Platosa Project

The Potential:

Excellon is continuing its surface and underground exploration and development program to locate both additional high-grade mineralization near the Platosa Mine, and a near-source, large tonnage major carbonate replacement deposit ("CRD") system in the Mexican CRD Belt. These deposits, together with major vein systems, support the development of most of the large Mexican underground silver and base metal mines. The Platosa property is strategically located along the geological trend of these large deposits.

The Platosa Mine area is largely overburden covered and exploration into 2009 has relied on a combination of Geology, Natural Source Audio Magneto Tellurics ("NSAMT") geophysics, soil geochemical surveys, and biogeochemical surveys. These methods were instrumentalin the discovery of the Guadalupe, Guadalupe South, Rodilla and NE-1 mantos. A 2008 ground gravity survey outlined promising drill targets and more surveying may be undertaken.

The Miguel Auza property was first explored by the Spaniards in the 1500s and is dotted with historic workings on precious and base metals-bearing epithermal vein systems. Silver Eagle Mines Inc., since acquired by Excellon, carried out underground exploration and mined a portion of the Calvario Vein system between 2007 and late 2008 when the mine and mill were placed on care and maintenance. Excellon has processed Platosa ore at Miguel Auza since March 2009 and is now in a position to undertake preliminary exploration to determine the most favourable areas for exploration drilling programs in the future.

Locations, Infrastructure and Property Status:

Both the Platosa and Miguel Auza properties are well situated for mineral exploration and mine development. Platosa is located 45 kilometres north of Torreón, a major population centre with an international airport, is next to a regional power grid and has paved road access. Miguel Auza is located on a major north-south highway mid-way between Torreón and Fresnillo. There are abundant local labour supplies and service sectors supporting other mines and heavy industrial activity in the region.

Excellon's Platosa property package is extensive at over 24,000 hectares. The mineralized system hosting the known Mineral Resource could extend for up to eight kilometres in any direction and still be on Excellon mineral concessions. Excellon's property holdings are divided into concessions it owns outright (some subject to a royalty), and concessions held under a joint venture agreement with Apex Silver Mines Limited (Excellon 51%, Apex 49%).

The Miguel Auza Property covers over 41,000 hectares. Ninety-nine per cent of the area is covered by 100% Company-owned mineral concessions. The remainder is covered by two option agreements, both of which allow the Company to acquire a 100% interest (subject to royalties) in the concessions involved.

Production at Platosa:

Platosa is a ramp-accessed underground mine. The ore is mined and trucked to surface, where it is crushed and loaded into 40-tonne trucks for shipment to the mill at Miguel Auza. The mine production rate is approximately 200 tonnes per day and the Company plans to increase production as conditions permit.

Processing & Sales:

The Miguel Auza flotation mill, part of the Silver Eagle acquisition, was expanded and modernized by Silver Eagle during 2008. It has the capacity to treat over 300 tonnes per day of Platosa’s high-grade ore and operates on a flexible schedule designed to meet production levels at Platosa. Separate silver-lead and silver-zinc concentrates are produced and trucked to the port of Manzanillo where they are sold under the terms of a long-term contract to a well-known international trading company.

The mill construction project at Platosa remains suspended, however, a large portion of the equipment required for the mill was purchased during 2008 and has now been shipped to Platosa where it is stored under secure conditions. The Company will periodically reevaluate the feasibility of resuming construction. The mill and tailings management area construction projects are fully permitted.