Platosa

Contents:

• Mineral Resource Estimate
• Exploration
• Mining & Milling Operations
• CRD Mineralization
• Qualified Persons
• Quality Assurance
• Map & Technical Information

Mineral Resource Estimate

In December 2009 the Company disclosed an updated NI 43-101-compliant Mineral Resource estimate. The Indicated Mineral Resource as of October 31, 2009 increased to a total of 579,000 tonnes grading 909 g/t (27 oz/T) Ag, 9.09% Pb, and 10.51% Zn, up from 396,000 tonnes grading 986 g/t (29 oz/T) Ag, 9.00% lead, and 10.10% zinc (at February 3, 2008). The Inferred Mineral Resource more than doubled from 72,700 to 160,000 tonnes at a somewhat lower grade than that of 2008. Tonnages and grades are summarized in the table below. The results met Company expectations and Platosa remains one of the highest grade producing silver, lead, and zinc deposits in Mexico.

Since October 31, 2009 the Company has encountered considerable additional massive sulphides in its exploration drilling programs, including a north-westerly extension of the 6A/6B Manto and the new high-grade Pierna Manto, both during 2010. The Company plans to update the Platosa Mineral Resource estimate in the latter half of 2011.

Platosa Project - Summary of October 31, 2009 Mineral Resource Estimate

Notes:

1. CIM definitions were followed for classifying Mineral Resources.
2. Mineral Resources are estimated at an incremental NSR cut-off value of U.S. $86 per tonne.
3. NSR metal price assumptions: Silver U.S. $16.00/oz, Lead U.S. $0.80/lb, Zinc U.S. $1.00/lb.
4. Estimate is of Mineral Resources only and, because these do not constitute Mineral Reserves, they do not have any demonstrated economic viability.
5. A detailed description of the estimation and other pertinent geotechnical information is in a NI 43-101-compliant technical report dated January 15, 2010 prepared by Scott Wilson RPA, which is filed on SEDAR.

Exploration

Platosa Property

In late 2009, the Company received an updated and significantly increased Mineral Resource estimate, prepared as of October 31, 2009. Taking into account the 79,000 tonnes mined between February 3, 2008 (the previous estimate) and the October 31, 2009 date of the new estimate, the Indicated Mineral Resource increased 66% to 579,000 tonnes at a similar grade. Accounting for the majority of the increases was the 2008 discovery of the NE-1 Manto, located northeast of the Rodilla and Guadalupe mantos and in mid-2009 the discovery of the 623 Manto close to existing underground infrastructure. The 623 Manto hosts an Indicated Mineral Resource of 62,000 tonnes grading, 1,183 g/t (34.5 oz/T) Ag, 10.27% Pb, 8.52% Zn.

Since October 2009 the Company has announced the discovery of additional massive sulphides. The most important of these are a northwesterly extension of the 6A/6B Manto and the high-grade Pierna Manto. An updated Mineral Resource estimate is planned for the latter half of 2011.

During the first quarter of 2011, exploration efforts focussed on an area within roughly three kilometres of the Platosa Mine.

In this area there are three primary objectives:

• To further add to the known distal-style, high-grade CRD Mineral Resources and to discover new mantos by drilling the geological, structural, geochemical, biogeochemical and geophysical targets developed by 2010 and previous surveys. This follows on the success in adding mineralization to the 6A/6B Manto and the discovery of the Pierna Manto, both during 2010;
• To pursue the potential for discovery of larger-volume medial and proximal CRD mineralization. Geological evidence of this potential has been found in several drill holes completed since 2008 including hole EX10-LP763 drilled in 2010 in the Rincon del Caido area approximately 1.5 km NNW of the Guadalupe Manto. A large portion of the early 2011 exploration program was focussed on the Rincon del Caido – 6A/6B Corridor; and
• Continue to pursue the development of additional targeting tools. At present this work is focussed on following up the results of the ZTEM airborne geophysical survey flown in the fall of 2010 and the three-dimensional Induced Polarization (3D IP) survey carried out earlier in 2010.

