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Press release from Marketwire

Power Struggle Between Competing Labour Unions at Excellon's La Platosa Mine

Tuesday, October 11, 2011

Power Struggle Between Competing Labour Unions at Excellon's La Platosa Mine14:00 EDT Tuesday, October 11, 2011TORONTO, ONTARIO--(Marketwire - Oct. 11, 2011) - Excellon Resources Inc. (TSX:EXN) (the "Company"or "Excellon") would like to update its shareholders with respect to the previously announced illegal demonstrations that occurred at its La Platosa property in August and September. The illegal demonstrations were a small part of the larger ongoing union battle for influence across Mexico between Sindicato Nacional de Trabajadores Mineros, Metalurgicos y Similares de la Republica Mexicana (the "SNTMMSR Union"), headed by Mr. Napoleón Gómez Urrutia, and Sindicato Nacional Minero, Metalúrgico "Napoleón Gómez Sada" (the "SNMMNGS Union"), headed by Mr. Carlos Pavon, a former high-level officer of the SNTMMSR Union. This ongoing battle has resulted in similar disruptions at other mines in Mexico, both within Durango and in other states. The demonstrations were part of a campaign to unseat the Sindicato Nacional de Industria "Vicente Guerrero" de los Trabajadores de la Extracción, Fundición, Transformación, Distribución, Montaje y Transportación de Productos de Metal, Minerales Conexos, Derivados y Similares (the "Vicente Guerrero Union"), the union currently representing Excellon's unionized workforce at La Platosa. As part of its efforts to gain influence, the SNTMMSR Union and the Canadian branch of its affiliated organization, the United Steelworkers, have recently released incorrect information regarding Excellon's current union, the Company and the Government of Durango State, and the recent union activities at La Platosa. Excellon has had a collective bargaining agreement with the Vicente Guerrero Union since 2008 and it is registered and in full force with the Durango State and Federal Labour Authorities. Union recognition in Mexico is a process that is strictly controlled by applicable labour laws and the supervising government bodies. For a union to gain recognition when another union has a collective bargaining agreement in place, it must first apply to the Federal or State labour authority, who then conducts a government run and controlled voting process by employees. The employer has no involvement in the process. Only once a union is voted in by employees does the employer become involved to negotiate a collective bargaining agreement. Neither the SNTMMSR Union nor the SNMMNGS Union has gone through the government-controlled process to be recognized as representing workers at La Platosa and neither is party to any collective bargaining agreement.The illegal blockade in August was organized by the SNTMMSR Union. The Company believes that of the 250 demonstrators fewer than six of the demonstrators were Excellon employees, with the bulk of the demonstrators being bussed in by the union from as far away as Zacatecas City, more than 400 km from La Platosa. In order to resolve the situation, the Durango State Government was prepared to conduct an immediate employee vote, however, the SNTMMSR Union refused to participate. After further discussions with the Durango State Government, the SNTMMSR Union agreed to follow the legal process to determine union representation at La Platosa. The company has been advised that the SNTMMSR Union made application federally for a recognition vote in accordance with Mexican labour laws.The illegal blockade in September was organized by the SNMMNGS Union. The SNMMNGS Union has made application to the Durango State Labour Authority for a recognition vote. The Company understands that the demonstration and blockade were a tactic to pressure the government to schedule a date for the voting process. No demands were made of the Company by the SNMMNGS Union. The government met separately with the two unions who agreed to a process whereby a vote would be held and the representative union would be decided. The government has not yet set the date for the vote. After the start of the blockade, three busloads of supporters of the SNTMMSR Union arrived at the site to confront the SNMMNGS Union supporters. In order to avert conflict between the unions, the government sent approximately 12 military personal and six federal police officials to assist with crowd control. No injuries resulted during either of the illegal blockades.The recent union activity, which resulted in seven days of lost production at the La Platosa mine, and the continuing campaign of misinformation, is detrimental to the interests of all stakeholders of the Company, including its employees at La Platosa. The Company continues to respect its employees' right to organize and will continue to work with the Mexican Labour Authorities to facilitate resolution of the current situation in compliance with Mexican law. In the meantime the mine continues to operate at full production. About ExcellonExcellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, is committed to building value through production, expansion and discovery. Excellon is producing silver, lead and zinc from the high-grade manto Mineral Resource on its large, 100% owned Platosa Property, strategically located in the middle of the Mexican silver belt. Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa where an exploration program focused on diamond drilling and advanced geophysical techniques is ongoing. All of these activates are fully funded through existing cash flow. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. On behalf ofEXCELLON RESOURCES INC."Peter Crossgrove"Executive ChairmanThe Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release, which has been prepared by management. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such 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, proposed production rates, potential mineral recovery processes and rates, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate 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 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. 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 January 15, 2010 NI 43-101-compliant technical report prepared by Scott Wilson Roscoe Postle Associates Inc. with respect to the Platosa Property. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States. FOR FURTHER INFORMATION PLEASE CONTACT: Peter CrossgroveExcellon Resources Inc.Executive Chairman(416) 364-1130info@excellonresources.comwww.excellonresources.com