Excellon Resources Inc.

2020 Excellon Resources Inc.

Published on February 8, 2022

Excellon Resources Inc. is advancing a precious metals growth pipeline that includes: Platosa, Mexico’s highest-grade silver mine since production commenced in 2005; Kilgore, a high-quality advanced exploration gold project in Idaho with strong economics and significant growth and discovery potential; and an option on Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of mining history and no modern exploration.

PRODUCTION
Mexico - Platosa
Platosa is one of Mexico’s highest-grade silver mines and is 100% owned by Excellon Resources Inc. Initially acquired in 1996, the property now encompasses 11,000 hectares in the State of Durango, north-central Mexico.

The Platosa Mine is an underground operation accessed by a ramp. Most of the mining at Platosa has occurred from ﬂat-lying massive sulphide bodies (mantos). In 2019, the Platosa mine transitioned the mining method from cut and fill/drift and fill to an overhand cut and bench method to improve the overall mining cycle efficiency. Ore produced from the mine is crushed on-site and transported 200 km south for processing at the Miguel Auza mill located in the State of Zacatecas within the Evolución Property.

RESOURCE GROWTH
Mexico - Evolución
The Evolución property covers 45,000 hectares (450 km2) and 35 kilometres of strike in one of the world’s premier silver districts. The property includes a mineral processing facility, which the Company utilizes to process ore from its Platosa Mine in the state of Durango, Mexico. The mineral processing facility currently has a capacity of 800 tonnes per day (“tpd”), with a 650 tpd ball mill in operation and a second 150 tpd ball mill on standby, with opportunities available for further expansion. Ample capacity remains available to process increased Platosa Mine production and potential new discoveries at either Platosa or Evolución, along with toll milling opportunities.

USA - Kilgore
The Kilgore project is a caldera-related epithermal gold deposit with current Indicated Resource of 44.6 million tonnes at 0.58 g/t Au for 825,000 ounces Au and an Inferred Resource of 9.4 million tonnes at 0.45 g/t Au for 136,000 ounces Au. Drilling in the 1980s revealed the potential for mineralization well outside of the existing resource area, with limited follow-up to date.

USA - Oakley
The Oakley Project hosts gold-silver, epithermal hot spring-type mineralization at two targets: Blue Hill Creek and Cold Creek, and detachment-related gold-silver mineralization at Matrix Creek.

DISCOVERY
Germany – Silver City
The Silver City Project is comprised of the Bräunsdorf, Frauenstein, Mohorn and Oederan exploration licenses amounting to the approximately 340 km2 silver district in Saxony, Germany. It is situated west of the city of Freiberg (30 kilometres southwest of Dresden) in the historic Freiberg mining district. The exploration licenses and surrounding area have only been explored and/or mined to shallow depths seldom exceeding 200 meters below the surface.

Disclaimer and Forward Looking Statements

Company Profile

Organizational Profile

Name

Excellon Resources Inc.

Describe nature of activities, brands, products and services

Our vision is to create wealth by realizing
strategic opportunities through discipline and
innovation for the benefit of our employees,
communities and shareholders.

The company is advancing a precious metals
growth pipeline that includes: Platosa, Mexico’s
highest-grade silver mine since production
commenced in 2005; Kilgore, a high-quality
gold development project in Idaho with strong
economics and significant growth and
discovery potential; and an option on Silver
City, a high-grade epithermal silver district in
Saxony, Germany with 750 years of mining
history and no modern exploration. The
company also aims to continue capitalizing on
current market conditions by acquiring
undervalued projects.

Link to Corporate Website

http://www.excellonresources.com/

Industry Classification

NAICS:
21222 Gold and silver ore mining
21223 Copper, nickel, lead and zinc ore mining

Market Capitalization

$0-$100Million USD

Type of Operations

Primarily production oriented

Company Headquarters

Toronto, Canada

Link to company's statements of: Purpose, Vision, Mission and Values; Sustainability/ESG strategy; previously published Sustainability/ESG performance or reports. (URL)

http://www.excellonresources.com/corporate-
responsibility/

Strategy

Corporate Responsibility Report

ESG Accountability

Role and Name of highest authority within company for Environment, Social and Governance strategy, programs and performance.

Brendan Cahill, President and CEO

ESG Reporting Period

Unless otherwise noted, all data contained in this report covers the following period:

From

2020-01-01

2020-12-31

Geographic Scope of Report

Unless otherwise noted, the data in this report covers ESG matters related to the following locations of operations

Mexico

This report is limited to our operations in
Mexico and includes performance data from
the Platosa Mine located in the State of
Durango and our production mill, Miguel Auza
located in the State of Zacatecas.

