Excellon Resources Inc.

Excellon Resources Inc.

May 11, 2009 17:10 ET

Excellon Announces Rights Offering

TORONTO, ONTARIO--(Marketwire - May 11, 2009) - Excellon Resources Inc. (TSX:EXN) is pleased to announce that it intends to carry out a rights offering to holders of common shares of Excellon (the "Rights Offering).

On the terms set out in an offering circular dated May 8, 2009 (the "Rights Offering Circular"), shareholders of record at the close of business on May 22, 2009 will receive one right for each common share held (each a "Right"). Eight (8) Rights will permit the holder to subscribe for one common share of Excellon at a price of $0.23 per share. The Rights will expire at 5:00 p.m. (Toronto time) on June 18, 2009, after which time unexercised Rights will be void and without value. Rights will be evidenced by transferable rights certificates. The Rights Offering Circular will be mailed by Excellon to its registered shareholders and will be available on the SEDAR website at www.sedar.com.

Excellon is also granting an additional subscription privilege (the "Additional Subscription Privilege") to its shareholders, pursuant to which a shareholder may subscribe for more common shares than the number of Rights initially allotted to them would permit. Such additional subscriptions will be granted based on the number of common shares not otherwise subscribed for on the initial exercise of Rights under the Rights Offering. Common Shares subscribed for under the Additional Subscription Privilege will be allotted on a pro rata basis. The Right Offering is not subject to any minimum subscription level.

The Rights have been conditionally approved for listing on the Toronto Stock Exchange and will commence trading on May 20, 2008 on a when issued basis under the symbol EXN.RT. The common shares issuable on exercise of the Rights have also been conditionally approved for listing on the Toronto Stock Exchange. The Rights Offering is subject to the completion of all applicable regulatory approvals.

In the event that the Rights Offering is fully subscribed, Excellon will receive gross proceeds of approximately $5,694,065 and 24,756,804 common shares of Excellon will be issued. The net proceeds of the Rights Offering will be used for general working capital purposes, which could possibly include the recommencement of Excellon's exploration drilling program.

In connection with the Rights Offering, Excellon has engaged Maison Placements Canada Inc. as a managing dealer for the Rights Offering and entered into a dealer manager agreement dated May 8, 2009. In consideration for services rendered, Maison Placements will receive an upfront managing dealer fee of $75,000. In addition Excellon has agreed to pay to a soliciting dealer fee of 1.5% of the value of each subscription for common shares under the Rights Offering, other than subscriptions by the officers and directors of Excellon, with Maison being entitled to 0.5% and any other member or members of the soliciting dealer group being entitled to the remaining 1.0%, if applicable.

The Rights Offering is being made in all the provinces and territories of Canada, other than Quebec (the "Qualifying Jurisdictions), and is not, and under no circumstances is to be construed as, an offering of any securities for sale in or to a resident of any jurisdictions other than the Qualifying Jurisdictions or a solicitation therein of an offer to buy or sell securities. The Rights and the common shares issuable on exercise of the Rights will not be and have not been registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

About Excellon

Excellon, a mineral resource company operating in Durango State, Mexico, is committed to building value through production, expansion and discovery. Excellon 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 is currently shipping its ore to Silver Eagle Mines Inc.'s Miguel Auza mill. Excellon has agreed to acquire all of the outstanding shares of Silver Eagle. In calendar 2009, Excellon's focus is on expanding its operating capacity and 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


Peter A. 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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