Excelsior Announces Strategic Partnership and US$10 M Financing with Greenstone Resources

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 13, 2014) - Excelsior Mining Corp. (TSX VENTURE:MIN)(FRANKFURT:3XS)(OTCQX:EXMGF) ("Excelsior" or the "Company") is pleased to announce that it has entered into an agreement with an affiliate of Greenstone Resources L.P. ("Greenstone"), whereby Greenstone will purchase, by way of a treasury offering, common shares of Excelsior at a price of C$0.34 per common share for total gross proceeds of US$10 million. Settlement will occur in United States dollars. It is estimated that upon closing, this transaction would represent approximately 28% of Excelsior's shares issued and outstanding, estimated to be approximately 32 million common shares.

Details of the Transaction

The transaction is scheduled to close in two separate tranches. The first settlement will occur within 15 business days of this announcement. This first tranche will see Greenstone purchase 20,580,000 common shares, equal to approximately 19.9% of the issued and common shares of Excelsior, in return for gross proceeds of US$6,393,341.64.

The second tranche shall require shareholder approval under the rules and policies of the TSX Venture Exchange as it will result in the creation of a new "control person". The Company intends to obtain shareholder approval for the second tranche at its annual and special meeting of shareholders currently scheduled for September 30, 2014 in Vancouver (the "Meeting"). Assuming shareholder approval is obtained, the second tranche is scheduled to close 15 business days after the Meeting. The second tranche will see Greenstone purchase US$3,606,658.36 of common shares of Excelsior at price of C$0.34 per common share. The exact number of common shares will be determined based on the noon US$/C$ exchange rate from the Bank of Canada exchange rate on the day of the Meeting.

Executive Chairman, Mark Morabito, stated, "To be able to do a common share transaction of this size at a premium to the market price, despite all the current challenges of junior mining market, is a notable endorsement of the strength of the Gunnison project and the quality of our management team. Coming on the heels of the $4 million bought-deal financing by Dundee Capital Markets, and the $3 million royalty-option execution by Callinan Royalties, Excelsior is now substantially funded as the project enters the feasibility and permitting stage of development."