The drill program will consist of three holes to test beneath the Knutson gold zone, where previous trenching returned the following:

• Vein 1 — 0.42 ounce per ton gold over a width of 5.3 feet and a length of 160 feet;
• Vein 2 — 0.25 ounce per ton gold over a width of 5.9 feet and a length of 90 feet.

Two additional holes will be drilled at the north end of the Laguerre gold zone, where Sudbury Contact Mines Ltd. reported a historical non-National Instrument 43-101 resource of 56,680 tons grading 0.128 ounce per ton gold. In the 1940s, Laguerre Gold Mines Ltd. sank a 778-foot shaft with three levels on the gold zone. In addition, Laguerre Gold Mines undertook 2,443 feet of drifting on several levels, along with 4,240 feet of diamond drilling. Subsequent drilling by Sudbury Contact in the late 1970s and early 1980s extended the zone to depth, intersecting erratic gold mineralization.

The property also includes the Raven River gold zone, where Raven River Gold Mines (1939) reported a historical non-NI 43-101 resource of 11 million tons grading 0.05 ounce per ton gold. The current drilling will not test this zone.

The resource calculations are historical and preliminary in nature. They were undertaken prior to the implementation of NI 43-101 regulations, have not yet been verified by Globex, nor its geological staff, and should not be relied upon.

This press release was written by Jack Stoch, Geo, president and chief executive officer of Globex, in his capacity as a qualified person under NI 43-101.

1. Energy storage development of a new generation of lithium-ion batteries made using porous Silicon manufactured by the transformation of HPQ Purevap quartz reduction reactor (QRR) silicon with Apollon patented process;
2. Clean renewable hydrogen production using Apollon Solar Gennao H2 200 watts, a fuel-cell-based system that can produce hydrogen by hydrolysis simply by combining water with an environmentally friendly chemical powder. Replacing the chemical powder presently used with nano silicon powders, such as those about to be produced by the HPQ Nano Purevap nanosilicon reactor (NSiR), could significantly increase the hydrogen generation capacity of the system.

“Since 2015, HPQ has been working on revolutionizing silicon manufacturing and its applications with the development of our Purevap technologies, scalable and extremely versatile processes that will allow the production of silicon materials perfectly suited to assist in the goals of decarbonization of the economy and the generation of green renewable energies,” said Bernard Tourillon, president and chief executive officer of HPQ-Silicon Resources. “Since 2017, our collaboration with Apollon has enabled us to benefit from their world-renowned expertise with high value-added Silicon applications. The addition of manufacturing hydrogen by hydrolysis to our collaboration opens up a new and unique business opportunity that could represent a second multibillion-dollar addressable market for the Purevap nanosilicon reactor nanopowders.”

Apollon process: making porous silicon manufacturing economically viable

porous silicon is a silicon structure in which nanopores have been formed by electrochemical etching. Addressable markets for porous silicon are substantial, but existing electrochemical etching processes require very pure silicon feed stock (9N to 11N), making porous silicon cost prohibitive.

To make affordable porous silicon, Apollon developed and obtained a worldwide patent for an electrochemical etching process that can use (2N to 4N) silicon to make porous silicon wafers.

Aiming to send porous silicon nanopowder samples to end users by December, 2020

Mindful of HPQ’s competitive advantage, the ability of Purevap QRR to produce 2N to 4N silicon at the lowest cost in the industry, HPQ and Apollon are busy manufacturing samples of porous Si nanopowders of different sizes (two nanometres to one micrometre) with porous structure sizes of either microporous (50 nanometres). The aim being to send samples, to end users’ specifications, by December, 2020. The extension of the agreement continues HPQ’s North American exclusivity over the use of Apollon’s patented process to manufacture porous silicon until at least Dec. 31, 2020.

Hydrolysis hydrogen production: Apollon Solar’s Gennao H2 system

Apollon Solar is also active in hydrogen-based clean renewable energy. Over the years, they have developed an expertise in hydrogen production by hydrolysis, getting porous silicon nano powders to react with water and therewith releasing significant quantities of hydrogen.

Drawing on this unique expertise, Apollon was approached by the French government to develop a compact and portable hydrogen-based electricity generation system that must be reliable and efficient enough to charge military personnel batteries on missions. This work led to the creation of Gennao H2, a self-contained system that integrates a fuel cell. The system operation is simple; a chemical powder is introduced, and as the powder reacts with water, hydrogen is generated by hydrolysis and converted into electricity by the integrated fuel cell, thus allowing the system to charge several batteries at once.

The operational capabilities of the system having reached the validation phase of the French military program, Apollon Solar is now ready to start the commercialization of a civilian version of its Gennao H2 system.

