Excellon Resources Inc. — Interim / Quarterly Report 2024

Aug 15, 2024

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Excellon Resources Inc.

Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024 and 2023 in thousands of U.S. dollars (unaudited)

Notice to Reader

The accompanying unaudited interim financial statements have been prepared by the Company’s management and the Company’s independent auditors have not performed a review of these financial statements.

Excellon Resources Inc.

Condensed Consolidated Statements of Financial Position (unaudited) (in thousands of U.S. dollars)

		June 30	December 31
		2024	2023
	Notes	$	$
Assets
Current assets
Cash and cash equivalents		594	691
VAT recoverable		272	134
Other current assets		367	416
		1,233	1,241
Non-current assets
Mineral rights	3	15,305	15,359
Other assets		-	41
Total assets		16,538	16,641
Liabilities
Current liabilities
Payables and accruals	5	4,195	9,987
VAT payable	5	1,092	2,991
Convertible debentures	4	-	11,942
Provisions and lease liabilities	5	-	800
		5,287	25,720
Non-current liabilities
Convertible debentures	4	2,965	-
Provisions	5	-	748
Total liabilities		8,252	26,468
Shareholders’ equity (deficit)
Share capital	6	151,424	143,393
Contributed surplus	6	39,672	33,700
Accumulated other comprehensive loss	5	(3,925)	(12,451)
Deficit		(177,130)	(174,469)
		10,041	(9,827)
Non-controlling interests	4	(1,755)	-
Total equity (deficit)		8,286	(9,827)
Total liabilities and equity (deficit)		16,538	16,641

Basis of presentation and going concern (Note 2)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Approved by the Board

Director Director

“Laurence Curtis” “Craig Lindsay”

Excellon Resources Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss) For the three and six months ended June 30, 2024 and 2023

(unaudited) (in thousands of U.S. dollars, except share and per share data)

		Three months ended	Three months ended	Six months	ended
		June 30	June 30	June 30	June 30
		2024	2023	2024	2023
	Notes	$	$	$	$
Administrative expense	7	(628)	(794)	(882)	(1,948)
Share-based payment expense	6	(92)	(85)	(273)	(193)
Care and maintenance and wind down expenses		-	(136)	-	(320)
Amortization		(1)	(44)	(40)	(88)
General and administrative expenses		(721)	(1,059)	(1,195)	(2,549)
Gain on deconsolidation of Mexican subsidiaries	5	8,317	-	8,317	24,255
Reclassification of currency translation adjustments	5	(7,378)	-	(7,378)	(6,923)
Exploration and holding expenses		(44)	(490)	(87)	(1,003)
Other (expense) income	7	(235)	111	(955)	1,691
Finance expense	8	(336)	(1,317)	(1,571)	(2,326)
(Loss) income before income taxes		(397)	(2,755)	(2,869)	13,145
Income tax recovery		-	58	-	60
Net(loss) income		(397)	(2,697)	(2,869)	13,205
Attributable to:
Shareholders of the Company		(189)	(2,697)	(2,661)	13,205
Non-controllinginterest		(208)	-	(208)	-
Net(loss) income		(397)	(2,697)	(2,869)	13,205
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit	and loss:
Foreign currency translation differences		971	(710)	1,148	(2,923)
Reclassification of currencytranslation adjustments		7,378	-	7,378	6,923
Total other comprehensive income(loss)		8,349	(710)	8,526	4,000
Total comprehensive income(loss)		7,952	(3,407)	5,657	17,205
Attributable to:
Shareholders of the Company		8,160	(3,407)	5,865	17,205
Non-controllinginterest	4	(208)	-	(208)	-
Total comprehensive income(loss)		7,952	(3,407)	5,657	17,205
Net (loss) income per share - Shareholders of the Company
Basic and diluted		($0.00)	($0.07)	($0.03)	$0.34
Weighted average number of shares
Basic and diluted		106,096,846	38,578,114	82,853,648	38,408,189

Excellon Resources Inc.

