TORONTO, ONTARIO -- (MARKET WIRE) -- 06/23/06 -- Excellon Resources Inc. (TSX VENTURE: EXN) is pleased to report the following results for the third quarter ended April 20, 2006:

                                            30-Apr-06      30-Apr-05

Revenue                                  $  7,810,749    $         -
Cost of production                          1,514,789              -
                                         -------------- ------------
                                            6,295,960              -
                                         -------------- ------------
Operating expenses including exploration
 expenses of $617,358 (2005 - nil)          2,256,128        693,292
                                         -------------- ------------

Operating income (loss) for the period      4,039,832       (693,292)
                                         -------------- ------------

Other (net) including loss on silver
 valuation of $4,284,727 (2005 - $816,844)  8,571,912        961,489
                                         -------------- ------------

Net loss for the period                  $ (3,025,945) $  (1,654,781)
                                         -------------- ------------
                                         -------------- ------------

The increased loss in the third quarter is primarily due to an increase in the valuation loss in connection with the Company's silver debentures from $816,844 to $4,284,727 and the increase in the amortization of the deferred acquisition costs to $1,895,423 from nil (both of which are non-cash). Under applicable accounting requirements, at each period end, the Company is required to value the debentures at the market value of the silver bullion (1,800,000 ounces) required to repay the debentures. As a consequence, the significant increase in the price of silver during the quarter increased the value of the silver required to repay the debentures, thereby increasing the accounting loss. The amortization of the deferred acquisition costs relates to the ore production that began in May 2005.

As at April 30, 2006, the Company's aggregate cash and short-term investments amounted to $5,511,682 (increased to in excess of $10,000,000 as at June 23, 2006). Cash provided by operating activities was $3,025,945 for the quarter, compared with cash used in operating activities of $249,786 for the same 2005 period.

There are currently 144,293,657 common shares outstanding (158,199,657 fully diluted). Exercise of outstanding options would raise $4,336,900 of additional cash. However, there can be no guarantee that any such options will be exercised. The Company anticipates that cash provided from future operating activities will be sufficient to fund all anticipated operations for the foreseeable future.

Test Mining Program

In August 2004, the Company commenced a program to carry out test-mining of the existing high-grade indicated resource.

Ore production began in May 2005 and more than 43,000 tonnes have been shipped to Penoles Naica milling operation to date.

The following are the production statistics for the nine months ended April 30, 2006 (except as otherwise noted, the silver grade is reported throughout as grams per metric tonne - g/T - or troy ounces per metric tonne - oz/T; 1 oz/T equals 0.907 oz/ton):

                             Three Months to          Nine Months to
                       ---------------------------------------------
                       Oct. 31/05 Jan. 31/06 April 30/06 April 30/06
                       ---------- ---------- ----------- -----------

Tonnes of ore shipped       8,363      9,554      13,483      31,400
                       ---------- ---------- ----------- -----------
                       ---------- ---------- ----------- -----------
Contained metal:
 Silver (ozs.)            371,227    325,903     501,751   1,198,881
 Lead (lbs.)            2,493,414  2,254,345   3,065,521   7,813,280
 Zinc (lbs.)            1,558,652  3,655,648   3,941,718   9,156,018

Average grade:
 Silver (oz/T)               44.4       34.1        37.2        38.2
 Lead (%)                    13.5       10.7        10.3        11.3
 Zinc (%)                     8.5       17.4        13.3        13.2

Payable metal:
 Silver - 76.9% (ozs.)    285,473    250,619     385,847     921,939
 Lead - 80.0% (lbs.)    1,994,732  1,803,476   2,452,415   6,250,623
 Zinc - 58.0% (lbs.)      904,019  2,120,274   2,286,197   5,310,490

Silver withheld for
 repayment of
 Silver-backed
 debentures (ounces)(1)   140,228    125,310     192,923     458,461

(1) As at June 23, 2006 a total of 529,457 ounces had been withheld.

The tonnage of ore shipped from Platosa to the Naica Mill has increased each quarter towards the target of 6,000 tons per month ("tpm") or 18,000 tonnes per quarter. Shipments for May totalled approximately 5,200 tonnes. The target production rate of 6,000 tpm is expected to be achieved in June 2006, as mine development is advanced, crushing and shipping schedules are refined, and the Naica milling operation is optimized with respect to the higher-grade Platosa mineralization.

Development and mining to date of the mineralization contained in Mantos 4 and 5 has generally confirmed the ore resource model for such mantos presented in the NI 43-101 Resource Report ("43-101 Report") prepared by Roscoe Postle Associations Inc., independent geological and mining consultants, in September 2002. The grades of the crushed ore shipped to date from these mantos are consistent with those predicted by this report.

The average grade of the mineralization mined during the nine months ended April 30, 2006 was 38.2 oz/T silver compared with the average calculated grade of the 43-101 resource of 79.9 oz/ton (88.0 oz/T). The reasons for this differential are two fold:

1) Since the start of test-mining operations, production has been sustained from areas included in the original resource as well as mineralization found in extensions to these zones and new zones found during the mine development. It is estimated that approximately 40% of the production to date has been obtained from areas outside the original resource estimate.

2) The indicated resources in the NI 43-101 Report included approximately 10,000 to 12,000 undiluted tonnes in an extractable configuration grading approximately 183 oz/ton silver, 26% lead, and 8% zinc. None of this very high grade material has yet been mined.

The higher grade zone identified in the original 43-101 resource report has been developed and prepared for production at the rate of 1,000 tonnes per month. Mining and shipping of the high grade mineralization directly to a smelter will take place in parallel with the planned production of lower grades being shipped to Naica. With shipping of the higher grades directly to a lead smelter the reduced costs for transportation and milling as well as the increased payment for the contained silver and lead will provide for an increased return to Excellon.

