Excellon Resources Inc.

Excellon Resources Inc.

August 16, 2007 08:24 ET

Excellon Begins Drilling North of Guadalupe Manto

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) - Excellon Resources Inc. (TSX VENTURE:EXN) has begun an intensive drilling program to follow the Guadalupe Manto farther to the north and northwest at the Company's Platosa Property in Durango State, Mexico.

The two-pronged program will focus on immediate tracing of the progressive thickening trend of the Guadalupe Manto beyond the boundaries of the NI-43-101 Mineral Resource Estimate disclosed on August 17, 2006, and beyond the area of additional mineralization intersected in multiple drill holes reported on January 22, 2007. On a farther-reaching scale, the program will test the 1200-metre long continuation of the same closely parallel biogeochemical and ground geophysical anomalies that coincide with the Guadalupe Manto and led to its discovery in late 2005. These anomalies are reinforced further by nearby pronounced airborne electromagnetic (AEM) anomalies extending northwest from the northwest corner of the Guadalupe Manto. These anomalies are similar to ones associated with the Guadalupe Manto and were delineated by an AEM survey completed during the winter of 2007.

All targets are projected to lie within 200 metres of the surface and any mineralization encountered should be readily incorporated into the current mining plan. One drill will be initially dedicated to this program, with additional rigs being used subject to availability. Results will be released as analytical data are received, validated and compiled.

The Company also announces that, to facilitate this program, it has acquired significant surface rights in the area from a group of local land owners for approximately US $1 million, representing the land cost and applicable legal and transfer fees. This transaction will allow the Company to fully access and drill its mineral rights to the immediate north and northwest of its existing operations and beyond as target development and delineation in this highly-prospective area continue. This land has irrigation infrastructure and was part of a commercial farming operation integrated into a large dairy operation located in nearby Coahuila State. In a separate transaction, the Company has acquired surface rights, buildings, and farming infrastructure for a property located in that state for approximately US $7.4 million. Following a complete assessment of the future requirements of Excellon's operation and mill development, parts of the additional assets acquired may be divested or leased for ongoing agricultural purposes. The Company funded this transaction through internal cash reserves and a US $2.5 million bridge financing loan from Auramet Trading, LLC. The loan has an interest rate of 12% per annum, and is repayable in six equal monthly instalments starting September 2007.

"There is great potential to expand the Guadalupe Manto in this direction, and we're excited to continue exploring in this area," said Richard W. Brissenden, Excellon's president and chief executive officer. "This is part of our overall corporate objective of expanding our resource base as we test-mine and chase the world-class Carbonate Replacement Deposit we believe is at Platosa."

Qualified Persons

Dr. Peter Megaw, PhD, CPG, and Mr. John Sullivan, BSc., PGeo. have acted as the Qualified Persons, as defined in National Instrument 43-101, for this disclosure and supervised the preparation of the technical information on which this press release is based.

Dr. Megaw has a PhD in geology and more than 25 years of relevant experience focused on silver and gold mineralization, and exploration and drilling in Mexico. He is a Certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona Registered Geologist (ARG 21613). Dr. Megaw is not independent of Excellon as he is a shareholder.

Mr. Sullivan is an economic geologist with over 35 years of experience in the mineral industry. Most recently a senior geologist at a Toronto-based international geological and mining engineering consulting firm, he has evaluated properties and prepared National Instrument 43-101 reports on gold and base metal projects in Canada and internationally. Mr. Sullivan is not independent of Excellon as he is an officer and holds common share purchase options.

About Excellon

Excellon Resources Inc., an emerging silver producer, is test-mining and exploring its Platosa/Saltillera Properties in Durango State, Mexico. The Company will remain self-financed as it expands production and explores to extend the definition of Platosa's high-grade resources and to discover the potential large-tonnage source of the Platosa mineralization system. Excellon has 146,998,657 shares outstanding, and trades on the TSX Venture Exchange under the symbol EXN.

On behalf of


Richard W. Brissenden, President and 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 future anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, 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, the Company's ability 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.

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 TSX Venture 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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