Condensed Consolidated Statements of Cash Flow For the six months ended June 30, 2024 and 2023 (unaudited) (in thousands of U.S. dollars)

	Six months	ended
	June 30	June 30
	2024	2023
	$	$
Cash flow generated by (used in)
Operating activities
Net (loss) income for the period	(2,869)	13,205
Adjustments for non-cash items:
Loss on convertible debenture restructuring	812	-
Gain on deconsolidation of Mexican subsidiaries	(8,317)	(24,255)
Reclassification of currency translation adjustments	7,378	6,923
Depletion and amortization	40	88
Income tax expense	-	(60)
Share-based payment expense	273	193
Finance expenses	1,571	2,326
Other expense/(income)and foreign exchange losses(gains)	255	(1,691)
Operating cash flows before changes in working capital	(857)	(3,271)
Changes in working capital
Trade receivables	-	690
VAT recoverable	(143)	(192)
Other assets	(4)	141
Provisions	-	(1,781)
Payables and accruals	63	2,519
VATpayable	1	520
Net cash used in operating activities	(940)	(1,374)
Investing activities
Interest received	7	-
Net cash from investing activities	7	-
Financing activities
Net proceeds from private placement – Note 6	855	-
Lease payments	-	(87)
Interestpaid	-	(5)
Net cash from(used in) financing activities	855	(92)
Effect of exchange rate changes on cash and cash equivalents	(19)	56
Change in cash and cash equivalents	(97)	(1,410)
Cash and cash equivalents – beginning ofperiod	691	1,468
Cash and cash equivalents – end ofperiod	594	58

Excellon Resources Inc.

Condensed Consolidated Statements of Changes in Equity (Deficit)

For the six months ended June 30, 2024 and 2023

(unaudited) (in thousands of U.S. dollars, except per share data)

Condensed Consolidated Statements of Changes in Equity (Deficit) For the six months ended June 30, 2024 and 2023 (unaudited) (in thousands of U.S. dollars, except per share data)
Share capital Contributed surplus $ $	Accumulated other comprehensive loss Attributable to Shareholders of the Company Non-controlling interests Deficit $ $ $ $	Total (deficit) equity $
Balance - January 1, 2023 141,051 34,760 Net income for the period - - Total other comprehensive income - -	(16,703) (181,003) (21,895) - - 13,205 13,205 - 4,000 - 4,000 -	(21,895) 13,205 4,000
Total comprehensive income - - Share options: Share-based compensation - 52 Deferred and restricted share units: Shares issued on RSUs / DSUs exercise 758 (758) Share-based compensation - 141 Convertible debentures: Interestpaid in shares 668 -	4,000 13,205 17,205 - - - 52 - - - - - - - 141 - - - 668 -	17,205 52 - 141 668
Balance – June 30, 2023 142,477 34,195	(12,703) (167,798) (3,829) -	(3,829)
Balance - January 1, 2024 143,393 33,700 Net loss for the period - - Total other comprehensive income - -	(12,451) (174,469) (9,827) - - (2,661) (2,661) (208) 8,526 - 8,526 -	(9,827) (2,869) 8,526
Total comprehensive income (loss) - - Share options: Share-based compensation - 85 Deferred and restricted share units: Shares issued on RSUs / DSUs exercise 180 (180) Share-based compensation - 496 Convertible debentures – Note 4: Shares issued on restructuring 6,318 - Value of conversion option - 5,257 Non-controlling interests - - Interest paid in shares 992 - Private Placement – Note 6: Value of shares issued 541 - Value of warrants issued - 314	8,526 (2,661) 5,865 (208) - - 85 - - - - - - - 496 - - - 6,318 - - - 5,257 - - - - (1,547) - - 992 - - - 541 - - - 314 -	5,657 85 - 496 6,318 5,257 (1,547) 992 541 314
Balance – June 30, 2024 151,424 39,672	(3,925) (177,128) 10,041 (1,755)	8,286

Notes to the Condensed Consolidated Financial Statements For the three and six months ended June 30, 2024 and 2023

Excellon Resources Inc.

(unaudited) (in thousands of U.S. dollars , exce pt share and per share data )

1. GENERAL INFORMATION

Excellon Resources Inc. (the “Company” or “Excellon”) is engaged in the acquisition, exploration, and advancement of mineral properties. The Company is listed on the Toronto Stock Exchange (the “TSX”) under the symbol EXN, the OTC Pink Market (the "OTC") in the United States under the symbol EXNRF, and the Frankfurt Stock Exchange under the symbol E4X2. Excellon’s vision is to realize opportunities for the benefit of its employees, communities and shareholders, through the acquisition of advanced development or producing assets with further potential to gain from an experienced management team. The Company is advancing a portfolio of gold, silver and base metals assets including Kilgore, an advanced gold exploration project in Idaho; and Silver City, a high-grade epithermal silver district in Saxony, Germany.

