Excellon Resources Inc.

Excellon Resources Inc.

July 25, 2005 10:06 ET

Excellon Resources Inc.: First Production Payment Received; Second Face Established In Ore

TORONTO, ONTARIO--(CCNMatthews - July 25, 2005) - Excellon Resources Inc. (TSX VENTURE:EXN) is pleased to announce that it has received its first production payment of U.S. $316,709. This is a provisional payment representing 80% of the estimated value of the payable metals less the applicable milling, smelter treatment and refining charges included in the crushed ore shipped during the period June 16 to 30, 2005 (shipments began June 16) from its test-mining program on its 100% owned Platosa Property. The ore was shipped to the mill operated by Compania Fresnillo, S.A. de C.V. Unidad Naica, a member of the Industrias Penoles S.A. de C.V. Group. The metals prices used in this calculation were the average of the LME Settlement Prices for the month of June, but the final settlement will be based on those prices for the second month following the month in which the crushed ore was shipped, adjusted for any umpire assays, and will be paid once this information is available.

Shipments are continuing and provisional payments will be made every 15 days. The first provisional payment was based on a shipping schedule of approximately 3,000 tonnes of crushed ore per month with ore production coming from the 4C Manto (see Table below for mineral resources). Ramp access to the 5A Manto, the largest and highest grade manto identified so far, has now been established and the plan is to increase ore production from the mine to approximately 5,400 tonnes per month, with shipments increasing accordingly.

Development and mining of the Platosa mineralization to date has generally confirmed the ore resource model developed for the project. Additional mineralization has been encountered in the access ramps to Mantos 4C and 5A outside the zones defined in the ore reserve model that may be evidence of offshoots or extensions from the main zones. These will be further investigated with future mine development and underground exploration.

The Platosa Property is part of Excellon's 14,692 hectare (36,000 acre) Platosa/Saltierra Properties in north-eastern Durango State, Mexico. The next phase of surface and underground exploration is currently being finalized and details will be announced in the near future.

Excellon's Chairman, Richard Brissenden, said: "We're extremely pleased with the progress we've made over the last months. We've started shipping, we've received our first cash, we've reached our largest and highest grade manto and we're finding mineralization outside the drill indicated resource areas...all in good ground conditions. Steady cash flow payments will be received as production continues. We're equally excited about ramping up the district-scale exploration program. We came here in the first place to go "elephant hunting" because Platosa's geology and location in the heart of the Mexican belt of Carbonate Replacement Deposits indicate that it could host a new example of these world-class deposits. With production and the associated cash flow established, we can now turn our full exploration efforts to this goal, and we're looking forward to getting the drills turning soon."

The Platosa exploration program is designed and supervised by Mr. A. D. MacKenzie, P. Eng., and Dr. Peter Megaw, respectively Excellon's President, and its Consulting Geologist and Exploration Manager of its Mexican subsidiary. Assaying and check-assaying have been performed by ALS-Chemex Laboratories of Vancouver and BSI Inspectorate of Reno, Nevada. Engineering design and supervision of the test mining program is being executed by Mr. Ross MacFarlane, P. Eng., and Roscoe Postle Associates Inc., independent geological and mining consultants. Mine development is being done by Puertos y Tuneles S.A. de C.V. of Queretaro, Mexico under the direction of Ing. Alfredo Flores, Platosa Mine Manager.

Qualified Person and Quality Assurance and Control

Dr. Peter Megaw, Ph.D., C.P.G., has acted as the Qualified Person as defined in N.I. 43-101, for this disclosure and supervised the preparation of the technical information on which this release is based. Dr. Megaw has a Ph.D. in geology and more than 20 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 and his company receives a Finder's Fee with respect to the Platosa/Saltierra property.


Excellon Resources Inc. - Platosa Project

Name Category Tonnes Ag Ag Pb Zn
(g/t) (oz/ton) (%) (%)

4A Indicated 1,100 766 22 5.7 7.8

4B Indicated 3,500 877 26 12.4 31.5

4C Indicated 19,600 1,276 37 11.1 16.4

5A Indicated 24,500 3,912 114 22.3 6.5

6A Indicated 11,400 1,664 49 10.4 10.4

6B Indicated 3,300 1,480 43 10.0 12.6

Total Indicated 63,400 2,346 68 15.2 11.9

(i) Source: Roscoe Postle Associates Inc., independent geological
and mining consultants, N.I. 43-101 report of December 10, 2003
(report available at www.sedar.com)

On behalf of


A. Douglas MacKenzie, Richard W. Brissenden,
President 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 future anticipated exploration program results, discovery and delineation of mineral resources/reserves, expected rates of mining, 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 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 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, the Company's ability 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.

This press release is not 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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