Excellon Announces Closing of C$6.6 Million Financing

TORONTO, ON--(Marketwired - November 30, 2015) - Excellon Resources Inc. (TSX: EXN) (OTC: EXLLF) ("Excellon" or the "Company"), Mexico's highest grade silver producer, is pleased to announce that it has completed its previously announced C$6,600,000 financing, comprising C$5,610,000 principal amount of secured convertible debentures of the Company (the "Debentures") and the sale of a net smelter return royalty (the "NSR") on the Platosa Project for C$990,000 (collectively, the "Financing"). References to principal amounts and conversion or exercise prices in respect of the Financing are in Canadian dollars.

The Debentures have a term of four years and are convertible into common shares ("Common Shares") of the Company prior to maturity at a conversion price of $0.50 per Common Share. The Debentures shall bear interest at an annual rate of 3.75%, payable in cash semi-annually. Interest on the Debentures may alternatively be paid in Common Shares of the Company at the Company's option based on (i) the 10-day volume-weighted average price ("VWAP") of the Common Shares prior to the payment date and (ii) an effective rate of interest of 5% for the applicable period.

On or after the second anniversary of the date of issue and prior to maturity, the Company may accelerate conversion of the Debentures as follows: (i) 50% of the principal amount, provided that the 20-day VWAP of the Common Shares is $1.10; and (ii) the remaining 50% principal amount provided that the 20-day VWAP of the Common Shares is $1.40.

The purchasers of the Debentures were also issued 2,002,770 Common Share purchase warrants ("Warrants") or 357 Warrants per $1,000 principal amount of Debentures. Each Warrant is exercisable at a price of $0.50 for a period of four years from the date of issuance.

On the 18-month anniversary of the closing of the Financing (the "Put Date"), Debenture holders shall have the option to request repayment in cash of the outstanding principal amount of the Debentures plus accrued interest by providing the Company with two months prior written notice and a one month period for repayment following the Put Date.

The NSR shall apply to the Platosa Project and bear a rate of either (a) 1.25% in respect of manto or mineralization other than skarn mineralization or (b) 0.50% in respect of skarn or "Source" mineralization.

In connection with the Financing, the Company has agreed to grant 480,000 broker warrants (the "Broker Warrants") entitling the holder to purchase one Common Share at an exercise price of $0.50 per Common Share for a period of three years from the closing of the Financing. Cash finder fees totaling $10,200 were also paid in respect of the investment by certain investors.