Mr. Shawn Howarth reports

EXCELLON SUBSIDIARY SAXONY SILVER ANNOUNCES $2.125 MILLION PRIVATE PLACEMENT

Excellon Resources Inc.'s 75-per-cent-owned subsidiary, Saxony Silver Corp., has entered into binding subscription agreements in respect of a non-brokered private placement of units for aggregate gross proceeds of $2,125,000 at a premoney valuation of $20.8-million. The offering supports Excellon's strategy to unlock and crystallize the full value of the Silver City project.

Transaction highlights:

• Offering: non-brokered private placement of 4,250 units at $500.00 per offered unit, for aggregate gross proceeds of $2,125,000;
• Non-dilutive and net accretive to Excellon shareholders: The offering is being undertaken at the Saxony Silver level, with no Excellon securities issued. The offering establishes a third party validated baseline value for Excellon's majority interest in the Silver City project without any dilution to Excellon shareholders;
• Premoney valuation of $20.8-million: sets baseline valuation for the Silver City project;
• Value creation: Excellon to hold a pro forma 68-per-cent interest on an undiluted basis, implying a pro forma valuation of $15.6-million for its interest;
• Creating Europe's next emerging silver explorer: Saxony Silver is a European-focused silver exploration company -- underpinned by a district-scale land package in one of the world's historically prolific silver-producing regions.

Shawn Howarth, president and chief executive officer of Excellon, commented: "Excellon holds a controlling interest in a significant and underexplored high-grade silver district in Europe, with 34,000 hectares in the heart of Saxony's Freiberg silver belt, a camp with over 750 years of mining history and approximately 183 million ounces of historical silver production. The proceeds raised will fund a structured target regeneration program that leverages extensive historical drill and geophysical data across this highly prospective district -- which will be followed by initial drilling of priority targets. Today's announcement establishes a credible entry point and positions Saxony Silver for a potentially substantial rerating."

Details of the offering

Saxony Silver has entered into binding subscription agreements in respect of a non-brokered private placement consisting of 4,250 offered units at a price of $500.00 per offered unit, for aggregate gross proceeds of $2,125,000. Closing of the offering is expected to be completed on or about May 15, 2026. The company may issue a further news release upon closing of the offering.

Each offered unit comprises one common share of Saxony Silver and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share of Saxony Silver at an exercise price of $750.00 per warrant share for a period of 36 months following the closing date of the offering. The 50-per-cent warrant premium to the unit subscription price reflects the confidence in the value creation path ahead and provides investors with meaningful leverage on an anticipated rerating.

Saxony Silver intends to use the net proceeds of the offering for advancement of exploration activities at Saxony Silver's Silver City project and for general working capital and corporate purposes.

The offered units are being offered: (a) by way of private placement in each of the provinces of Canada pursuant to applicable exemptions from the prospectus requirements under applicable Canadian securities laws, including the private issuer exemption under Section 2.4 of National Instrument 45-106 -- Prospectus Exemptions and Section 73.4(2) of the Securities Act (Ontario); (b) in the United States or to, or for the account or benefit of, U.S. persons, by way of private placement pursuant to available exemptions from the registration requirements of the united States Securities Act of 1933, as amended; and (c) in jurisdictions outside of Canada and the United States on a private placement or equivalent basis.

Since Saxony Silver is not a reporting issuer in any jurisdiction of Canada, the securities issued pursuant to the offering may be subject to an indefinite hold period under applicable Canadian securities laws. The unit shares, the warrants and the warrant shares are restricted securities as that term is defined in Rule 144 of the U.S. Securities Act and will be subject to applicable hold periods or resale restrictions imposed under applicable securities legislation. The unit shares and the warrant shares will also be subject to restrictions on transfer contained in the articles of Saxony Silver.

Excellon holds 31,230 common shares of Saxony Silver, representing 75 per cent of the issued and outstanding common shares of Saxony Silver prior to completion of the offering, and following completion of the offering will continue to hold those 31,230 common shares, representing approximately 68.1 per cent of the issued and outstanding common shares of Saxony Silver on an undiluted basis. Accordingly, Excellon controls and will continue to control Saxony Silver. Following the completion of the offering, the capitalization of Saxony Silver will be as shown in the attached table.

About the Silver City project

The Silver City project is a high-grade epithermal silver-zinc-lead exploration project located in the Freiberg mining district of Saxony, Germany -- one of the oldest and most prolific silver-producing regions in European history, with over 750 years of continuous mining and an estimated 183 million ounces of historical production. The Silver City project covers four contiguous exploration licences totalling approximately 340 square kilometres (34,000 hectares), held 100 per cent by Saxony Silver.

From 2019 to 2022, Excellon completed 40 diamond drill holes totalling over 12,050 metres across the Braunsdorf, Grauer Wolf and Grossvoigtsberg target areas. Drill assays intersected mineralized vein structures in 37 of those 40 holes, including bonanza-grade intercepts such as 1.30 metres at 954 grams per tonne Ag, 8.1 m at 194 g/t AgEq (silver equivalent) including 1.3 m at 1,043 g/t AgEq, and 2.9 m at 257 g/t AgEq including 0.4 m at 1,633 g/t AgEq. The exploration program confirmed continuity of the high-grade epithermal vein system over a 13 km strike length and identified a new geological setting at the mafic volcanic-schist contact at Grauer Wolf and Reichenbach.

Drill results disclosed herein are sourced from the technical report entitled "Excellon Resources Inc. and Saxony Silver Corp., Silver City Project, Saxony, Germany, NI 43-101 Technical Report" dated June 28, 2022, with an effective date of March 31, 2022, available on the company's website and under the company's profile on SEDAR+. All intercepts are reported as drill core length; true widths have not been determined. Silver equivalent (AgEq) grades were calculated using metal prices of $1,800 (U.S.)/ounce Au (gold), $24.00 (U.S.)/oz Ag, 90 U.S. cents/pound Pb (lead) and $1.20 (U.S.)/lb Zn (zinc), assuming 100-per-cent metallurgical recovery. Readers are referred to the Silver City technical report for further detail on the drilling program, sampling and analytical procedures, quality assurance and quality control protocols, and the underlying assumptions.

About Excellon Resources Inc.

Excellon Resources is focused on advancing the restart of its fully permitted, past-producing Mallay mine in Peru, positioning the company as a near-term silver producer. Following its February, 2026, independent mineral resource estimate at Mallay, Excellon is advancing restart planning and near-mine growth, while also advancing the adjacent Tres Cerros gold-silver exploration property in Peru. The company also holds the Kilgore project, an advanced gold exploration project in Idaho, and the Silver City project, a high-grade epithermal silver district in Saxony, Germany.

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