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Mexico’shighestgradeSilverproducer
TSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLFInvestorPresentation– March2018
WWW.EXCELLONRESOURCES.COMTSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLF
DisclaimerThis document contains “forward-looking statements” within the meaning of applicable Canadian securities legislation and applicable U.S. securities laws. Except for statements of
historical fact relating to the Company, such forward-looking statements include, without limitation, statements regarding the future results of operations, performance and
achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral
deposits/resources/reserves, geological interpretations, the potential of the Company’s properties, proposed production rates, potential mineral recovery processes and rates,
business plans and future operating revenues. Forward looking statements are made based on management's beliefs, estimates, assumptions and opinions on the date the statements
are made. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct and the Company undertakes
no obligation to forward-looking statements, except as may be required by law. Forward-looking statements are typically identified by words such as: believes, expects, anticipates,
intends, estimates, targets, plans, postulates, and similar expressions, or are those which, by their nature, refer to future events. The Company cautions investors that any
forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking
statements as a result of various risk factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant
downward variations in the market price of any minerals produced (particularly silver), the Company’s inability to obtain any necessary permits, consents or authorizations required
for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its
business strategies. A description of the risk factors applicable to the Company can be found in the Company’s most recent Annual Information Form under “Description of the
Business – Risk Factors”. All of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical
reports filed with respect to the Company’s mineral properties, and particularly the latest NI 43-101-compliant technical report prepared by Roscoe Postle Associates Inc. with respect
to the Platosa Property. This document is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred ResourcesThe terms “Measured”, “Indicated” and “Inferred” Mineral Resources used or reference in this document are defined in accordance with Canadian National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral
Resources and Mineral Reserves. The CIM standards differ significantly from standards in the United States. United States investors are advised that while such terms are recognized
and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of
uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a
higher category or that Mineral Resources will ever be upgraded to Mineral Reserves. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of
feasibility or other economic studies other than Preliminary Economic Assessments. United States investors are cautioned not to assume that all or any part of Indicated Mineral
Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is
economically or legally mineable, or that an Indicated Mineral Resource is economically or legally mineable.
Cautionary Note to United States Investors regarding Adjacent or Similar PropertiesThis document may also contain information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The
Company advises United States investors that the United States Securities and Exchange Commission's mining guidelines strictly prohibit information of this type in documents filed
with the SEC. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar
properties are not indicative of mineral deposits on the Company's properties.
CautionaryNoteRegardingthePreliminaryEconomicAssessment(PEA)TheassessmentsinthePEAarepreliminaryinnature,mineralresourcesarenotmineralreservesanddonothavedemonstrated economicviability,andthereisnoassurancethe
preliminaryassessmentswillberealized.TheoutcomeofthisPEAmaybemateriallyaffectedbytheclosingofthefinancing, metalspricing,environmental,permitting,legal,title,
taxation,socio-political,marketing,orotherrelevantissues.
QualifiedPersonsBenPullinger,P.Geo,Vice-PresidentGeology,isresponsiblefortheCompany’sexplorationprogramsandhassupervisedthepreparationofthetechnicalinformation,whichis
disclosedinthispresentation.HehasactedastheQualifiedPerson,asdefinedinNI43-101,forthisdisclosure.
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Thetimeisnow…
2
WWW.EXCELLONRESOURCES.COMTSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLF
Worldclassasset Teamforthefuture
Execution GrowthMineoptimizationcompleteandsurpassingPEAeconomics
Oneoftherichestsilverassetsintheworld- remainingresourcesatover1.2kg/tAgEq andgrowing
Proventrackrecordofturnaroundwithtechnicalandmarketexpertise
+$50millioninfreecashflowexpected
Highreturnexplorationstrategy
Pipelineofprojectsthroughintelligentacquisitions
3
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AndréFortier3Chairman
FormerSVPofNoranda,CEOofKerrAddisonMinesandCampbellResources.
AlanMcFarland1,2,3 FormerdirectorofWorldResourcesInstitute.FormerinvestmentbankeratLazard.
PreviouslyservedasdirectorofPlacerDomeandMasonite.
