Mr. Shawn Howarth reports

EXCELLON PROVIDES CORPORATE UPDATE

Excellon Resources Inc. has provided an update regarding its previously announced proposed acquisition of the past-producing La Negra mine in Queretaro, Mexico, and related transactions.

Shawn Howarth, president and chief executive officer, commented: "We continue to advance our proposed acquisition of La Negra, though recent market conditions have made the associated previously announced subscription receipts financing challenging. We continue to strongly believe in the forward-looking value proposition of the acquisition for Excellon and our shareholders. Key stakeholders in this transaction, including Orion and Excellon's debenture holders, remain engaged. We will provide further updates to the market in due course, as further details become available."

Proposed acquisition of La Negra

On Jan. 9, 2023, the company announced that it had entered into a definitive agreement with an entity owned by an investment fund managed by Orion Resource Partners to acquire La Negra, together with the planned restructuring of the company's outstanding convertible debentures maturing on July 30, 2023, in the principal amount of $17.9-million.

Further, on April 13, 2023, the company announced the launch of a non-brokered private placement of up to 28,571,428 subscription receipts, at a price of 35 cents each, for aggregate gross proceeds of up to $10-million. Successful completion of the private placement financing will provide the funds necessary to advance initial development activities for the planned restart of mining operations at La Negra, exploration and to finance general working capital requirements. Accordingly, the private placement financing (and/or securing other sources of financing) is a necessary precursor to advancing the acquisition to completion, including seeking required approval of the Toronto Stock Exchange (TSX), and approval of Excellon shareholders of the common shares of the company to be issued in connection with the acquisition, the private placement financing and the debenture restructuring.

The company continues to actively engage with potential investors on the private placement financing. The company remains focused on a successful completion of $10-million in gross proceeds but, in parallel, is reviewing potential operating scenarios that would allow Excellon to close on a lower level of initial financing that supports initiating advancement of La Negra while also adequately capitalizing the company's broader business. The company will provide updates to the market on progress in due course.

In parallel, the company is in discussion with Orion regarding the proposed outside date for completion of the acquisition which, as previously announced on April 13, 2023, was extended from April 30, 2023, to June 15, 2023.

Update on liquidity

The company is also in discussions with the holders representing more than 66-2/3 of the convertible debentures regarding the completion of the debenture restructuring. Those debentureholders remain supportive and all parties are working toward a mutually agreeable outcome.

While the company is actively engaged in discussions relating to the acquisition and the debenture restructuring, there can be no certainty that such discussions will result in any agreement on an attainable extended timeline for completing either or both such transactions on the terms as previously announced, or at all.

The company is also assessing various interim financing options as well as other corporate development and strategic opportunities to complement the company's go-forward strategy, which may include divestitures, mergers or spin-offs of the company's assets to provide additional near-term liquidity.

About Excellon Resources Inc.

Excellon's vision is to realize opportunities through the acquisition of advanced development or producing assets with further potential to gain from an experienced operational management team for the benefit of its employees, communities and shareholders. The company is advancing a portfolio of silver, base metals and precious metals 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 Ag-Zn-Cu-Pb (silver-zinc-copper-lead) mine with exploration potential, located in Mexico.

We seek Safe Harbor.