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Excellon Resources Inc. (TSX: EXN), a self-sustaining mineral resource company operating in Durango State, Mexico, is committed to building value through production, expansion and discovery.  The Company is producing silver, lead and zinc from high-grade manto deposits on its Platosa Property, strategically located in the middle of the Mexican silver belt.  In fiscal 2008, Excellon's focus is on increasing its Mineral Resources through an aggressive $11-million exploration program, and expanding its operating capacity with the building of a mill at site.  The Platosa Property, not fully explored, has several geological indicators of a large mineralized system; the tracking of which Excellon believes will lead to the discovery of a world class deposit.

Platosa Project - Summary of February 3, 2008 Mineral Resource Estimate

Category	Tonnes (t)	Silver (g/t)	Lead (%)	Zinc (%)
Indicated	396,000	986	9.0	10.1
Inferred	72,700	742	9.1	9.7

Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at an incremental cut-off value of U.S. $40 per tonne
3. NSR metal price assumptions: Silver U.S. $13.00/oz, Lead U.S. $0.90/lb, Zinc U.S. $1.10/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 prepared by Scott Wilson RPA, which is filed on SEDAR.

Exploration

Subsequent to quarter end, on February 21, 2008, the Company announced that it had intersected significant new massive sulphide manto mineralization in Holes LP444 and LP447 in the NE-1 area, 100 metres ["m"] east of the Rodilla Manto. LP447 intersected an estimated true thickness of 4.72 m of sphalerite and galena-rich massive sulphides. LP444, drilled 40 m to the north of LP447, cut 20 centimetres of similar massive sulphides. Assays for both intersections are pending. This was the first follow-up drilling to discovery Hole LP173, drilled 20 m to the west-northwest of LP447 in 2006, which intersected an estimated true thickness of 3.17 m of massive to semi-massive sulphides grading 580 g/t (16.9 oz/T) silver, 8.3% lead and 6.2% zinc. The NE-1 Manto remains open in several directions and drilling continues in this area.

The Company continued to meet with success in the Rodilla Manto area, northeast of the northeast portion of the Guadalupe Manto. Also on February 21, 2008, the Company announced that three new massive sulphide and sulphide breccia intercepts, with estimated true thicknesses of 4.17 m (LP442), 7.52 m (LP446) and 2.55 m (LP448), had been made in ongoing drilling of Rodilla (see table below). These massive sulphide intercepts consist largely of massive sphalerite with subordinate galena and 10 to 20% barite gangue. Hole LP446 has expanded Rodilla 40 m to the east-southeast. Of significance to eventual development and test-mining plans, Hole LP442, drilled in an approximate 30 m gap between Rodilla and the Guadalupe Manto, demonstrates that these two mantos are connected. In addition, assays for a further six sulphide intersections ranging in estimated true thickness from 0.91 to 15.25 m were announced and are shown in the table below.

Drill Hole Table

DDH No.	Interval from (metres)	Interval to (metres)	Interval width (metres)	Silver (g/t)	Silver (oz/T)	Lead (%)	Zinc (%)
LP423	172.37	175.63	3.26	96	2.8	0.2	0.4
LP424	166.60	181.85	15.25	548	16.0	6.4	8.0
LP427A	172.70	177.09	4.39	322	9.4	4.8	12.7
LP429	159.91	164.30	4.39	804	23.4	10.1	13.5
LP432	154.40	155.40	1.00	2,130	62.1	6.6	0.04
LP434	154.24	155.15	0.91	248	7.2	2.42	3.36

As known as at the date of this MD&A, Rodilla is an irregularly-shaped, sub-horizontal massive sulphide lens approximately 130 m east-west by 85 m north-south (in plan) that remains open in several directions.

The Company also continued testing geological, biogeochemical and geophysical targets north and northwest of the Guadalupe Manto during the quarter. Of significance was the intersection of felsic intrusive in a hole located 290 m northwest of Guadalupe. This is the first time intrusive material has been intersected near the test-mine and raises the possibility that proximal, large-tonnage CRD mineralization may be found close to the test-mine where the Company is presently exploiting high-grade distal-style CRD sulphide mineralization. Three drills are active in the immediate test-mine area.

