced as material positives). - While the geological interpretation is valuable, it is qualitative and conceptual ("plausible intrusive-related feeder zones") at this stage, requiring drilling to confirm. The disclaimers also highlight the early-stage nature of some targets.

In context, this news confirms and elaborates on existing exploration plans and geological understanding, which is a healthy sign for a mining company. However, it does not significantly alter the immediate financial outlook or operational timeline beyond what was previously communicated, particularly by the "Material - Positive" Q3 2025 financial results released just days prior.

Excellon Resources Inc. (EXN) is a Canadian-based mining company primarily focused on the acquisition, exploration, and development of silver, gold, and base metal projects.

Flagship Project: - Mallay Silver Mine, Peru: This is Excellon's primary focus. It is a fully permitted, past-producing underground silver-lead-zinc mine located in central Peru. The company acquired Minera CRC SAC, the holder of Mallay, in June 2025. Mallay was historically operated by Compania de Minas Buenaventura SAA from 2012-2018, producing over 18 million ounces of silver equivalent, with historical capital investment exceeding US$115 million. It possesses existing infrastructure including a flotation plant, underground development, tailings facilities, and grid power access. Excellon's strategy is to restart the mine, with rehabilitation efforts underway and a target to ramp up to its nameplate capacity of 600 tonnes per day by Q2 2026.

Other Key Projects: - Tres Cerros Gold-Silver Project, Peru: Located approximately six kilometers northwest of Mallay, this is a greenfield exploration property described as a large, high-sulphidation epithermal gold-silver target. Initial sampling has shown high-grade gold and silver, and geophysical anomalies suggest a significant bulk-tonnage potential. Exploration is ongoing, with plans for drilling contingent on permitting. - Kilgore Gold Project, Idaho, USA: A gold project with historical indicated resources of 825,000 ounces grading 0.58 g/t Au and inferred resources of 136,000 ounces grading 0.45 g/t Au. Excellon plans to update the Preliminary Economic Assessment (PEA) to reflect stronger gold prices and new drilling. The company is exploring options to advance this project through partnership or transaction. - Silver City Project, Germany: Described as a high-grade epithermal silver discovery in a historically prolific silver-producing region. Excellon is exploring a potential spin-out to unlock value from this project.