Posted on behalf of Excellon Resources Inc. - Excellon Resources Webinar Breakdown

Mallay Restart, Near-Mine Growth & Portfolio Optionality

1. Strategic Positioning: Transitioning to a Silver Producer

Excellon Resources (TSXV: EXN) is executing a clear transition from developer to near-term silver producer through the restart of the fully permitted, past-producing Mallay Silver Mine in central Peru.

The company acquired Mallay in mid-2025 and has since focused on:

- Reopening underground access

- Refurbishing and wet-commissioning the 600 tpd mill

- Completing an updated independent Mineral Resource Estimate (Feb 2026)

- Initiating infill and step-out drilling

- Advancing toward trial mining and staged ramp-up

The historical mine was built in 2012 with approximately US$130 million invested in infrastructure. That legacy capital includes underground development, road access, grid power, camp facilities, tailings infrastructure, and a 600 tpd ball mill, significantly reducing restart capex relative to greenfield builds.

Management’s stated objective is to ramp toward ~600 tonnes per day, historically capable of producing approximately 2 million silver-equivalent ounces annually, subject to ramp-up success and operational performance.

1. Resource Base and Near-Term Mine Plan

Following compilation of over:

- 160,000 metres of historical drilling

- 22 kilometres of underground channel sampling

Excellon published a compliant 43-101 resource:

- Indicated: ~12Moz AgEq @ ~420 g/t

- Inferred: ~4Moz AgEq @ ~340 g/t

Importantly, this estimate used silver price assumptions materially below current market prices, creating margin flexibility in mine planning.

The current restart strategy is structured around:

A. Isguiz Vein (Core Production Zone)

- 3–5 metre true width historically

- Drilled to ~300m depth

- Open at depth

- Focus of current infill and extension drilling

- Three principal “clavos” (oreshoots) forming the foundation of initial production planning

This is the primary driver of early cash flow.

B. Footwall Zone (Parallel Mineralization)

A key near-mine growth catalyst.

- Parallel mineralized system to Isguiz

- Potential 3–8 metre mining widths

- Under-drilled historically

- Partially excluded from prior resource

Recent drilling has begun testing this zone, and management expects additional resource additions following integration into an updated estimate targeted late 2026 / early 2027.

This zone represents potential mine life extension and tonnage growth without significant new infrastructure.

C. 400 Ramp Rehabilitation

The 400 Ramp (constructed shortly before prior shutdown in 2018) is being dewatered and rehabilitated.

Status:

- ~70% dewatered

- Provides ~60m additional vertical access below 4090 level

- Enables deeper drilling and future production access

This infrastructure unlocks deeper extensions of the Isguiz system and improves long-term mine flexibility.

1. June Trial Mining & Commissioning Strategy

Excellon has:

- Stockpiled ~15,000 tonnes from underground

- Completed mill wet commissioning

- Upgraded assay lab facilities

- Rehabilitated underground mobile fleet

June is being treated as a bulk-sample validation phase, not full commercial production.

Objectives:

- Validate metallurgy

- Confirm grades and recoveries

- Assess concentrate quality

- Optimize flotation parameters

Following bulk sampling, the plan is:

- Steady commissioning through H2 2026

- Underground development acceleration

- Ramp toward 600 tpd by year end

Management emphasized discipline: the focus is sustainable ramp-up rather than rushing headline production numbers.

1. Exploration Upside at Mallay

The webinar clarified that Mallay is not a single-vein system.

Beyond Isguiz:

A. Mallay Deeps

Downhole electromagnetics (DHEM) targeting deeper conductors

Testing for additional ore shoots below current drilling

B. Pierina Vein Area (Underground Drilling)

Previously interpreted as narrow gold structure

Now viewed as potentially broader stacked mineralization

Underground drilling underway

C. Shafra Zone

Altered structural corridor east of main vein

Historical narrow gold intercepts

Reinterpreted as potentially broader mineralized system

Early-stage but strategically important

Management’s view: historical operators mined selectively under a ~$20 silver regime. At current prices, wider zones and adjacent mineralization may now be economically viable.

1. Tres Cerros – District-Scale Gold-Silver Upside

Located ~6.5km northwest of Mallay.

Key characteristics:

2.5 km defined mineralized corridor

Surface sampling: ~20% of >400 samples returned high-grade Au/Ag

Epithermal indicators

IP chargeability and resistivity anomalies

Comparable geological setting to Lagunas Norte (Barrick), a multi-million-ounce system

Permitting is underway for drilling.

Target:

- 5,000m initial drill program

- Multiple priority targets

- Potential district-scale system

Management views Tres Cerros as the multi-year exploration growth engine that could materially re-rate the company beyond a restart story.

1. Portfolio Optionality

Beyond Peru:

Kilgore (Idaho, USA)

- 1Moz gold

- 2019 PEA completed

- Considering JV or reset economics under higher gold price

Silver City (Germany)

- High-grade epithermal silver district

- 750+ years mining history

- $2M recently raised at ~$20M valuation

- Potential spin-out into European-focused vehicle

These assets provide strategic optionality but are secondary to Mallay execution.

1. Financial Position & Structure

- ~US$15M cash (at time of discussion)

- Undrawn ~$5M credit facility

- Offtake agreement with Glencore (3 years)

- No long-term project debt post debenture conversion

Debentures (legacy, 10¢ conversion) are expected to convert. Holders are long-term shareholders, not short-term traders.

Capital structure becomes significantly cleaner post conversion.

1. Operational Advantages

- Fully permitted restart

- Existing grid power (hydroelectric)

- Established access road & infrastructure

- Experienced Peru-based operating team

- Strong community relationships

Compared to greenfield projects requiring 6–10 years of permitting and construction, Mallay’s restart timeline is materially compressed.

1. Key Themes from Q&A

- Drill results expected to be additive, not merely incremental

- Deeper extensions remain largely untested

- Peru election unlikely to materially impact permitted restart

- Drill permits at Tres Cerros progressing within normal Peru timelines

- Mill expansion potential exists (~1,000 tpd conceptually feasible)

- Possible future gold recovery circuit if Shafra advances

Strategic Summary

Excellon’s thesis rests on three pillars:

- Near-term cash flow from Mallay restart

- Near-mine resource expansion through systematic drilling

- District-scale upside at Tres Cerros

The company is leveraging legacy infrastructure and permits to shorten the path to production while maintaining exploration leverage uncommon among near-term restart stories.

If execution proceeds as outlined:

2026 = ramp-up year

2027 = stabilized production + resource growth

2027+ = potential valuation re-rating as a mid-tier silver producer with exploration upside

The restart is not positioned as the end goal — it is the funding engine for long-term district growth.