Mr. Brendan Cahill reports

EXCELLON REPORTS FIRST QUARTER 2016 PRODUCTION

Excellon Resources Inc. has released first quarter 2016 production results from the La Platosa mine in Durango, Mexico.

First quarter 2016 production highlights (compared with first quarter and fourth quarter 2015)

• Silver-equivalent (AgEq) production of 363,552 ounces (first quarter 2015 -- 408,095 AgEq ounces), up 40 per cent from fourth quarter 2015;
• Silver production of 211,557 ounces (first quarter 2015 -- 217,079 ounces), up 39 per cent from fourth quarter 2015;
• Lead production of 1.3 million pounds (first quarter 2015 -- 1.3 million pounds), up 57 per cent from fourth quarter 2015;
• Zinc production of 1.6 million pounds (first quarter 2015 -- 2.2 million pounds), up 26 per cent from fourth quarter 2015;
• Rodilla manto accessed in late February, seven months ahead of schedule with significant ultrahigh-grade (over 1,000 grams per tonne Ag, 10 per cent lead and 10 per cent zinc) mineralization encountered outside of Platosa resource block model;
• Phase II of optimization program commencing with primary dewatering well drilling.

"In first quarter 2016, we again saw the upside potential of Platosa's exceptionally high-grade massive sulphide mantos and began to see further material benefits from our long-term dewatering efforts," stated Brendan Cahill, president and chief executive officer. "In late February, we accessed the Rodilla manto, approximately seven months ahead of schedule as we encountered mineralization outside of the Platosa resource block model and dry mining conditions facilitated rapid development. A significant amount of this bonus mineralization was ultrahigh grade, with approximately 1,600 tonnes of ore produced from Rodilla during March grading over 1,000 g/t Ag, 10 per cent Pb and 10 per cent Zn. This ore was blended with lower-grade and low-cost stockpiles to improve mill recoveries and concentrate payability. We are currently developing into the next level of the Rodilla manto and expect the continuing optimization program at Platosa to deliver further operational improvements as the year progresses."

                 FIRST QUARTER 2016 PRODUCTION RESULTS
 
                              March, 2016        Q1 2016       Q1 2015

Tonnes mined                        5,035         12,778        13,920
Tonnes milled                       6,015         14,720        13,828
Grades
Silver (g/t)                          601            483           533
Lead (%)                             6.58           4.80          5.37
Zinc (%)                             8.06           6.15          8.83
Recoveries
Silver (%)                           91.1           91.6          90.5
Lead (%)                             86.4           83.6          79.2
Zinc (%)                             79.0           79.3          83.7
Metal production*
Silver (oz)                       106,643        211,557       217,079
Lead (lb)                         755,718      1,318,916     1,252,796
Zinc (lb)                         849,805      1,588,778     2,239,313
 

                          March, 2016       Q1 2016       Q1 2015   

AgEq (oz)**                   190,557       363,552       408,095   

Notes
* Subject to adjustment following settlement with 
concentrate purchaser.
** Silver-equivalent ounces established using average 
metal prices during the period indicated applied to the 
recovered metal content of concentrates.

 

Ore production during the first quarter was primarily from the 6A, N1, Guadalupe North and South, and Rodilla mantos. In late February, 2016, mine operations began accessing ore from the Rodilla manto, approximately seven months ahead of schedule and at shallower levels than delineated in the resource block model. The Rodilla manto was significantly below the water table until recently, but mining conditions are now almost entirely dry in this area as continuing dewatering efforts have lowered water levels below workings and mineralization.

As delineated in the Platosa resource block model, the upper levels of the Rodilla manto host mineralization grading approximately 800 g/t Ag, 7 per cent Pb and 10 per cent Zn on an undiluted basis. Much of the bonus mineralization encountered in first quarter 2016 was materially higher grade on a diluted basis, with approximately 1,600 tonnes of ore produced from Rodilla grading in excess of 1,000 g/t Ag, 10 per cent Pb and 10 per cent Zn. Though the deposit is tightly drilled at 15-metre centres, the manto boundaries are generally erratic and additional mineralization is often encountered outside of the resource block model. Additionally, the company has noted historically that in areas with very high argentiferous-galena content silver and lead grades are underestimated as such mineralization may be washed out and lost during the diamond drilling process.

Approximately 2,300 tonnes of ore milled during the quarter were extracted from historic stockpiles and settling ponds at Platosa at minimal cost with grades of approximately 150 g/t Ag and 1 to 2 per cent Pb and Zn. High-grade ore produced during the quarter was blended with this lower-grade material to improve recoveries and concentrate payability. As announced on June 2 and Nov. 2, 2015, the company has developed an optimization program to comprehensively manage water at Platosa through an enhanced pumping system. The second phase of the program, drilling of the primary dewatering wells, is commencing. Further updates on the progress of this program will be provided regularly during the implementation period.

The company expects to release first quarter financial results prior to market open on May 11, 2016.

We seek Safe Harbor.