Mr. Jack Stoch reports of Globex reports

EXCELLON PROVIDES UPDATE ON GLOBEX ROYALTY PROPERTY AREA (SILVER CITY)

Globex Mining Enterprises Inc. has provided an update from Excellon Resources Inc. that states, despite the current difficult markets, "With Silver City, we (Excellon) see optionality in a district-scale exploration growth story, or the ability to capitalize on expected market trends as new Europe-focused exploration opportunities begin to emerge." Excellon holds four licences totalling 340 square kilometres, 164 square kilometres of which are an exploration block optioned from Globex. Excellon has met all the option conditions and the property is now in the list of Globex royalty properties. Globex retains a 3-per-cent gross metal royalty for precious metals and 2.5-per-cent GMR for all other metals of which 1-per-cent royalty may be purchased for $1.5-million.

To date, Excellon has undertaken approximately 13,300 metres of drilling on the Globex royalty claims, 16 holes totalling approximately 3,700 metres in 2020 and 27 holes totalling approximately 9,600 metres in 2021/2022.

The following is an excerpt from Excellon's management discussion and analysis outlining work undertaken on the Globex royalty licence, including key highlighted holes:

In Q2 2021, the 2021 drilling operation plan (DOP) was approved, and the company was permitted to drill up to 22,000 metres on the Braunsdorf licence up to March 31, 2022. Drilling commenced in late Q2 2021 with two drill rigs. During 2021 the company drilled 24 holes totalling 8,360 metres. An additional three holes totalling 1,223 metres were completed in Q1 2022.

The 2021 DOP contemplated drilling on four priority follow-up targets identified in the 2020 program including:

• Peter vein: A historically significant mine where initial drilling encountered 1,042 grams per tonne silver equivalent over 0.45 metre (911 g/t silver, 0.4 g/t gold, 2.8 per cent lead and 0.9 per cent zinc) within 231 g/t AgEq over 2.30 metres (183 g/t Ag, 0.4 g/t Au, 0.5 per cent Pb and 0.2 per cent Zn).
• Reichenbach (Grosvoigtsberg): A new near-surface discovery in an area with minimal historic mining where initial drilling encountered 505 g/t AgEq over 0.71 metre (356 g/t Ag, two g/t Au) within 191 g/t AgEq over 1.90 metres (134 g/t Ag and 0.8 g/t Au).
• Braunsdorf: A historically significant mine where initial drilling encountered 319 g/t AgEq over 0.35 metre (300 g/t Ag, 0.2 g/t Au and 0.2 per cent Zn) within 101 g/t AgEq over 2.05 metres (87 g/t Ag, 0.2 g/t Au).
• Grauer Wolf: A new high-grade discovery in an area with no historic drilling where initial drilling encountered 1,043 g/t AgEq over 1.3 metres (954 g/t Ag, 0.1 g/t Au, 0.7 per cent Pb and 2 per cent Zn) less than 100 metres from surface within 194 g/t AgEq over 8.1 metres (173 g/t Ag, 0.1 g/t Au, 0.4 per cent Pb and 0.3 per cent Zn), and 331 g/t AgEq over 1.2 metres (325 g/t Ag, 0.1 g/t Au, 0.03 per cent Pb and 0.03 per cent Zn) in the hangingwall.

The results of the 2021 drill program at Silver City include:

• 1,633 g/t AgEq over 0.35 metre (1,470 g/t Ag, 0.2 g/t Au, 2.9 per cent Pb and 2.1 per cent Zn) within 257 g/t AgEq over 2.90 metres (232 g/t Ag, 0.4 per cent Pb and 0.3 per cent Zn) in SC21GVB020 at Peter vein;
• 1,296 g/t AgEq over 0.35 metre (1,260 g/t Ag, 0.2 g/t Au, 0.6 per cent Pb and 0.3 per cent Zn) within 592 g/t AgEq over 1.05 metres (508 g/t Ag, 0.1 g/t Au, 1.4 per cent Pb and 1.2 per cent Zn) in SC21GWO033 at Grauer Wolf;
• 266 g/t AgEq over 0.65 metre (228 g/t Ag, 0.1 g/t Au, 0.7 per cent Pb and 0.5 per cent Zn) within 169 g/t AgEq over 1.93 metres (137 g/t AgEq, 0.3 per cent Pb and 0.6 per cent Zn) in SC21GWO030 at Grauer Wolf;
• 383 g/t AgEq over 0.38 metre (seven g/t Ag and five g/t Au) in SC21REI027 at Reichenbach.

The assay results for the Q1 2022 drilling program extended the footprint of the Grauer Wolf mineralization trend 300 metres along strike and confirmed mineralization down to 300 metres vertical depth. Results from Q1 2022 drilling included 768 g/t AgEq over 0.4 metre (482 g/t Ag, 4.5 per cent Pb and 4.8 per cent Zn) in hole SC21GWO040.

A total of 12 soil sampling profiles were completed over the Peter vein, Grauer Wolf and Hartha targets in Q1 2022, with an additional 265 samples collected over Frauenstein in Q2 2022 for a total of 740 samples. The goal of the program was to test the geochemical response along the strike of known mineralization and to identify new drill targets. Induced polarization surveys were completed in Q4 2022. The surveys extend over 11 line-kilometres covering the following six targets: Fortuna A and C, Erzengel Mohorn, Bergmannische Hoffnung, and Reichenbach. The surveys aim was to improve the understanding of the geometry of the mineralization-bearing faults and veins, and identify potential sulphide mineralization, its shape and extent. Final results are received, and interpretations are contiuing.

Excellon, in a recent press release, outlined its approach going forward (comments added by Globex). Silver City, in the heart of the ore mountains of Germany, comprises four mineral licences totalling 340 square km (note the Globex royalty licence is 164 square km, approximately 50 per cent of Excellon's landholdings). Excellon's focused drill program in 2021 and 2022 invested approximately $8-million in exploration expenditures, including over 22,000 metres (13,300 metres of which were on the Globex royalty licence).

Saxony, Germany, is an area incredibly rich in a wide range of mineralization, including both precious and critical minerals such as lithium, graphite, cobalt and other electric vehicle minerals previously considered uneconomic. As modern mining and processing techniques are applied to these critical mineral veins, the exploration potential in Saxony, Germany, is shifting. The Silver City project is located at the heart of this activity.

Excellon was successful intersecting high-grade silver, lead and zinc epithermal vein mineralization. The potential exists, however, that additional mineralization could be discovered, and modern exploration techniques allow the company to efficiently explore beyond where historic regional mining took place.

Excellon believes this is an opportune time to be exploring for minerals in Europe. The European framework for minerals investment is rapidly changing to support domestic supply security and the new Saxon raw materials strategy was recently published supporting the importance of promoting a local mining industry.

Excellon will continue to assess the market for a spinout of the project. Priorities with a spinout are to raise sufficient capital to adequately finance the next exploration campaign and a valuation that justifies return on historical exploration capital. Excellon maintains excellent relationships with the local government and as the holding costs for Silver City are exceptionally low relative to other exploration jurisdictions globally, Excellon has the benefit of optionality and timing to successfully deliver the project into the capital markets.

This press release was written by Jack Stoch, Geo, president and chief executive officer of Globex, in his capacity as a qualified person under National Instrument 43-101.

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