In the Saltillera area, three to five kilometres west on the test-mine area, the district-scale search for proximal-style, large tonnage-potential CRD sulphide mineralization was continued with one drill. The Company continues to intersect geologically significant mineralization and alteration lying in a previously undrilled overburden-covered area lying along the strong northwest-trending structural corridor that contains the historic Saltillera and Zorra mines. In mid-2007, Hole EX07ST-50 cut 85 metres [estimated true thickness] of variably sulphide-mineralized proximal or near-source hornfels and skarn developed around two swarms of fine-grained felsite dykes. Galena, sphalerite and chalcopyrite were locally visible in the core with the most strongly mineralized section [1.1 m estimated true thickness] grading 129 g/t [3.8 oz/T] silver; 2.12% lead and 0.92% zinc. The two most continuously mineralized portions of the 85-metre intercept in EX07ST-50 average 19.3 g/t silver, 0.31% lead and 0.32% zinc over 8.01 m [estimated true thickness] and 41.2 g/t silver, 0.64% lead and 0.44% zinc over 16.25 m [estimated true thickness]. Fourteen holes have now been drilled in the general area of hole ST-50. Favourable geology, in the form of an extensive multi-phase intrusive system with numerous dyke offshoots, has been intersected in several of these holes. Overall, the intrusive system shows numerous features similar to those associated with the largest lead-zinc-silver-copper-gold CRDs of Mexico.

During the quarter the Company's site geologists and consulting geophysicist continued interpretation of the airborne electromagnetic and magnetic ["AEM"] survey data, integrating mapping and drilling information with the detailed airborne interpretation as part of the target delineation process. In addition, reinterpretation of historic ground geophysical data was carried out and, based on positive conclusions and recommendations, the Company is planning to carry out induced polarization and ground magnetic surveys, one covering the immediate test-mine area and the other a large portion of the Saltillera-Zorra corridor, in the third quarter.

Year-to-date exploration expenditures are running under budget due to lower than expected drilling productivity, the unplanned two-week hiatus in late-January and slightly conservative estimated line-item budgeting. The spending rate will increase in the third quarter as drilling progress returns to normal and the Company undertakes ground geophysical surveys.

Test-Mining Operations

Development and mining of the Platosa deposit during the quarter ended January 31, 2008 was carried out in the northwest area of the main Guadalupe Manto. Shipments of crushed ore to the Naica milling facility ["Naica mill"] of Compania Maple, S.A. de C.V. [a subsidiary of Industrias Penoles S.A. de C.V. ["Penoles"]] were 10,802 tonnes for the three months ended January 31, 2008 compared with 8,546 tonnes in the previous year. Shipments in the period averaged approximately 3,600 tonnes per month. Shipments for the quarter were reduced by a suspension in deliveries to Naica primarily due to a work stoppage at the Naica mill during wage rate negotiations with Penoles. During the suspension of deliveries to Naica mill, members of the local agricultural co-operative ["Ejido"]at the Platosa Mine protested and blockaded at the site for 12 days in support of ongoing negotiations for the lease of certain surface rights near the mine site. The illegal blockade by the Ejido was removed before settlement of the Penoles wage contract (which was settled on February 9, 2008) and did not impact ore deliveries to Naica mill.

Despite the interruption of ore deliveries for 12 days in January there is an increasing trend of the shipments as a result of improvements made to the Naica mill circuit during 2007. The primary constraints at the Naica mill continue to be related to maintaining optimum recoveries while blending the high-grade Platosa ores with the lower grade Naica mine ores. The installation of an on-stream analyser in the Naica mill has provided for better control of the flotation circuit in processing the two ore types. Platosa mine management continues to maintain ongoing dialogue with that of the Naica mill to optimize planning and blending of the Platosa ore to maximize the monthly ore deliveries. Platosa currently supplies about 7% of the tonnage being milled at the Naica mill, but more than 30% of the metal produced.

Excellon is advancing the design and cost estimates for the construction of a 350 tonne per day floatation mill on the Platosa Property ["Platosa mill"].

The construction of the Platosa mill would allow the production of concentrates at the site for sale to world markets and would decrease Excellon's current operating costs. All the necessary activity to allow construction in 2008 is in progress, with the final decision to proceed or not awaiting the completion of a definitive capital cost estimate as well as finalizing the lease of additional surface rights near the mine. In this regard, the Company has completed an environmental impact assessment and process development work for the mill design. Sites near the main mine entry have been selected for construction of the Platosa mill and the tailings dam. Discussions with equipment suppliers and construction contractors have been ongoing in conjunction with basic engineering and completion of the metallurgical test work to support design. The environmental permit is anticipated to be received in the first quarter of calendar 2008. On finalizing the capital cost estimate for the mill, a final decision as to whether or not to proceed with construction will be made. With receipt of the permit and assuming a final decision by the Company to proceed, construction would start later in calendar 2008 with start-up predicted for the latter part of calendar 2008.

The initial contract for the purchase of 60,000 tonnes of Platosa ore by Peñoles was completed in October 2006 and discussions were initiated to settle on new purchase terms. Due to the increasing metal prices for lead and zinc, Peñoles and the Company agreed to apply interim terms that included a price participation formula that reflected smelter industry standard practices. The interim terms have been applied to all settlements on ore purchases by Penoles since November 2006. Excellon has been in discussions with Peñoles on the final proposed terms for the deliveries since November 2006 and has agreed to extend deliveries to the end of March 2008 to allow terms to be finalized or alternative ore sales contracts to be put in place.