Collaboration with HPQ-Silicon to create more efficient and economical hydrogen

With Apollon Solar’s hydrogen business having entered the commercial phase, HPQ took advantage of the fifth renewal to include it in the scope of the agreement.

Even though using porous silicon nanopowders would double the amount of hydrogen released by the system, the high costs of making porous silicon nanopowders required Apollon to use a less efficient, but more economical and environmentally friendly chemical powder to launch its Gennao H2 system.

With a goal of increasing the efficiency of the system, HPQ and Apollon will explore the technical and commercial potential of creating a new generation of more efficient, economical and environmentally friendly powders for the Gennao system using either:

1. Silicon nanopowders made by HPQ’s Purevap nanosilicon reactor to increase the H2 generation potential of the Gennao H2 system by 40 per cent (based on the mass capacity production of H2 of 14 per cent of silicon nanopowders):
   1. By December, 2020, HPQ-Silicon plans to send Apollon the first samples of silicon nanopowders manufactured by Purevap NSiR for H2 generation testing.
2. porous silicon nanopowders manufactured with the transformation of silicon produced by HPQ’s Purevap QRR process in Apollon’s patented process to increase the H2 generation potential of the Gennao H2 system by 100 per cent (based on the mass capacity production of H2 of 20 per cent of silicon nanopowders);

Also included in the agreement is the right for HPQ to commercialize, exclusively in Canada and non-exclusively in the United States, the Gennao H2 system, as well as, also distribute and sell the powders required for the hydrolysis production of hydrogen.

Apollon will support HPQ North American marketing of the Gennao H2 system and the powder bags. By November, 2020, Apollon will make available to HPQ a Gennao H2 system and the bags of powder needed for demonstration to potential buyers.

During the term of this fifth renewal, Apollon and HPQ will work to finalize a long-term commercial agreement that will grant HPQ (or one of its subsidiaries) a Canadian exclusivity for the sale of Gennao H2 system and associated powders bags, and the exclusivity for all customers located in the United States to whom HPQ is marketing the Gennao H2 system.

Finally, the parties have agreed that during the renewal period, or until the date of the signing of a long-term commercial agreement, that HPQ will have Canadian exclusivity on the distribution, sale, marketing and representation of Gennao H2 system and associated powders, and that it will be able to distribute, sell, market and represent Gennao H2 system and associated powders with customers in the United States.

Silicon, also known as silicon metal, is one of today’s strategic materials needed to fulfil the renewable energy revolution and the decarbonization of the economy presently under way. Silicon does not exist in its pure state; it must be extracted from quartz in what has historically been a capital and energy intensive process.

About HPQ-Silicon Resources Inc.

HPQ-Silicon Resources is a Canadian producer of innovative silicon solutions, based in Montreal, building a portfolio of unique high-value specialty silicon products needed for the coming renewable energy revolution.

Excellon expects its common shares will commence trading on the NYSE American as of market open on Sept. 22 under the ticker symbol EXN. The company’s common shares on the OTCQX will continue to be traded until market close on Sept. 21, after which these shares will begin trading under the ticker symbol EXN on the NYSE American. Excellon’s common shares listed on the Toronto Stock Exchange will continue to trade under the ticker symbol EXN.

Shares:  10 million

Price:  30 cents

Warrants:  five million warrants to purchase five million common shares

Exercise price:  45 cents until Aug. 20, 2022

Placees:  62

Insider:  Eric Zaunscherb 100,000

Pro groups:  285,000 (four placees)

Finders’ fees:  Finders collectively received $71,165.

Highlights:

• Falchani Lithium Chemical Project desktop work for project optimization programs in progress:
  • Lithium chemical product flexibility to evaluate lithium hydroxide and lithium sulphate from lithium sulphate solution
  • Lithium process flowsheet optimization program design
  • By-product phase 2 program design
• Macusani Uranium Project desktop work for project optimization programs in progress:
  • Pre-concentration work program design as follow on to favourable Cameco results
  • 2 tonne uranium sampling program from 5 different deposit areas for future test work completed
• Community support initiatives in Peru ongoing to help ensure the health, safety and wellbeing of our host communities

“Our team has been making concerted efforts to support our host communities in these challenging times” stated Alex Holmes, CEO. “Peru has been hit extremely hard by the global pandemic caused by Covid-19 and a focus of ours is in helping ensure our host communities can be safe and responsible in handling the pandemic.”

