Excellon Resources Inc.

Excellon Resources Inc.

April 30, 2008 17:02 ET

Excellon Resources Announces $10 Million Equity Financing

TORONTO, ONTARIO--(Marketwire - April 30, 2008) -


Excellon Resources Inc. (TSX:EXN) is pleased to announce that it has entered into an agreement with Maison Placements Canada Inc. (the "Agent") to offer for sale on a best efforts private placement basis, up to $10 million worth of common shares of Excellon at a price of $1.30 per share (the "Offering").

Excellon shall pay to the Agent a commission of 5.0% of the gross proceeds of the Offering. In addition, the Agent will be issued on the closing date Broker Warrants equal to 10.0% of the number of common shares sold under the Offering. Each Broker Warrant shall be exercisable at any time for one common share at $1.30 per share for a period of 24 months from the closing date. Closing may occur in one or more tranches with the first closing expected to occur on or about May 12, 2008. Closing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX. The proceeds of the Offering will be used to fund on-going exploration and development and for general working capital purposes.

"Although we are generating enough positive cash flow to build a mill and pay for an aggressive exploration program, it is prudent to build up our treasury. This financing accomplishes that," said Peter Crossgrove, Excellon's chairman. "Excellon now has the ability to weather any cash flow shortages during these uncertain markets, and can remain focused on getting the mill built and adding to the success of our exploration program."

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About Excellon

Excellon, a self-sustaining mineral resource company operating in Durango State, 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. In fiscal 2008, Excellon's focus is on increasing its Mineral Resources through an aggressive $11 million exploration program, and expanding its operating capacity with the building of a mill at site. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system, the tracking of which Excellon believes will lead to the discovery of a world class deposit.

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 September 29, 2006 and June 1, 2007 43-101 technical reports prepared by Scott Wilson Roscoe Postle & Associates 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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