Excellon Resources Inc.
TSX : EXN

Excellon Resources Inc.

October 29, 2009 16:51 ET

Excellon Reports Quarterly Profit of $1,268,957 and Annual Loss of $4,900,830

TORONTO, ONTARIO--(Marketwire - Oct. 29, 2009) - Excellon Resources Inc. (TSX:EXN) (the "Company" or "Excellon") reports fourth quarter earnings of $1,268,957 and a net loss of $4,900,830 for the year ended July 31, 2009. (For full details, please see the Company's Management Discussion & Analysis and Audited Financial Statements, which were filed on SEDAR, www.sedar.com, on October 29, 2009.)

2009 Highlights:

- The Company returned to profitability in the second half of the year after successfully reorganizing its operations including its acquisition of Silver Eagle Mines Inc. (concluded on June 2)

- In Q4 shipped 2,993 dry metric tons ("DMT") of lead-silver concentrate with payable metal of 461,126 ounces silver and 2,575,693 pounds lead; shipped 3,386 DMT of zinc-silver concentrate with payable metal of 32,297 ounces silver and 2,041,744 pounds zinc (on a provisional basis)

- Resumed drilling exploration program at the Platosa property

- Completed a private placement financing for gross proceeds of $7,374,048

- Completed a fully subscribed rights offering for gross proceeds of $5,694,065

- Commenced shipments of concentrates in April and entered into a long-term off-take agreement to sell its lead-silver and zinc-silver concentrates to Consorcio Minero de Mexico Cormin Mex, S.A. de C.V. ("Cormin Mexico"), a Trafigura Group Company.

"Strong operational and financial performance continued in the 4th quarter ending July 31, 2009." commented Chris Hopkins, Excellon's Chief Financial Officer. "We are very pleased to have rebounded in the second half of the year after a challenging first half. With a profitable 4th quarter and good cash flow we end the year with $7.2 million in cash and are well positioned to continue to execute on our growth and exploration plan in the coming months."



Financial Highlights
Three months ended Twelve months ended
31-Jul-09 31-Jul-08 31-Jul-09 31-Jul-08
---------------------------------------------------------
Sales $ 10,151,661 $ 3,922,647 $ 20,056,321 $ 27,790,375
Cost of production
(including
amortization) 4,107,547 2,186,040 8,819,711 7,802,958
---------------------------------------------------------
6,044,114 1,736,607 11,236,610 19,987,417
---------------------------------------------------------
Expenses:
Non-cash items (146,201) 1,255,902 3,956,525 3,774,191
Exploration
expenditures 536,068 3,238,038 3,280,296 9,410,067
Other 3,152,247 2,972,245 8,030,187 10,365,330
Provision for
(recovery of)
income taxes
- current 1,421,008 (1,410,810) 1,588,963 2,086,293
Provision for
(recovery of)
income taxes
- future (187,965) 510,626 (718,531) 1,396,202
---------------------------------------------------------
4,775,157 6,566,001 16,137,440 27,032,083
---------------------------------------------------------
Net income (loss)
for the period $ 1,268,957 $ (4,829,394) $ (4,900,830) $(7,044,666)
---------------------------------------------------------
---------------------------------------------------------
Earnings (loss)
per share - basic $ 0.006 $ (0.031) $ (0.026) $ (0.047)
---------------------------------------------------------
---------------------------------------------------------
- diluted$ 0.006 $ (0.031) $ (0.026) $ (0.047)
---------------------------------------------------------
---------------------------------------------------------

Cash provided by
(used in)
operating
activities $ 4,700,109 $ (6,719,524) $ (3,096,117) $(4,623,233)
---------------------------------------------------------
---------------------------------------------------------
Cash, short-term
investments and
silver bullion $ 7,214,051 $ 4,392,878 $ 7,214,051 $ 4,392,878
---------------------------------------------------------
---------------------------------------------------------

Working capital
surplus
(deficiency) $ 7,019,385 $ 5,366,841 $ 7,019,385 $ 5,366,841
---------------------------------------------------------
---------------------------------------------------------

Mining Operations

The following are the shipping statistics for the years ended July 31, 2009
and 2008:

3 months ended
31-Oct-08 31-Jan-09 30-Apr-09 31-Jul-09
--------------------------------------------
Tonnes of ore shipped 7,803 6,250 11,376 18,493
--------------------------------------------
--------------------------------------------
Contained metal
Silver (ozs.) 269,012 273,646 356,076 672,934
Lead (lbs.) 1,276,733 1,476,337 2,110,464 3,791,618
Zinc (lbs.) 847,726 1,269,544 2,660,965 3,220,837

Average grade:
Silver (oz/t) (1) 34.5 43.8 34.5 40.1
Silver (g/t) 1,072.9 1,362.6 1,073.5 1,248.0
Silver (oz/T) 31.3 39.7 31.3 36.4
Lead (%) 7.4 10.7 8.4 9.3
Zinc (%) 4.9 9.2 10.6 7.9

Payable metal:
Silver - (ozs.) 207,677 211,255 244,958 493,424
Lead - (lbs.) 970,317 1,122,017 1,192,823 2,575,693
Zinc - (lbs.) 571,800 857,367 1,244,589 2,041,744

Year Ended Year Ended
31-Jul-09 31-Jul-08
-------------------------------------------
Tonnes of ore shipped 43,922 44,946
-------------------------------------------
-------------------------------------------
Contained metal
Silver (ozs.) 1,571,668 1,476,676
Lead (lbs.) 8,655,152 9,790,717
Zinc (lbs.) 7,999,072 10,861,297

Average grade:
Silver (oz/t) (1) 35.8 32.9
Silver (g/t) 1,113.6 1,022.5
Silver (oz/T) 32.5 29.8
Lead (%) 8.9 9.9
Zinc (%) 8.3 11.0

Payable metal:
Silver - (ozs.) 1,157,314 1,139,994
Lead - (lbs.) 5,860,850 7,440,945
Zinc - (lbs.) 4,715,501 7,232,364


Summary Financial Information
31-Jul-09 31-Jul-08
Year ended (12 months) (12 months)

Sales $ 20,056,321 $ 27,790,375
Operating loss $ (4,058,030) $ (3,591,425)
Net loss and comprehensive loss $ (4,900,830) $ (7,044,666)
Loss per share - basic $ (0.03) $ (0.05)
- diluted $ (0.03) $ (0.05)

As at
Cash $ 7,204,051 $ 2,947,703
Working capital $ 7,019,385 $ 5,366,841
Total Assets $ 39,890,718 $ 25,266,359
Shareholders equity $ 32,587,076 $ 20,233,553


About Excellon

Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, is committed to building value through production, expansion and discovery. The Company is producing silver, lead and zinc from high grade manto deposits on its Platosa Property, strategically located in the middle of the Mexican silver belt. Excellon's focus is on increasing its mineral resources through an aggressive exploration program. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system.

On behalf of

EXCELLON RESOURCES INC.

Peter Crossgrove, Chairman and CEO

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, the proposed construction of a mill, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced (particularly silver), the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties, and particularly the April 14, 2008 NI 43-101-compliant technical report prepared by Scott Wilson Roscoe Postle Associates Inc. with respect to the Platosa property. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release, which has been prepared by management.

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