Daniella Dimitrov 1,4 Chosenasoneofthetop100GlobalInspirationalWomeninMiningin2016with
experienceinbuilding,operatingandstreamliningbusinessesinminingandfinancial
services.Current Partner,Sprott Capital.FormerCEOandCFOofOrvana Mineralsand
ExecutiveViceChairofBaffinland Iron,directorofNexa Resourcesandseveralmining
companies.
LaurieCurtis2,4 DistinguishedexplorationgeologistandFounderofIntrepidMinerals.Previouslyheld
severalpositionsincapitalmarketsincluding,SeniorMiningAnalystatClarus and
DundeeSecurities.CurrentChairofEastmainResourcesanddirectorofToachi Mining.
JacquesMcMullen4 ProfessionalEngineer,formerlywithBarrickGold.Previousdirectorofseveralmining
companiesincluding,HighlandGold,IGEResourcesAB,FireRiverGold,Minera S.A.,
Orvana Minerals.CurrentdirectorofEquinoxGold,CardinalResourcesandadvisorto
DetourGold.
OliverFernández 3 Mexicanbusinessmanandentrepreneur.Founder&PresidentofCredito Maestro.
AndrewFarncomb 1 FounderofCairnMerchant PartnersLP,anindependentmerchantbank.Former
InvestmentBankingprofessionalatParadigmCapital.FounderanddirectorofContact
GoldCorp.,andboardmemberofseveralotherTSXVlistedcompanies.
BrendanCahillPresidentandCEOBOARDCOMMITTEES:1.Audit2.Compensation3.NominatingandCorporateGovernance4.CorporateResponsibility&TechnicalCommittee
4
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BrendanCahillPresidentandCEO
M&Asecuritieslawyer(DaviesWardPhillips&VinebergLLP).FormerVPCorp
Dev.ofPelangio Exploration.MemberofYoungPresidents’Organization,
Transplant CampaignatUniversityHealthNetworkandLawSocietyofUpper
Canada.BoardMemberoftheMiningAssociationofCanada,GroupEleven
Resources,anIrishzincexplorerandKoreMining.,aCaliforniagolddeveloper.
RupyDhadwarCFO
CharteredAccountantwitharangeoffinanceandbusinessexpertise.Formerly
withMacGillivray Partners,CharteredAccountants.
BenPullingerVP, Geology
ProfessionalGeologistwithtrackrecordofdiscoveryandprojectadvancement.
FormerVPExplorationatRoxgold Inc.Currentdirector ofRedEagleExploration.
DenisFloodVP, TechnicalServices
ProfessionalMiningEngineerwithexceptionaltechnicalassessmentand
implementationabilities.FormerPrincipalMiningEngineeratResolution
Copper(RioTintoGroup).PreviouslywithXstrataandGoldcorp.
Dr. CraigFordVP, CorporateResponsibility
Geologistbytraining,over24yearsofexperiencewithaproventrackrecordof
drivingcorporateandoperationalperformanceinsafety,healthandsecurity,
environmentalaffairs,communityrelationsanddevelopment,humanrights
andgovernmentrelations.FormerVP,CRatInmet MiningandBoardMember
oftheMiningAssociationofCanada.
Ronald MarinoVP, Finance
CharteredAccountant,20yearsofexperienceinLatinAmericaandNorth
America.PreviouslywithAngloAmerican.
NishaHasanVP,InvestorRelations
LedinvestorrelationsprogramsforseveralCanadianminingcompanies.Former
DirectorofIRatContinentalGold.BoardmemberofCanadianInvestor
RelationsInstitute andtheDownSyndromeAssociationofToronto.
