Excellon Resources Inc.

Excellon Resources Inc.

September 05, 2007 16:49 ET

Excellon Enters Into Silver Purchase Agreement

TORONTO, ONTARIO--(Marketwire - Sept. 5, 2007) - Excellon Resources Inc. (TSX VENTURE:EXN) (the "Company"), Minera Excellon de Mexico, S.A. de C.V. ("Minera Excellon") and Auramet Trading, LLC ("Auramet") have entered into a Silver Purchase Agreement (the "Agreement") as of September 4, 2007. Pursuant to the agreement, the Company will pre-sell to Auramet, 50% of the silver refined from ore mined at Minera Excellon's Platosa test-mine (up to a maximum of USD $4,000,000) for the next two years. This Agreement provides for an operating line of credit for the Company, whereby Auramet will pay for silver produced by Mineral Excellon prior to the same being refined into deliverable form. The silver will be priced at market prices, as agreed between Auramet and Excellon at the time of pricing, and will be subject to deduction for financing charges based upon LIBOR for the applicable financing period.

In connection with the Agreement, the Company has issued 1,350,000 non-transferable share purchase warrants to Auramet. Each warrant is exercisable at a price of $1.38 per share until September 4, 2009. The warrants, and any shares issued upon the exercise of the warrants, are subject to a hold period until January 5, 2008. In addition, the Company has paid Auramet USD $484,000 for an arrangement fee and will pay for other applicable fees. Minera Excellon has guaranteed the Company's obligation under the Silver Purchase Agreement.

The Company also announces that further to its press release dated August 31, 2007, Minera Excellon has completed its assumption of the Company's obligations under the silver-backed debenture indenture (the "Indenture") in accordance with the terms and conditions of the Indenture. The Company had intended that its obligations would be assumed by Minera Excellon when the silver-backed debentures were created.

About Excellon

Excellon Resources Inc. (TSX VENTURE:EXN), 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, expanding its operation, and studying the feasibility of building 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.

On behalf of


Richard W. Brissenden, President and Chief Executive Officer

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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