Mr. Shawn Howarth reports

EXCELLON PROVIDES CORPORATE UPDATE

Excellon Resources Inc. is providing the following updates.

Termination of the La Negra acquisition

Earlier today, the company unexpectedly received a notice of termination of the previously announced acquisition of the La Negra project from the seller, Dalu Sarl, an entity owned by an investment fund managed by Orion Resource Partners. Prior to receipt of the termination notice, the company had been in discussions with Orion regarding options to advance the acquisition of La Negra to closing, including securing necessary financing (1).

Consequently, the company is also announcing the termination of its previously announced subscription receipts offering (2).

Convertible debentures and liquidity

The company is in advanced discussions with holders of more than 66-2/3 per cent of the principal of its outstanding convertible debentures maturing on July 30, 2023, in the principal amount of $17.9-million, with a view to extending the maturity date and more broadly restructure the debentures. The company has been actively working with the noted debentureholders to reach an agreement on the terms of such extension and restructuring; however, there can be no assurance that such agreement will be reached prior to maturity. Based on discussions to date, the company anticipates that the terms of any such extension and restructuring will differ from the terms announced on Jan. 9, 2023 (3).

In parallel, the company continues to actively assess 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 spinoffs of the company's assets to provide additional near-term liquidity. There can be no assurance that any such interim financing will be secured or any such other opportunities realized.

The company will provide updates to the market on progress in due course if and when developments arise.

Extension of annual meeting deadline

The company has been granted an extension by the Toronto Stock Exchange to hold its annual meeting of shareholders by no later than Sept. 29, 2023. The company will provide further details regarding its annual meeting in the coming weeks.

Board of directors

Jeff Swinoga and Zoya Shashkova have resigned from the company's board of directors, effective July 23, 2023. The board has consequently reconstituted the audit committee with immediate effect. Laurie Curtis, the company's independent chair of the board, will remain a member of the audit committee, and Craig Lindsay and Brendan Cahill were appointed to fill the vacancies. Mr. Lindsay, who is independent within the meaning of National Instrument 52-110 -- Audit Committees (NI 52-110), will be appointed as chair of the audit committee. In light of the resignations, the board is availing itself of the temporary exemptions contained in NI 52-110 to appoint Mr. Cahill to the audit committee.

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-metal and precious-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.

We seek Safe Harbor.

(1) For further details on this previously announced acquisition, see the company's news release dated Jan. 9, 2023.

(2) For further details on this previously announced offering, see the company's news release dated April 13, 2023.

(3) For further details on this previously announced debenture restructuring, see the company's news release dated Jan. 9, 2023.