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MIGUELAUZAMILL
LAPLATOSAMINE
PORTOFMANZANILLOMEXICOCITY
TORREON
DURANGOFRESNILLO
Over500,000tonnesminedsinceproductioncommencedin2005
100%ownedundergroundsilver-lead-zincmine
Productionhistoricallyconstrainedbywaterinflows
Safejurisdictionlocated55kmfromTorreon(popof1.2million)withnearbyinternationalairport,gridpowerandnationalhighwayrunningthroughproperty
6
Dryminingconditionsachievedinmid-2017,nowdoublingproduction
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1.CIMdefinitionswerefollowedfortheclassificationofMineralResources.2.MineralResourcesareestimatedatanincrementalNSRcut-offvalueofUS$146pertonne.3.Netsmelterreturnmetalpriceassumptions:US$17/ozAg,US$0.90/lbPb,US$1.00/lbZn.4.MetalrecoveryassumptionsforNSRcut-offvaluepurposes:Ag89%,Pb 76%,Zn81%.5.Thesilverequivalent(AgEq)isestimatedfrommetallurgicalrecoveries,metalpriceassumptions,andsmelterterms,whichincludepayablefactors,treatmentcharges,penalties,andrefiningcharges.6.TheestimateisofMineralResourcesonlyand,becausethesedonotconstituteMineralReserves,theydonothaveanydemonstratedeconomicviability.7.Inferredmineralresourcesareconsideredtoospeculativegeologicallytohaveeconomicconsiderationsappliedtothemthatenablethemtobecategorizedasmineralreserves.8.MineralresourceestimatepreparedbyDavidRoss,P.Geo.,ofRoscoePostle AssociatesInc.,independentgeologicalandminingconsultantsofToronto,Ontario.PreparedasatDecember31,2014.
La Platosa2014MineralResourceEstimate
Category Tonnes(t)
Ag(g/t)
Pb(%)
Zn(%)
AgEq(g/t)
Ag(oz)
Pb(lb)
Zn(lb)
AgEq(oz)
Measured 28,000 781 7.85 11.52 1,305 711,000 4,896,000 7,188,000 1,187,000
Indicated 400,000 758 8.31 9.77 1,248 9,747,000 73,214,000 86,098,000 16,046,000
M&I 428,000 760 8.28 9.88 1,252 10,457,000 78,110,000 93,286,000 17,233,000
Inferred 4,000 2,027 14.65 2.20 2,492 260,000 1,288,000 193,000 320,000
Overonemilliontonnesofhighgradesilver,leadandzincoreminedanddefined
EdgeofavirtuallyuntouchedCRDsystem
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DOUBLINGPRODUCTION HALVINGCOSTS
Strongfree-cashflowgeneration
8
BasedonPEApreparedbyRoscoePostle AssociatesInc.datedJuly9,2015
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GENERALMODEL/NOTTOSCALE
Turnaroundoperations
Dryconditionsachievedthroughenhancedpumpingsystem
World-classpartners–HydroRessources andTechnosub
9
Pumpingcleanwaterdirectlyfromwaterbearingfaults
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TonnesMilled
SilverE
quivalentO
uncesProduced
Positionedtocontinuerampingupproduction
14,720 14,453 12,003 14,417 11,934 13,877 19,953 17,978
363,552 368,568
255,760
305,934
205,314
289,566
500,763475,007
0
100,000
200,000
300,000
400,000
500,000
600,000
0
5,000
10,000
15,000
20,000
25,000
Q12016 Q22016 Q32016 Q42016 Q12017 Q22017 Q32017 Q42017
Tonnes AgEqoz
Increasedproductionpost-optimization
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Returningtoindustryleadingcosts
*AdjustedAISCpersilverouncepayableexcludesone-timesustainingcapitalexpendituresassociatedwiththe
OptimizationPlan,withnoadjustmentsinQ32017.
