Slide 1: Mexico's highest grade Silver producer
Mexico’s highest grade Silver producer TSX:EXN | OTC:EXLLF Investor Presentation – April 2015
Slide 2: Disclaimer
Disclaimer This document contains “forward‐looking statements” within the meaning of applicable Canadian securities legislation and applicable U.S. securities laws. Except for statements of historical fact relating to the Company, such forward‐looking statements include, without limitation, statemen
Slide 3: High grade Silver, Lead & Zinc; solid mine life, organic growth
High grade Silver, Lead & Zinc Solid mine life, organic growth • Measured and Indicated resource • Optimized operating plan to grade of 777 g/t Ag (20M AgEq oz increase production and decrease @ 1,277 g/t AgEq) costs • New discovery waiting to be drilled Experienced team Responsible Mining • Managem
Slide 4: La Platosa underground mine and infrastructure
• Underground mine with over 500,000 tonnes mined in the last 10 years • Remaining resources at over 1.2 kg/t AgEq – one of the richest silver resources in the world • Excellent infrastructure, access and security – grid power, national highway runs through the property 55 km from the city of Torreo
Slide 5: La Platosa 2013 Mineral Resource Estimate
La Platosa 2013 Mineral Resource Estimate Category Tonnes Ag Pb Zn AgEq Ag Pb Zn AgEq (‘000s) (g/t) (%) (%) (g/t) (M oz) (M lb) (M lb) (M oz) Measured 42 825 8.62 11.31 1,358 1.1 7.9 10.4 1.8 Indicated 443 772 8.40 10.05 1,270 10.9 81.9 98.0 18.0 M&I 484 777 8.42 10.15 1,277 12.0 89.8 108.4 19.8 Inf
Slide 6: M&I Resource Grade vs Production Grade
900 800 Great Panther, Topia Excellon, La Platosa 700 M&I Resource Grade (Ag g/t) 600 MAG/Fresnillo, Juanicipio* 500 Fresnillo, El Saucito Fresnillo, Fresnillo 400 Primero, San Dimas 300 Pan American, La Colorada 200 Endeavour, Guanacevi 100 0 0 100 200 300 400 500 600 700 800 900 Production Grade 2
Slide 7: Mantos resource by area and water management
Ag Pb Zn Ag Eq Tonnes Area/Manto (kt) (g/t) (%) (%) (g/t) 6A/6B Guadalupe 68 18 753 857 8.51 9.24 10.79 12.60 1,271 1,438 • Mantos – flat lying Guadalupe S. 26 939 8.06 14.08 1,514 massive sulphide bodies 623 83 1,232 10.24 9.43 1,777 Rodilla 83 683 7.03 10.59 1,147 • Production currently NE-1 158 5
Slide 8: Production and cost results 2012-2014
2014 2013 2012 Tonnes Milled 64,206 69,862 48,199 Ag (g/t) 603 718 846 Grades Lead (%) 6.57 6.14 6.75 Zinc (%) 8.90 8.00 11.81 Ag (oz) 1,162,929 1,409,852 1,081,165 Metal Production Lead (Ib) 7,515,720 7,342,108 5,731,160 Zinc (Ib) 10,075,172 9,876,955 10,450,813 Ag (%) 91.8 92.6 93.4 Recoveries Lea
Slide 9: Revenue by Metal
Leveraged to Strong Zinc Fundamentals Stable Revenue Contributions 1 Year Zinc Spot from Base Metals $60.0 Silver Lead Revenue by Metal ($ M) $50.0 Zinc $40.0 $40.8 $30.0 $29.5 $25.5 $21.0 $20.0 1 Year LME Zinc $7.1 Warehouse Stocks Level $10.0 $6.1 $4.8 $6.5 $- $7.4 $7.8 $7.0 $8.8 ~$14 2012 2013 20
Slide 10: All-In Sustaining Cost Calculation
All-In Sustaining Cost Calculation 2014 2013 Total Cash Costs per payable silver oz $13.76 $10.01 General and Administrative Costs (cash) $3.17 $3.08 Share-based Payments (non-cash) $0.61 $1.26 Reclamation Costs (non-cash) $0.17 $0.14 Exploration Sustaining Capital $0.85 $1.91 Capital Expenditures $
Slide 11: Market Capitalization and peer earnings comparison
$147 Market Capitalization 1 $15 2014 Mine Operating Earnings 2 $96 $13 2014 Adjusted Net Income 2 $60 $10 $37$30 Mine Operating Earnings, Net Income and $32 $29 $20 $5 $2 Market Capitalization ($ M) $1 $- AUM AXR SPM GPR AUN EXN SVL $(3) $(3) $(5) $(4) $(6) $(6) $(6) $(10) $(9) $(15) $(20) $(19) $
Slide 12: Top silver producing country in the world
Major CRDs CRDs 1 Cerro San Pedro: 151 Mt (New Gold) 10 13 2 San Martin-Sabinas: 120 Mt (Peñoles) 16 3 Terrazas: 87 Mt (Andromeda) 11 4 Santa Eulalia: 50 Mt (Grupo Mex.) 3 4 5 Penasquito: 45 Mt+ (Goldcorp) 6 Naica: 35 Mt (Peñoles) 6 7 Santa Barbara: 30 Mt+ (Grupo Mex.) 7 18 8 Charcas: 25 Mt (Peñoles
