Excellon Resources Inc. (TSXV: EXN) (OTCQB: EXNRF) (FSE: E4X2) has announced it received US$4.4 million in initial concentrate revenues during pre-commissioning at its 100%-owned Mallay Silver-Lead-Zinc Mine in central Peru. The company completed three test milling campaigns, recovering 52,860 ounces of silver from 19,884 tonnes processed, while also restructuring its base metals stream to free up cash flow through the ramp-up period. Investors may be watching closely as Excellon targets 600 tonnes-per-day mill capacity by mid-2027 and expects an updated mineral resource estimate by year-end 2026.

Key Points

  • Excellon Resources Inc. (TSXV: EXN) (OTCQB: EXNRF) (FSE: E4X2)
  • US$4.4 million in initial concentrate revenues collected under offtake agreement with Glencore; three pre-commissioning milling campaigns completed at the Mallay concentrator in Peru
  • Silver recovery of 84%, lead recovery of 84%, and zinc recovery of 81% achieved in pre-commissioning; base metals stream restructured with Adar Mining for US$5.675 million in combined consideration
  • Updated mineral resource estimate and SRK mine plan targeted for year-end 2026; 600 tpd mill capacity target set for mid-2027

Mallay Pre-Commissioning Campaigns Deliver First Concentrate Revenues

The three pre-commissioning milling campaigns at Mallay processed 19,884 tonnes and recovered 52,860 ounces of silver in concentrate, with improving recoveries reaching 84% for silver, 84% for lead, and 81% for zinc. Revenue of US$4.4 million has been collected to date on initial shipments under the company's offtake agreement with Glencore. The release states that mill feed was drawn primarily from surface stockpiles and narrow-vein stopes above the 4090 Level, and that these grades are not representative of the mineralization expected to support steady-state operations. A new mining contractor has been selected and is already rehabilitating the 400 Ramp.

Base Metals Stream Restructured to Support Ramp-Up Cash Flow

On October 28, 2026, Excellon amended its base metals purchase agreement with Adar Mining Corp., pre-delivering 4 million pounds of lead and 4 million pounds of zinc for aggregate consideration of US$5.675 million, comprising US$1 million in cash, US$4 million satisfied through the issuance of 24,412,274 common shares, and US$675,000 via waiver of existing set-off rights. The implied value was approximately US$0.71 per pound across the combined 8 million pounds. Remaining stream delivery obligations are deferred until January 1, 2031, which the company states will free up lead and zinc by-product revenue during the critical ramp-up period. Closing remains subject to TSX Venture Exchange approval.

DHEM Exploration Identifies Skarn Mineralization Below Isguiz Vein

Excellon's downhole electromagnetic drilling program at Mallay intersected skarn-style alteration at approximately 600 metres depth in the first hole, DHEM26-001, returning anomalous copper values including 0.95 metres grading 0.31% Cu and 0.65 metres grading 0.27% Cu, with anomalous silver, lead, and zinc. The company interprets this zone as the outer halo of a skarn system below the currently drilled extent of the Isguiz vein. A second hole is currently at approximately 800 metres depth. Conductive targets identified from planned electromagnetic surveys will be tested with follow-up drilling, with results to be reported separately as received.

Liquidity Position and Corporate Updates Ahead of Year-End Milestones

The company reports US$5 million in cash on hand, with the US$5 million Glencore credit facility available for mobilisation. Excellon also disclosed TSXV conditional approval for a previously announced debt settlement involving the issuance of 1,400,000 common shares at a deemed price of C$0.495 per share, and granted 452,990 deferred share units to non-executive directors. The company's shares commenced trading on the OTCQB® Venture Market under the symbol "EXNRF" effective September 3, 2026, with DTC eligibility in place to support U.S. market liquidity.