$10.38 $9.81
$17.95 $18.48$22.44
$18.10
$2.46
$16.21 $15.27
$33.92
$41.80 $42.48
$28.80
$11.62
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Q12016 Q22016 Q32016 Q42016 Q12017 Q22017 Q32017
TotalCashCosts AdjustedAll-inSustainingCostPerSilverOuncePayable
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MINED-OUTMANTOS
CURRENTRESOURCE
RAMP
DEWATERINGWELLS
Operatingfrommultiplefacesin4mantosGuadalupeSouth22,000tonnes @
1,420g/tAgEq
62383,000tonnes @
1,766g/tAgEq
Pierna48,000tonnes @
1,464g/tAgEq
Rodilla82,000tonnes @
1,148g/tAgEq
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1.PEApreparedbyRoscoePostle &AssociatesInc.datedJuly9,2015.Basecase$17/oz silver,$0.90/lb
lead,$1.00/lbzinc
2.PeakProductionbasedoncompletionofimplementation,now2018-2020
BasedonPEApublishedin20151
PeakProduction (2016-2019)2
NetCashFlow2 $58.4million
Avg.AnnualProduction
1.9millionouncessilver
12.2 millionpoundslead
14.3millionpoundszinc
ProductionCosts
$6.02totalcashcostsperpayable
ounce
$9.00 AISCperpayablesilverounce
Transitionunderwayto300+tonnes perday
Keyimprovementsrealized:• Limiteddepletionofresourcesince
lastupdate
• LowerOPEX/tonne (50%reduction)
• Lowerelectricitycosts($0.09perKWH
v.$0.13perKWH)
• Improvedforex(allcostsinMXPand
CDN)
• 60%reductionintreatmentand
refiningcharges
14
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LocatedinZacatecas,Mexico,approx.220kmfromPlatosa Minewithlowtruckingcosts
800tpd millingcapacity,abilitytoincreaseprocessingcapacityataminimalcost
Newtailingsfacilitywith20yearcapacity
BulksampleinQ32018onorefromHecla’sSanSebastianMine,42kmNW
MillingagreementwithHeclafor400tpdcommencing2019
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Ma j o r CRD s C RD s1 CerroSanPedro:151Mt(NewGold)2 SanMartin-Sabinas:120Mt(Peñoles)
3 Terrazas:87Mt(Andromeda)
4 SantaEulalia:50Mt(Grupo Mex.)
5 Penasquito:45Mt+(Goldcorp)
6 Naica:35Mt(Peñoles)
7 SantaBarbara:30Mt+(Grupo Mex.)
8 Charcas:25Mt(Grupo Mex.)
9 Velardena:18Mt(Peñoles)
10 Bismark:15Mt(Peñoles)
11 Cinco deMayo:12Mt(MAGSilver)
12 Catorce LaPaz:10Mt
13 Cananea:10Mt+CRD(Grupo Mex.)
14 Zimapan:8Mt
15 Mapimi-Ojuela:6Mt(Peñoles)
16 SanPedroCorralitos:5Mt+
17 LaNegra:5Mt(Aurcana)
18 SierraAlmoloya:1Mt+
LaPlatosa:940,000t(Mined&remainingResources)
MIGUELAUZAMILL
LAPLATOSAMINE
MEXICOCITY
TORREON
DURANGO
FRESNILLO
PORTOFMANZANILLO
Topsilverproducingcountryintheworld
Mexico’sCRDBeltLARGESCALE
HIGHGRADE
SIMPLEMININGANDMETALLURGY
Avg.of10-15Mtonneswiththe
largestwellinexcessof50Mtonnes
Polymetallic,withmetalcontents
rangingfrom1-12%Pb;1-18%Zn;
60-600g/tAg;upto2%Cuand
6g/tAu
Large,continuousindividualorebodies
averaging0.5Mto2Mtonnesinsize,
withsomeupto20Mtonnes,
favourablemetallurgywithminimal
environmentalfootprint
131016
113
4
6
187
2
159 5
12
81
17
14
16
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GrowPlatosaDelineateadditional
tonnesnearexistingmine
workings
Discoveranddelineate
newmanto depositsFollow-uponskarn
discoveryandother
regionalskarn/Source-
styletargets
17
MorePlatosa’s WorldClassDiscovery
