Excelsior Mining Corp.

Callinan Royalties Corp. Exercises $3 Million Royalty Option

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 29, 2014) - Excelsior Mining Corp. ("Excelsior" or the "Company") (TSX VENTURE:MIN) is pleased to announce that Callinan Royalties Corp. ("Callinan") has exercised the first royalty option under the Share Purchase and Royalty Option Agreement dated July 19, 2013 (the "Agreement") between the Company and Callinan. As a result of the exercise of the first royalty option Callinan has paid the Company $3.0 million and in return received a 0.5% gross revenue royalty ("GRR") on the Gunnison Project. Combined with the initial GRR that Callinan acquired in July 2013, Callinan now holds a 1.0% GRR on the Gunnison Project.

Commenting on the transaction, Chief Executive Officer Stephen Twyerould stated, "Callinan's exercise of this royalty option is a further endorsement of the quality of the Gunnison Project and our management team. We look forward to moving our low-cost in-situ copper project forward with the support of Callinan Royalties."

With the exercise of the first royalty option, under the terms of the Agreement, Callinan has the remaining option to invest up to an additional $16.0 million into Excelsior in exchange for a further 2.0% GRR on the Gunnison Project consisting of Development Milestones (1.0% GRR) and a Construction Milestone (1.0% GRR). The remaining Development Milestones include: (1) completion of hydrology and metallurgy models to feasibility study level and (2) successful administrative review of the Aquifer Protection Permit and the Underground Injection Control and Aquifer Exemption Permit. Upon the completion of each milestone, Callinan will have the option to purchase an additional 0.5% GRR for $3.0 million each.

The Construction Milestone gives Callinan the right to buy a 1.0% GRR for $10.0 million following completion of the feasibility study, receipt of all required permits and Excelsior securing a firm commitment for 50% of the required capital required for mine construction. One quarter (0.25%) of the construction option will vest with each $3.0 million paid by Callinan to Excelsior pursuant to the initial investment or upon the exercise of any of the royalty options. Should all the royalty options be exercised, Callinan would acquire a 3% GRR on the Gunnison project for total proceeds of $21.0 million.