Excellon reports end of La Platosa blockade

Toronto Stock Exchange - EXN

TORONTO, Sept. 10, 2012 /CNW/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company") is pleased to announce the ending of the illegal blockade at the Company's La Platosa mine in the state of Durango, Mexico, which had been ongoing since July 8, 2012 by the Ejido la Sierrita (the "Ejido") with the assistance and funding of the non-governmental organization ProDESC and the Sindicato Nacional de Trabajadores Mineros Metalúrgicos, Siderúrgicos y Similares de la República Mexicana (the "USW Union"), which is affiliated with the United Steelworkers.

On September 7, members of the Concerned Women of Bermejillo along with members of the Sindicato Nacional Minero Metalúrgico Napoleón Gómez Sada (the "Sada Union") marched to the main mine site entrance to confront the illegal blockaders.  Confronted by the demonstrated will of the local communities and the workers of La Platosa, the blockaders peacefully removed the blockade and workers entered La Platosa via the main entrance for the first time in two months.  The Sada Union, which represents approximately 5,200 workers in many of Mexico's major companies and is the USW Union's primary rival in Mexico, won the most votes at the union vote of La Platosa workers held on July 5, three days prior to the commencement of the illegal blockade.

"The peaceful ending of the illegal blockade at La Platosa reflects the will of both local communities and the workers of La Platosa," stated Peter Crossgrove, Executive Chairman.  "La Platosa is an essential part of the local economy, providing some 250 jobs and direct and indirect income to 380 families, along with 50 jobs at our mill at Miguel Auza and hundreds of jobs for other workers across Mexico.  The local communities and workers of La Platosa suffered this illegal blockade in silence for long enough.  Today, the majority made their voices heard."

Mr. Crossgrove continued, "During the past two months, we have been grateful for the support of the local, state and federal governments with whom we have worked to ensure a peaceful solution to this blockade.  We will continue these discussions in the coming weeks and months to further enhance our relationship with the local community.  The Ejido La Sierrita are a small part of this broader community.  Unfortunately, the Ejido continue to be misinformed by an NGO that has used them to implement the schemes of a union that was rejected by the workers of La Platosa on July 5."

The Concerned Women of Bermejillo and the Sada Union have both pledged to ensure that the Company retains full control and access to La Platosa as the mine is ramped backed up to full production.  The Company has also enhanced security at the mine to prevent similar illegal blockades from occurring again. The ramp up to full production should be expedited by the reopening of the main mine entrance. The Company aims to resume full production when ordinary course re-opening permits are received.  Excellon will provide an updated forecast when the ramp up to full production is complete.

Considering the ongoing nature of the dispute with the Ejido, the Company has filed a legal action for damages and rescission (i.e., termination) of the surface rights agreement with the Ejido for 1,100 hectares of surface rights.  Excellon does not require these surface rights to continue producing silver and growing the mineable resource at La Platosa, or to continue effective exploration programs elsewhere at La Platosa, including the promising Rincon del Caido target.  As the Company is up to date on all payments until April 2013, however, these surface rights will continue to be used as permitted under the agreement with the Ejido.

Excellon has provided a backgrounder for all stakeholders at www.excellonresources.com with further information regarding the illegal blockade, the Ejido, USW Union and ProDESC.

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.