mexico’s highest grade silver producer · tsx:exn | exn.wt | exn.wt.a | otc:exllf andré fortier...

Mexico’shighestgradeSilverproducer

TSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLFInvestorPresentation– March2018

WWW.EXCELLONRESOURCES.COMTSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLF

DisclaimerThis 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, 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, the potential of the Company’s properties, proposed production rates, potential mineral recovery processes and rates,

business plans and future operating revenues. Forward looking statements are made based on management's beliefs, estimates, assumptions and opinions on the date the statements

are made. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct and the Company undertakes

no obligation to forward-looking statements, except as may be required by law. Forward-looking statements are typically identified by words such as: believes, expects, anticipates,

intends, estimates, targets, plans, postulates, 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 risk 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. A description of the risk factors applicable to the Company can be found in the Company’s most recent Annual Information Form under “Description of the

Business – Risk Factors”. All of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical

reports filed with respect to the Company’s mineral properties, and particularly the latest NI 43-101-compliant technical report prepared by Roscoe Postle Associates Inc. with respect

to the Platosa Property. This document is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred ResourcesThe terms “Measured”, “Indicated” and “Inferred” Mineral Resources used or reference in this document are defined in accordance with Canadian National Instrument 43-101 –

Standards of Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Standards on Mineral

Resources and Mineral Reserves. The CIM standards differ significantly from standards in the United States. United States investors are advised that while such terms are recognized

and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of

uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a

higher category or that Mineral Resources will ever be upgraded to Mineral Reserves. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of

feasibility or other economic studies other than Preliminary Economic Assessments. United States investors are cautioned not to assume that all or any part of Indicated Mineral

Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is

economically or legally mineable, or that an Indicated Mineral Resource is economically or legally mineable.

Cautionary Note to United States Investors regarding Adjacent or Similar PropertiesThis document may also contain information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. The

Company advises United States investors that the United States Securities and Exchange Commission's mining guidelines strictly prohibit information of this type in documents filed

with the SEC. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar

properties are not indicative of mineral deposits on the Company's properties.

CautionaryNoteRegardingthePreliminaryEconomicAssessment(PEA)TheassessmentsinthePEAarepreliminaryinnature,mineralresourcesarenotmineralreservesanddonothavedemonstrated economicviability,andthereisnoassurancethe

preliminaryassessmentswillberealized.TheoutcomeofthisPEAmaybemateriallyaffectedbytheclosingofthefinancing, metalspricing,environmental,permitting,legal,title,

taxation,socio-political,marketing,orotherrelevantissues.

QualifiedPersonsBenPullinger,P.Geo,Vice-PresidentGeology,isresponsiblefortheCompany’sexplorationprogramsandhassupervisedthepreparationofthetechnicalinformation,whichis

disclosedinthispresentation.HehasactedastheQualifiedPerson,asdefinedinNI43-101,forthisdisclosure.

1


Thetimeisnow…

2


Worldclassasset Teamforthefuture

Execution GrowthMineoptimizationcompleteandsurpassingPEAeconomics

Oneoftherichestsilverassetsintheworld- remainingresourcesatover1.2kg/tAgEq andgrowing

Proventrackrecordofturnaroundwithtechnicalandmarketexpertise

+$50millioninfreecashflowexpected

Highreturnexplorationstrategy

Pipelineofprojectsthroughintelligentacquisitions

3


AndréFortier3Chairman

FormerSVPofNoranda,CEOofKerrAddisonMinesandCampbellResources.

AlanMcFarland1,2,3 FormerdirectorofWorldResourcesInstitute.FormerinvestmentbankeratLazard.

PreviouslyservedasdirectorofPlacerDomeandMasonite.

Daniella Dimitrov 1,4 Chosenasoneofthetop100GlobalInspirationalWomeninMiningin2016with

experienceinbuilding,operatingandstreamliningbusinessesinminingandfinancial

services.Current Partner,Sprott Capital.FormerCEOandCFOofOrvana Mineralsand

ExecutiveViceChairofBaffinland Iron,directorofNexa Resourcesandseveralmining

companies.

