Excellon Resources Inc.

Excellon Resources Inc.

June 16, 2005 16:57 ET

Excellon Ships First Truckloads of Ore

TORONTO, ONTARIO--(CCNMatthews - June 16, 2005) - Excellon Resources Inc. (TSX VENTURE:EXN) is pleased to announce that shipments of crushed ore have commenced from its test-mining program on its 14,692-hectare (36,000-acre) Platosa/Saltierra Properties in north-eastern Durango State, Mexico. The shipments are being delivered 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, under the terms of a letter of intent signed today between Excellon and Penoles. Payments to Excellon will be based on assays of the crushed ore and an 80% provisional payment will be received, on average, 26 days after shipment of the ore. Final settlement will be made in the second month following delivery.

Excellon has been mining massive sulphide mineralization from the 4C Manto, which is the second largest of the seven mineralized bodies targeted for initial test-mining and contains an Indicated Resource of 19,600 tonnes grading 1,276 g/T Ag (37 oz/T Ag); 11.1% Pb, and 16.4% Zn (as calculated in the Roscoe Postle Associates Inc., independent geological and mining consultants, N.I. 43-101 compliant report of December 10, 2003 ("RPA Report"), which is available at www.sedar.com). Continuous sampling of the sulphide mineralization has been done and assays indicate that grades will be similar to those for the drillholes that define the 4C Manto. Approximately 2,960 tonnes of ore from the 4C Manto have been stockpiled on surface, of which approximately 1,100 tonnes have been crushed for shipping. Mining of the 4C Manto is planned at an average rate of 125 tonnes per day. As well, the ramp continues to advance to the 5A Manto, the largest and highest grade body known to date on the Platosa property. The 5A Manto contains an Indicated Resource of 24,500 tonnes grading 3,912 g/T Ag (114 oz/T Ag); 22.3% Pb and 6.5% Zn as calculated in the RPA Report. The 5A Manto is expected to be reached in July 2005, and it is anticipated that it will also be mined at an average of 125 tonnes per day for an average total of 250 tonnes per day from Mantos 4C and 5A. Readers are cautioned that mineral resources that are not classified as mineral reserves do not have demonstrated economic viability.

Excellon also announces that it has closed a short-term U.S. $500,000 loan with Ocean Partners Holdings Limited, an internationally recognized base metals trading firm. The loan from Ocean is to cover working capital requirements in connection with the test-mining program at the Platosa property until cash flow commences from the shipment of the crushed ore. The loan bears interest at 20% and is repayable in six equal monthly instalments, plus interest, commencing in July. The loan is guaranteed by Minera Excellon de Mexico, S.A. de C.V., the Company's subsidiary that holds the Platosa property, and such guarantee will be secured by a mortgage of the concessions owned by Minera Excellon at Platosa. As an inducement and bonus for making the loan, the Company has agreed, subject to acceptance for filing by the TSX Venture Exchange, to issue to Ocean common share purchase warrants to purchase up to 1,100,000 common shares at a price of $0.20 for a period of one year.

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 (C.P.G. 10227) by the American Institute of Professional Geologists and an Arizona Registered Geologist (A.R.G. 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.

On behalf of


(signed) (signed)

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 result, 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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