Excellon is domiciled in Canada and incorporated under the laws of the Province of Ontario. The address of its registered office is 3400 One First Canadian Place, 100 King Street West, Toronto, M5X 1A4. These condensed consolidated financial statements were approved by the Board of Directors on August 14, 2024.

2. BASIS OF PRESENTATION AND GOING CONCERN

a) Statement of compliance and going concern

The Company prepares its condensed consolidated financial statements in accordance with International Accounting Standard 34, Interim Financial Reporting . Accordingly, certain information and note disclosures normally included in the annual financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the IASB, have been omitted or condensed. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2023.

The Company’s sole producing mine ceased operation in Q4 2022 and the Company is therefore pursuing other financing opportunities to fund its working capital requirements, corporate expenditures and exploration activities. The Company had negative working capital of $4,054 as of June 30, 2024.

These conditions indicate the existence of material uncertainties that may cast significant doubt on the Company’s ability to continue as a going concern and therefore realize its assets and discharge its liabilities in the normal course of business and, accordingly, the appropriateness of the use of accounting principles applicable to a going concern. The Company’s ability to continue as a going concern is dependent on its ability obtain the necessary financing to fund its working capital requirements, advance its exploration projects and meet its ongoing corporate overhead costs. Although the Company has been successful in obtaining debt and equity financing in the past, there is no assurance that it will be able to do so in the future or that such arrangements will be on terms advantageous to the Company. The Company is considering various financing, corporate development opportunities and strategic alternatives that may include acquisitions, divestitures, mergers or spin-offs of the Company’s or third parties’ assets, as applicable.

On March 28, 2024, the Company announced the closing of the Debenture Restructuring (Note 4) and on May 15, 2024, the Company announced the closing of a non-brokered private placement offering (Note 6).

5

Notes to the Condensed Consolidated Financial Statements For the three and six months ended June 30, 2024 and 2023

Excellon Resources Inc.

(unaudited) (in thousands of U.S. dollars , exce pt share and per share data )

These condensed consolidated financial statements are prepared on a going concern basis, which assumes that the Company will continue for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. Accordingly, these condensed consolidated financial statements do not include adjustments to the recoverability and classification of recorded assets and liabilities and related expenses that might be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities in other than the normal course of business at amounts different from those in the accompanying condensed consolidated financial statements. Such adjustments could be material.

b) Summary of significant accounting policies, judgments, and estimates

These condensed consolidated financial statements have been prepared using the same accounting policies, methods of computation, judgments and estimates as the annual consolidated financial statements of the Company as at and for the year ended December 31, 2023. The Company also exercised judgement in determining the appropriate assumptions and valuation techniques used in valuing the restructured convertible debentures (Note 4) and the private placement equity and warrants (Note 6).

3. MINERAL RIGHTS

	Silver City	Kilgore	Oakley
	(Germany) (1)	(Idaho)(2)	(Idaho) (3)	Total
	$	$	$	$
Year ended December 31, 2023
Opening net book value	1,565	13,750	5,195	20,510
Impairment Loss	-	-	(4,195)	(4,195)
Proceeds on disposal	-	-	(1,000)	(1,000)
Exchange differences	44	-	-	44
Closing net book value	1,609	13,750	-	15,359
Period ended June 30, 2024
Opening net book value	1,609	13,750	-	15,359
Exchange differences	(54)	-	-	(54)
Closing net book value	1,555	13,750	-	15,305

• (1) In Q1 2024, and as part of the convertible debenture Restructuring (Note 4), the Company issued a 25% interest in Saxony Silver Corp. to the Debentureholders in partial consideration for the cancellation of C$10.41 million aggregate principal amount of the original convertible debentures.

• (2) In Q1 2024, and as part of the convertible debenture Restructuring (Note 4), the Company issued contingent value rights providing for payments equal to the equivalent of up to 1,500 troy ounces of gold upon the achievement of certain milestones, and a 2% NSR royalty on the unpatented claims comprising the Kilgore Project, to the Debentureholders in partial consideration for the cancellation of C$10.41 million aggregate principal amount of the original convertible debentures.

• (3) In Q3 2023, the Company announced that it had entered into a definitive agreement with Centerra (U.S.) Inc., to sell Excellon’s remaining minority interest in the Oakley Project for $1,000 in cash. The sale was completed in Q4 2023.

6

Excellon Resources Inc.