LaurieCurtis2,4 DistinguishedexplorationgeologistandFounderofIntrepidMinerals.Previouslyheld

severalpositionsincapitalmarketsincluding,SeniorMiningAnalystatClarus and

DundeeSecurities.CurrentChairofEastmainResourcesanddirectorofToachi Mining.

JacquesMcMullen4 ProfessionalEngineer,formerlywithBarrickGold.Previousdirectorofseveralmining

companiesincluding,HighlandGold,IGEResourcesAB,FireRiverGold,Minera S.A.,

Orvana Minerals.CurrentdirectorofEquinoxGold,CardinalResourcesandadvisorto

DetourGold.

OliverFernández 3 Mexicanbusinessmanandentrepreneur.Founder&PresidentofCredito Maestro.

AndrewFarncomb 1 FounderofCairnMerchant PartnersLP,anindependentmerchantbank.Former

InvestmentBankingprofessionalatParadigmCapital.FounderanddirectorofContact

GoldCorp.,andboardmemberofseveralotherTSXVlistedcompanies.

BrendanCahillPresidentandCEOBOARDCOMMITTEES:1.Audit2.Compensation3.NominatingandCorporateGovernance4.CorporateResponsibility&TechnicalCommittee

4


BrendanCahillPresidentandCEO

M&Asecuritieslawyer(DaviesWardPhillips&VinebergLLP).FormerVPCorp

Dev.ofPelangio Exploration.MemberofYoungPresidents’Organization,

Transplant CampaignatUniversityHealthNetworkandLawSocietyofUpper

Canada.BoardMemberoftheMiningAssociationofCanada,GroupEleven

Resources,anIrishzincexplorerandKoreMining.,aCaliforniagolddeveloper.

RupyDhadwarCFO

CharteredAccountantwitharangeoffinanceandbusinessexpertise.Formerly

withMacGillivray Partners,CharteredAccountants.

BenPullingerVP, Geology

ProfessionalGeologistwithtrackrecordofdiscoveryandprojectadvancement.

FormerVPExplorationatRoxgold Inc.Currentdirector ofRedEagleExploration.

DenisFloodVP, TechnicalServices

ProfessionalMiningEngineerwithexceptionaltechnicalassessmentand

implementationabilities.FormerPrincipalMiningEngineeratResolution

Copper(RioTintoGroup).PreviouslywithXstrataandGoldcorp.

Dr. CraigFordVP, CorporateResponsibility

Geologistbytraining,over24yearsofexperiencewithaproventrackrecordof

drivingcorporateandoperationalperformanceinsafety,healthandsecurity,

environmentalaffairs,communityrelationsanddevelopment,humanrights

andgovernmentrelations.FormerVP,CRatInmet MiningandBoardMember

oftheMiningAssociationofCanada.

Ronald MarinoVP, Finance

CharteredAccountant,20yearsofexperienceinLatinAmericaandNorth

America.PreviouslywithAngloAmerican.

NishaHasanVP,InvestorRelations

LedinvestorrelationsprogramsforseveralCanadianminingcompanies.Former

DirectorofIRatContinentalGold.BoardmemberofCanadianInvestor

RelationsInstitute andtheDownSyndromeAssociationofToronto.

5


MIGUELAUZAMILL

LAPLATOSAMINE

PORTOFMANZANILLOMEXICOCITY

TORREON

DURANGOFRESNILLO

Over500,000tonnesminedsinceproductioncommencedin2005

100%ownedundergroundsilver-lead-zincmine

Productionhistoricallyconstrainedbywaterinflows

Safejurisdictionlocated55kmfromTorreon(popof1.2million)withnearbyinternationalairport,gridpowerandnationalhighwayrunningthroughproperty

