Excellon Reports on Illegal Action and Union Vote at La Platosa

Toronto Stock Exchange - EXN

TORONTO, July 11, 2012 /CNW/ - Excellon Resources Inc. (TSX: EXN) ("Excellon" or "the Company") reports that on Monday, July 9th, members of the Edijo de La Sierrita (the Edijo), assisted by the NGO group PRODESC and Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana which is affiliated with the United Steelworkers Union of Canada (USW) commenced an illegal action at the Company's La Platosa Mine, located in Durango Mexico.

The Durango State and Federal Governments have informed the Company that this action is illegal and as such, Excellon has filed criminal charges and commenced lawsuits for damages against all members and groups who are participating in this illegal action.

The Company has completed a lengthy meeting with its Mexican legal team as well as local, State and Federal government representatives in regards to recent Edijo allegations and the current action at La Platosa.  The Company has the full support of the Government on these issues and has been informed that the Government will be meeting with the Edijo and other parties to end this illegal action, which is expected to end within the next 24 to 48 hours.

At present the Company continues to produce concentrate from stockpiled material at Miguel Auza.  Mining activity at La Platosa has been temporarily suspended and essential services are being maintained during the period.

Union Vote Status:
The voting process for the selection of a representative union at La Platosa took place on July 5, 2012. Labour Authorities were present at all times throughout the entire process, as dictated by State and Federal law.  Allegations by unions and other groups that La Platosa employees were intimidated during the process are false and will be taken seriously by the Labour Authorities and the Government of Durango.

It is the understanding of the Company that the outcome of the voting did not favour Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana which is affiliated with the USW, as they only received approximately 1/3 of the vote cast.  The results will not be official until the Labour Authority completes the formal tabulation process as per the requirements of Mexican labour law.  The Company understands that this process may take several weeks.

The Company also understands that the Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana and 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, which presently represents the mine workers may dispute and petition the results of the vote.

Excellon remains committed to recognize and work with whatever union the employees of Excellon have chosen to represent them.

About Excellon

Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, and Ontario and Quebec, Canada, is committed to building value through production, expansion and discovery.  Excellon is Mexico's highest-grade silver producer; it produces 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 CRD/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. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system.  The Miguel Auza Mill Operation in Zacatecas also has 41,000 hectares of underexplored land.  Excellon also has ongoing gold exploration programs on the DeSantis Project, located near Timmins, Ontario and the Beschefer Project, located in northwestern Quebec.  Both these projects host gold mineralization and significant potential for the discovery of more.  Excellon will continue to use cash from operations to fund its ongoing exploration activities.

On behalf of

EXCELLON RESOURCES INC.

Peter A. Crossgrove
Executive Chairman

The 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 November 22, 2011 NI 43-101-compliant technical report prepared by 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. 

SOURCE Excellon Resources Inc.