Excellon Resources Inc.
TSX : EXN

Excellon Resources Inc.

August 23, 2010 09:09 ET

Excellon Temporarily Suspends Production at Platosa

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2010) - Excellon Resources Inc. (TSX:EXN) announces that it has temporarily suspended production at the Platosa Mine while it seals a large water-bearing fissure encountered during routine operations on August 18th. Immediately following the water inflow mining crews began construction of concrete walls to aid in water containment and on August 19th it was decided to allow the workings to fill with water in order to create a stable environment and allow grouting operations to commence. A grouting hole was completed by surface diamond drilling on August 21st and grouting began on Sunday August 22nd. No employees were injured during the inflow and all mobile and other valuable equipment was brought to surface in an orderly manner.

The Company has taken numerous steps to control water at the mine since the last such event in late 2008. We have been working with a Denver-based group of consulting hydrologists since that time, a series of piezometer-equipped monitoring wells has been installed, a test dewatering well is now ready for testing and work is ongoing to develop a hydrologic model for the mine and immediate surrounding area and a long-term water-control plan. Piezometers have also been installed underground. An emergency water door covering one portion of the mine has been in place since the spring of 2010, a second is nearing completion and two others are in the planning stage. Pumping capacity has been increased substantially in the past year and water control is a constant preoccupation at the operation.

All non-essential activities have been curtailed at both the Platosa and Miguel Auza sites until management has an estimate of the likely duration of the temporary suspension. The Company will provide updates as they become available.

"Although this unexpected event is frustrating given all the water-control efforts undertaken in the recent past, we are responding to the situation in a timely and appropriate manner," said Peter Crossgrove, Excellon's chairman. "Most importantly, no employees were hurt. We are focused on sealing off the inflow and resuming normal operations as quickly as possible."

About Excellon

Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, is committed to building value through production, expansion and discovery. Excellon is producing silver, lead and zinc from the high-grade manto Mineral Resource on its large Platosa Property, strategically located in the middle of the Mexican silver belt. In fiscal 2010, Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa through a CDN$12 million exploration program where five diamond drills have been in operation. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. The equally large Miguel Auza property hosts an Indicated and Inferred Mineral Resource and was the site of considerable historic mining for silver, (gold), lead and zinc. The exploration potential of Miguel Auza remains to be fully evaluated and is the object of an ongoing exploration program, which began in the fall of 2009. A one-drill initial target-testing program was completed in June.

On behalf of

EXCELLON RESOURCES INC.

Peter Crossgrove, Chairman & Chief Executive Officer

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, 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 January 15, 2010 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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