6

Dryminingconditionsachievedinmid-2017,nowdoublingproduction


1.CIMdefinitionswerefollowedfortheclassificationofMineralResources.2.MineralResourcesareestimatedatanincrementalNSRcut-offvalueofUS$146pertonne.3.Netsmelterreturnmetalpriceassumptions:US$17/ozAg,US$0.90/lbPb,US$1.00/lbZn.4.MetalrecoveryassumptionsforNSRcut-offvaluepurposes:Ag89%,Pb 76%,Zn81%.5.Thesilverequivalent(AgEq)isestimatedfrommetallurgicalrecoveries,metalpriceassumptions,andsmelterterms,whichincludepayablefactors,treatmentcharges,penalties,andrefiningcharges.6.TheestimateisofMineralResourcesonlyand,becausethesedonotconstituteMineralReserves,theydonothaveanydemonstratedeconomicviability.7.Inferredmineralresourcesareconsideredtoospeculativegeologicallytohaveeconomicconsiderationsappliedtothemthatenablethemtobecategorizedasmineralreserves.8.MineralresourceestimatepreparedbyDavidRoss,P.Geo.,ofRoscoePostle AssociatesInc.,independentgeologicalandminingconsultantsofToronto,Ontario.PreparedasatDecember31,2014.

La Platosa2014MineralResourceEstimate

Category Tonnes(t)

Ag(g/t)

Pb(%)

Zn(%)

AgEq(g/t)

Ag(oz)

Pb(lb)

Zn(lb)

AgEq(oz)

Measured 28,000 781 7.85 11.52 1,305 711,000 4,896,000 7,188,000 1,187,000

Indicated 400,000 758 8.31 9.77 1,248 9,747,000 73,214,000 86,098,000 16,046,000

M&I 428,000 760 8.28 9.88 1,252 10,457,000 78,110,000 93,286,000 17,233,000

Inferred 4,000 2,027 14.65 2.20 2,492 260,000 1,288,000 193,000 320,000

Overonemilliontonnesofhighgradesilver,leadandzincoreminedanddefined

EdgeofavirtuallyuntouchedCRDsystem

7


DOUBLINGPRODUCTION HALVINGCOSTS

Strongfree-cashflowgeneration

8

BasedonPEApreparedbyRoscoePostle AssociatesInc.datedJuly9,2015


GENERALMODEL/NOTTOSCALE

Turnaroundoperations

Dryconditionsachievedthroughenhancedpumpingsystem

World-classpartners–HydroRessources andTechnosub

9

Pumpingcleanwaterdirectlyfromwaterbearingfaults

WWW.EXCELLONRESOURCES.COMTSX:EXN|EXN.WT|EXN.WT.A|OTC:EXLLF10


TonnesMilled

SilverE

quivalentO

uncesProduced

Positionedtocontinuerampingupproduction

14,720 14,453 12,003 14,417 11,934 13,877 19,953 17,978

363,552 368,568

255,760

305,934

205,314

289,566

500,763475,007

0

100,000

200,000

300,000

400,000

500,000

600,000

0

5,000

10,000

15,000

20,000

25,000

Q12016 Q22016 Q32016 Q42016 Q12017 Q22017 Q32017 Q42017

Tonnes AgEqoz

Increasedproductionpost-optimization


Returningtoindustryleadingcosts

*AdjustedAISCpersilverouncepayableexcludesone-timesustainingcapitalexpendituresassociatedwiththe

OptimizationPlan,withnoadjustmentsinQ32017.

$10.38 $9.81

$17.95 $18.48$22.44

$18.10

$2.46

$16.21 $15.27

$33.92

$41.80 $42.48

$28.80

$11.62

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

Q12016 Q22016 Q32016 Q42016 Q12017 Q22017 Q32017

TotalCashCosts AdjustedAll-inSustainingCostPerSilverOuncePayable


MINED-OUTMANTOS

CURRENTRESOURCE

RAMP

DEWATERINGWELLS

Operatingfrommultiplefacesin4mantosGuadalupeSouth22,000tonnes @

1,420g/tAgEq

62383,000tonnes @

1,766g/tAgEq

Pierna48,000tonnes @

1,464g/tAgEq

Rodilla82,000tonnes @

1,148g/tAgEq


1.PEApreparedbyRoscoePostle &AssociatesInc.datedJuly9,2015.Basecase$17/oz silver,$0.90/lb

lead,$1.00/lbzinc

2.PeakProductionbasedoncompletionofimplementation,now2018-2020

BasedonPEApublishedin20151

PeakProduction (2016-2019)2

NetCashFlow2 $58.4million

Avg.AnnualProduction

1.9millionouncessilver

12.2 millionpoundslead

14.3millionpoundszinc

ProductionCosts

$6.02totalcashcostsperpayable

ounce

$9.00 AISCperpayablesilverounce

Transitionunderwayto300+tonnes perday

Keyimprovementsrealized:• Limiteddepletionofresourcesince

lastupdate

• LowerOPEX/tonne (50%reduction)

