TORONTO, ONTARIO, Feb 11, 2008 (Marketwire via COMTEX News Network) --
ExcellonResources Inc. (TSX:EXN) has been advised that the employee strike atthe Penoles Naica Mine is now over. Excellon's shipments to the Naicamill are anticipated to resume by the end of this week. Excellon's fourdrill rigs have been turning for the last few weeks. The Company hasassigned three of them to expanding the known limits of mineralization,while using the other one to pursue district-scale targets.
Excellonalso announces that it has reached a tentative agreement with the EjidoLa Sierrita in negotiations for a long term legal, binding andenforceable agreement for the use of certain lands to conduct itsmining activities. Under the tentative agreement, Excellon has, amongstother things, agreed to lease 1100 hectares of surface rights for up to30 years for MX $5,000 pesos per hectare per year, as long as the leaseagreement continues in existence. Further, Excellon has agreed to funda community development fund with an initial payment of MX $3,000,000pesos and MX $500,000 pesos per year thereafter up to 30 years, again,as long as the lease agreement continues in existence. Finally,Excellon will issue 600,000 common shares to the Ejido La Sierrita,which will have a hold period of four months. As part of thisagreement, the Ejido will transfer ownership to Excellon of the 27hectares on which it currently conducts its mining activities. Thisagreement is subject to approval by the Board of Directors of Excellon,the formal approval process of the Ejido La Sierrita (which usuallytakes approximately three weeks), and acceptance for filing by the TSX.A letter proposal by Excellon to the Ejido La Sierrita with all theforegoing terms and conditions reached by the parties is scheduled tobe delivered on Wednesday, February 13, 2008.
"We are pleasedwith the results of our negotiations with the Ejido La Sierrita," saidRichard W. Brissenden, Excellon's President and CEO. "While thisagreement still needs to be approved by several parties, we believe ithonours our commitment to the community, while protecting shareholdervalue. Although we have lost almost five weeks of shipping ore dueprimarily to the labour dispute at Naica's operations, we willendeavour to make up for this shortfall during the coming months.However, Excellon's fundamentals continue to be strong, and we remainon track for meeting all of our other corporate objectives for fiscal2008."
About Excellon
Excellon, a self-sustainingmineral resource company operating in Durango State, Mexico, iscommitted to building value through production, expansion anddiscovery. The Company is producing silver, lead and zinc from highgrade manto deposits on its Platosa Property, strategically located inthe middle of the Mexican silver belt. In fiscal 2008, Excellon's focusis on increasing its Mineral Resources through an aggressive$11-million exploration program, expanding its operation, and studyingthe feasibility of building a mill at site. The Platosa Property, notfully explored, has several geological indicators of a largemineralized system, the tracking of which Excellon believes will leadto the discovery of a world class deposit.
On behalf of
EXCELLON RESOURCES INC.
Richard W. Brissenden, President and Chief Executive Officer
SOURCE: Excellon Resources Inc.
ExcellonResources Inc. Annemarie Brissenden Manager, Corporate Communications(416) 364-1130 (416) 364-6745 (FAX) Email:abrissenden@excellonresources.com Website: www.excellonresources.com
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