“To our shareholders, as we navigate these times, we want to remind you of the tremendous value opportunity we have with two strategically important critical minerals projects in the green energy/technology industry. We continue to see investment downstream of raw materials in lithium-ion batteries and electric vehicles, and in nuclear energy as a stable clean energy source. At the same time, we are also seeing future supply constraints surfacing in both battery quality lithium chemicals in a fast-growing demand market and in uranium for fuel for nuclear energy plants. The market dynamics, medium and long-term, are unfolding in our favour and we remain focused on de-risking both projects as they are needed in a green recovery world.”

Falchani Lithium Project

The Company is currently concentrating on taking strategic steps and engaging in discussions with various parties to advance the technical strengths and identify areas to increase the underlying asset value of the Falchani Lithium Project (“Falchani”). These steps are in preparation for future work programs while balancing capital constraints and the current Peru environment. Some of the work being considered:

• Phase II work program in planning, following on from the results of preliminary metallurgical work in April 2020 on potential by-products from caesium, rubidium and potassium for sulphate of potash (“SOP”).
• Complete SOP (fertilizer) market study for South America, and specifically Peru, as previous metallurgical test work results demonstrated SOP (K₂SO₄) is a potential by-product of Falchani (see Flow Sheet¹ link).
• Lithium flowsheet optimization focused on areas where it may be possible to reduce reagent consumables and capital costs.
• Lithium chemical product flexibility to evaluate lithium hydroxide and lithium sulphate from lithium sulphate solution (Falchani leach solution). Evolving battery technology dictates the need for projects to evaluate flexibility in battery quality lithium chemicals to be a strategic player in the battery supply chain.

Falchani is a scalable, long mine life battery quality lithium chemical project with an after-tax NPV_(8%) $1.55 billion at $12,000/t Li₂CO₃; after-tax IRR of 19.7%¹.  The development plan at Falchani incorporates multiple responsible and green mining initiatives with further opportunities for revenue optimization and technological advancements. We believe this will position Plateau to capitalize on a return to improved lithium market sentiment and pricing, without impacting the development path significantly.

Macusani Uranium Project

The Macusani Uranium Project (“Macusani”) is a low-capex, large-scale development stage uranium project containing significant measured, indicated and inferred uranium resources. Located approximately 25 kilometres away from Falchani with an NPV_(8%) of $603.1 million, IRR of 40.6% and a 1.8-year payback (all after-tax @ $50/lb U₃O₈ selling price)².

• An optimization work program evaluating pre-concentration amenability has been prepared and various options are being considered. This work program would be a follow up to favourable historical results yielded by Cameco Corporation in 2013 which demonstrated that approximately 85% of the uranium is concentrated in fine fractions representing only 50% of the mass of the uranium mineralized rhyolitic material. Pre-concentration potential using conventional scrubbing technology could impact the volume and head grade of mineralized material in the PEA mine plan, positively impacting operating and capital cost estimates, and result in a re-evaluation of resources outside the PEA mine plan. Samples were collected at site in July for this future work program. The timing of initiating the work program and results of the work program will be dependent on capital allocation later in 2020. The work programs may lead to an optimized development plan, execution of which will be dependent on the Peru government implementing the New Uranium Regulations (defined below) and market conditions for uranium improving.
• Ongoing work with the government of Peru for uranium transport and export regulations in coordination with the International Atomic Energy Agency and the Peruvian Institute of Nuclear Energy (the “New Uranium Regulations”). In early 2020 the Ministry of Energy and Mines (“MINEM”) announced that they were targeting H2 2020 to have this new framework submitted for approval, the Company expects that in the context of work restrictions due to COVID-19, along with personnel changes at MINEM, this could be delayed to H1 2021. However, a recent public announcement by the Minister of Energy and Mines continues to guide to the end of 2020.
• A targeted exploration drill program is being planned to test high priority areas between existing deposits, something not previously possible due to the fractured historical ownership. Previous EIA work continues albeit at a slower pace. The exploration program is contingent on securing uranium exploration capital and the New Uranium Regulations being implemented.

An updated PEA is under consideration, pending outcome of optimization work programs and New Uranium Regulations. Positive optimization work programs may result in a modified mining and processing plan.

Health and Safety

The Ministries of Health and Energy and Mines (the “Ministries”) in cooperation with regional governmental authorities permitted the restart of larger scale mining activities mid-May. All mining companies are required to submit restart safety protocols for approval before being given the go ahead to resume operations. Plateau received approval from the Ministries to restart activities on July 1, 2020. The Company’s decision to resume full scale work at site will be conditional on the ability to ensure the ongoing safety of our employees and the local communities and to access to supplies and equipment to maintain health and safety at site.

Local Communities

Plateau has been working to support our communities through the donations of hygiene and medical supplies such as sanitizer, digital thermometers and rapid response testing kits along with the delivery of parcels of essential food. 