Excellon's projects locations

Identify notable exclusions, and reference any existing or planned reports that do or will address these (e.g, assets recently divested or acquired, non-managed joint ventures, specific exploration activities, recently closed sites, etc.)

The data contained in this ESG report excludes
information from the following projects:

• USA – Kilgore
• USA – Oakley
• Germany – Silver City
• Mexico – Explorations

For 2021, the company will evaluate the
inclusion of these projects in the ESG report.

Fragile and Conflict-Affected Situations

Identify all of the entity's countries of operations that align with the World Bank's list of "Fragile and Conflict-Affected Situations"

None

Business Operations Scope of Report

This report does not include our exploration
activities in Mexico, the United States or
Germany.

Mineral Resource Types in Scope

Which of the following mineral resource types are covered by this report

• Inferred
• Indicated

For further information on mineral resource
types held by Excellon Resources Inc. please
review the following presentation.

Corporate Presentation - November 2021

Mineral Resources

Mineral Reserve Types in Scope

Which of the following mineral reserve types are covered by this report

None

For further information please review the
following presentation.

Corporate Presentation - November 2021

Currency

Unless otherwise noted, all financial figures referenced in this report are in the following currency

USD

Audit Status

Identify the degree to which any inputs of the report are third-party checked:

Self-Declared

Raw Material Produced

Identify the total amount of each raw material produced

6360.191

Metals:

6360.191

Aluminium (Al) (tonne)

Lead (Pb) (tonne)

2935.032

Lithium (Li) (tonne)

Palladium (Pd) (tonne)

Silver (Ag) (tonne)

28.285

Zinc (Zn) (tonne)

3396.874

Organizational Profile

Provide a list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses, e.g., GRI, UN Global Compact

For the purposes of this report, we are
disclosing information in adherence to the
following ESG standards:
• CDP - Carbon Disclosure Project
• GRI - Global Reporting Initiative
• GRI Comprehensive - Global Reporting
Initiative - Comprehensive
• GRI Core - Global Reporting Initiative - Lite
• GRI MM Supplement - Global Reporting
Initiative - Mining and Metals Supplement
• ICMM - The International Council on
Mining and Metals
• ISS - ISS ESG Governance Quality Score
• ONYEN - Institutional and Investor
Questions
• PRI - Principles of Responsible Investing -
UN Funded
• SASB - Sustainability Accounting Standards
Board
• SASB Modified - Sustainability Accounting
Standards Board - Modified
• UGC - UN Global Compact

Strategy

Provide a statement from the most senior decision-maker of the organization (i.e., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy for addressing sustainability (CEO's message for this report)

Vision: To create wealth.

Mission: We realize strategic opportunities
through discipline and innovation for the
benefit of our employees, communities and
shareholders.

Excellon Strategy

CEO Statement

CEO - Brendan Cahill

Provide a description of key impacts, risks, and opportunities,

The Company’s business entails exposure to
certain risks, including but not limited to
political risk associated with operating in
foreign jurisdictions; environmental risks
associated with mining water management at
the Platosa mine and Tailing Management at
Miguel Auza; surface rights and access; and
risks associated with labour relations issues
with the union.

These risks have been discussed in the
company’s most recent Technical Report and
MD&A.

Visit the following links for more information.

Technical Report for the Platosa Polymetallic
(Silver, Lead and Zinc) Mine, Mexico

Annual & Interim Reports

Ethics and Integrity

Provide a description of the organization’s values, principles, standards, and norms of behaviour

The mission of Excellon Resources Inc. is to
provide strategic opportunities through
discipline and innovation for the benefit of our
employees, communities and shareholders.

Please refer to the
company's:
1. Code of Business Conduct and Ethics
2. Corporate Responsibility Policy
3. Corporate Values

Corporate Values

Code of Conduct and Ethics

Corporate Responsibility Policy

Environment

Compliance

a. Report fines and non-monetary sanctions for non-compliance with environmental laws and/or regulations in terms of:

i. Total monetary value of significant fines

ii. Total number of non-monetary sanctions

iii. Cases brought through dispute resolution mechanisms

In 2020, during a technical visit to our
operations in the Miguel Auza unit,
SEMARNAT (Mexican Environmental
Authority) observed inert quarry material in an
unauthorized area (<1ha), for which the
authority proceeded to open a sanctioning
process against the company and assigned a
fine of US$870.

