Excellon Resources Inc.
TSX : EXN

Excellon Resources Inc.

March 31, 2010 16:41 ET

Excellon Reports Profit of $737K for the Five Months Ended December 31, 2009

TORONTO, ONTARIO--(Marketwire - March 31, 2010) - Excellon Resources Inc. (TSX:EXN) (the "Company" or "Excellon") reports earnings after tax of $737,038 for the five months ended December 31, 2009. In December 2009 the Company changed its year end to December 31 from July 31. The year end change was necessary to the make the Company's financial statements directly comparable to other mining companies on a quarterly basis and to have a consistent year end with its subsidiaries. This change in year end requires the Company to have a transition year with a five month year ending December 31, 2009 with comparatives for the twelve month year ending July 31, 2009. [For full details, please see the Company's Management Discussion & Analysis and Audited Financial Statements, which were filed on SEDAR, www.sedar.com, on March 31, 2010.]

Period End Highlights:

  • The Company again reports profits with continued strong operating performance at Platosa.
  • In the five month period shipped 637,071 oz. of payable silver, 3,297,627 lbs of payable lead and 3,107,106 lbs of payable zinc (on a provisional basis)
  • Cash costs for the five months ended December 31, 2009 were US$4.92
  • Acquired 100% of additional Platosa land from joint venture partner for US$2,000,000
  • Platosa exploration continued with four drills active and program funded entirely out of internal cash resources

"Strong operational and financial performance continued for the five months ended December 31, 2009." commented Chris Hopkins, Excellon's Chief Financial Officer. "We are again pleased to report another strong period of operational and financial performance for Excellon. With good operating cash flow offset by the purchase of an increased interest in exploration lands at Platosa and working capital changes we ended December 2009 with $4.7 million in cash which has since increased to $8.5million as of mid March 2010. Given these ongoing strong and consistent results we remain confident that 2010 will produce record volumes in line with previous guidance"

Financial Highlights              
    Five months ended       Twelve months ended  
    31-Dec-09       31-Jul-09  
               
Sales $ 16,031,660     $ 20,056,321  
Cost of production [including amortization]   6,761,477       8,819,711  
    9,270,183       11,236,610  
               
Expenses:              
 Non-cash items   1,647,603       3,956,525  
 Exploration expenditures   2,672,450       3,280,296  
 Other   3,284,535       8,030,187  
 Provision for (recovery of) income taxes - current   (23,039 )     1,588,963  
 Provision for (recovery of) income taxes - future   951,596       (718,531 )
    8,533,145       16,137,440  
Net income (loss) for the period $ 737,038     $ (4,900,830 )
Earnings (loss) per share - basic $ 0.00     $ (0.03 )
               
Cash provided by (used in) operating activities $ 94,216     $ (3,096,117 )
               
Cash, short-term investments and silver bullion $ 4,703,596     $ 7,214,051  
               
Working capital surplus (deficiency) $ 7,736,614     $ 7,019,385  
 
 
Mining Operations
 
  2 months ended     3 months ended    
  31-Dec-09 31-Oct-09 31-Jul-09 30-Apr-09 31-Jan-09 31-Oct-08
  Concentrate Sales Ore Sales
Tonnes of ore shipped 11,513 16,521 18,493 11,376 6,250 7,803
 
Contained metal            
  Silver [ozs.] 304,816 421,942 672,934 356,076 273,646 269,012
  Lead [lbs.] 1,859,516 2,599,211 3,791,618 2,110,464 1,476,337 1,276,733
  Zinc [lbs.] 2,026,556 2,600,238 3,220,837 2,660,965 1,269,544 847,726
 
Average grade:            
  Silver [oz/t] [1] 29.2 28.1 40.1 34.5 43.8 34.5
  Silver [g/t] 908 875.9 1,248.0 1,073.5 1,362.6 1,072.9
  Silver [oz/T] 26.5 25.5 36.4 31.3 39.7 31.3
  Lead [%] 7.3 7.1 9.3 8.4 10.7 7.4
  Zinc [%] 8.0 7.1 7.9 10.6 9.2 4.9
 
Payable metal:            
  Silver - [ozs.] 263,281 373,790 493,424 244,958 211,255 207,677
  Lead - [lbs.] 1,293,086 2,004,540 2,575,693 1,192,823 1,122,017 970,317
  Zinc - [lbs.] 1,289,748 1,781,358 2,041,744 1,244,589 857,367 571,800

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 an aggressive CDN$11,200,000 exploration program where four diamond drills are 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, was the site of considerable historic mining for silver, (gold), lead and zinc and was exploited by Silver Eagle during 2008. The exploration potential of Miguel Auza remains to be evaluated and is the object of an exploration program, which began in September.

On behalf of

EXCELLON RESOURCES INC.

"Peter Crossgrove"
Chairman and CEO

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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