Diamond drilling continued to encounter success near existing mine infrastructure, in particular in the high-grade Pierna Manto situated between the Rodilla and NE-1 mantos. In early May 2011 the Company reported that high-grade massive sulphides were intersected in five holes drilled in early 2011. Among these, hole EX11-LP903 intersected 3.80 metres (m) of massive sulphides grading 704 g/t (21 oz/T) Ag, 8.86% Pb, 16.40% Zn. Hole LP904 encountered even higher grades, intersecting massive sulphides grading 1,412 g/t (41 oz/T) Ag, 18.99% Pb, 18.44% Zn over 2.55 m. The five intersections ranged from 0.27 to 3.80 m in estimated true thickness and the manto remains open to the north and northwest. In addition, lower grade massive sulphides were encountered over an estimated true width of 1.40 m in the only 2011 hole drilled in the 6A/6B Manto Ext. area  The assay results relating to these six holes and 15 holes completed during the latter portion of 2010 are included in the press releases dated January 13 and May 2, 2011.

Late 2010 and early 2011 drilling has seen the testing of several 3D IP chargeability anomalies. These responses have been explained by either pyritized hornfels or pyritized black limestone, both of which underlie the productive dolomitized fragmental limestone unit at Platosa. These holes have also served as stratigraphic tests since they were located close to or within the Rincon del Caido – 6A/6B Corridor.  Hole LP889 was completed at a depth of 942 m and intersected a significant widths of marble, anhydrite and lightly pyritized felsic intrusive, all promising signs in the search for large-scale proximal skarn-type CRD mineralization in the area. 

During October 2010 the Company carried out 2,800 line kilometres of ZTEM airborne geophysical surveying over a large portion of the original Platosa property, almost all of the 17,000 ha Excelmex VII concession acquired in April 2010 and a portion of the Pluton property optioned from Sundance Minerals Ltd. in October 2010. The Company received the initial final interpreted results of the survey in late February as disclosed in a press release dated February 28, 2011. A second drill was added to the Platosa exploration program near the end of March to begin testing ZTEM anomalies. Although interpretation will be a continuing process as actual drilling results improve our knowledge of how the ZTEM results relate to the bedrock geology and structures encountered, the survey has already outlined a large number of previously undetected and untested conductive areas and structural zones or systems of interest. Drilling progress has been slow and as of the date of this report there are no results to report, however, Company geologists are confident that this survey will materially guide exploration for a large-tonnage proximal carbonate replacement deposit similar to others in the prolific CRD Belt of Mexico. The discovery of such a deposit, which the Company believes is present on the property, remains the principal goal of its exploration programs. In addition ZTEM-related structural systems may lead to the discovery of new high-grade Ag, Pb, Zn manto sulphides similar to those the Company has been exploiting at Platosa since mid 2005.

Sundance Option

The Company acquired an option to earn up to 75% of the 17,000 ha Pluton property, located west of and contiguous with the Platosa Property in October 2010. The property is underlain by stratigraphy similar to that of Platosa and covers several CRD-style sulphide showings, soil geochemical and geophysical anomalies. In addition the Company flew a ZTEM survey over selected portions of the property in October 2010 and delineated anomalies. None of the above mentioned targets have been drill tested. Sundance and the company intend to commence an initial diamond drilling program on the Pluton Property in late spring or early summer 2011.

Miguel Auza Property

The Miguel Auza property encompasses 41,498 ha and lies on the eastern flank of the Fresnillo Mexican Silver Trend some 150-200 km north of Fresnillo and Zacatecas City, both of which areas have and continue to be the source of a large percentage of Mexican silver, lead and zinc production. The property covers numerous high- and low-sulphide epithermal veins carrying Ag, (Au), Pb, and Zn.The property has been the site of a large amount of historic mining since the time of the Spaniards and as recently as 2008 when SEG (through its Mexican subsidiary) carried out mining and milling on the Calvario Vein system.

