Excelsior Mining Corp (EXMGF)

[Revello]

Some info to share. Don't ask me how I got it.

Excelsior Mining management thinks that the recent share price drop was a combo of recently lower copper prices, an early-in small fund investor who decided to cash-in some profit by selling into an expected liquidity event (announcement of receipt of permit).

Total capex funding need for Stage I = ~$49.4 million. $10.1M for SX-EW plant/equip, $3.4M for power upgrade/transmission lines, $7.7M for ponds, $3.3M for pipelines, $17.4M for wellfield, and $7.5M for general/owners costs. This is in Excelsior's June 28th corporate slide deck, which you can get at https://www.excelsiormining.com/images/pdf/Presentation/2018/June/June_28_2018.pdf

Will likely shoot for $60M financing amount. Have cost overrun contingency of about $10M put away, in case it's needed.

Expect to have completed financing for Stage I before Q3 2018. Range of options on financing -- from pure debt to up to 60/40 debt/equity (or some mixture/combo in between). Management very sensitive/want to try to avoid equity financing to protect shareholder interests/minimize share dilution. Not going to be pressured into rush for financing with equity -- have time to negotiate good financing approach (i.e., try for debt financing) since have ~$20M in bank right now.

Excelsior not deploying its capital right now for construction (not until after Aug 1), but Excelsior is purchasing long-lead items (e.g., people/staff) before then. Excelsior is currently working on arranging project financing (has been for several months now) -- working that in parallel with getting final permit.

Royalties: Assigned total of 4% royalties right now. Expect about 4.5% royalties total to have been assigned (3% to Greenstone, 1.5% to Altius) with production. No off-takes (??).

Once construction starts (estimated to start in Q3 2018), expect ~6 months for wellfield construction and ~7 months for the SX-EW plant/ponds construction (those construction efforts would be done in parallel/overlap, and not sequentially). Overall construction phase is about 6 to 8 months. Then start injection of diluted sulfuric acid solution, expect about 4 months for the solution to initially circulate around and start returning copper sulfate. Expect diversion of circulated acid/copper sulfate to pond to SW-EW plant for copper recovery in late Q1 2019.

Transitioning from Stage I production -- if Excelsior is meeting the production hurdles/expectations from Stage I, and if Excelsior can get favorable debt financing, then Excelsior will likely jump directly from Stage I to Stage III. Otherwise, Excelsior will use the free cash flow from Stage I and Stage II ops to help fund capex needed to jump to the next stage.

Slide deck covers nearly all of the salient points. The above addition/commentary provided to just add more color to the presentation.