Excellon Completes $15.2 Million Bought Deal Financing

­­­­­­­­­­­ TORONTO, ON --(Marketwired - July 26, 2016) -

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Excellon Resources Inc. ( TSX : EXN ) ( OTC : EXLLF ) ("Excellon" or the "Company") is pleased to announce that it has closed its previously announced bought deal public offering of 13,250,000 units (collectively, the "Units"), including 1,728,260 Units issued upon exercise of the over-allotment option, at a price of $1.15 per Unit for aggregate gross proceeds of approximately $15.2 million (the "Offering"). The Offering was underwritten by Cantor Fitzgerald Canada Corporation, Sprott Private Wealth L.P., Cormark Securities Inc. and PI Financial Corp.

As previously announced, each Unit consists of one common share in the capital of the Company (each a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder to acquire one additional Common Share at a price of $1.75 for a period of 24 months following the closing of the Offering.

The Company intends to use the net proceeds of the Offering to fund accelerated exploration at the Company's Platosa Project, for capital expenditures at the Platosa Mine and Miguel Auza Mill, for working capital expenses and for general corporate purposes. For additional details regarding the use of proceeds of the Offering, please see the Company's short form prospectus dated July 19, 2016 that is available under the Corporation's profile on SEDAR at www.sedar.com.

In connection with the Offering, Eric Sprott purchased 5,826,826 Units (for total consideration of $6,700,849.90) and, based on Mr. Sprott's SEDI filings, now holds an aggregate of 14,433,082 Common Shares and 6,246,746 warrants, representing a 19.3% interest in the Company on a non-diluted basis and a 25.5% interest on a partially diluted basis assuming the exercise of all warrants held by Mr. Sprott (prior to the Offering, Mr. Sprott held 8,606,256 Common Shares and 3,333,333 common share purchase warrants). In connection with the Offering, Mr. Sprott provided an undertaking to the Toronto Stock Exchange (the "TSX") that he will not exercise any warrants, without the prior receipt of shareholder approval, in the event such action would result in him owning more than 19.9% of the Company's common shares on a non-diluted basis. At the next annual and/or special meeting of shareholders, the Company will seek to obtain requisite shareholder approval to allow Mr. Sprott to exercise the remainder of his warrants, as a result of which he may, under TSX rules, "materially affect control" of the Company.

The Company has been advised that the Units acquired by Mr. Sprott were acquired for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional Common Shares either on the open market or through private acquisitions or sell the Common Shares either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of Mr. Sprott's early warning report will appear on the Company's profile on SEDAR at www.sedar.com and may also be obtained by calling ‪(416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J2).

The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Excellon

Excellon's 100%-owned Platosa Mine is located in Durango, Mexico and is a high grade silver, lead and zinc mine. The Company is positioning itself by focusing on increasing the profitability of La Platosa's silver production and near-term mineable resources.

Forward-Looking Statements

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release, which has been prepared by management of the Company. This Press Release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, statements regarding the use of proceeds from the Offering, Mr. Sprott's investment objectives, the receipt of shareholder approval in respect of the exercise of warrants held by Mr. Sprott, the exercise of the Warrants, Mr. Sprott's undertaking to the TSX, 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, proposed production rates, potential mineral recovery processes and rates, business and financing plans, business trends and future operating revenues. Although the Company believes that such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, the Company cautions investors that such forward-looking statements made 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 factors, including, but not limited to, changes in management of the Company's approach, 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. Readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials.. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.