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2016/17RESULTS
N
18
PlanviewofPlatosa Mine
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EX17UG3236.8m@
886g/tAg,8.8%Pb, 20.5%Znor 2,318g/tAgEq
EX16UG27413.0m@
0.6g/tAu,662g/tAg,4.9%Pb, 25.5%Zn,or1,886g/tAgEq
EX17UG3487.6m@
299g/tAg,3.7%Pb, 4.0%Znor 646g/tAgEq
EX17UG3719.1m@
1,192g/tAg, 13.2%Pb,18.3%Znor 2,648g/tAgEq
Including6.2m@
1,473 g/tAg, 14.8%Pb,25.6%Znor 3,355g/tAgEq EX17UG369
3.1m@1,528g/tAg,
13.5%Pb, 16.9%Znor2,926g/tAgEq
EX17UG370A1.8m@
1,132g/tAg,7.9%Pb, 2.9%Znor1,609g/tAgEq
EX17UG3672.8m@
536g/tAg,4.9%Pb, 9.0%Znor1,188g/tAgEq
EX17UG3611.9m@161g/tAg
3.4%Pb,0.3%Znor317g/tAgEq
EX17UG3592.0m@
521g/tAg,3.3%Pb, 0.2%Znor670g/tAgEq
EX17UG3702.5m@
639g/tAg,7.3%Pb, 2.7%Znor1,076g/tAgEq
EX17UG33011.1m@
0.1g/tAu, 1,204g/tAg,9.3%Pb,13.4%Znor
2,255g/tAgEqIncluding5.2m@
0.2g/tAu, 2,079g/tAg,14.2%Pb, 23.9%Znor
3,857g/tAgEq
EX17UG3584.6m@
739g/tAg,4.1%Pb,1.1%Znor962g/tAgEq
EX18UG3731.4m@
3,125g/tAg,27.1%Pb, 3.0%Znor4,402g/tAgEq
EX18UG3757.3m@
1,397g/tAg,7.44%Pb,23.2%Znor 2,858g/tAgEq
EX17UG349to
EX17UG354
623
674
Rodilla
EX17UG360,EX17UG362,EX17UG363,EX17UG364,EX17UG368,EX17UG372
EX17UG360
EX17UG364A
EX17UG3653.3m@
208g/tAg,2.9%Pb, 4.0%Znor526g/tAgEq
EX17UG3661.5m@
221g/tAg,2.1%Pb, 0.2%Znor322g/tAgEq
EX17UG3475.1m@
855g/tAg,8.8%Pb, 9.7%Znor 1,705g/tAgEq
EX17UG355to
EX17UG357
Platosa Mantos PlanView
674Rodilla
623
Platosa Mantos LookingNorthEast
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SantaEulaliacrosssection– over300yearsofproduction
Platosa isjustgettingstarted,sofarmineralizationonlydefinedinsinglestratigraphichorizon
20
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RincondelCaido
LaPlatosa
AfterSillitoe andBonham1990
21
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Platosa Mineoccursononly56haof21,000hapackage.
PotentialonpropertyformultiplePlatosa’s aswellaslargeskarnmineralizationfootprint
Intrusives imagedfromZTEMsurvey
Mappedmineralbearingstructures
23kmstrikelengthalongconcession
22
SanGilberto
Jaboncillo
Saltillera North
Refugio
PlatosaSouthTrend
LaPlatosa
SaltilleraUpto50mofmineralized
skarnIntersectedinhistorical
drillingwithgradesupto660
g/tAg,19.4%Pb and6.23%Zn
over0.8m
[email protected]/tAu,132g/tAg,
3.13%Pb and1.74%Zn
[email protected]/tAu,21.1g/tAg,
3.57%Zn
[email protected]/tAu,146g/tAg,
2.76%Pb and1.85%Zn
RinconDelCaido
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• Currently
drillingin
Platosa Corridor
• Advancingnew
regionaltargets
throughsoil
geochemistry
andinduced
polarization
(“IP”)surveys
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14,000haonnorthernpartofprolificFresnillo silverbelt
• 35kmSEofHecla’shigh-
gradeSanSebastian
• 135kmNWofFresnillo
andJuanicipio
• NI43-101resourceof
22.8Moz AgEq Ind.,
11.8Moz Inf.
• Newexploration
prospectfromreviewing
regionalgeology
• Potentialtofeedmill
withregionaldiscoveries2424
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EpithermalSystem,Geneticmodel
Highgrade
preciousmetals
veinletsatMA??
