| Excellon Resources is a mineral resource company | | | | 8.52% Zn. Our 2010 drilling program has three drills |
| operating in Durango and Zacatecas States, Mexico. | | | | working in the vicinity of the mine exploring for |
| The Company is producing silver, lead and zinc ore | | | | extensions of existing sulphide bodies and for new |
| from high-grade manto deposits on its Platosa | | | | ones based on targets developed using both |
| Property, strategically located in the middle of the | | | | geophysical techniques and geological data and |
| Mexican silver belt. It processes this ore at its | | | | modeling developed during our several years of drilling |
| concentrator in the town of Miguel Auza 220 km south | | | | in the area. A fourth drill will probe targets in the |
| of the mine and produces silver-lead and silver-zinc | | | | Saltillera/Zorra area five kilometres west of the mine |
| concentrates, which are sold under the terms of a | | | | where we continue to see the potential for a |
| long-term contract to an international trader. Miguel | | | | large-tonnage proximal carbonate replacement deposit |
| Auza hosts an indicated and inferred mineral resource | | | | (CRD). |
| and was the site of considerable historic mining for | | | | RI: The acquisition of the Miguel Auza Property has |
| silver, gold, lead and zinc over the centuries. Chris | | | | made an important addition to your holdings and |
| Hopkins, Excellon's CFO tells us more about where his | | | | capabilities. Can you focus on that a little? |
| company is headed. | | | | CH: Certainly. The Miguel Auza Property is a large |
| Resource Intelligence: Can you give us a little history on | | | | property with great potential for the discovery and |
| Excellon's involvement in Mexico? | | | | exploitation of additional epithermal silver/gold, lead and |
| Chris Hopkins: Certainly, Excellon became involved in | | | | zinc veins similar to those that have been worked so |
| Mexico in the early 1990s. It acquired the Platosa | | | | profitably for decades in the Fresnillo camp, 150 km to |
| property in 1996 and in 1998 entered into a joint | | | | the south as well as elsewhere in the Mexican Silver |
| venture on part of the property with Apex Silver | | | | Belt. It also presents evidence of a potential carbonate |
| Mines Ltd. We began production in 2005. In June of last | | | | replacement deposit (CRD) which could be very |
| year, the Company completed the acquisition of all the | | | | important. Although mining has taken place in the camp |
| outstanding common shares of TSX-listed Silver Eagle | | | | since the 1500s very little systematic modern |
| Mines Inc. for a purchase price of $5,488,722 | | | | exploration has actually been carried out and the |
| comprised of $3,370,000 in common shares and | | | | historic data record is almost non-existent. Silver Eagle |
| $1,200,000 in net cash payments for transaction costs. | | | | focused on developing the Calvario Vein system and |
| The purchase included Silver Eagle's Mexican assets, | | | | only began a concentrated review of the potential of |
| in particular its Miguel Auza mine and newly expanded | | | | the overall property shortly before ceasing activities. |
| 650 tonne per day mill. We began processing Platosa | | | | Several additional vein systems are known including |
| ore at Miguel Auza in March 2009 while acquisition | | | | those exploited by the Spaniards, and the property |
| negotiations were underway. The mine has been on | | | | remains largely under-explored. We began an initial |
| care and maintenance since December 2008. | | | | exploration program on the property in the fall of 2009. |
| Another important 2009 development was the | | | | Its focus is on determining if portions of the Calvario |
| purchase of the remaining 49% joint venture interest in | | | | Vein system can be exploited economically and |
| a large portion of the Platosa Property from Golden | | | | whether other areas of the large property warrant |
| Minerals Company, (successor to Apex Silver) for | | | | concentrated exploration efforts. |
| US$2.0 million in cash and a 1% Net Smelter Returns | | | | There was a small flotation mill on the property when |
| royalty. | | | | Silver Eagle acquired it, which was expanded and used |
| On December 10, 2009 we reported that the Platosa | | | | to process oxide material as Silver Eagle developed |
| Indicated Mineral Resource has increased to a total of | | | | the King Ramp and the sulphide portion of the Calvario |
| 579,000 tonnes grading 909 g/t (27 oz/T) Ag, 9.09% | | | | Vein system. Further expansion and modernization |
| Pb, and 10.51% Zn (as at October 31 2009), up nicely | | | | took place during 2008 and it processed Calvario |
| from 396,000 tonnes grading 986 g/t (29 oz/T) Ag, | | | | sulphide mineralization for three months until |