• Lowerelectricitycosts($0.09perKWH

v.$0.13perKWH)

• Improvedforex(allcostsinMXPand

CDN)

• 60%reductionintreatmentand

refiningcharges

14


LocatedinZacatecas,Mexico,approx.220kmfromPlatosa Minewithlowtruckingcosts

800tpd millingcapacity,abilitytoincreaseprocessingcapacityataminimalcost

Newtailingsfacilitywith20yearcapacity

BulksampleinQ32018onorefromHecla’sSanSebastianMine,42kmNW

MillingagreementwithHeclafor400tpdcommencing2019


Ma j o r CRD s C RD s1 CerroSanPedro:151Mt(NewGold)2 SanMartin-Sabinas:120Mt(Peñoles)

3 Terrazas:87Mt(Andromeda)

4 SantaEulalia:50Mt(Grupo Mex.)

5 Penasquito:45Mt+(Goldcorp)

6 Naica:35Mt(Peñoles)

7 SantaBarbara:30Mt+(Grupo Mex.)

8 Charcas:25Mt(Grupo Mex.)

9 Velardena:18Mt(Peñoles)

10 Bismark:15Mt(Peñoles)

11 Cinco deMayo:12Mt(MAGSilver)

12 Catorce LaPaz:10Mt

13 Cananea:10Mt+CRD(Grupo Mex.)

14 Zimapan:8Mt

15 Mapimi-Ojuela:6Mt(Peñoles)

16 SanPedroCorralitos:5Mt+

17 LaNegra:5Mt(Aurcana)

18 SierraAlmoloya:1Mt+

LaPlatosa:940,000t(Mined&remainingResources)

MIGUELAUZAMILL

LAPLATOSAMINE

MEXICOCITY

TORREON

DURANGO

FRESNILLO

PORTOFMANZANILLO

Topsilverproducingcountryintheworld

Mexico’sCRDBeltLARGESCALE

HIGHGRADE

SIMPLEMININGANDMETALLURGY

Avg.of10-15Mtonneswiththe

largestwellinexcessof50Mtonnes

Polymetallic,withmetalcontents

rangingfrom1-12%Pb;1-18%Zn;