Notes to the Condensed Consolidated Financial Statements For the three and six months ended June 30, 2024 and 2023

(unaudited) (in thousands of U.S. dollars , exce pt share and per share data )

4. CONVERTIBLE DEBENTURES

On September 21, 2023, the Company announced that it had entered into a binding term sheet with holders of greater than 66[2/3] % of the convertible debentures (“Debentureholders”), to reduce the outstanding principal amount from C$17.91 million to C$7.5 million, representing a 58% reduction in principal, and to amend the terms of the remaining debentures to, among other things, further extend the maturity date to August 31, 2026 (the “Debenture Restructuring”). Completion of the Debenture Restructuring was subject to approval by the requisite majorities of Debentureholders and shareholders, as well as the approval of the Toronto Stock Exchange.

On March 28, 2024, the Company announced the closing of the Debenture Restructuring. As a result, the remaining debentures’ conversion price decreased from C$5.30 to C$0.10, the interest rate payable in cash increased from 5.75% to 6.50% per annum, while the Company retained the option to satisfy interest in Common Shares at an effective interest rate of 10% per annum. In consideration for the cancellation of C$10.41 million in principal amount of the convertible debentures, the Company issued 38,888,878 common shares of the Company (“Share Consideration”), contingent value rights providing for cash payments equal to the equivalent value of up to 1,500 troy ounces of gold upon the achievement of certain milestones at Kilgore (“CVR”), a 2% net smelter returns royalty on the unpatented claims comprising the Kilgore Project (“Kilgore NSR”), and a 25% interest in Saxony Silver Corp., which holds the Silver City Project (“Saxony Shares”).

The Debenture Restructuring was accounted for as an extinguishment of the original convertible debenture (C$16,086), and the recognition of a revised convertible debenture (C$10,725), non-controlling interest related to the Saxony Shares (C$2,094 - debit) and the issuance of the Share Consideration (C$8,555), which resulted in a loss on restructuring (C$1,100). The fair value of the revised convertible debenture with conversion price of C$0.10, the Share Consideration, and hence the loss on restructuring, was driven by an increase in the Company’s share price from the date of the term sheet ($0.09) to the closing on March 28, 2024 ($0.22). The Company determined that the CVR and Kilgore NSR are contingent on future transactions and hence do not meet the IFRS criteria for recognition at this time (Note 3).

The Company recorded interest expense of C$2,077 ($1,535) and C$2,471 ($1,942) for the six months ended June 30, 2024 and 2023, respectively.

ended June 30, 2024 and 2023, respectively.
	$ CAD	$ USD
Year ended December 31, 2023
Opening balance	15,280	11,282
Interest expense – pre-extension	3,603	2,672
Value of shares issued to settle interest payable – pre-extension	(888)	(668)
Extinguishment of original convertible debenture	(17,995)	(13,842)
Fair value of extended convertible debenture	13,077	10,124
Interest expense – post-Extension	2,718	2,018
Value of shares issued to settle interest payable – post-extension(1)	-	-
Exchange differences	-	356
Closing balance	15,795	11,942

7

Excellon Resources Inc.

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024 and 2023

(unaudited) (in thousands of U.S. dollars , exce pt share and per share data )

	$ CAD $ USD 15,795 11,942 (903) (673) 1,625 1,205 (431) (318) - (276) 16,086 11,880 (17,186) (12,692) (1,100 (812) 10,725 7,918 3,607 2,662 7,118 5,257 3,607 2,662 452 330 - - - (27) 4,058 2,965
Period ended June 30, 2024 Opening balance Value of shares issued to settle interest payable – H2 2023(1) Interest expense – pre-restructuring Value of shares issued to settle interest payable – up to restructuring Exchange differences
Extinguishment of original convertible debentures Fair value of consideration recognized on closing
Loss on restructuring
Fair value of revised convertible debentures Debt component Equity conversion option (residual) Fair value of the new debt component Interest expense – post-restructuring Value of shares issued to settle interest payable – post-restructuring(2) Exchange differences
Closing balance

(1) As the payment date December 31, 2023 fell on a weekend, the shares (8.6 million) were issued on January 2, 2024 and hence not recorded in 2023.

(2) As the payment date June 30, 2024 fell on a weekend, the shares (1.2 million) were issued on July 2, 2024 and hence not recorded in Q2 2024.