BladedVeinson
surfaceat
Madeira
Carbonate
dominatedbig
barrenveinsin
hole118
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Veinsexhibittexturesand
tracemineralization
indicativeofhigherpartof
epithermalsystem
BladedVeins
onsurfaceat
Madeira
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VeinextensionsundercovertobeexploredHistoricaldrillinghasencounteredultrahighgradeveinletsnearsurfacewhilethicker“parent”veinshaveonlybeentestedabovethepotentialpreciousmetalshorizons
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350employeesandcontractors
100%Mexican
LocalcommunitiesofBermejillo&Mapimi
FullyEngaged
Health,education&socialinfrastructure
SustainableInvestments
Wepartnerwithlocal,stateandfederalgovernmentstobringrealadvancementstoourcommunities
28
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KEYSHAREHOLDERS
SHARESTRUCTURE TRADINGSUMMARY*
EricSprott
Sprott AssetManagement
DundeeCorporation
NotaeInvestments
USGlobal
*AsatMarch1,2018
ANALYSTCOVERAGECantorFitzgerald– MikeKozak
Cormark Securities– RichardGray
PIFinancial– PhilKer
RedCloud– DerekMacpherson
NetWorkingCapital(Q3-2017):$5.0M
Production(2016):0.8MozAg(incon.)and
1.3MozAgEq
RECENTFINANCINGS:C$3.0M - privateplacementwithEricSprott (April2016)
C$15.2M - boughtdealpublicoffering(closedinearlyQ32016)
Issued&Outstanding: 94.8M
Options(avg.$1.18): 1.4M
DSUs: 2.3M
RSUs: 1.9M
Warrants(C$0.50): 1.9M
(C$0.65): 3.3M
(EXN.WTatC$1.75): 6.6M
(EXN.WT.AatC$2.80): 3.7M
FullyDiluted: 115.9M
TSX:EXN OTC:EXLLFAv.DailyVol: 152,306 71,008
52-WeekRange: $2.30-1.22 $1.87-0.92
MarketCap: CAD$165M US$129M
29
C$14.8M - boughtdealpublicoffering(closedinNovember2017)
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Mineoptimizationcomplete
Strongfree-cashflowgeneration
Exceptionalexplorationpotential
30
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Appendix
31
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2017 2016 2015 2014 2013
TonnesMilled 63,742 55,593 56,849 64,206 69,862
Grades
Ag(g/t) 393 456 491 603 718
Lead(%) 3.75 4.40 4.56 6.57 6.14
Zinc(%) 5.30 5.70 7.20 8.90 8.00
MetalProduction
Ag(oz) 718,460 752,689 794,289 1,162,929 1,409,852
Lead(Ib) 4,241,225 4,427,300 4,387,358 7,515,720 7,342,108
Zinc(Ib) 6,059,922 5,581,060 7,362,938 10,075,172 9,876,955
AgEq (oz) 1,470,650 1,293,815 1,429,439 2,048,017 2,055,567
Recoveries
Ag(%) 89.3 90.5 89.0 91.8 92.6
Lead(%) 80.9 82.1 77.7 81.9 79.4
Zinc(%) 81.4 80.1 81.6 81.8 80.2
TotalCashCost/Agozpayable $13.42 $15.11 $13.76 $10.01
AdjustedAISC/Agoz(1) $25.82 $22.58 $21.69 $19.62
Adjusted Net Income(Loss)(2)(3) ($3.4M) ($4.0M) ($3.8M) ($5M)
Cash FlowfromOperations(4) ($3.2M) ($1.8M) $1.2M $1.7M
(1) AdjustedASICperpayableounceexcludestherelativelyone-timesustainingcapitalexpendituresassociatedwiththe“PlatosaOptimizationPlan”(associatedcash
expenditureswerenil$inQ32017,9-Mos2017- $3.5millionand2016- $4.8million)
(2) AdjustednetlossesreflectresultsbeforefairvalueadjustmentsonembeddedderivativesandwarrantsrelatedtotheDebentures (Q32017– $5.6millionloss,9-Mos2017–
$2.7millionloss,2016- $10.8millionloss,2015- $0.3millionloss).ThefairvalueadjustmentderivesfromtheperformanceoftheCompany’sstockduringeachperiod(Q3
2017– C$1.42toC$2.03,9-Mos2017- C$1.64toC$2.03,2016- $0.31to$1.64and2015- $0.25atinceptionto$0.31),resultinginvariancesinvaluation/costuponthepotential
conversionorexerciseofthedebenturesorwarrants,respectively).
(3) Adjustednetlossin2015reflectsresultsbefore$0.7millionimpairmentchargeonDeSantisexplorationpropertyinCanadathat wassubsequentlysoldin2016.