| 9.00% lead, and 10.10% zinc (as at February 3, 2008). | | | | mid-December 2008. We began shipping our Platosa |
| The Inferred Mineral Resource also increased from | | | | ore to the mill in mid-March 2009. |
| 72,700 to 160,000 tonnes at a somewhat lower grade | | | | RI: So you are shipping all your Platosa ore to the |
| than that of 2008. | | | | Miguel Auza mill? |
| RI: So what are the details on your Platosa Property? | | | | CH: Yes, and since mill capacity is greater than |
| CH: Platosa is located in the northeast corner of the | | | | production rate at Platosa the mill operating schedule is |
| State of Durango, Mexico approximately 45 km | | | | set to match shipments and have a throughput rate |
| north-northwest of the city of Torreon, Coahuila State, | | | | that maximizes metallurgical results. For the mid-March |
| where the largest silver, zinc, lead smelter and refining | | | | to December 31, 2009 period throughput averaged |
| complex in Mexico is located. The Property consists of | | | | 280 tonnes per operating day and was as high as 375 |
| 71 contiguous mining concessions covering a total area | | | | tonnes per day. A total of 57,902 tonnes of Platosa |
| of 24,065 hectares. It is nominally divided into three | | | | ore grading 994 g/t Ag, 8.04% Pb, 8.81% Zn were |
| areas based on underlying agreements and/or | | | | processed during that period. Recoveries averaged |
| concession ownership: | | | | 80% for Ag reporting to the Pb concentrate, 9% for |
| Excellon 100%/Golden Minerals Royalty Area: This | | | | Ag reporting to the Zn concentrate for a total of 89% |
| area comprises 46 concessions totalling 10,118 ha. It | | | | Ag recovery. Pb recovery averaged 74.0% and Zn |
| contains the Platosa mantos, current Mineral | | | | recovery 68.0%. Concentrate production totalled 5,733 |
| Resources, and Platosa Mine plus the surrounding area, | | | | tonnes of silver-lead and 6,656 tonnes of silver-zinc. |
| which prior to November 2009 had been held in Joint | | | | RI: In summary, why should investors consider Excellon |
| Venture with Apex Silver Mines Limited (Apex). In | | | | for their portfolio? |
| November 2009, Apex's successor Golden Mineral | | | | CH: Excellon is a well-established operator in the |
| Corp. sold to Excellon its interest in the former Joint | | | | high-grade mining business in Mexico. We have |
| Venture concessions or US$2,000,000 and a 1% Net | | | | assembled very large land positions, which have seen |
| Smelter Return royalty. | | | | considerable historic production and as well, hold the |
| Altiplano Area: This area comprises 20 concessions | | | | potential for significant discoveries of much larger |
| owned by Excellon totalling 11,076 ha. These 20 | | | | resources. We are well funded, expect to generate |
| concessions are subject to a 3% NSR payable to | | | | over $45 in revenues in fiscal 2010 with greater |
| Exploraciones de Altiplano, S.A. de C.V., a private | | | | revenues expected as production increases in the |
| Mexican company. | | | | future. We have world class exploration upside and |
| Others: This area comprises five concessions totalling | | | | exposure to silver, lead and zinc prices through the |
| 2,870 ha. They are owned 100% by Excellon and are | | | | highly profitable operations at Platosa. This self-funded |
| not subject to any underlying agreement or royalty. | | | | exploration play provides investors with great potential |
| In addition we own or lease 1,841 ha of surface rights. | | | | without the risk of a pure exploration company. |
| RI: And what are you doing there now? | | | | Excellon is an established operator. |
| CH: We're continuing to drill and expand our resources | | | | Milestones: |
| at Platosa. On January 14, 2010 we announced assay | | | | * Continue exploring the large under-explored, |
| results for thirteen additional drill holes, most of which | | | | strategically located properties at Platosa with a $12 |
| intersected high-grade massive sulphides. Hole LP708 | | | | million budget devoted largely to diamond drilling |
| cut 3,300 g/t (96 oz/T) Ag, 11.8% Pb, 0.13% Zn over | | | | * Develop drilling targets at Miguel Auza with a modest |
| 1.15 metres (m) and hole EX09-LP692 intersected 1,470 | | | | budget of close to $1 million. |
| g/t (43 oz/T) Ag, 4.9% Pb, 7.3% Zn over 1.77 m. Both | | | | * Increase the mining capacity at Platosa and continue |
| represented extensions to the 623 Manto, which as | | | | processing ore at the Miguel Auza mill |
| reported in the press release dated December 10, | | | | * Continue to operate Platosa on a sustained and |
| 2009, has an Indicated Mineral Resource of 62,000 | | | | consistent basis generating strong cash flows. |
| tonnes grading 1,183 g/t (34 oz/T) Ag, 10.27% Pb and | | | | |