60-600g/tAg;upto2%Cuand

6g/tAu

Large,continuousindividualorebodies

averaging0.5Mto2Mtonnesinsize,

withsomeupto20Mtonnes,

favourablemetallurgywithminimal

environmentalfootprint

131016

113

4

6

187

2

159 5

12

81

17

14

16


GrowPlatosaDelineateadditional

tonnesnearexistingmine

workings

Discoveranddelineate

newmanto depositsFollow-uponskarn

discoveryandother

regionalskarn/Source-

styletargets

17

MorePlatosa’s WorldClassDiscovery


2016/17RESULTS

N

18

PlanviewofPlatosa Mine


EX17UG3236.8m@

886g/tAg,8.8%Pb, 20.5%Znor 2,318g/tAgEq

EX16UG27413.0m@

0.6g/tAu,662g/tAg,4.9%Pb, 25.5%Zn,or1,886g/tAgEq

EX17UG3487.6m@

299g/tAg,3.7%Pb, 4.0%Znor 646g/tAgEq

EX17UG3719.1m@

1,192g/tAg, 13.2%Pb,18.3%Znor 2,648g/tAgEq

Including6.2m@

1,473 g/tAg, 14.8%Pb,25.6%Znor 3,355g/tAgEq EX17UG369

3.1m@1,528g/tAg,

13.5%Pb, 16.9%Znor2,926g/tAgEq

EX17UG370A1.8m@

1,132g/tAg,7.9%Pb, 2.9%Znor1,609g/tAgEq

EX17UG3672.8m@

536g/tAg,4.9%Pb, 9.0%Znor1,188g/tAgEq

EX17UG3611.9m@161g/tAg

3.4%Pb,0.3%Znor317g/tAgEq

EX17UG3592.0m@

521g/tAg,3.3%Pb, 0.2%Znor670g/tAgEq

EX17UG3702.5m@

639g/tAg,7.3%Pb, 2.7%Znor1,076g/tAgEq

EX17UG33011.1m@

0.1g/tAu, 1,204g/tAg,9.3%Pb,13.4%Znor

2,255g/tAgEqIncluding5.2m@

0.2g/tAu, 2,079g/tAg,14.2%Pb, 23.9%Znor

3,857g/tAgEq

EX17UG3584.6m@

739g/tAg,4.1%Pb,1.1%Znor962g/tAgEq

EX18UG3731.4m@

3,125g/tAg,27.1%Pb, 3.0%Znor4,402g/tAgEq

EX18UG3757.3m@

1,397g/tAg,7.44%Pb,23.2%Znor 2,858g/tAgEq

EX17UG349to

EX17UG354

623

674

Rodilla

EX17UG360,EX17UG362,EX17UG363,EX17UG364,EX17UG368,EX17UG372

EX17UG360

EX17UG364A

EX17UG3653.3m@


EX17UG3661.5m@


EX17UG3475.1m@

855g/tAg,8.8%Pb, 9.7%Znor 1,705g/tAgEq

EX17UG355to

EX17UG357

Platosa Mantos PlanView

674Rodilla

623

Platosa Mantos LookingNorthEast


SantaEulaliacrosssection– over300yearsofproduction

Platosa isjustgettingstarted,sofarmineralizationonlydefinedinsinglestratigraphichorizon

20


RincondelCaido

LaPlatosa

AfterSillitoe andBonham1990

21


Platosa Mineoccursononly56haof21,000hapackage.

PotentialonpropertyformultiplePlatosa’s aswellaslargeskarnmineralizationfootprint

Intrusives imagedfromZTEMsurvey

Mappedmineralbearingstructures

23kmstrikelengthalongconcession

22

SanGilberto

Jaboncillo

Saltillera North

Refugio

PlatosaSouthTrend

LaPlatosa

SaltilleraUpto50mofmineralized

skarnIntersectedinhistorical

drillingwithgradesupto660

g/tAg,19.4%Pb and6.23%Zn

over0.8m

[email protected]/tAu,132g/tAg,

3.13%Pb and1.74%Zn

[email protected]/tAu,21.1g/tAg,

3.57%Zn

[email protected]/tAu,146g/tAg,

2.76%Pb and1.85%Zn

RinconDelCaido


• Currently

drillingin

Platosa Corridor

• Advancingnew

regionaltargets

throughsoil

geochemistry

andinduced

polarization

(“IP”)surveys


14,000haonnorthernpartofprolificFresnillo silverbelt

• 35kmSEofHecla’shigh-

gradeSanSebastian

• 135kmNWofFresnillo

andJuanicipio

• NI43-101resourceof

22.8Moz AgEq Ind.,

11.8Moz Inf.

• Newexploration

prospectfromreviewing

regionalgeology

• Potentialtofeedmill

withregionaldiscoveries2424


EpithermalSystem,Geneticmodel

Highgrade

preciousmetals

veinletsatMA??

BladedVeinson

surfaceat

Madeira

Carbonate

dominatedbig

barrenveinsin

hole118


Veinsexhibittexturesand

tracemineralization

indicativeofhigherpartof

epithermalsystem

BladedVeins

onsurfaceat

Madeira


VeinextensionsundercovertobeexploredHistoricaldrillinghasencounteredultrahighgradeveinletsnearsurfacewhilethicker“parent”veinshaveonlybeentestedabovethepotentialpreciousmetalshorizons


350employeesandcontractors

100%Mexican

LocalcommunitiesofBermejillo&Mapimi

FullyEngaged

Health,education&socialinfrastructure

SustainableInvestments

Wepartnerwithlocal,stateandfederalgovernmentstobringrealadvancementstoourcommunities