In 2021, the reclamation plan for this area will
be presented to the Mexican Environmental
Authority for approval. Our goal is to complete
this reclamation project by the end of 2022.

Greenhouse Gas Emissions

Scope 1

For your operations, disclose the gross global Scope1 greenhouse gas (GHG) emissions to the atmosphere of the seven GHGs covered under the Kyoto Protocol (tonne CO₂-e):

Carbon dioxide (CO₂) (tonne CO₂-e)

1230.555

Methane (CH₄) (tonne CO₂-e)

0.519

Nitrous oxide (N₂O) (tonne CO₂-e)

241.38

Hydrofluorocarbon-23 (CHF₃) (tonne CO₂-e)

Hydrofluorocarbon-32 (CH₂F₂) (tonne CO₂-e)

Sulphur hexafluoride (SF₆) (tonne CO₂-e)

Nitrogen trifluoride (NF₃) (tonne CO₂-e)

Perfluoromethane (CF₄) (tonne CO₂-e)

Perfluoroethane (C₂F₆) (tonne CO₂-e)

Perfluorobutane (C₄F₁₀) (tonne CO₂-e)

Perfluorohexane (C₆F₁₄) (tonne CO₂-e)

The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne)

1472.454

The percentage of its gross global Scope 1 GHG emissions that are covered under an emissions-limiting regulation or program that is intended to directly limit or reduce emissions, such as cap-and-trade schemes, carbon tax/fee systems, and other emissions control (e.g., command-and-control approach) and permit-based mechanisms.

100.0000%

Mexico does not currently have GHG emissions
regulations, or a policy framework intended to
limit or reduce emissions directly.

GHG emissions regulations and policies are
being developed for potential deployment in
2022. Currently, Mexico requires the reporting
of > 250,000 CO2 emissions to the federal
government.

The entity shall discuss its long-term and short-term strategy or plan to manage its Scope 1 greenhouse gas (GHG) emissions.

Excellon Resources Inc (2020) is planning to
evaluate its GHG footprint and analyze
strategies to set GHG targets in the coming
years.

Intensity Ratio

The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne)

1472.454

a. GHG emissions intensity ratio for the organization

Air Emissions

Report emissions of air pollutants that are released into the atmosphere:

Emissions of carbon monoxide, reported as CO (tonne)

1230.555

Emissions of oxides of nitrogen (NOx), reported as NOx (tonne)

241.38

Emissions of oxides of sulphur (SOx), reported as SOx (tonne)

Emissions of Particulate Matter 10 micrometres or less in diameter (PM₁₀), reported as PM₁₀ (tonne)

Emissions of lead and lead compounds, reported as Pb (tonne)

19.55

Emissions of mercury and mercury compounds, reported as Hg (tonne)

Emissions of non-methane Volatile Organic Compounds (VOCs) (tonne)

Energy Management

Total energy consumed in aggregate, in gigajoules (GJ) (hydrocarbons and electricity)

214362

In 2020, 76% of the Energy consumed in our
units came from the Federal Electricity
Commission (CFE) of Mexico and 24% from
Iberdrola suppliers.

Percentage energy consumed that was supplied by grid electricity:

100.0000%

Percentage of energy consumed that is renewable energy:

22.3933%

22.3% of the energy consumed by Excellon
Mexico came from renewable sources, while
82% came from clean energy sources such as
natural gas, wind turbines and solar power (CFE
and Iberdrola reports).

Energy Consumption

a. Report the total fuel consumption within the organization from non-renewable sources, in joules or multiples, and including fuel types used

214362

b. Report the total fuel consumption within the organization from renewable sources, in joules or multiples, and including fuel types used, e.g., biomass, hydro-electric power or bioenergy

48002.67

e. Report the total energy consumption within the organization based on the total of all the categories

214362

Intensity

Absolute energy consumption for all countries (terajoules, TJ)

214362

Absolute energy consumption (terajoules, TJ)

214362

Water

Efficiency

Proportion of water reused and recycled by the site to reduce the overall consumptive water demand:

60.3440%

Excellon Resources Inc. is aware of the impact
that efficient water management can have on
the environment. This is why at our Miguel
Auza unit, almost 60% of the water used in the
mill is recycled and comes from the reservoir
created by the tailings dam.