Recent mining in Manto 5 has discovered an extension of higher grade material additional to the estimate included in the 43-101 Report. Approximately 800 tonnes of this has been mined and stockpiled on surface. More is visible in the underground workings, but its full extent has not yet been determined. The average grade of this material determined from truck samples is 167 oz/T silver, 29.9% lead, and 9.7% zinc. This material does not require concentration in a mill and will also be shipped directly to a smelter, with t he first shipment having been made on June 19, 2006.

Readers are cautioned that indicated resources are not reserves and do not have any demonstrated economic viability.

Exploration

Surface drilling during the quarter has resulted in the expansion of the known limits of the Guadalupe Manto (discovered December 2005) and the discovery of a new manto, the Guadalupe South Manto.

The Guadalupe Manto lies approximately 95 metres northeast of the known resource and 145 metres east-northeast of the N-1 Manto. The assay results from drilling of this manto outline a continuous sulphide body, at least 170 by 75 metres in plan. There are now a total of 23 successful drill holes in the Guadalupe Manto with an average thickness of 3.4 metres and a thickness-weighted average grade of 1,207 g/T (39.0 oz/T) silver, 10.7% lead, and 12.2% zinc. The Guadalupe Manto remains open to the north, northwest, northeast, and west with 3.0 - to 5.0 -metre thick intercepts marking the limit of drilling in these directions.

The Guadalupe South Manto was discovered during the quarter. The discovery hole lies 100 metres to the southeast of the Guadalupe Manto along the linear geophysical and biogeochemical anomaly becoming known as the "Guadalupe Trend." Subsequent drilling has traced the Guadalupe South Manto to within approximately 75 metres of the Guadalupe Manto. Drill holes with assay results to date from the Guadalupe South Manto outline a continuous sulphide mineralization at least 225 by 75 metres in plan. There are now a total of 33 successful drill holes in the Guadalupe South Manto with an average thickness of 2.5 metres and a thickness-weighted average grade of 1,199 g/T (38.6 oz/T) silver, 8.1% lead, and 12.5% . The Guadalupe South Manto is an elongated body in a WNW-ESE direction and remains open to the southeast. It may be connected to the 6 Manto to the northwest and/or to the Guadalupe Manto to the north. Drilling is underway in an attempt to determine if such connections exist.

Summary Financial Information

Quarter Ended                           30-Apr-06       30-Apr-05
                                        (3 months)      (3 months)

Revenue                             $   7,810,749           $ Nil
Income (Loss) before discontinued
 Operations and extra-ordinary
 items                              $  (4,532,080)    $(1,654,781)
Income (Loss) per share             $       (0.03)    $     (0.03)
Net Income (Loss)                   $  (4,535,080)    $(1,645,781)
Net Income (Loss) per share         $       (0.03)    $     (0.01)

Balance Sheet Data                      30-Apr-06      31-July-05

Assets
Cash and cash equivalents           $   5,511,682     $    91,428
Accounts receivable                     5,090,915       2,107,939
Inventory                                 108,091         211,388
Deposits                                  643,815         455,111
                                    --------------- --------------
Total Current Assets                   11,354,503       2,865,866
                                    --------------- --------------
Silver Bullion held by custodian        3,087,784             Nil
Mineral properties and deferred
 exploration expenditures               5,630,267      12,202,471
Deferred financing costs                  450,002         883,937
Fixed Assets                              533,101          42,452
                                    --------------- --------------
Total Assets                        $  21,055,657  $   15,994,726
                                    --------------- --------------
                                    --------------- --------------

Liabilities & Shareholders Equity
Accounts payable and accrued
 charges                            $     862,308  $    2,571,571
Silver debentures                      25,317,669      15,766,300
                                    --------------- --------------
Total Liabilities                      26,179,968      18,337,871
                                    --------------- --------------
Share capital                          23,806,595      18,396,901
Silver debenture warrants                 450,000         450,000
Contributed Surplus                     2,829,200       1,300,000
Deficit                               (32,210,106)    (22,490,046)

                                    --------------- --------------
Total Shareholders' Equity             (5,124,311)     (2,343,145)
                                    --------------- --------------
Total Liabilities and
 Shareholder's Equity               $  21,055,657  $   15,994,726
                                    --------------- --------------
                                    --------------- --------------

Qualified Persons

Dr. Peter Megaw, PhD, CPG has acted as the Qualified Person, as defined in National Instrument 43-101, for the exploration data and supervised the preparation of the technical exploration information on which this news release is based. Dr. Megaw has a PhD in geology and more than 20 years of relevant experience focused on silver and gold mineralization, and exploration and drilling in Mexico. He is a Certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona Registered Geologist (ARG 21613). Dr. Megaw is not independent of Excellon as he and his company are shareholders.

Excellon's project manager, Mr. G. Ross MacFarlane, P.Eng has acted as the Qualified Person, as defined in NI 43-101, for the production data and supervised the preparation of the technical production information on which this news release is based. Mr. MacFarlane is a graduate Mining Engineer with over 30 years of wide ranging experience in the mining industry. His experience includes senior responsibilities in the operation of mines and mills as well as mine project developments from feasibility to construction and the start-up of operations in Canada as well as in South America, Europe and Asia. Mr. MacFarlane is not independent of Excellon as he is a shareholder.

On behalf of

EXCELLON RESOURCES INC.


Richard W. Brissenden,                      A. Douglas MacKenzie
Chairman and Chief Executive Officer        Vice chairman

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 future anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, 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, the Company's ability 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.

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.

The TSX Venture 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.

Contacts:
Excellon Resources Inc.
Annemarie Brissenden
Corporate Communications
(416) 364-1130 ext. 230
abrissenden@excellonresources.com