(4) Cashflowfromoperationsbeforechangesinworkingcapital
32
WWW.EXCELLONRESOURCES.COMTSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLF
LowestcashG&Asince2005,beforeproductioncommenced
$4.7 $4.9
$7.8
$5.7
$4.6
$5.8 $6.1
$3.9$3.4
$2.4 $2.5
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
CashG&A($M
)
33
WWW.EXCELLONRESOURCES.COMTSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLF
0
100
200
300
400
500
600
700
800
900
0 100 200 300 400 500 600 700 800 900
M&IR
esou
rceGrade
(Agg/t)
ProductionGrade2016(Agg/t)
GreatPanther,TopiaMAG/Fresnillo,Juanicipio*
Fresnillo,ElSaucito
Fresnillo,FresnilloPanAmerican,LaColorada
Primero,SanDimas
Endeavour,Guanacevi
*Developmentstageproject.
**Basedonpublicdisclosuredocuments.
Excellon,LaPlatosa
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WWW.EXCELLONRESOURCES.COMTSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLF
• Ratio– tradingat75:1,but
producedatlessthan10:1
• Consumption– 50%ofsilver
productionconsumed&mustbe
replacedbymineproduction
• Future– solar,hightechnology
andmedicine– theirreplaceable
metalofinnovation
• Ongoingcurrencywar
• Negativeinterestrates– no
opportunitycosttoholdgold
• Majorcentralbankbuyingand
movetophysicalexchangesin
theEast
THECASEFORGOLD THECASEFORSILVER
• Deutschbank pricefixingscandalinbothgoldandsilver
35
WWW.EXCELLONRESOURCES.COMTSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLF
*Basedonoriginalcapitalinvestmentof$9.9MasdisclosedinPEApreparedbyRoscoePostle AssociatesInc.datedJuly9,2015andbasecasemetalspricesof$17/oz
silver,$0.90/lblead,$1.00/lbzinc.
LOM(2015-2020) PeakProduction(2016-2019)
Agozpayable(‘000s) 8,492 6,932
TonnesProduced 504,504 383,541
$M $/t $/oz $M $/t $/oz
Mining 101.6 201.4 11.97 72.3 188.5 10.43
Processing 31.1 61.6 3.66 23.4 61.0 3.37
OperatingCashCost 132.7 263.0 15.63 95.7 249.5 13.80
By-productcredits (68.9) (136.5) (8.11) (54.3) (141.5) (7.83)
Royalties 0.5 1.1 0.06 0.3 0.9 0.05
TotalCashCost 64.3 127.6 7.58 41.7 108.9 6.02
G&A 15.9 31.5 1.87 10.7 27.4 1.54
ReclamationCosts 0.4 0.9 0.05 0.3 0.8 0.04
Exploration 5.0 9.8 0.58 3.3 8.5 0.47
Cap-Ex 19.8 39.2 2.33 6.4 16.8 0.93
Totalsustainingcosts 41.1 81.4 4.83 20.7 54.0 2.99
All-insustainingcosts 105.4 209.0 12.41 62.4 162.9 9.00
36
WWW.EXCELLONRESOURCES.COMTSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLF
*Basedonoriginalcapitalinvestmentof$9.9MasdisclosedinPEApreparedbyRoscoePostle AssociatesInc.
datedJuly9,2015andbasecasemetalspricesof$17/ozsilver,$0.90/lblead,$1.00/lbzinc.
LOM PeakProduction
(2015-2020) (annualavg.) (2016-2019) (annualavg.)
TonnesOre (‘000s) 505 84 384 96
Ore/day tpd 256 256 274 274
HeadGrades
Ag(g/t) 638 638 681 681
Lead(%) 6.8 6.8 7.0 7.0
Zinc(%) 8.1 8.1 8.6 8.6
MetalProduced(‘000s)
Ag(oz) 9,316 1,553 7,608 1,902
Lead(Ib) 62,424 10,404 48,644 12,161
Zinc(Ib) 71,017 11,836 57,144 14,286
Pb Conc. 47,237 7,873 36,802 9,200
ZnConc. 63,498 10,583 51,093 12,773
Recoveries
Ag(%) 90 90 91 91
Lead(%) 82 82 82 82
Zinc(%) 77 77 79 79
37
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Ourvisionistobeapremiersilverproducerby
NishaHasanVicePresident,InvestorRelations416-364-1130| [email protected]
Tobecomeapremierpreciousmetalsproducerbycapitalizingongenerationalopportunitiesandstrivingtoalwaysdobetterforourshareholders,employeesandneighbouringcommunities