At the end of May, the Company facilitated the delivery of supplies and equipment to partner with the Women Association of Isivilla to commence the production of reusable non-medical masks for distribution to the surrounding communities. The mask initiative is ongoing, and to-date over 5,000 reusable face masks have been assembled and distributed freely throughout the communities.

In mid-June, the Company was able to arrange for the delivery of essential food parcels or “canastas” to the local communities.  Over three days the team in Peru distributed canastas to the inhabitants in five villages. The Company continues to engage and work with our host communities to develop ways to support and assist them where possible during this global pandemic.

Peru Government and Regulatory

On September 11^th, the Peruvian Congress approved a motion to commence impeachment proceedings against President Vizcarra following allegations which have yet to be substantiated.  The date for the vote is expected to be held September 18^th.

Recently, three projects of proposed legislation with special emphasis on lithium were introduced in the Peruvian Congress for debate and approval. The projects vary considerably in their approach, ranging from tremendous support from the State and its institutions and assistance for the private sector to develop the lithium market in Peru, to strict controls imposed by the State at all levels. As far as can be ascertained, all the proposed legislation highlights the strategic importance of lithium to the country, prioritizing the development of the sector and does not seem to preclude private ownership or development. 

“The submission of three different lithium legislation proposals to Congress within a week demonstrates the interest that our Falchani discovery has generated in Peru,” Alex Holmes, CEO of the Company stated. “Lithium chemical processing and production requires certain technologies and a very specialized skill set not currently available in-country. As we advance Falchani, we are seeking to support the development of the prerequisite skillsets in-country, through education, training, and partnerships, to make lithium chemical development a successful industry for the country.”

Peru has a long history of encouraging and supporting foreign private investment in general and in the mining sector in particular, which is and has always been paramount to the economic stability and ongoing development of the country. Considering the very tumultuous political period that Peru as a country passes through at present, the Company believes that it is possible more projects may be submitted to Congress. As a result, it will take a while before any decision may be adopted with respect to the lithium industry. The Company expects that any such decision will be one that continues to encourage investment and ensure sustainable and responsible development in the country.  In Peru lithium is considered a “non-metal” and does not currently require any specific regulatory/permitting framework for exploration, exploitation and processing.

On August 4^th Peruvian Congress rejected a vote of confidence for President Vizcarra’s cabinet chief, forcing the resignation of 19 cabinet ministers, including Rafael Belaunde, the Minister of Energy and Mines who was appointed on July 15^th. On August 11^th Luis Miguel Inchaustegui, previously Vice Minister of the same Ministry, was appointed as the new Minister of Energy and Mines. On August 13^th Vice Minister Augusto Cauti tendered his resignation and was replaced by economist Jaime Gálvez Delgado, who until last year served as general director of Mining Promotion and Sustainability of MINEM. The Company has worked with both parties in their prior roles at the Ministry and looks forward to working with them as the projects continue to advance.

In July, MINEM adopted new exploration regulations which will in effect streamline early exploration (pre-drilling) timelines in advancing a project to drill ready status.

On July 24^th Susana Vilca, previously the Minister of Energy and Mines, was appointed as the new Institute of Geology Mining and Metallurgy (“INGEMMET”) President.

“We continued to realize strong production in August, delivering record monthly tonnage from both the mine and mill,” stated Brendan Cahill, President & CEO. “Changes to mine shift scheduling and mining method continued to deliver improved productivity and lower costs and we expect to transition to a lower cost energy supplier in early Q4. Electricity remains the largest cost centre at Platosa and the best opportunity to reduce cost further.”

    August 2020 Production Results 
  
  
   Production in Dry Metric Tonnes (DMT)August 2020
Tonnes Mined from Platosa            7,635      
Tonnes Processed                     8,477      
Ore Grades                                      
Silver (g/t)                         451        
Lead (%)                             4.95       
Zinc (%)                             6.76       
Recoveries                                      
Silver (%)                           86.8       
Lead (%)                             78.8       
Zinc (%)                             78.9       
Metal Production*                               
Silver (oz)                          106,662    
Lead (lb)                            729,081    
Zinc (lb)                            997,157    
AgEq (oz)*                           169,473    
Average August 2020 Commodity Prices            
Silver ($)                           26.89      
Lead ($)                             0.88       
Zinc ($)                             1.09       

*Subject to final settlement prices and assays with concentrate purchaser/AgEq ounces calculated using average August 2020 metal prices

The operation realized ordinary-course variations in metal grade during August. Recoveries were lower than planned as additional process optimizations were implemented, but recoveries have returned to plan in September. Realized cost reductions at Platosa include reductions to the workforce and renegotiation of treatment charges on concentrate. Pending cost reductions include the transition to a new energy supplier, upgrades to underground communications and various processing optimizations to better control reagent and consumables usage. The Company expects Platosa to deliver positive cashflow at current metal prices, particularly with these realized and pending cost reductions.

