Excellon Strengthens Board With New Appointments - Seite 2

Update on Optimization Program

The Company is also pleased to provide an update on the ongoing optimization program at Platosa. As further described in the Company's annual information form (the "AIF"), the Company has developed an optimization program to proactively dewater Platosa through an enhanced well-pumping system. The optimization program aims to maintain and increase a localized "cone of depression" of the water table below mine workings, ultimately resulting in completely dry mining conditions at Platosa. Under dry mining conditions, the Company expects to achieve materially higher rates of production at materially lower costs relative to current and historical production at Platosa. Refer to the AIF for a summary of estimates on Platosa production rates and costs subsequent to the completion of the optimization program. Also refer to the Company's press release dated October 27, 2016 for a summary of the installation process for the dewatering system.

The Company recently completed the installation of the primary booster station in Guadalupe South and also completed the upgrade of power infrastructure to 12 mW, both of which are key steps towards completion and operation of the new dewatering system. Testing of the booster station (comprising four 600hp pumps) has been completed successfully and the Company has commenced installation of 250hp submersible pumps in four wells in Guadalupe South. The installation of these submersible pumps has been slightly delayed by slower than expected well drilling due to ground conditions (which vary from well to well), well cleaning and equipment testing; however, the Company expects to commence pumping from two of these new submersibles by year-end and a further two submersibles early in January 2017. Additionally, the Company has secured a third drill rig to further accelerate the completion of well drilling. The project remains on budget and the Company expects to complete installation by the end of Q1 2017, with dry mining conditions being achieved during Q2 2017. Further updates on the progress of this program will be provided regularly during the implementation period.