Excellon Resources Inc. entered into the definitive agreement to acquire Minera La Negra S.A. de C.V. from Dalu S.À R.L. for $50 million on January 8, 2023. Excellon has agreed to pay an aggregate of up to $50 million in connection with the purchase of MLN. Upon closing of the Acquisition, Excellon will issue the Seller and M Grupo an aggregate of 56,191,666 common shares of Excellon (?Excellon Shares?) at a price of C$0.48 per Excellon Share (33,715,000 Excellon Shares to be issued to the Seller and 22,476,666 to be issued to a subsidiary of M Grupo), for a deemed value of $20 million upon closing of the Acquisition. In addition, Excellon has agreed that it will pay aggregate deferred, consideration of $30 million through two payments (the ?Deferred Consideration Payments?) to the Seller and M Grupo:(a) within three days after the declaration of commercial production at the La Negra Mine, Excellon will pay an aggregate of $15 million to the Seller and M Grupo; and(b) twelve months after the declaration of commercial production at the La Negra Mine, Excellon will make a further aggregate payment of $15 million to the Seller and M Grupo.The Agreement and the transactions contemplated therein are subject to customary conditions for transactions of similar size including receipt of Excellon shareholder approval, conditional listing approval of the TSX, as well as the La Negra JV Termination, completion of the Debenture restructuring, and delisting of Excellon Shares from the NYSE American and deregistration with the U.S. Securities and Exchange Commission which the Company has concurrently announced by separate news release. The Board of Directors of Excellon has considered and unanimously approved the entering into the Agreement and the completion of the transactions contemplated by the Agreement. Completion of the Acquisition is expected to occur on or before April 30, 2023. Excellon Resources have offered private placement of up to 28,571,428 subscription receipts of the Company. The transaction is expected to close no later than June 15, 2023. Osler, Hoskin & Harcourt LLP is acting as legal counsel to Excellon on the Acquisition. Bennett Jones LLP is acting as legal counsel on the Debenture restructuring. Canaccord Genuity is acting as financial advisor to Excellon. Cormark provided an independent fairness opinion to the Excellon Board of Directors. Torys LLP acted as legal advisor to Dalu S.À R.L.

Excellon Resources Inc. cancelled the acquisition of Minera La Negra S.A. de C.V. from Dalu S.À R.L. on July 20, 2023.