28


KEYSHAREHOLDERS

SHARESTRUCTURE TRADINGSUMMARY*

EricSprott

Sprott AssetManagement

DundeeCorporation

NotaeInvestments

USGlobal

*AsatMarch1,2018

ANALYSTCOVERAGECantorFitzgerald– MikeKozak

Cormark Securities– RichardGray

PIFinancial– PhilKer

RedCloud– DerekMacpherson

NetWorkingCapital(Q3-2017):$5.0M

Production(2016):0.8MozAg(incon.)and

1.3MozAgEq

RECENTFINANCINGS:C$3.0M - privateplacementwithEricSprott (April2016)

C$15.2M - boughtdealpublicoffering(closedinearlyQ32016)

Issued&Outstanding: 94.8M

Options(avg.$1.18): 1.4M

DSUs: 2.3M

RSUs: 1.9M

Warrants(C$0.50): 1.9M

(C$0.65): 3.3M

(EXN.WTatC$1.75): 6.6M

(EXN.WT.AatC$2.80): 3.7M

FullyDiluted: 115.9M

TSX:EXN OTC:EXLLFAv.DailyVol: 152,306 71,008

52-WeekRange: $2.30-1.22 $1.87-0.92

MarketCap: CAD$165M US$129M

29

C$14.8M - boughtdealpublicoffering(closedinNovember2017)


Mineoptimizationcomplete

Strongfree-cashflowgeneration

Exceptionalexplorationpotential

30


Appendix

31


2017 2016 2015 2014 2013

TonnesMilled 63,742 55,593 56,849 64,206 69,862

Grades

Ag(g/t) 393 456 491 603 718

Lead(%) 3.75 4.40 4.56 6.57 6.14

Zinc(%) 5.30 5.70 7.20 8.90 8.00

MetalProduction

Ag(oz) 718,460 752,689 794,289 1,162,929 1,409,852

Lead(Ib) 4,241,225 4,427,300 4,387,358 7,515,720 7,342,108

Zinc(Ib) 6,059,922 5,581,060 7,362,938 10,075,172 9,876,955

AgEq (oz) 1,470,650 1,293,815 1,429,439 2,048,017 2,055,567

Recoveries

Ag(%) 89.3 90.5 89.0 91.8 92.6

Lead(%) 80.9 82.1 77.7 81.9 79.4

Zinc(%) 81.4 80.1 81.6 81.8 80.2

TotalCashCost/Agozpayable $13.42 $15.11 $13.76 $10.01

AdjustedAISC/Agoz(1) $25.82 $22.58 $21.69 $19.62

Adjusted Net Income(Loss)(2)(3) ($3.4M) ($4.0M) ($3.8M) ($5M)

Cash FlowfromOperations(4) ($3.2M) ($1.8M) $1.2M $1.7M

(1) AdjustedASICperpayableounceexcludestherelativelyone-timesustainingcapitalexpendituresassociatedwiththe“PlatosaOptimizationPlan”(associatedcash

expenditureswerenil$inQ32017,9-Mos2017- $3.5millionand2016- $4.8million)

(2) AdjustednetlossesreflectresultsbeforefairvalueadjustmentsonembeddedderivativesandwarrantsrelatedtotheDebentures (Q32017– $5.6millionloss,9-Mos2017–

$2.7millionloss,2016- $10.8millionloss,2015- $0.3millionloss).ThefairvalueadjustmentderivesfromtheperformanceoftheCompany’sstockduringeachperiod(Q3

2017– C$1.42toC$2.03,9-Mos2017- C$1.64toC$2.03,2016- $0.31to$1.64and2015- $0.25atinceptionto$0.31),resultinginvariancesinvaluation/costuponthepotential

conversionorexerciseofthedebenturesorwarrants,respectively).

(3) Adjustednetlossin2015reflectsresultsbefore$0.7millionimpairmentchargeonDeSantisexplorationpropertyinCanadathat wassubsequentlysoldin2016.

