Mr. Shawn Howarth reports

EXCELLON ADVANCES OFFTAKE FINANCING FOR MALLAY MINE RESTART

Excellon Resources Inc. has made good progress toward securing offtake-linked financing for the restart of operations at the past-producing Mallay silver mine in Peru.

Excellon has received several non-binding proposals from leading trading houses for zinc and lead concentrate offtake agreements. Each proposal includes an associated prepayment or structured finance facility to provide near-term financing for restart activities at Mallay.

The proposals received contemplate:

• Financing facilities ranging from $4-million (U.S.) to $6-million (U.S.);
• Tenors of up to 30 months, including grace periods during ramp-up;
• Annual interest rates range from SOFR (secured overnight financing rate) plus 5 per cent to 7 per cent.

All proposals are subject to customary conditions precedent, including satisfactory due diligence and completion of the company's previously announced acquisition of Minera CRC S.A.C., the owner of Mallay. Offtake terms include multiyear commitments for 100 per cent of production.

Shawn Howarth, president and chief executive officer, commented: "The interest we've received from globally recognized trading partners for Mallay concentrate validates our strategy to restart Mallay and reinforces our confidence in the project's potential. These proposals provide competitive terms and flexible structures to meet our capital requirements while forming long-term commercial partnerships. We're highly encouraged by the momentum and expect to finalize a preferred financing solution in the near term."

Excellon aims to close the acquisition of Minera CRC in April. The company expects to conclude offtake discussions coincident with closing of the acquisition.

We seek Safe Harbor.