The Company carried out a modest exploration program at Miguel Auza between September 2009 and October 2010 and while certain areas were highlighted as meriting further exploration a decision has been made to concentrate exploration activities at Platosa for the immediate future.

Mining and Milling Operations

Mining

The Platosa Mine is accessed by a 4 m by 4 m, -15° ramp and employs a modified room and pillar mining method. Development headings are 3 m by 3 m. The Company operates a small fleet of modern scoop trams and haulage trucks and has two single-boom jumbos primarily used for development headings. Production mining is carried out with jack-legs. Mining is carried out on a nominal three shift per day, seven day per week schedule and in recent months production has averaged 150-200 tonnes per day. Most of the mining takes place at approximately 135 m vertical below surface.

Underground water remains a concern at Platosa and the Company continues to work with a consulting engineer on grouting solutions and its hydrology consultants to develop a hydrology model for the mine and surrounding area after which a comprehensive control plan will be put in place. Seven monitoring wells were drilled near the mantos during 2009 and in early 2010 the Company drilled a test dewatering well. As an added security measure emergency water-control doors were installed in three locations underground between mid-2010 and early 2011. A fourth will be operational later in 2011.These doors are intended to seal designated areas in the event of a sudden water inflow and allow mining to continue uninterrupted elsewhere in the mine while the sealed area is returned to normal. In addition the Company began an additional proactive underground grouting program in the fall of 2010. This ongoing program sees the drilling and grouting of a series of 40-60 m long sub-horizontal grout cover holes ahead of critical development and production faces in order to provide continuous protection from sudden water inflows.

During 2010 the Company added to its mobile fleet, increased pumping capacity, completed the construction of a modern office building, warehouse and dry, upgraded its stand-by power generating capacity and completed a new 4.5 km long plastic-lined ditch to carry mine water to a surface-dispersal site north of the mine. In addition modifications were made to the crushing plant resulting in decreased utilization time and significant savings in power costs. Pumping capacity will be further increased in the second quarter of 2011.

Platosa mine production in Q1 2011 was close to plan but about 25% lower than the same period last year. In addition, ore grade was significantly lower than plan and compared to the same period last year. The reduction in ore grade mined reflects increased development work required in the mine during the first quarter of 2011. Dilution was higher than anticipated resulting in the reduced ore grades. April, 2011 results improved significantly. Mine production was 30% ahead of plan at 5,833 tonnes grading 1,055 g/t (31 oz/T) Ag, 6.6% Pb, 6.7% Zn and production of 175,512 oz Ag, 649,199 pounds of Pb, 650,453 pounds of Zn.

Milling

Platosa ore is crushed on site and shipped to the mill in the town of Miguel Auza in 38 tonne trucks. A small flotation mill was present on the Miguel Auza property when Silver Eagle acquired the property. This mill was expanded and used to process oxide material as Silver Eagle developed the King Ramp and the sulphide portion of the Calvario Vein system. The mill was further expanded and modernized during 2008 and processed Calvario sulphide mineralization for three months until mid-December 2008.

Excellon began shipping Platosa ore to the mill in mid-March 2009. The mill operating schedule is set to match shipments from Platosa and the throughput required to maximize metallurgical results therefore does not always operate seven days a week. Between January 1 and December 31, 2010 a total of 64,462 tonnes grading 814 g/t (24 oz/T) Ag, 6.4% Pb, 7.7% Zn was processed. During the same period 4,623 tonnes of Ag-Pb concentrate grading 8680 g/t (253 oz/T) Ag, 61.3% Pb and 6,993 tonnes of Ag-Zn concentrate grading 695 g/t (20 oz/T) Ag, 53.3% Zn were produced. Recoveries averaged 76.2% for Ag reporting to the Pb concentrate, 9.2% for Ag reporting to the Zn concentrate for a total of 85.4% Ag recovery. Pb recovery averaged 68.2% and Zn recovery 74.5%.

