Sector Spotlight

exploration sector tends to be made up of individuals and small mineral resource companies dependent on venture capital.

Q

How do you ensure you have the funding in place?

Excalibur is focused on small high margin, low capex projects. Since signing the JV deal in September 2010, we have invested an average of $100,000 per month into the Catanava project for a total of about $2.5 million. Hopefully, we are on the verge of achieving positive cash flow from operations, but we have cash from the latest financing and potential warrant exercises over the next year.

Has this altered much during the last four years since the beginning of the financial crisis? If so, how?

Q

The global economic slowdown has negatively impacted the demand for base metals, bank capital constraints make it difficult to obtain financing especially for large projects and retail investors are very cautious with their investments. So we think the ideal place to invest is in emerging gold production especially with the rising price of gold.

Q

How would you increase shareholder value?

We think the ideal investment is in a growing cash flow business that pays out a dividend. Given the risks of increasing government debt, the best hedge is to be in the gold business. By bringing the Catanava project into commercial production, we believe we

will provide capital gains through our growth and provide a growing yield by paying a cash dividend to Excalibur’s shareholders. Furthermore, we plan to expand the existing plant and continue to actively look for other gold mines.

Q

What makes your company standout from others?

Excalibur is pursuing the micro-mining approach which is the search for small, near surface ore deposits that can be extracted at a low cost. This minimizes the issues of permitting, financing, environmental and community challenges.

The most distinguishing characteristic will be when Excalibur is a junior gold producer paying a dividend. Most mining companies are not in production, perhaps only 10%, and most do not pay a dividend.

Q

Is there anything else you would like to add?

Mexico has traditionally been viewed as a silver producer, but is now one of the top 10 gold producing countries, with the lowest average cost of production per ounce, which increases the profitability as the gold price rises.

Contact:

Tim Gallagher - Chairman and CEO Email: tim@excaliburresources.ca

Natasha Elenina - Investor Relations Email: natasha@excaliburresources.ca

Tel.: +1(416)987-0298 Fax: +1(604)637-5624