Mexican Landowners Demand Action from Excellon Resources at Shareholders' Meeting in Toronto

TORONTO, May 31, 2012 /CNW/ - Communal landowners from Mexico, who own 600,000 shares of Excellon Resources Inc. (TSX: EXN), confronted the company's board of directors today in Toronto.

Members of the communal landowners group (Ejido) "La Sierrita" came to Excellon's shareholders' meeting to vote against the board of directors and demand that the company resolve community and labour disputes at the La Platosa mine in Durango, Mexico.

"We are here to talk with you, shareholder to shareholder," said David Espinoza, president of the Ejido, alleging lack of transparency by Excellon and its failure to comply with a land use contract signed with the landowners.

"In 2008, we signed a contract to allow all of us to benefit from the La Platosa facility," said Espinoza. "But since 2009, the company has failed to comply with key aspects regarding local economic development, the construction of a water treatment plant and contracts to provide services at the mine. The company has also explored on lands not included in the agreement."

Although Ejido leaders have repeatedly tried to resolve the contract problems, Excellon has walked away from dialogue and not addressed the community's concerns.

"We want to benefit from the mine as shareholders and business partners," Daniel Pacheco, former Ejido president, told shareholders. "But we want you to know that this won't happen unless the company treats us as equals and sits down to resolve this conflict."

"We know the company has had to deal with stagnant share prices," Pacheco added. "If this conflict drags on we believe it will continue to have other negative effects on all parties."

Pacheco further noted that many landowners also are workers. In 2010, a majority of workers at the mine formed Local 309 of Los Mineros, Mexico's national mining union, given concerns about health and safety and lack of benefits.

"The company responded aggressively to the union organizing, firing union leaders, intimidating other workers, and supporting company-protection unions," Pacheco said.

The Ejido leaders invited Excellon CEO Jeremy Wyeth to attend negotiations with the Ejido on June 4 in Durango to resolve the conflict.

"Your management in Mexico has caused and perpetuated these conflicts and we need you to attend negotiations if order to ensure significant change. Only then will we know that Excellon is taking the peaceful resolution of these conflicts seriously."

On Tuesday, May 29, both landowners and employees in Mexico filed a complaint against Excellon under the OECD Guidelines for Multinational Corporations with the National Contact Point in Ottawa.

Allegations in the complaint include labour rights violations, including agreements signed with company-protection unions to obstruct independent union organizing at the La Platosa mine, as well as the lack of compliance with the land use contract for which reason the contract could ultimately be rescinded.

Christopher Benoit, ProDesc (Economic, Social and Cultural Rights Project in Mexico),
(tel) [phone], [email protected];
Jennifer Moore, Latin America Program Coordinator, MiningWatch Canada
[phone]; [email protected];
Daniel Pacheco, "La Sierrita" Ejido,  416-876-2502 (c)
Laura Ramirez, United Steelworkers, 416-544-5961, 416-876-2502 (c),
[email protected].