Mexico’s highest grade Silver producer - Excellon Resources€¦ · Annual and Special Meeting of...

AnnualandSpecialMeetingofShareholdersMay10,2017

Mexico’shighestgradeSilverproducer

www.excellonresources.com

DisclaimerThis document contains “forward-looking statements” within the meaning of applicable Canadian securities legislation and applicable U.S. securities laws. Except for statements ofhistorical fact relating to the Company, such forward-looking statements include, without limitation, statements regarding the future results of operations, performance andachievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineraldeposits/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 statementsare 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 undertakesno 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 anyforward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-lookingstatements 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, significantdownward variations in the market price of any minerals produced (particularly silver), the Company’s inability to obtain any necessary permits, consents or authorizations requiredfor 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 itsbusiness 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 theBusiness – 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 technicalreports 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 respectto 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 MineralResources and Mineral Reserves. The CIM standards differ significantly from standards in the United States. United States investors are advised that while such terms are recognizedand required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount ofuncertainty 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 ahigher 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 offeasibility or other economic studies other than Preliminary Economic Assessments. United States investors are cautioned not to assume that all or any part of Indicated MineralResources 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 iseconomically 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. TheCompany advises United States investors that the United States Securities and Exchange Commission's mining guidelines strictly prohibit information of this type in documents filedwith 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 similarproperties are not indicative of mineral deposits on the Company's properties.

CautionaryNoteRegardingthePreliminaryEconomicAssessment(PEA)TheassessmentsinthePEAarepreliminaryinnature,mineralresourcesarenotmineralreservesanddonothavedemonstrated economicviability,andthereisnoassurancethepreliminaryassessmentswillberealized.TheoutcomeofthisPEAmaybemateriallyaffectedbytheclosingofthefinancing, metalspricing,environmental,permitting,legal,title,taxation,socio-political,marketing,orotherrelevantissues.

QualifiedPersonsBenPullinger,P.Geo,Vice-PresidentGeology,isresponsiblefortheCompany’sexplorationprogramsandhassupervisedthepreparationofthetechnicalinformation,whichisdisclosedinthispresentation.HehasactedastheQualifiedPerson,asdefinedinNI43-101,forthisdisclosure.

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www.excellonresources.com2

Atransformativeyear

2016– Atransformativeyear


Astrongyearcreatingshareholdervalue

Implementedasimplestrategytodoubleproductionandhalvecosts

Completedkeyfinancingstomovethecompanyforward

Resumedexplorationwithimmediatesuccess

Keyadditionstoboardandmanagement

Corporateresponsibilityenhancements


US$50m+infreecashflow(2017-2020)4

DOUBLINGPRODUCTION HALVINGCOSTS


AndréFortierChairman

AlanMcFarland

Daniella Dimitrov

LaurieCurtis

NedGoodman

OliverFernández

BrendanCahill

BoardBrendanCahillPresidentandCEO

RupyDhadwarChiefFinancialOfficerBenPullingerVice-President, GeologyDenisFloodVice-President, TechnicalServices

Dr. CraigFordVice-President, Responsibility

Ronald MarinoVice-President, Finance

NishaHasanDirector,InvestorRelations

Management


Deliveringabest-in-classmanagementsystemtodriveperformance

Well-positionedtoattractEquatorBankfinancing

Aclearcommitmenttosafety,environmentalandcommunityexcellence

Creatingaplatformforgrowth


APRIL2016:

$3M

• InvestmentbyEricSprott

• Keyvoteofconfidencebylegendarypreciousmetalinvestor

• Catalystfor160%increaseinmarketprice($0.50to$1.30)

JULY2016:$15.2M

• BoughtdealfinancingleadbyCantorFitzgerald

• FurtherinvestmentbyEricSprott

• Catalystfor100%increaseinmarketprice($1.20to$2.40)


