Mr. Shawn Howarth reports

EXCELLON CLOSES GLENCORE OFFTAKE AND FINANCING

Excellon Resources Inc. has closed its offtake and financing agreement with subsidiaries of Glencore PLC to support the restart of the past-producing Mallay silver mine in Peru.

Highlights:

• Facility size: up to $7.5-million (U.S.) in secured financing, structured as a pre-export finance loan, with an initial drawdown amount of up to $5.0-million (U.S.) and an optional second amount of $2.5-million (U.S.) available until March, 2026;
• Interest rate: SOFR (secured overnight financing rate) plus 5 per cent;
• Repayment terms: six-month grace period following initial drawdown, with monthly prepayment through to 2027;
• Security: loan secured against concentrates sales and other various guarantees.

The proceeds of the facility will be used to finance the restart of the Mallay mine, including underground development, mill upgrades and working capital to achieve commercial production.

Shawn Howarth, president and chief executive officer, commented: "The closing of our agreement with Glencore marks a major milestone in our journey to return Excellon to silver production. With additional and flexible funding now secured, we continue to execute on our restart plan at Mallay -- a project with exceptional infrastructure and near-term cash flow potential."

The associated concentrates offtake agreement grants Glencore the right to purchase 100 per cent of the Mallay mine's zinc and lead concentrates (containing silver byproduct). This long-term commitment provides a guaranteed purchaser for Mallay's output and provides Excellon with exposure to future upside on silver and other metals prices.

About Excellon Resources Inc.

Excellon's vision is to realize opportunities through the acquisition and advancement of quality precious and base metal assets, leveraging an experienced management team for the benefit of its employees, communities and shareholders. The company is focused on the potential restart of the Mallay silver mine in Peru. Excellon also holds a portfolio of exploration-stage projects, including Kilgore, an advanced gold project in Idaho, and Silver City, a high-grade epithermal silver district in Saxony, Germany, and the Tres Cerros gold/silver exploration property in Peru, providing additional growth upside.

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