Excellon is actively investigating two other possible options to mill the Platosa ore that may have more favourable terms to the current ore purchase contract. The options may serve as a complete replacement to the Penoles contract or as a supplement to reduced deliveries to Penoles to improve the overall return on the ore sales.

The metal grades produced during the quarter ended January 31, 2008 were impacted by the amount of production outside of both the fiscal 2008 mine plan and the estimated Mineral Resource as at May 9, 2006 ["2006 Resource"]. The grades encountered in the mine development can be impacted by the lower than average grade encountered in breccia style mineralization common on the fringes of the Mantos, as well as higher than normal dilution as the development headings may not carry a full heading in mineralization. Current high metal prices allow most of the mineralized development ore to be shipped to Penoles.

The silver grade during the three months ended January 31, 2008 was considerably lower, at 932g/t, compared to the grade for the same quarter in the previous year of 1,960g/t. However, the lead and zinc grades were significantly higher for the three months ended January 31, 2008 at 10.1% and 10.9% versus 8.7% and 4.8% respectively for the same period in 2007.

The mine development and production continues to be carried out to the northwest in the Guadalupe Manto at similar mine depths as the previously mined out areas of Manto 5. Mining of the higher grade material in Manto 6 and the interconnection zone between Manto 5 and Manto 6 continues to be deferred until it becomes necessary to develop the mine to a lower elevation.

The following are the production statistics for the three and six months ended January 31, 2008 and 2007:

	3 month ended		6 month ended		Year Ended
	31-Jan-08	31-Jan-07	31-Jan-08	31-Jan-07	31-Jul-07
Tonnes of ore shipped	10,802	8,546	25,153	20,082	45,691
Contained metal
Silver [ozs.]	323,472	538,173	728,220	1,485,007	2,338,723
Lead [lbs.]	2,395,023	1,635,014	5,468,874	4,920,678	10,271,603
Zinc [lbs.]	2,584,489	897,459	6,570,805	2,523,695	8,943,334
Average Grade
Silver [oz/t] (1)	29.9	63.0	29.0	73.9	51.2
Silver [g/t]	931.9	1,960.0	901.0	2,299.0	1,593.3
Silver [oz/T]	27.2	57.2	26.3	67.1	46.5
Lead [%]	10.1	8.7	9.9	11.1	10.2
Zinc [%]	10.9	4.8	11.8	5.7	8.9
Payable metal
Silver – [ozs.]	249,720	416,220	562,186	1,145,728	1,808,234
Lead – [lbs.]	1,820,216	1,309,070	4,156,344	3,939,837	7,951,749
Zinc – [lbs]	1,705,762	503,793	4,336,731	1,436,091	5,681,659

([1] Oz/t is not a generally accepted unit measure as it combines imperial and metric units. However, it is the unit of measure upon which the Company's settlements with Penoles are based. The generally accepted units of measure are g/t and oz/T.

Qualified Persons

Dr. Peter Megaw, PhD, CPG, and Mr. John Sullivan, BSc., PGeo., have acted as Qualified Persons, as defined in NI 43-101, for this disclosure and have supervised the preparation of the technical information, which formed the basis for the updated Mineral Resource disclosed in this disclosure.

Dr. Megaw has a PhD in geology and more than 25 years of relevant experience focused on exploring silver and gold systems in Mexico. He is a Certified Professional Geologist (CPG 10227) 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.

Mr. Sullivan is an economic geologist with over 35 years of experience in the mineral industry. Most recently a senior geologist at a Toronto-based international geological and mining engineering consulting firm, he has evaluated properties and prepared NI 43-101 reports on gold and base metal projects in Canada and internationally. Mr. Sullivan is not independent of Excellon as he is an officer and holds common share purchase options.

Mr. D. W. Rennie, P.Eng., a Consulting Geological Engineer, and Mr. David Ross, P.Geo., a Senior Geologist, both employed by Scott Wilson RPA, acted as the Qualified Persons, as defined in NI 43-101, for the Scott Wilson RPA Mineral Resource estimate. Mr. Rennie, Mr. Ross, and Scott Wilson RPA are independent of Excellon.

Quality Assurance and Quality Control

The Platosa exploration program is supervised by John R. Sullivan, Excellon's vice-president of exploration. Drill core samples are prepared by SGS Laboratories in Durango, Mexico, with silver and gold assayed in Durango. Sample pulps are sent to SGS Canada Inc. and further assaying is carried out at its ISO/IEC 17025 accredited laboratory in Toronto, Ontario. Excellon has a comprehensive quality assurance and quality control program in place that is supervised by an independent QP.

March 10, 2008

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E-mail: info@excellonresources.com • URL: http://www.excellonresources.com
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