Slide 13: Mantos found on periphery of a Carbonate Replacement Deposit System
The high-grade mantos of Platosa are found on the periphery of a major Carbonate Replacement Deposit System (CRD) La Platosa Mine Uplifted Block Dikes & Faults Veins Anomalous Alteration Ag, Pb, Zn, F Boundaries Skarn Distal Mantos up to Contact 8 km from Source Rincon del Caido Discovery Drilling P
Slide 14: Rincon del Caido discovery
Rincon del caido discovery Periphery of the source? 1.6 m @28 g/t Au 0.25 m @ 471 g/t Ag, 2.6% Pb, 0.5 g/t Au INTERVAL WIDTH AG LEAD ZINC AU DDH NO. (M) (G/T) (%) (%) (G/T) LP1019 55 132 3.1 1.7 0.08 0.2 m @ 363 g/t Ag, 8.18% Zn, LP1023A 43 146 2.76 1.85 0.22 0.7 g/t Au LP1024 16 107 2.87 2.18 0.11
Slide 15: Rincon-Mantos Corridor Target Area
LA PLATOSA MANTOS Rincon-Mantos Corridor Target Area 7.25 metres @ 13.07 g/t Au, 55.46 metres @ 21.1 g/t Ag, 0.74% Pb 0.07 g/t Au, 132 g/t Ag, 3.13% Pb, 1.74 % Zn 14 www.excellonresources.com
Slide 16: Significant room to grow resources
MINERAL RESOURCES 700 m 800 m CURRENT RESOURCE AREA COVERS ONLY 56 HA OF A 41,000 HA LAND PACKAGE Significant room to grow resources 15 www.excellonresources.com
Slide 17: Auza mill acquisition and mineral rights
• Acquired brand new, scalable, 650 tpd mill ($15M value) in June 2009 from Silver Eagle Mines (currently with 45% spare capacity) • 15,000 ha of mineral rights on primary silver belt • $22M of loss carry-forwards, still creating value • Platosa Ag recovery has increased from 70% pre- acquisition (t
Slide 18: 100% Mexican, Fully Engaged, Sustainable
100% Mexican Fully Engaged Sustainable Investments 352 employees and Local communities of Health, education & contractors Bermejillo & Mapimi social infrastructure We partner with local, state and federal governments to bring substantial advancements to our communities 17 www.excellonresources.com
Slide 19: Production Optimization and Exploration Growth
Production Optimization • Exceed 2014 production of 2.05M • Improve productivity with new AgEq ounces water management techniques, increase production and drive down costs Exploration Growth • Discover new high-grade mantos, • Analyze and pursue strategic follow up on Source-style opportunities disc
Slide 20: Share Structure, Trading Summary, Key Shareholders
SHARE STRUCTURE TRADING SUMMARY* Issued & Outstanding: 54.9M TSXN:EXN OTC:EXLLF Options: 2.8M 90-Day Av. Daily Vol: 41,724 14,572 RSUs: 0.3M 52-Week Range: $1.58-0.51 $1.39-0.41 DSUs: 0.2M Market Cap: $32M Fully Diluted: 58.2M Average Option Price: $2.85 MANAGEMENT & KEY SHAREHOLDERS Sprott Asset Ma
Slide 21: Board of Directors
Peter Crossgrove Orders of Canada and Ontario. Vice-Chair, Detour Gold; Director of Lake Chairman Shore Gold. Former CEO of Placer Dome; Director of Barrick Gold; Founder of Masonite International. Former Treasurer of Care International. Thor Eaton Canadian businessman and philanthropist. Founder of
Slide 22: Management team
Brendan Cahill Former VP Corp. Dev. of Pelangio Exploration and M&A/securities lawyer President and CEO (Davies Ward Phillips & Vineberg LLP). Member of the Young Presidents’ Organization, the Law Society of Upper Canada and a board Member of the Mining Association of Canada. Rupy Dhadwar Chartered
Slide 23: Silver supply and demand
Exchange Inventory 1% ETF Inventory 0% - Record levels of physical demand - 13% increase in physical demand to 1,081M oz. in 2013 vs. 954M oz in 2012 - Record Silver Eagle purchases in 2014 Jewelry 9% - Largest physical deficit since 2008 - Total supply of 978M oz. in 2013 vs. Coins & Bars 1,005M oz
Slide 24: Our vision and investor relations contact
Our vision is to be a premier silver producer by capitalizing on generational opportunities and striving to always do better for our shareholders, employees and neighbouring communities Nisha Hasan Director, Investor Relations 416-364-1130 | info@excellonresources.com