Phoenix, Arizona--(Newsfile Corp. - December 6, 2018) - Excelsior Mining Corp. (TSX: MIN) (FSE: 3XS) (OTCQX: EXMGF)
("Excelsior" or the "Company") is pleased to announce the closing of a US$9.4 million equity placement with affiliates
of Greenstone Resources L.P. pursuant to the terms of a previously announced subscription agreement (see Excelsior news release
dated November 21, 2018 - Greenstone Resources Confirms US$9.4 Million Equity Placement). Excelsior has issued to Greenstone
an aggregate of 13,050,840 Excelsior common shares at an aggregate subscription price of US$9.443 million, or equal to
approximately C$0.95 per share at current exchange rates (the "Greenstone Financing"). Greenstone now holds a total of
113,928,937 Common Shares, which represents approximately 48.56% of Excelsior's issued and outstanding Common Shares. The common
shares issued to Greenstone in the Greenstone Financing are subject to a statutory four-month plus one-day hold period expiring on
April 6, 2019.
Stock Option Exercise Program
The Company also confirms that it has implemented a stock option exercise program (the "Program") for the block of stock
options that expire as of December 31, 2018. These stock options were originally issued from 2010 to 2012 and have been held by
optionholders for 6-8 years. The intention of the Program was to minimize any impact on the Company's share price by avoiding the
sale of a large block of shares all at once or over a short time period. The Program was also set-up to minimize dilution resulting
from the exercise of stock options. The Program involved two steps. Firstly, optionholders completed a "net exercise" whereby
optionholders receive a net amount of shares by reducing the amount they would otherwise be issued to cover the exercise price. The
second step was the Company repurchased from each optionholder (at the market price) a sufficient number of shares to cover the
taxes of the optionholders associated with the exercise. As a result of the Program, a total of 1,630,727 shares were repurchased
by the Company and cancelled, and a final net amount of 3,407,479 shares were issued to optionholders. The Program was completed
without any shares being sold in the market to cover exercise price or tax obligations.
About Greenstone
Greenstone is a private equity fund specialising in the mining and metals sector. The Greenstone team has over 80 years of
experience in the sector covering all aspects of mining project development. Further details on Greenstone can be found at www.greenstoneresources.com.
Greenstone is acquiring the securities in the offering described herein for investment purposes. Depending on market conditions
and other factors, Greenstone may from time to time acquire and/or dispose of securities of Excelsior or continue to hold its
current position.
A copy of the early warning report required to be filed with the applicable securities commission in connection with the
transaction will be available on SEDAR at www.sedar.com and can be obtained by contacting Matt
Hornton and Gordon Purvis at +44 1481810100. Greenstone's address is set out below.
Greenstone Contact Information:
Greenstone Resources L.P.
PO Box 656
East Wing
Trafalgar Court, Les Banques
St. Peter Port, Guernsey
GY1 3PP
Channel Islands
About Excelsior Mining
Excelsior "The Copper Solution Company" is a mineral exploration and development company that is advancing the Gunnison
Copper Project in Cochise County, Arizona. The project is a fully-permitted, advanced staged, low cost, environmentally friendly
in-situ recovery copper extraction project. The Feasibility Study projected an after-tax NPV of US$ 807 million and an IRR of 40%
using a US$ 2.75 per pound copper price and a 7.5% discount rate.
Excelsior's technical work on the Gunnison Copper Project is supervised by Stephen Twyerould, Fellow of AUSIMM, President & CEO
of Excelsior and a Qualified Person as defined by National Instrument 43-101. Mr. Twyerould has reviewed and approved the technical
information contained in this news release.
Additional information about the Gunnison Copper Project can be found in the technical report filed on SEDAR at www.sedar.com entitled: "Gunnison Copper Project, NI 43-101 Technical Report, Feasibility Study" dated
effective December 17, 2016.
For more information on Excelsior, please visit our website at www.excelsiormining.com.
For further information regarding this press release, please contact:
Excelsior Mining Corp.
Concord Place, Suite 300, 2999 North 44th Street, Phoenix, AZ, 85018.
JJ Jennex, Vice President, Corporate Affairs
T: 604 723 1433
E: info@excelsiormining.com
www.excelsiormining.com
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the
future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to: (i)
the results of the Feasibility Study, including operating and capital cost estimates and the economic benefits from the Gunnison
Copper Project; (ii) the timeline for commencement of commercial production from the Gunnison Copper Project; and (iii) the ability
to mine the Gunnison Copper Project using in-situ recovery mining techniques.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news
release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral
reserves, the realization of resource and reserve estimates, copper and other metal prices, the timing and amount of future
development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating
costs, the availability of necessary materials to continue to develop and construct the Gunnison Copper Project in the short and
long-term, the progress of development activities, the receipt of necessary regulatory approvals, the estimation of insurance
coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar
matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may
prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different from any future results, performance or achievements
expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of
mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the
possibility that mining operations may not commence at the Gunnison Copper Project, risks relating to variations in mineral
resources and reserves, grade or recovery rates resulting from current exploration and development activities, risks relating to
the ability to access infrastructure, risks relating to changes in copper and other commodity prices and the worldwide demand for
and supply of copper and related products, risks related to increased competition in the market for copper and related products and
in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of
mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining
activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or
increased costs that might be encountered during the development process, regulatory risks, financing, capitalization and liquidity
risks, risks related to disputes concerning property titles and interest, environmental risks and the additional risks identified
in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking information, there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking
information. The forward-looking information is made as of the date of this news release. Except as required by applicable
securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking
information.