Intensity

Total volume of water consumed per tonne/unit of material moved, ore mined, ore processed:

0.3508%

Water Management

Disclose the amount of water that was withdrawn from freshwater sources (in thousands of cubic meters):

Protect the water - campaign with the community

Dust suppression in access roads

Windbreak curtain

Excellon Water Management and Use

Disclose the freshwater withdrawn in locations with High or Extremely High Baseline Water Stress as a percentage of the total water withdrawn

100.0000%

Because our Miguel Auza mill is located in a
high Baseline Water Stress area, we recycle
60% of the water we consume. The balance of
the remaining 40% of the water used is
extracted and comes from the "Martinez Shaft"
located within our property.

Disclose freshwater consumed in locations with High or Extremely High Baseline Water Stress as a percentage of the total water consumed:

39.6552%

Our Miguel Auza unit has a concession permit
for an annual extraction volume from the El
Palmar aquifer that represents 0.7% of the
total extracted volume allowed in the aquifer
(54.1hm3) and represents only 0.4% of the total
water available in the aquifer (72.3hm3).

Estimates are based on the information
obtained from the “Average Annual Water
Availability in the El Palmar Aquifer Report”
produced by the Mexican National Water
Authority (CONAGUA, 2020).

Disclose the amount of water that was consumed in its operations (in thousands of cubic meters)

232

Given the effective water management
practices implemented by the Miguel Auza unit,
the actual volume extracted in 2020 was 0.092
hm3, which is equivalent to 0.1% of the total
water available and is less than 30% of the
volume allowed by the concession permit.

Was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations

Total number of instances of non-compliance, including violations of a technology-based standard and exceedances of quality-based standards.

Water and Effluents

Water Discharge

Report any contextual information necessary to understand how the data was compiled, including standards, methodologies, and assumptions

336

Waste Management

Total amount of tailings waste generated by the entity during the reporting period (tonne)

52969

Percentage of tailings waste that was recycled during the reporting period:

0.0000%

Although the tailings produced by the company
are not reused or retreated, environmental
regulations established by the Mexican
National Environmental Authority
(SEMARNAT), classify the tailings as non-
hazardous as their potential to generate acid
drainage is null.

Total amount of mineral processing waste generated by the entity during the reporting period (tonne), e.g., tailings and slag

52969

Percentage of mineral processing waste that was recycled during the reporting period:

0.0000%

Tailings management facility II (TMF 2)

Piezometers monitoring

Air quality control

Excellon Tailings Storage and Control

Tailings impoundments according to the following U.S. Mine Safety and Health Administration (MSHA) hazard potential classification:

Excellon Resources Inc. has one operating
tailings impoundment. The previous tailings
dam, known as Tailing Management I (TMF 1),
is closed.

Excellon Responses to Tailings Management
Questions

Excellon Tailings Management

Innovation

Spending on Research, Development, and Technologies for waste management compliance and improvement

$14,100.00

In 2020, to improve the waste management
performance of our workers, Excellon
Resources Inc. initiated the implementation of
an environmental education and informative
signage program regarding the classification of
waste in each unit. In 2020, both units
generated 194TN of waste. Nearly 50% of this
waste was recycled.

Describe nature of spending on Research, Development and Technologies for waste management compliance and improvement

Both operating units have an Environmental
Management Plan (part of the Environmental
Impact Assessment) approved by the Mexican
environmental authority, SEMARNAT.

The results of these plans are reported to the
authority every six months. These plans must
be followed throughout the life cycle of the
projects.

In order to meet the current needs of the units,
these Waste Management Plans are constantly
updated. By 2021, there will be an updated
version of the waste management plans for
both the Platosa and the Miguel Auza unit,
which could not be concluded in 2020 due to
the COVID-19 pandemic.

Waste management informative signage

Recycling campaigns in operation

Solid waste segregation

Excellon Waste Management

Biodiversity

List the environmental and biodiversity management plan(s) implemented at active sites

We have identified flora and fauna species in
the areas of operation, and none of these
species are endemic or in danger of extinction.

Please see the attached document for a
description of our biodiversity management
plan and procedures.

Reptiles relocation

Typical rattlesnake in the area

Species relocation

Ringtails in the desert

Excellon Biodiversity Management

Rattlesnake relocation

1.1 Mine lifecycle stages to which the plan(s) apply

• Site development
• Production
• During closure
• Decommissioning
• Restoration

1.2 The topics addressed by the plan(s)

• Ecological and biodiversity impacts
• Waste generation
• Noise impacts
• Emissions to air
• Discharges to water
• Natural resource consumption
• Hazardous chemical usage

1.3 The underlying references for its plan(s), including whether they are codes, guidelines, standards, or regulations; whether they were developed by the entity, an industry organization, a third-party organization (e.g., a non-governmental organization, a governmental agency, or some combination of these groups)

In Mexico, our Environmental and
Biological Management Plans are in
compliance with the federal environmental
authorities' regulations.

