Excellon Announces Resolution of Action With Ejido La Sierrita

TORONTO, ON--(Marketwired - November 16, 2016) - Excellon Resources Inc. (TSX: EXN) (OTC: EXLLF) ("Excellon" or the "Company"), Mexico's highest grade silver producer, is pleased to report the delivery of a resolution (the "Resolution") by the Tribunal Unitario Agrario del Distrito Sexto in Torreón, Coahuila (the "Agrarian Tribunal") on the Company's agrarian legal suit against the Ejido La Sierrita (the "Ejido") in respect of a surface rights agreement (the "SRA") on 1,100 hectares of mountainous and non-arable surface rights west of the Platosa Mine.

Of principal importance, the Agrarian Tribunal ruled favourably on the Company's application to rescind the SRA. Excellon commenced a proceeding in 2012 to rescind the SRA and for various damages relating to an illegal blockade of Platosa by the Ejido. The Company sought rescission of the SRA to limit ongoing risks to Platosa production. This decision was further justified by capital market conditions in recent years and represents a reduction in annual expenditures of almost US$400,000 at current exchange rates.

"We are pleased with this resolution, which under the circumstances is a just decision by the Agrarian Tribunal," stated Brendan Cahill, President and Chief Executive Officer. "We continue to make meaningful cooperative investments in our local community of Bermejillo and look forward to re- engaging with the Ejido La Sierrita on fair and transparent terms in due course."

The Resolution also included (i) an award to Excellon of 5.6 million pesos payable by the Ejido for losses and damages related to the illegal blockade and (ii) an award to the Ejido of 5.5 million pesos payable by Excellon as indemnity for not building a water treatment plant under the terms of the SRA. The two awards set-off against each other, with Excellon not being required to pay any amount to the Ejido. The Company is considering next steps in respect of the award to the Ejido, as the construction of this plant was contingent upon certain conditions precedent that the Ejido never satisfied, including the acquisition of a water use permit by the Ejido.

Excellon owns all surface rights and mineral rights needed to produce silver from the Platosa Mine and conduct further surface and underground exploration for further high-grade manto mineralization and the CRD/Source of the Platosa mantos. The Company holds approximately 21,000 hectares of mineral and mining rights at Platosa, which entitle the Company to explore for and mine minerals at Platosa and in an extensive surrounding area, including under any surface rights held by the Ejido.