Excellon Resources Inc.

Excellon Resources Inc.

June 16, 2009 14:34 ET

Excellon Announces Long-Term Concentrate Deal and Resumption of Exploration Drilling

TORONTO, ONTARIO--(Marketwire - June 16, 2009) - Excellon Resources Inc. (TSX:EXN) is pleased to announce that it has 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. Cormin Mexico is based in Mexico City, is a trader of base metal concentrates and provides financial services to the mining industry. The agreement is for two years. Excellon will commence concentrate shipments this week from its recently acquired Miguel Auza mill to Cormin Mexico's Port of Manzanillo facility. The Miguel Auza mill continues to operate well and is producing concentrate from all of the high-grade ore that has been delivered from Platosa since March 2009.

The Company is also pleased to announce that exploration diamond drilling will resume at the Platosa Property with two rigs in early July. One rig will continue exploration of the NE-1 Manto where hole EX08LP-614, one of the last drilled before the suspension of drilling in late October intersected 1,064 g/t silver, 14.6% lead and 6.2% zinc over an estimated true thickness of 7.6 metres. The second drill will test geological and geophysical targets in the general vicinity of the Platosa Mine. The Company's geologists believe these targets may represent sulphides in underexplored portions of the favourable fragmental limestone unit, which hosts the high-grade mantos now being exploited.

"We are very pleased to have reached this new long-term agreement after a lengthy formal bid process. In addition, the resumption of diamond drilling is another important step in continuing to realise the full economic potential of the Platosa property." says Peter Crossgrove, Excellon's Chairman and Interim CEO.

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 Indicated Mineral Resource on its large Platosa Property, strategically located in the middle of the Mexican silver belt. In calendar 2009, Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa through an aggressive exploration program. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. The equally large Miguel Auza property hosts a Probable Mineral Reserve, was the site of considerable historic mining for silver, (gold), lead and zinc and more recently was exploited by Silver Eagle during 2008. The exploration potential of Miguel Auza remains to be fully evaluated.

On behalf of


Peter Crossgrove, Chairman

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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