(4) Cashflowfromoperationsbeforechangesinworkingcapital

32


LowestcashG&Asince2005,beforeproductioncommenced

$4.7 $4.9

$7.8

$5.7

$4.6

$5.8 $6.1

$3.9$3.4

$2.4 $2.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CashG&A($M

)

33


0

100

200

300

400

500

600

700

800

900

0 100 200 300 400 500 600 700 800 900

M&IR

esou

rceGrade

(Agg/t)

ProductionGrade2016(Agg/t)

GreatPanther,TopiaMAG/Fresnillo,Juanicipio*

Fresnillo,ElSaucito

Fresnillo,FresnilloPanAmerican,LaColorada

Primero,SanDimas

Endeavour,Guanacevi

*Developmentstageproject.

**Basedonpublicdisclosuredocuments.

Excellon,LaPlatosa

34


• Ratio– tradingat75:1,but

producedatlessthan10:1

• Consumption– 50%ofsilver

productionconsumed&mustbe

replacedbymineproduction

• Future– solar,hightechnology

andmedicine– theirreplaceable

metalofinnovation

• Ongoingcurrencywar

• Negativeinterestrates– no

opportunitycosttoholdgold

• Majorcentralbankbuyingand

movetophysicalexchangesin

theEast

THECASEFORGOLD THECASEFORSILVER

• Deutschbank pricefixingscandalinbothgoldandsilver

35


*Basedonoriginalcapitalinvestmentof$9.9MasdisclosedinPEApreparedbyRoscoePostle AssociatesInc.datedJuly9,2015andbasecasemetalspricesof$17/oz

silver,$0.90/lblead,$1.00/lbzinc.

LOM(2015-2020) PeakProduction(2016-2019)

Agozpayable(‘000s) 8,492 6,932

TonnesProduced 504,504 383,541

$M $/t $/oz $M $/t $/oz

Mining 101.6 201.4 11.97 72.3 188.5 10.43

Processing 31.1 61.6 3.66 23.4 61.0 3.37

OperatingCashCost 132.7 263.0 15.63 95.7 249.5 13.80

By-productcredits (68.9) (136.5) (8.11) (54.3) (141.5) (7.83)

Royalties 0.5 1.1 0.06 0.3 0.9 0.05

TotalCashCost 64.3 127.6 7.58 41.7 108.9 6.02

G&A 15.9 31.5 1.87 10.7 27.4 1.54

ReclamationCosts 0.4 0.9 0.05 0.3 0.8 0.04

Exploration 5.0 9.8 0.58 3.3 8.5 0.47

Cap-Ex 19.8 39.2 2.33 6.4 16.8 0.93

Totalsustainingcosts 41.1 81.4 4.83 20.7 54.0 2.99

All-insustainingcosts 105.4 209.0 12.41 62.4 162.9 9.00

36


*Basedonoriginalcapitalinvestmentof$9.9MasdisclosedinPEApreparedbyRoscoePostle AssociatesInc.

datedJuly9,2015andbasecasemetalspricesof$17/ozsilver,$0.90/lblead,$1.00/lbzinc.

LOM PeakProduction

(2015-2020) (annualavg.) (2016-2019) (annualavg.)

TonnesOre (‘000s) 505 84 384 96

Ore/day tpd 256 256 274 274

HeadGrades

Ag(g/t) 638 638 681 681

Lead(%) 6.8 6.8 7.0 7.0

Zinc(%) 8.1 8.1 8.6 8.6

MetalProduced(‘000s)

Ag(oz) 9,316 1,553 7,608 1,902

Lead(Ib) 62,424 10,404 48,644 12,161

Zinc(Ib) 71,017 11,836 57,144 14,286

Pb Conc. 47,237 7,873 36,802 9,200

ZnConc. 63,498 10,583 51,093 12,773

Recoveries

Ag(%) 90 90 91 91

Lead(%) 82 82 82 82

Zinc(%) 77 77 79 79

37


Ourvisionistobeapremiersilverproducerby

NishaHasanVicePresident,InvestorRelations416-364-1130| [email protected]

Tobecomeapremierpreciousmetalsproducerbycapitalizingongenerationalopportunitiesandstrivingtoalwaysdobetterforourshareholders,employeesandneighbouringcommunities

mexico’s highest grade silver producer · tsx:exn | exn.wt | exn.wt.a | otc:exllf andré fortier...

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