-75%

-50%

-25%

0%

25%

50%

75%

May-16 July-16 September-16 November-16 January-17 March-17 May-17

ExcellonResources Silver GDXJ

6%

-4%

-18%


Turnaroundoperations


Dewateringwellsdrilleddeepbelowmineworkings


Equippedwithhighefficiencysubmersiblepumps


Dischargelinetransferringwaterfromsubmersibles


Highefficiencyboosterpumps– 795Primary


Highefficiencyboosterpumps– 623Secondary


Dischargelinetosurface


Watermanagement


Dewateringwells

Targeteddropof4metres permonthpost

optimization

AccesstoPiernaManto 48,000tonnes@1,464g/tAgEq

Accessto623Manto83,000tonnes@1,766g/tAgEq

WatertableinH22017

MINED-OUTMANTOS

CURRENTRESOURCE

RAMP

DEWATERINGWELLS

Developmentandproductionhistorically

impactedbywetconditionswith

intensivegroutingandpumpingtokeepwaterout.


0

200

400

600

800

1000

1200

1400

1600

1800

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

AgEq

(g/t)P

rodu

ctionGrad

e

Miningremnantandperipheralore,notdepleting

resource

Currentlydrillingtoincreasegrade andminelongevity

beyond2021

Developingintohighergrademantos andimprovedminesequencing


NextSteps

www.excellonresources.com21 www.excellonresources.com21

Ma jo 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:10Mt13 Cananea:10Mt+CRD(Grupo Mex.)14 Zimapan:8Mt15 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.of10-15Mtonneswiththelargestwellinexcessof50Mtonnes

Polymetallic,withmetalcontentsrangingfrom1-12%Pb;1-18%Zn;60-600g/tAg;upto2%Cuand6g/tAu

Large,continuousindividualorebodiesaveraging0.5Mto2Mtonnesinsize,withsomeupto20Mtonnes,favourablemetallurgywithminimalenvironmentalfootprint

131016

113

4

6

187

2

159 5

12

81

17

14


SantaEulaliacrosssection– over300yearsofproduction

Platosaisjustgettingstarted,sofarmineralizationonlydefinedinsinglestratigraphichorizon


2016/17RESULTS

N

23


Platosa mineon56haof21,000haprospectiveterrain

24


KEYSHAREHOLDERS

SHARESTRUCTUREIssued&Outstanding: 76.2MOptions(avg.$1.08): 1.8MDSUs: 2.2MRSUs: 1.9MWarrants(C$0.50): 1.9M

(C$0.65): 3.3M(EXN.WTatC$1.75): 6.6MConvertibleDebentures($0.50):10.5MFullyDiluted: 104.4M

TRADINGSUMMARY

EricSprottSprott AssetManagementDundeeCorporationPureFunds SilverMinersETF– SILJNotae InvestmentsGlobalXSilverMinersETF– SILCharteris TreasuryPortfolioManagerBlackrockGlobalSilverMinersETF– SLVP

*AsatMay8,2017

TSX:EXN OTC:EXLLF90-DayAv.DailyVol: 109,953 50,60052-WeekRange: $2.40-1.00 $1.85-0.76MarketCap: CAD$111M US$84M

ANALYSTCOVERAGECormark Securities– GraemeJenningsRedCloud– DerekMacpherson

NetWorkingCapital(Q1-2017): $6.2MCADProduction(YE-2016): 0.8MozAg(incon.)

1.3MozAgequivalent

C$6.6M– C$5.61M3.75%convertibledebentures(4year,C$0.50conversion)andsaleof1.25%NSRforC$0.99M

C$3.0MprivateplacementwithEricSprott

C$15.2Mboughtdealpublicoffering(closedinearlyQ32016)

RECENTFINANCINGS

Ourvisionistobeapremiersilverproducerby

NishaHasanDirector,InvestorRelations416-364-1130| [email protected]

Tobecomeapremierpreciousmetalsproducerbycapitalizingongenerationalopportunitiesandstrivingtoalwaysdobetterforourshareholders,employeesandneighbouringcommunities

Mexico’s highest grade Silver producer - Excellon Resources€¦ · Annual and Special Meeting of...

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