prnews




Toronto Stock Exchange - EXN




TORONTO, May 9, 2013 /PRNewswire/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or the "Company"), Mexico's highest grade silver producer, is pleased to provide an update on the status of its agrarian legal suit
against the Ejido La Sierrita (the "Ejido"), which was filed in August
2012. Excellon sued the Ejido to terminate the surface rights
agreement ("SRA") in respect of the surface rights to 1,100 hectares of
exploration ground west of the La Platosa Mine and for various damages
relating to the illegal blockade of the mine last year. The Ejido also
sued for termination of the SRA one week after being advised of
Excellon's suit.


At a hearing of the Agrarian Court held today, the formal return of the
1,100 hectares leased under the SRA was postponed pending further
negotiations in respect of 10 particular hectares. Excellon and the
Ejido have agreed to enter into Agrarian Court-supervised negotiations
for the outright sale of those 10 hectares to the Company. The next
hearing date for such negotiations is scheduled for June 27, 2013.


"We remain firmly on track for the best and most economically beneficial
resolution of this dispute for our La Platosa Mine, our employees, the
residents of Bermejillo, Mapimi and La Sierrita, our other stakeholders
and our shareholders," stated Brendan Cahill, President and CEO. "Our intended solution should ensure the security of the Mine, the
health, safety and wages of our workers and the most effective,
long-term investment and development plans with our local neighbours."


The decision to terminate the SRA (refer to press release dated
September 10, 2012) was driven by the need to limit the risk exposure
of the SRA on La Platosa production capabilities. This decision has
since been solidified by current capital markets conditions and has
become an element of Excellon's business strategy. As the Company
focuses on optimizing high-grade, low-cost production, increasing cash
flow and expanding high-grade and near term mineable resources at the
La Platosa Mine, the termination of the SRA will result in reduced
expenditures of over US$600,000 annually and near-term savings of
approximately US$600,000 in 2013. Excellon also intends to continue
its suit against the Ejido for damages relating to the illegal blockade
of the mine.


Excellon holds approximately 41,000 hectares of mineral and mining
rights at La Platosa. These rights entitle the Company to explore for
and mine minerals at La Platosa and in an extensive surrounding area,
including under any surface rights held by the Ejido. Excellon also
owns all surface rights needed to produce silver from the La Platosa
Mine and conduct further surface and underground exploration for
further high-grade manto mineralization and the CRD/Source of the La
Platosa mantos.


About Excellon
An Evolution in High-Grade Silver: Excellon's 100%-owned La Platosa Mine in Durango is Mexico's highest
grade silver mine, with lead and zinc by-products making it one of the
lowest cash cost silver mines in the country. The Company is
positioning itself to capitalize on undervalued projects by focusing on
increasing La Platosa's profitable silver production and near-term
mineable resources.


The Toronto Stock Exchange 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. This press
release contains forward-looking statements within the meaning of
applicable securities laws. Such 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, 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 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. 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 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. All of the Company's
public disclosure filings may be accessed via sedsar and readers
are urged to review these materials, including the technical reports
filed with respect to the Company's mineral properties, and
particularly the November 22, 2011 NI 43-101-compliant technical report
prepared by Roscoe Postle Associates Inc. with respect to the La
Platosa Property. 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.





SOURCE Excellon Resources Inc.



For further information: <p> Excellon Resources Inc.<br/> Brendan Cahill, President & CEO<br/> T. (416) 364-1130 E. <a href="mailto:info@excellonresources.com">info@excellonresources.com</a><br/> W. <a href="> </p>