Excelsior Reaffirms Positive Economic Impact of Gunnison Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 7, 2014) - Excelsior Mining Corp. (TSX VENTURE:MIN)(FRANKFURT:3XS)(OTCQX:EXMGF) ("Excelsior" or the "Company") is pleased to announce the results of a new Economic Impact Study ("EIS") for the Gunnison Copper Project (the "Gunnison Project"), located in southern Arizona. The study, completed by researchers at the L.W. Seidman Research Institute, W.P. Carey School of Business, Arizona State University, Tempe, AZ, illustrates that the Gunnison Project will generate significant positive economic benefit at both the State and County levels.

Highlights of the Gunnison Project Economic Impact Study include:

• Creation of an average of 819 jobs annually state-wide;
  • 108 direct, on-site jobs; 711 in-direct or "secondary" jobs;
• US$2.94 billion added to Arizona's Gross State Product;
• US$319.9 million in State revenue generated directly from the project;
• US$756.8 million in economic activity generated in Cochise Country alone.

"This Economic Impact Study reconfirms that the Gunnison Project will have a dramatic economic impact on the local communities of Cochise County, as well as a profound influence on the economy of the State," said Stephen Twyerould, President and CEO. "As a resident of Arizona myself, I take great pride in being a part of a project that is poised to generate such substantial employment and wealth creation."

The full report, entitled Economic Impact of the Excelsior Mining Corp. on Cochise County and the State of Arizona is available here: http://www.excelsiormining.com/images/Presentations/Economic_Impact_Report_September2014.pdf

Using the data from the Gunnison Project's Prefeasibility Study ("PFS") (see news release dated February 18, 2014), this Economic Impact Study examined two scenarios: one in which Excelsior builds its own acid plant and one in which it acquires acid from a commercial supplier for the life of the Gunnison Project. The numbers and dollar values quoted in this news release are all based on Excelsior building its own acid plant and span the entire 27 year life of the Gunnison Project. This Economic Impact Study updates the previous Economic Impact Study that Excelsior had prepared based on the Preliminary Economic Assessment on the Gunnison Project.

The economic forecasts used in this study are based on an Arizona-specific version of the Regional Economic Models Inc. ("REMI") regional forecasting model to produce numeric estimates of the impact of a business upon the economy. This is a dynamic forecasting and analysis tool developed by Regional Economic Models Inc., which is recognized by the business and academic communities as the leading economic modeling tool available. REMI is also an open model in that it explicitly accounts for trade and migration flows in and out of the state, and between counties. The use of a county level model enables a more detailed disaggregation of results to occur, thereby estimating the economic impacts that "leak" into other counties in Arizona. The version of the REMI forecasting model used in this study is similar to the version currently in use by the Arizona Department of Commerce, the Arizona Joint Legislative Budget Committee, the Arizona Department of Housing and Arizona State University.

A complete explanation of the model and discussion of the empirical estimation of the parameters/equations can be found at www.remi.com.

About L.W. Seidman Research Institute

The L.W. Seidman Research Institute, which is independent of Excelsior, serves as a link between the local, national, and international business communities and the W.P. Carey School of Business at Arizona State University. Utilizing a staff of experienced economists, and tools that support sophisticated statistical modeling and computer-based planning, the Institute collects, analyzes, and disseminates information about local economies, benchmarks industry practices, and identifies emerging business research issues that affect productivity and competitiveness. The Gunnison Economic Impact Study was co-authored by Mr. Dennis Hoffman and Ms. Eva Madly, both of whom are independent of Excelsior.

About Excelsior

Excelsior is a mineral exploration and development company that is advancing the Gunnison Copper Project. The Excelsior management team consists of experienced professionals with proven track records of advancing mining projects into production. Further information about the Gunnison Copper Project and the results of the PFS can be found in the technical report filed on SEDAR at www.sedar.com entitled: "Gunnison Copper Project, NI 43-101 Technical Report, Prefeasibility Study" dated February 14, 2014.

Dr. Stephen Twyerould, Fellow of AUSIMM, President and CEO of Excelsior, and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information disclosed in this news release.

For more information on Excelsior, please visit our website at www.excelsiormining.com.

ON BEHALF OF THE EXCELSIOR BOARD

Mark J. Morabito, Executive Chairman

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 life of the Gunnison Project, (ii) future economic benefits from the Gunnison Project including jobs, gross state product and revenue forecasts, (iii) results of the PFS, and (iv) the advancement of the Gunnison Project.

Such forward-looking information can be identified by the use of word "will". 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 exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Gunnison Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the permitting process, 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 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, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Gunnison Project may not be available on satisfactory terms, or at all, 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and no securities regulatory authority has either approved or disapproved of the contents of this release.