5. DECONSOLIDATION OF MEXICAN SUBSIDIARIES

In Q1 2024 Minera Excellon de México, S.A. de C.V. (“MEM”), a subsidiary of the Company, voluntarily filed a petition for insolvency with the Mexican Bankruptcy Court. MEM holds the Platosa Mine which ceased operations in late 2022. In Q2 2024, the Court-appointed auditor completed its review of MEM’s petition and confirmed MEM’s insolvency. As a result of the loss of control, the assets and liabilities of MEM, and its subsidiary Excellon Servicios, S.A. de C.V., were deconsolidated from the consolidated financial statements of the Company. The gain on deconsolidation ($8,317) reflected payables and accruals ($5,248), VAT payables ($1,658), rehabilitation ($719) and post-retirement ($692) provisions. In accordance with IFRS requirements for the deconsolidation of a foreign subsidiary, the Company also recognized a non-cash loss of $7,378 on the reclassification of currency translation adjustment from accumulated other comprehensive income to net income before income taxes.

8

Excellon Resources Inc.

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024 and 2023

(unaudited) (in thousands of U.S. dollars , exce pt share and per share data )

6. SHARE CAPITAL

The Company’s authorized share capital consists of an unlimited number of common shares.

	Number of
	shares
	(000's)	$
Year ended December 31, 2023
Opening balance	38,054	141,051
Shares issued on exercise of RSUs and DSUs	641	880
Convertible debenture extension fees settled in shares	6,888	794
Shares issued to settle interest on convertible debentures	3,553	668
Balance at December 31, 2023	49,136	143,393
Period ended June 30, 2024
Opening balance	49,136	143,393
Shares issued to settle interest on debentures – H2 2023 (Note 4)	8,591	674
Shares issued on exercise of RSUs and DSUs	1,545	180
Shares issued to settle interest on debentures until restructuring (Note 4)	2,846	318
Shares issued on Debenture Restructuring (Note 4)	38,889	6,318
Shares issued in Private Placement(1)	7,357	541
Balance at June 30, 2024(2)	108,364	151,424

(1) On April 4, 2024, the Company announced a non-brokered private placement offering of up to 7.5 million units (the “Units”) at a price of C$0.18 per Unit for aggregate gross proceeds of up to C$1.35 million (the “Private Placement”). Each Unit comprised one common share and one common share purchase warrant of the Company (the “Warrants”). Each Warrant entitles the holder to acquire one Common Share at a price of C$0.27 per Common Share for a period of 24 months from the closing date. On May 15, 2024, the Company announced closing of the Private Placement for aggregate gross proceeds of approximately C$1.32 million. The Company paid finder’s fees in the amount of C$42K and issued a total of 237,210 finder’s warrants. The net proceeds of C$1.2 million ($855) after transaction costs, were allocated proportionally between the fair values of the Common Shares ($541) and the Warrants ($314).

• (2) Subsequent to June 30, 2024, the Company issued 2.8 million Common Shares as part of the settlement of $0.6 million (C$0.8 million) in payables, and 1.2 million Common Shares in settlement of debenture interest (Note 4).

The outstanding number and weighted average exercise prices of equity-settled Stock Options, Warrants, Deferred Share Units (“DSUs”) and Restricted Share Units (“RSUs”) are as follows:

	Options	Options	Warrants	Warrants
		Weighted		Weighted
		Average		Average
	Options	Exercise	Warrants	Exercise	RSUs	DSUs
	Outstanding	**Price$C **	Outstanding	**Price$C **	Outstanding	Outstanding
Outstandingat January1,2023	1,450,737	1.84	1,143,428	5.75	1,186,000	706,160
Granted/issued	30,000	0.38	-	-	60,000	-
Exercised/settled	-	0.00	-	-	(336,333)	(305,287)
Expired	(544,430)	2.74	(1,143,428)	5.75	(20,000)	-
Forfeited	(155,000)	0.56	-	-	(485,000)	-
Outstandingat December 31,2023	781,307	1.41	-	-	404,667	400,873
Exercisable at December 31,2023	646,307	1.58	-	-	-	63,362

9

Excellon Resources Inc.

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2024 and 2023

(unaudited) (in thousands of U.S. dollars , exce pt share and per share data )

Options	Warrants
Options Weighted Average Exercise Price Warrants Weighted Average Exercise Price RSUs DSUs
Outstanding (CAD)	Outstanding (CAD) Outstanding Outstanding
Outstandingat January1,2024 781,307 1.41 - - 404,667 400,873
Granted/issued(1) 2,550,000 0.10	7,593,842 0.27 2,413,001 4,017,543
Exercised/settled - -	- - (1,545,202) -
Expired (173,807) 3.45	- - (4,800) -
Outstandingat June 30,2024 3,157,500 0.24	7,593,842 0.27 1,267,666 4,418,416
Exercisable at June 30,2024 1,245,000 0.45	7,593,842 0.27 480,832 -

(1) In Q1 2024, the Company issued 1.3 million RSU and 2.3 million DSU in settlement of amounts owing to management and directors of the Company.