Surface Drilling Resumes at Platosa Mine and Nearby Targets

The Company has recommenced underground and surface drilling at the Platosa Mine and broader Platosa Property, respectively. Underground exploration is focused on expanding and further defining known mineralization. Surface exploration is focused on near mine targets around the Platosa deposit and the Jaboncillo and PDN targets north of the mine. Jaboncillo, 11 kilometres northwest of the Platosa Mine, is a Platosa-style target with a 4 x 4 kilometre alteration footprint, multiple times the size of the Platosa footprint, where the Company intersected near-surface gossans in 2019 drilling. PDN, two kilometres north of the Platosa Mine, is a skarn-style geophysical target that may be associated with the skarn discovery made in 2012 at Rincon del Caido. A complete update on the exploration outlook at Platosa is expected in the coming weeks.

Litigation Update

A subsidiary of the Company’s appeal against a judgment revoking its 2007 purchase of approximately 295 hectares of surface rights north of the Platosa Mine has been denied by an appeals court in Mexico. The judgment nullifies the purchase and orders that the land be returned to the plaintiffs and the plaintiffs to repay the original purchase price to the Company’s subsidiary.

The Company does not consider the land material to its mining operation or exploration activities. The decision does not impact Excellon’s mineral rights and the Company does not expect it to have any impact on its operations.

The plaintiffs also alleged at trial, for the first time, that the Platosa Mine site was on this land. This assertion was not decided in the litigation, was not supported by admissible evidence, contradicts the cadastral registry, conflicts with the rights of other third-party holders and ignores the fact that the Company began its use and occupation of the mine site in 2004 – before the sale in question.

Under Mexican law, Excellon’s access to the mine cannot be impeded. Nevertheless, the Company is considering a variety of legal avenues to redress the ruling, including further appeal.

COVID-19 Update

Excellon continues to monitor and implement business continuity measures to mitigate and minimize to the extent possible any potential impacts from COVID-19 that might impact operations, procurement or commercial activities. The pandemic has not had any material impact on production or shipment of concentrate from any of the Company’s operations.

Gold ore supply since the reopening of the mill is exceeding management’s expectations. For July and August 2020, Dynacor purchased 14,224 tons of gold ore and produced 8,625 ounces. Gold grades and ore supply are consistently increasing on month by month basis since the plant reopening. Gold ore purchases in June, July and August 2020 are 4,044, 6,075 and 8,149 tons of gold ore, respectively. Management expects ore purchases in Q3-2020 (July-September) to be its best quarter year to date.

Due to the COVID 19 pandemic country-wide shutdown, the Peruvian government on March 16, 2020, prohibited all ASM mining operations to June 4, 2020. Abiding by the government quarantine restrictions, it was impossible and illegal to produce and transport any ASM ore during this period. The Peruvian government published a decree approving phase 2 reopening of economic activities on June 4, 2020. On June 6, 2020, Dynacor partially resumed operations with expectations of a return to full operating capacity of 300 tonnes per day before September 30, 2020.

On Sept. 16, 2020, NSGold Corporation (NSX-TSXV) reported an updated inferred mineral resource of 3,454,000 tonnes with an average diluted grade of 4.71 grams per tonne containing 523,000 ounces of gold (uncut 804,000 oz gold). The resource update by Patrick Hannon, M.A.Sc., P.Eng., FCIM and Doug Roy, M.A.Sc., P.Eng. of MineTech International located at Halifax, Nova Scotia used a cut-off grade of 2.0 grams per tonne and envisioned an underground operation.

Globex vended the Mooseland property to NSGold in 2010 after which NSGold undertook 58 drill holes and metallurgical test work which showed high gold recoveries. NSGold has decided to seek offers for the company. There are several operating gold mines in Nova Scotia including the Moose River Consolidated Gold Mine owned by Atlantic Gold Corporation, located approximately 13 kilometers from the Mooseland Gold Mine.

Globex stands to benefit from the potential sale of the corporation as Globex owns 1,745,408 NSGold shares and holds a 2% Gross Metal Royalty on any future production. For more information on the potential NSGold transaction, shareholders are directed to NSGold’s September 16, 2020 press release.

This press release was written by Jack Stoch, Geo., President and CEO of Globex in his capacity as a Qualified Person (Q.P.) under NI 43-101.