Excellon Announces $10 Million Bought Deal Financing

TORONTO, ON--(Marketwired - July 04, 2016) -

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Excellon Resources Inc. (TSX: EXN) (OTC: EXLLF) ("Excellon" or the "Company") is pleased to announce that it has entered into an agreement with Cantor Fitzgerald Canada Corporation ("Cantor"), on its own behalf and on behalf of a syndicate of underwriters (together with Cantor, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 8,695,652 units of the Company (the "Units") at a price of $1.15 per Unit for gross proceeds to the Company of approximately $10 million (the "Offering"). Each Unit will consist of one common share in the capital of the Company (each a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder to acquire an additional Common Share at a price of $1.75 for a period of 24 months following the closing of the Offering. Cantor shall be sole book-runner and lead Underwriter in connection with the Offering.

The Company has agreed to grant the Underwriters an over-allotment option (the "Over-Allotment Option") to increase the size of the Offering by up to an additional 15%, such option being exercisable in whole or in part at any time prior to the date that is 30 days after the closing of the Offering, to cover over-allotments, if any, and for market stabilization purposes. In the event that the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering to Excellon will be approximately $11.5 million.

The Company intends to use the net proceeds of the Offering to fund accelerated exploration at the Company's Platosa Project, for capital expenditures at the Platosa Mine and Miguel Auza Mill, for working capital expenses and for general corporate purposes.

The Units will be offered by way of short form prospectus in each of the provinces of Canada, except Québec, pursuant to National Instrument 44-101 -- Short Form Prospectus Distributions. The Units will not be offered or sold in the United States except under Rule 144A or Regulation D or in such other manner as to not require registration under the United States Securities Act of 1933, as amended.