Jeremy Wyeth, President & CEO

20 Victoria Street, Suite #900

Toronto, Ontario M5C 2N8

Peter A. Crossgrove, Executive Chairman

Dear Sirs,

Please find forthwith an expression of our grave concern over the alarming situation that is currently taking place between Excellon Resources and “ejidatarios” of La Sierrita in the Municipality of Tlahualilo, Durango, Mexico. I would like to draw your attention to your company’s unwillingness to engage in dialogue with the “ejidatarios” of La Sierrita to address the revision of a contract signed by both parties three years ago in regards to the temporary occupation of 1,100 hectares of communal land. The revision of the aforementioned contract has become necessary due to the numerous breaches that have taken place and the violation of the rights of the local community.

I am aware of the conditions in which the rural members of the “ejido” now find themselves, including the lease contract signed in 2008 after your company ceased mining activity due to your unwillingness to negotiate. It is important to note that the leaders of the “ejido” took the initiative to attempt to engage your company in a respectful and considered dialogue to address the breaches of contract and the numerous violations to date. Consequently, I am extremely concerned by the contempt shown by your company towards the community, demonstrated in the behavior of representatives from Excellon Resources Inc. and Excellon de México, S.A. de C.V.

I am also aware that, over the past three years, Excellon has been undertaking exploration and extraction activities on the 1,100 hectares of communal land belonging to the “ejidatarios” of La Sierrita de Galeana. This work has continued despite stipulating in the lease contract the company’s social responsibility towards the “ejidatarios.” This is exemplified through the agreement that water extracted from the mine would not contaminate and harm the communal lands occupied by the “ejidatarios.” Furthermore, your company agreed to clauses in the contract outlining that they would bring benefits to the community. To date, none of these promises have been fulfilled and the situation has deteriorated to such a point that the community of La Sierrita used their right to engage in dialogue with your company to review the contract. The aim of this review was to establish mechanisms for new negotiations and to put an end to the disregard of key clauses and to renew promises. The discussions would have been a means for both parties to review the grave violations that have occurred by your company and that understandably the “ejidatarios” are not prepared to simply forget.

However, after battling against a series of excuses put forth by your company to delay the negotiations, I am extremely concerned by the disappointing outcome of the meeting that took place on January 30, 2012, when Excellon representatives finally met with “ejidatarios.” Excellon broke off the discussions, which were supposed to be a respectful negotiation of the contract by both parties, after less than an hour in an extremely rude, offhand manner. The behavior indicated an absolute lack of respect towards the local community and a total abuse of power. Furthermore, the contempt shown by Excellon for a contract that was acknowledged by the Durango government is in breach of Mexican law. It is evident that Excellon’s acknowledgment of its political and social responsibility, as cited on your website and to your shareholders, has little meaning in the company’s actual behavior on the ground in Durango.

We are firmly committed to the cause of the “ejido” of La Sierrita de Galeana and we will draw attention to Excellon’s complete violation and disregard of human rights in Durango.

Yours Sincerely,

Send copies to:

Jorge Herrera Caldera

Gobernador Constitucional del Estado de Durango

Address: 5 de Febrero #800, Pte. Palacio de Gobierno, Planta Alta, Gómez Palacio, Durango, Mexico

Telephone: (618) 827 0840, (618) 827 0847

http://es-es.facebook.com/pages/Jorge-Herrera-Caldera/340819301509

@jherreracaldera

Alberto Saucedo Reina

Subsecretario de Gobierno de la Región Laguna

Address: Edificio "Durango," Av. Morelos No. 326, Nte. Zona Centro, C.P. 35000, Gómez Palacio, Durango, Mexico

Telephone: (871) 714-96-35, (871) 714-90-60 Ext. 141, (871) 715-05-84, FAX (871) 175-20-39

Lynn Hartery, Segunda Secretaria Asuntos Políticos

Embassy of Canada in Mexico

Address: Schiller No. 529, Col. Polanco, CP 11560, México, D.F. México

Telephone: 52 55 5724-7900, Fax: 52 55 5724-7983

Marketa D. Evans, PhD

Corporate Social Responsibility Councellor

Government of Canada

Proyecto de Derechos Económicos, Sociales y Culturales A.C.