Mr. Shawn Howarth reports

EXCELLON ANNOUNCES OFFTAKE AND FINANCING WITH GLENCORE TO RESTART MALLAY SILVER MINE

Excellon Resources Inc. has entered into a non-binding agreement dated on May 15, 2025, with subsidiaries of Glencore PLC to support the restart of the past-producing Mallay silver mine in Peru. The agreement comprises a concentrate offtake and a pre-export finance loan facility that, together, will provide the key financing required to recommence operations at Mallay and return Excellon to silver-producer status.

With today's announcement, and including the equity financing which closed on May 14, 2025, the company has arranged up to $18-million in available capital for the restart of the Mallay mine, working capital and general corporate purposes.

Facility highlights:

• Size -- up to $7.5-million (U.S.) in financing;
• Structure -- pre-export finance loan agreement secured by Mallay's concentrate production and other/various guarantees (advances to be repaid from concentrate sales over the offtake term);
• Offtake commitment -- Glencore to purchase 100 per cent of Mallay's zinc-lead concentrate until 2028/2029, depending on certain conditions;
• Grace period -- initial tranche includes a six-month grace period before initial amortization payment, providing additional flexibility during mine restart and ramp-up;
• Use of proceeds -- to fully finance the restart of the Mallay silver mine, covering mine rehabilitation, mill commissioning and working capital.

Shawn Howarth, president and chief executive officer commented: "Partnering with Glencore -- one of the world's foremost mining and commodity firms, with an extensive operational framework in Peru -- is a transformational step for Excellon. Glencore's commitment is a strong vote of confidence in the quality and potential of the Mallay mine, and in our team's plan to bring the operation back into production. This agreement provides a non-dilutive financing solution, while also guaranteeing a home for our concentrates via a stable and secure offtake agreement at the most attractive terms presented to Excellon in a broader market tender. We look forward to a long and productive relationship with Glencore as we unlock Mallay's value and continue to grow Excellon into a leading silver producer."

The associated concentrate offtake agreement grants Glencore the right to purchase 100 per cent of the Mallay mine's zinc and lead concentrates (containing silver byproduct). This long-term commitment provides a guaranteed purchaser for Mallay's output and provides Excellon with exposure to future upside on silver and other metal prices. Both parties are acting at arm's length. The company expects to close the offtake and financing agreement with Glencore by the end of June.

About Excellon Resources Inc.

Excellon's vision is to realize opportunities through the acquisition and advancement of quality precious metal and base metal assets, leveraging an experienced management team for the benefit of its employees, communities and shareholders. The company is focused on the near-term restart of the Mallay silver mine in Peru, which will position Excellon as an emerging silver producer. Excellon also holds a portfolio of exploration-stage projects, including Kilgore, an advanced gold project in Idaho, United States, and Silver City, a high-grade epithermal silver district in Saxony, Germany, providing additional growth upside.

We seek Safe Harbor.