Mr. Shawn Howarth reports

EXCELLON REPORTS FIRST QUARTER 2023 FINANCIAL RESULTS AND CORPORATE HIGHLIGHTS

Excellon Resources Inc. has released financial results and corporate highlights for the three months ended March 31, 2023.

First quarter 2023 highlights:

• Announced acquisition of the past-producing La Negra mine in Queretaro, Mexico:
  • Fully permitted mine with established infrastructure and historical payable production averaging 3.0 million silver equivalent ounces annually;
  • Indicated mineral resources of approximately 15.1 million silver equivalent ounces at 191 grams per tonne AgEq and inferred mineral resources of approximately 41.8 million AgEq oz at 202 g/t AgEq;
  • 2022 preliminary economic assessment (PEA) demonstrates a posttax net present value discounted at 5 per cent of $132.4-million (U.S.);
  • Estimated restart capital of $20.9-million (U.S.) based on the PEA;
• Announced private placement financing for up to $10-million (Canadian) of subscription receipts:
  • Offer price of 35 Canadian cents per subscription receipt;
  • Each subscription receipt entitles the holder to one unit of the company composed of one common share and one common share purchase warrant of the company;
  • Each warrant to acquire one common share at a price of 55 Canadian cents per common share for a period of 24 months;
• Reversal of the $22-million (U.S.) litigation liability relating to the previously disclosed judgment against one of the company's subsidiaries in Mexico;
• Initial diamond drilling results from the 2022-2023 exploration program at the Oakley project in Idaho, United States, subject to the option agreement between Excellon and Centerra (U.S.) Inc., a subsidiary of Centerra Gold Inc., including:
  • 189.56 metres at 0.40 gram per tonne gold in BHC-22-02;
  • 110.64 m at 0.43 g/t Au in BHC-22-03, including 2.03 m at 3.94 g/t Au;
• Centerra exercised its first option to earn an initial 51-per-cent interest in Oakley and, on April 4, 2023, provided notice of intention to proceed to exercise the second option to acquire an additional 19 per cent.

Financial results

Financial results for the three months ended March 31, 2023, and 2022, are set out in the attached table.

This news release should be read in conjunction with the company's condensed consolidated financial statements for the three months ended March 31, 2023, and 2022, and associated management discussion and analysis, which are available on the company's website and under the company's profile on SEDAR.

All financial information is prepared in accordance with international financial reporting standards, and all dollar amounts are expressed in U.S. dollars unless otherwise specified. The discussion of financial results in this news release includes references to adjusted loss and adjusted loss per share, which are non-IFRS performance measures. The company presents these measures to provide additional information regarding the company's financial results and performance.

About Excellon Resources Inc.

Excellon's vision is to realize opportunities for the benefit of its employees, communities and shareholders, through the acquisition of advanced development or producing assets with further potential to gain from an experienced operational management team. The company is advancing a portfolio of gold, silver and base metal assets, including Kilgore, an advanced gold exploration project in Idaho; and Silver City, a high-grade epithermal silver district in Saxony, Germany, with 750 years of mining history and no modern exploration. The company has also entered into an agreement to acquire La Negra, a past-producing silver-zinc-copper-lead mine with exploration potential, located in Queretaro state, Mexico.

Qualified persons

Paul Keller, PEng, chief operating officer of the company, a qualified person as defined in National Instrument 43-101, reviewed, verified and approved the scientific and technical information relating to operations and production results contained in this news release. Jorge Ortega, MSc, PGeo, vice-president, exploration, of the company, a QP, reviewed, verified and approved the scientific and technical information relating to geological interpretation and results contained in this news release.

We seek Safe Harbor.