Please refer to the attached document:
Summary of the National Environmental
Regulations Applied In Our Units In Mexico.

Excellon Resources Inc. is a member of the
Mining Association of Canada (MAC) which
spearheaded the Towards Sustainable Mining
(TSM) protocols that help its members
responsibly manage environmental, social and
governance performance.

As part of our Sustainability program Excellon
has finalized a gap analysis between host
government regulations and TSM
environmental guidelines and upgrades to the
programs have been implemented.

Summary of the National Environmental Regulations Applied In Our Units In Mexico

Percentage of its mine sites (by annual production output from mines in metric tons) where acid-generating seepage into surrounding surface water and/or groundwater is: predicted to occur

0.0000%

As mentioned in the Tailings Management
section, to measure the hazardous level and
acidity of the tailings, we conducted the CRETI
(corrosive, reactive, explosive, toxic, and
flammable) test, the Toxicity test, and the Metal
Mobility tests, and the results prove that our
tailings are not considered dangerous and that
their potential to generate acid drainage is null.

Percentage of mine sites (by annual production output from mines in metric tons) where acid-generating seepage into surrounding surface water and/or groundwater is: actively mitigated

0.0000%

Percentage of mine sites (by annual production output from mines in metric tonnes) where acid-generating seepage into surrounding surface water and/or groundwater is: under treatment or remediation

0.0000%

Does access to the site involve traversing a protected area

In Mexico, there is a total of 182 Natural
Protected Areas (NPA), none of which are
intercepted by the Platosa mine, the Miguel
Auza unit, or their access roads.

Do any of the entities concessions share a watershed with a protected area

Provide context and description of site access involving traversing protected areas, and/or watersheds shared with a protected area. Include reference to measures in place to assure access, any proactive programs to support the biodiversity of the protected area, and any formal complaints or compliance issues and related steps to resolve

The Platosa mine is located 5km northwest of
the town of Bermejillo in the state of Durango.

None of the mine's access roads involve
traversing a Natural Protected Area (NPA),
and/or watersheds within a protected area.

The nearest NPA is "Zona del Silencio," located
35km north of the mine.

The Miguel Auza unit is located in northern
Zacatecas State, on the high plateau of central
Mexico, northwest of the town of Miguel Auza.

None of Miguel Auza’s access roads involve
traversing a Natural Protected Area (NPA),
and/or watersheds within a protected area.

The nearest NPA is “Sierra de Organos" located
129 km south of Miguel Auza.

See maps of access to site(s) below.

Miguel Auza unit- Access Road

National Protected Areas in Mexico

Platosa mine - Access Roads

Percentage of proved reserves in sites with protected conservation status or in areas of endangered species habitat:

Does Not Apply

Social

Employment

Scale of the Organization

i. Report the total number of direct employees worldwide (exclude contractors)

291

ii. Report the total number of contract employees worldwide

ii. Report the total number of operations

Employee Information

a. Report the total number of direct employees by employment type (permanent and temporary), by gender:

291

Total number of permanent employees - female

Total number of temporary employees - female

Total number of permanent employees - male

245

Total number of temporary employees - male

Total number of permanent employees - Non-binary

Total number of temporary employees - Non-binary

a. Report the total number of contractors by employment type (permanent and temporary), by gender:

Total number of permanent contractors - female

Total number of temporary contractors - female

Total number of permanent contractors - male

Total number of temporary contractors - male

Total number of permanent contractors - Non-binary

Total number of temporary contractors - Non-binary

c. Report the total number of employees by employment type (full-time and part-time), by gender:

291

Total number of full-time employees - female

Total number of part-time employees - female

Total number of full-time employees - male

245

Total number of part-time employees - male

Total number of full-time employees - Non-binary

Total number of part-time employees - Non-binary

c. Report the total number of contractors by employment type (full-time and part-time), by gender:

Total number of full-time contractors - female

Total number of part-time contractors - female

Total number of full-time contractors - male

Total number of part-time contractors - male

Total number of full-time contractors - Non-binary

Total number of part-time contractors - Non-binary

Turnover

b. Report the total number and rate of employee turnover during the reporting period, by age group, and gender

All Employees: