Last updated on April 16, 2014 at 21:24 EDT

Excellon Reports First Quarter 2013 Financial Results

May 1, 2013

Toronto Stock Exchange – EXN

TORONTO, May 1, 2013 /PRNewswire/ - Excellon Resources Inc. (TSX:EXN) (“Excellon” or “the Company”), Mexico’s highest grade silver producer, is pleased to report financial results for the three month periods ended
March 31, 2013 and 2012.

Q1 2013 Highlights

        --  Production of 495,529 silver equivalent ounces from the
            100%-owned and royalty free La Platosa Mine in Durango, Mexico,
      o Ore grades of 591 g/t (17.24 oz/T) Ag, 6.35% Pb and 10.01% Zn;
      o 312,167 ounces Ag;
      o 2,161,223 lb Pb; and
      o 3,506,965 lb Zn;
        --  Net cash costs per silver ounce of $6.96(1) remain among the
            lowest in the industry due to increased production tonnage and
            strong byproduct credits;

        --  Net loss of $601,000 for the quarter;

        --  Expenditures during the period include $4.8 million on
            successful exploration in Mexico and Canada, with a combined
            total of over 26,000 metres of diamond drilling;

        --  Financial position remains strong, with cash, marketable
            securities and trade receivables growing to $11.5 million at
            the end of the period;

        --  High-grade drill results at each of our projects in Mexico and
            Canada, including:
      o La Platosa: 7.25 g/t Au and 3.57% Zn over 13.1 metres ("m") in
        LP1038 and 123 g/t Ag, 4.42% Pb, 5.05% Zn over 6.23 m in LP1044;
      o Beschefer: 55.60 g/t Au over 5.57 m in BE13-035;
      o DeSantis: 2.16 g/t Au over 31.70 m, including 4.09 g/t Au over 7.20
        m, in DS11-016F.

“During the first quarter of 2013, we were focused on an intensive drill
program with seven rigs on three of our properties,”
stated Brendan Cahill, President and Chief Executive Officer.  “We were successful on all three of these programs, with significant
Source-style intersections at La Platosa and the first occurrences of
high-grade gold on the project, and high-grade gold results from both
of our Canadian projects.  These results add to our long term
exploration potential and enhance the value of both our La Platosa and
Canadian projects.

Mr. Cahill continued, “As we shift our strategy during the second quarter to focus on
optimizing high-grade production and increasing mine life, we expect to
see a rapid return to profitability, despite lower than expected silver
prices and the recent mining of lower grade areas of the mine.  With a
rebound in the silver price and our expected return in the coming
months to mining 700 g/t to 800 g/t silver mineralization, we expect
our profitability to improve and cash costs per ounce to decrease

Financial and Operating Highlights
Financial results for the three-month periods ended March 31, 2013 and
2012 are as follows:

                                          Three months ended
                                               March 31,

                                             2013        2012

                                           $000's      $000's

    Revenue                                10,055      13,106

    Cost of sales                         (5,963)     (4,841)

                                            4,092       8,265


      Corporate administration            (1,783)     (1,804)

      Exploration                         (4,839)     (2,080)

      Other                                 2,093       2,204

    Income tax recovery (expense)           (164)       (965)

    Net income (loss)                       (601)       5,620

    Other comprehensive income (loss)       (850)          78

    Total comprehensive income (loss)     (1,451)       5,698

Mine production for the three months periods ended March 31, 2013 and
2012 are as follows:

                                                  Three months ended
                                                       March 31,

                                                     2013           2012

    Tonnes of ore processed                        18,361         17,132

    Ore grades:                                                         

                     Silver (g/t)                     591            949

                     Silver (oz/T)                  17.24          27.68

                     Lead (%)                        6.35           6.60

                     Zinc (%)                       10.01          10.61


                     Silver (%)                      93.7           91.9

                     Lead (%)                        84.8           77.1

                     Zinc (%)                        83.8           84.4


                     Silver - (oz)                312,167        436,351

                     Silver equivalent         495,529(2)     588,027(2)
                     ounces (oz)

                     Lead - (lb)                2,161,223      1,902,028

                     Zinc - (lb)                3,506,965      3,254,953


                     Silver ounces- (oz)          302,466        402,096

                       Silver equivalent       476,281(2)     541,433(2)
                             ounces (oz)

                     Lead - (lb)                2,092,963      1,716,172

                     Zinc - (lb)                3,275,191      3,021,294

    Realized prices:                                                    

                     Silver - ($US/oz)              27.60          33.90

                     Lead - ($US/lb)                 0.95           0.96

                     Zinc - ($US/lb)                 0.87           0.97

    (1) This is a non-IFRS performance measure.  Silver equivalence is a
    weighted volume average based on market spot prices for silver, lead
    and zinc during the period.  The previously stated net cash cost amount
    of $6.64 for the quarter was adjusted upward based on final
    reconciliation with the concentrate purchaser.
    (2) This is a non-IFRS performance measure.  Silver equivalent ounces
    produced in Q1 2013 and Q1 2012 were established based on realized
    prices for silver, lead and zinc during the applicable period being
    applied to the recovered metal content of the concentrates.  Realized
    prices were approximately US$29 per oz Ag, US$1.00 per lb Pb and
    US$0.90 per lb Zn during Q1 2013 and US$34 per oz Ag, US$1.00 per lb Pb
    and US$1.00 per lb Zn during Q1 2012.

    Note:  "t"= tonne;  "T"= ton

Qualified Person
The Company’s exploration programs are supervised by John Sullivan,
Vice-President of Exploration, and he has acted as the Qualified
Person, as defined in National Instrument 43-101, for this disclosure.

About Excellon
An Evolution in High Grade Silver:  Excellon’s 100%-owned La Platosa Mine in Durango is Mexico’s highest
grade silver mine, with lead and zinc by-products making it one of the
lowest cash cost silver mines in the country.  The Company is
positioning itself to capitalize on undervalued projects by focusing on
increasing La Platosa’s profitable silver production and near term
mineable resources.

The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this
Press Release, which has been prepared by management. This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 27E of the Exchange Act.
Such statements include, without limitation, statements regarding the
future results of operations, performance and achievements of the
Company, including potential property acquisitions, the timing,
content, cost and results of proposed work programs, the discovery and
delineation of mineral deposits/resources/reserves, geological
interpretations, proposed production rates, potential mineral recovery
processes and rates, business and financing plans, business trends and
future operating revenues. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are not
guarantees of future results or performance, and that actual results
may differ materially from those in forward looking statements as a
result of various factors, including, but not limited to, variations in
the nature, quality and quantity of any mineral deposits that may be
located, significant downward variations in the market price of any
minerals produced [particularly silver], the Company’s inability to
obtain any necessary permits, consents or authorizations required for
its activities, to produce minerals from its properties successfully or
profitably, to continue its projected growth, to raise the necessary
capital or to be fully able to implement its business strategies. All
of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the
technical reports filed with respect to the Company’s mineral
properties, and particularly the November 22, 2011 NI 43-101-compliant
technical report prepared by Roscoe Postle Associates Inc. with respect
to the Platosa Property. This press release is not, and is not to be
construed in any way as, an offer to buy or sell securities in the
United States. 

SOURCE Excellon Resources Inc.

Source: PR Newswire