Mr. Shawn Howarth reports

EXCELLON PROVIDES CORPORATE UPDATE

Excellon Resources Inc. has provided an update on continuing value-driving initiatives (1).

Continuing initiatives:

• Evaluating a spinout of Excellon's highly prospective Silver City project in Saxony, Germany, to Excellon shareholders as a new growth-focused greenfield exploration company (SpinCo);
• Pursuing acquisition opportunities with potential to further enhance value through Excellon's operating experience, particularly in Mexico;
• Advancing planned drilling at Kilgore aimed at further defining areas of high-grade mineralization, while also testing mineralized potential at depth and on strike;
• Exploring partnership opportunities to pivot Platosa from production to a potentially exciting exploration prospect.

Shawn Howarth, president and chief executive officer, commented: "The company is at an inflection point, where to continue growing, we need to capitalize on opportunities that drive additional value. A spinout of Silver City would fit that strategy and provide Excellon shareholders with direct exposure to district-scale exploration focused in a historically prolific mining region."

Mr. Howarth added: "Kilgore is a cornerstone exploration project in our portfolio that will benefit from continued advancement, including the ongoing drill program. Acquiring advanced development or producing assets with further potential to benefit from an experienced operational management team would be another way to grow value and attract liquidity to the company, and will be rigorously pursued."

Spinout of the Silver City project

Excellon is considering the structure and timing of a spinout of its Silver City project in Saxony, Germany, as a European-focused exploration company. In connection with the prospective spinout, the company expects that SpinCo would conduct a financing to finance working capital and continuing exploration activities. Additionally, the company's intention would be to seek a listing for SpinCo shares on a recognized Canadian stock exchange, subject to fulfilling all of the applicable regulatory and listing requirements.

Further details will be provided in due course.

Expected benefits of SpinCo for Excellon shareholders include:

• Valuation reset expected for Silver City as a publicly traded European-focused exploration company;
• New market opportunity for investors seeking direct exposure to a pure play, high-grade, district-scale, silver exploration project in a favourable jurisdiction;
• Potential for improved trading liquidity for SpinCo as a separate public company.

(1) This press release contains forward-looking statements about expected future actions, events and performance.

Silver City was mined for high-grade silver for over 800 years until the late 19th century. Excellon holds exploration licences totalling 340 square kilometres over a major epithermal silver system that has been encountered on almost every drill hole, with high-grade intersections including 1,043 grams per tonne silver equivalent over 1.3 metres, 1,042 g/t AgEq over 0.45 metre and 1,633 g/t AgEq over 0.35 metre. The exploration team and institutional support for Silver City in Saxony, Germany, are exceptional (2).

Drilling update at the Kilgore project

Excellon is drilling the fifth hole at Kilgore for a total of approximately 1,500 metres drilled since the start of its 2022 exploration program. While assays are pending, the company has been encouraged by the drilling to date. Drill core has generally aligned with expected lithology per the company's geological models, and visible gold was observed in the first hole of drilling.

Goals for exploration in 2022 include:

1. Oriented drilling to better understand the geometry and resolution of mineralization within existing high-grade mineralized structures;
2. Stepout drilling to better understand potential mineralized extensions of the currently defined grade shell, particularly in areas at depth where the company believes disseminated mineralization may continue into the sedimentary package;
3. A re-evaluation of existing core combined with a rigorous property-wide geophysical and soil sampling program aimed at generating new drill targets to add to prior exploration successes to date at the project.

Assays for drilling to date have been sent to ALS in Nevada and Vancouver for processing, with results expected in due course.

Mexican operations

Operations in Mexico are planned to be wound down responsibly, with the co-operation of the employees and local community. Production at Platosa will continue to the end of September, with remaining ore processed and care and maintenance preparations to be completed through the month of October. The company remains committed to Mexico, supported by a strong operating team that was forged by addressing Platosa's unique and complex set of operating challenges from mining and dewatering to geology and ground control over the 17-year life of the Platosa mine. Excellon's team has proved resilient at managing challenging mining operations and improving working conditions and productivity. The company is actively reviewing acquisition and partnership opportunities to generate new value for Excellon shareholders and continue its business in Mexico on a new asset base, with untapped potential, that could benefit from an improved and effective management philosophy. The company is also reviewing partnership opportunities to advance exploration at Platosa, where Jaboncillo (manto) and PDN (skarn) remain compelling, drill-ready targets.

(2) For further details, please refer to the Silver City project page on the company's website (including the current technical report for the Saxony silver project, effective March 31, 2022, and Excellon's press releases dated Feb. 18, 2021, June 8, 2021, and Feb. 9, 2022, each of which is also available under the company's profile at SEDAR).

About Excellon Resources Inc.

Excellon's vision is to create wealth by realizing strategic opportunities through discipline and innovation for the benefit of its employees, communities and shareholders. The company is advancing a precious metal growth pipeline that includes: Kilgore, an advanced gold exploration project in Idaho with strong economics and significant growth and discovery potential; an option on Silver City, a high-grade epithermal silver district in Saxony, Germany, with 750 years of mining history and no modern exploration; and Platosa, a high-grade silver mine producing in Mexico since 2005, scheduled to wind down in third quarter 2022, with an 11,000-hectare exploration package on Mexico's carbonate replacement deposit (CRD) trend. The company is also actively seeking to capitalize on current market conditions by acquiring undervalued projects in the Americas. Additional details on Excellon's properties are available on the company's website.

Qualified persons

Paul Keller, PEng, chief operating officer of the company and a qualified person as defined in National Instrument 43-101, reviewed, verified and approved the scientific and technical information relating to operations contained in this press release. Jorge Ortega, MSc, PGeo, vice-president, exploration, and a QP, reviewed, verified and approved the scientific and technical information relating to geological interpretation and results contained in this press release.

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