In Q1 2011 the mill processed 12,391 tonnes grading 604 g/t (18 oz/T) Ag, 5.1% Pb, 7.1% Zn. During the same period 725 tonnes of Ag-Pb concentrate grading 7,186 g/t (210 oz/T) Ag, 57.4% Pb and 1,193 tonnes of Ag-Zn concentrate grading 645 g/t (19 oz/T) Ag, 50.5% Zn were produced. Recoveries averaged 68.0% for Ag reporting to the Pb concentrate, 10.7% for Ag reporting to the Zn concentrate for a total of 78.7% Ag recovery. Pb recovery averaged 68.0% and Zn recovery 71.5%.

During 2010 the concentrate storage area was expanded and a retractable cover installed for protection during the rainy season and from wind erosion. In addition the tailings management area was expanded.

CRD Mineralization

The Platosa deposit is a CRD style of mineralization comprising a series of pods and lenses (called "mantos") of massive and semi-massive silver-lead-zinc sulphides. The mineralization, associated alteration, and complexity seen at Platosa are similar to larger-scale Mexican CRD systems that contain from 5 to 50 million tonnes. The metal content and controls of what has been found to date at Platosa are typical of the irregular, high-grade (distal) fringes of replacement systems, at the centre of which are found larger-scale (proximal) deposits in this mineralized belt. Diamond drilling near the Platosa Mine between 2007 and 2009 intersected additional areas of high-grade mineralization, outlining the Rodilla, NE-1 and 623 mantos. During the spring of 2010 an important northwest extension to the 6A/6B Manto was outlined and in the fall of 2010 the new high-grade Pierna Manto was discovered northeast of Rodilla. Drilling also continues to identify geological and alteration features, along with sulphide mineralization, such as in the Rincon del Caido area, that together suggest that the Company is near the larger-scale and more regular proximal portion of a CRD system that is the primary focus of Excellon's ongoing regional exploration program.

Qualified Persons

Mr. John Sullivan, BSc., PGeo. and/or Dr. Peter Megaw, PhD, CPG, have acted as Qualified Persons, as defined in NI 43-101, with respect to the disclosure of the scientific and technical information contained in this website and have supervised the preparation of the technical information on which such disclosure is based.

Mr. Sullivan is an economic geologist with over 35 years of experience in the mineral industry. Prior to joining Excellon in 2007 he was a senior geologist at a Toronto-based international geological and mining engineering consulting firm where he evaluated properties and prepared NI 43-101 reports on gold and base metal projects in Canada and internationally. In addition he has held senior positions with two large Canadian mining companies where he directed major exploration programs, managed field offices, and evaluated projects in Canada, Europe, Africa and Latin America. Mr. Sullivan is not independent of Excellon as he is an officer of the Company.

Dr. Megaw has a PhD in geology and more than 25 years of relevant experience focused on silver and gold mineralization, and exploration and drilling in Mexico. He is a Certified Professional Geologist [CPG 10227] as designated by the American Institute of Professional Geologists and an Arizona Registered Geologist [ARG 21613]. Dr. Megaw is not independent of Excellon as he is a shareholder.

Independent Qualified Persons have prepared the Company's Mineral Resource estimates and supervise its Quality Assurance/Quality Control program.

Quality Assurance

Excellon has a comprehensive Quality Assurance/Quality Control ("QA/QC") program in place. Drill core samples are prepared and analyzed from half-split core, the other half being archived at Platosa, by SGS Mineral Services (SGS) in Durango, Mexico. The lab is accredited to ISO/IEC 17025.

Blanks and property-specific control standards are inserted into sample streams at regular intervals. At designated times, a certain number of sample rejects and pulps are selected for various forms of check analysis at a secondary laboratory. The QA/QC program was put in place and is supervised by an independent Qualified Person.

Map & Technical Info

Location Map