Options outstanding and exercisable are as follows:

Options outstanding and exercisable are as follows:	Options outstanding and exercisable are as follows:	Options outstanding and exercisable are as follows:
Stock Options Weighted Avg Remaining Contractual Life Stock Options Weighted Average Exercise Price
Exercise Price Range (CAD) Outstanding (years)	Exercisable	(CAD)
$0.00 to $0.49 2,550,000 2.52 $0.50 to $0.99 567,000 1.03 $1.50 to $8.00 40,500 1.34	637,500	0.10
	567,000	0.58
	40,500	4.16
3,157,500 2.24 1,245,000		0.45

Share-based payment expense is recognized over the vesting period of the grant with the corresponding equity impact recorded in contributed surplus. Share-based payment expense comprises the following:

	Three months	ended	Six months	ended
	June 30	June30	June 30	June 30
	2024	2023	2024	2023
	$	$	$	$
Stock options	27	24	85	52
RSUs	26	61	67	141
DSUs	39	-	121	-
	92	85	273	193

10

Excellon Resources Inc.

Notes to the Condensed Consolidated Financial Statements For the three and six months ended June 30, 2024 and 2023

(unaudited) (in thousands of U.S. dollars , exce pt share and per share data )

7. EXPENSES BY NATURE

• (a) Administrative expense consists of the following:

	Three months ended	Three months ended	Six months	ended
	June 30	June 30	June 30	June 30
	2024	2023	2024	2023
	$	$	$	$
Salaries, benefits, directors and professional fees	194	412	295	897
Office, insurance and overhead expenses	105	304	182	772
Corporate development and legal expenses	288	65	330	223
Public companycosts	41	13	75	56
Administrative expense	628	794	882	1,948

• (b) Other (income) expense consists of the following:

Other (income) expense consists of the following:
	Three months ended		Six months ended
	June 30	June 30	June 30	June 30
	2024	2023	2024	2023
	$	$	$	$
Loss on Debenture Restructuring (Note 4)	-	-	812	-
Fair value loss (gain) on securities/warrants	12	(1)	9	(3)
Unrealized foreign exchange loss (gain)	267	(97)	223	(1,688)
Realized foreign exchange gain	-	(13)	-	(1)
Interest and other (income) expenses	(25)	-	(30)	1
Other	(19)	-	(59)	-
Other loss(income)	235	(111)	955	(1,691)

8. FINANCE EXPENSE

Finance expense consists of the following:

	Three months	ended	Six months	ended
	June 30	June 30	June 30	June 30
	2024	2023	2024	2023
	$	$	$	$
Interest expense - convertible debentures(1)	318	1,298	1,536	2,290
Accretion on provisions	18	17	35	30
Interest expense - other	-	2	-	6
Finance expense	336	1,317	1,571	2,326

1. The Company has the option to pay interest on the convertible debentures in Common Shares (Note 4).

11

Notes to the Condensed Consolidated Financial Statements

Excellon Resources Inc.

For the three and six months ended June 30, 2024 and 2023

(unaudited) (in thousands of U.S. dollars , exce pt share and per share data )

9. FINANCIAL INSTRUMENTS

Fair values of non-derivative financial instruments

All financial assets and financial liabilities, other than derivatives, are initially recognized at the fair value of consideration paid or received, net of transaction costs, as appropriate, and are subsequently carried at fair value or amortized cost. At June 30, 2024, the carrying amounts of trade and other payables and other current assets are considered to be reasonable approximations of their respective fair values due to the short-term nature of these instruments.

Fair value hierarchy

The three levels of the fair value hierarchy are as follows:

• Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;

• Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

• Level 3 – Inputs that are not based on observable market data.

		June 30	June 30
	Fair value	2024	2023
	hierarchy	$	$
Financial assets
Fair value through profit and loss
Marketable securities	Level 1	42	-
Warrants	Level 2	-	2
		42	2

There were no transfers between levels 1, 2 or 3 during the six months ended June 30, 2024.

Valuation techniques and inputs used to determine fair values include:

• Marketable securities – the use of quoted market prices; and

• Warrants – based on a Black-Scholes model which uses quoted observable inputs.

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