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Grandich Client Excelsior Mining

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Letter from Reader

Good Evening (UK time)

Thought I could maybe ask your opinion on Excelsior mining, possibly one for your letters section.

As I see it they look one of the cheapest copper plays I have seen for years (with a chance of making it to production and succeeding), but the sellers just keep driving the share price down. Looks like theres a big overhang on the stock, do you know where the selling is coming from? They must be selling at a loss so I suppose it has to end soon. My only concern is the price gets driven down so low and for so long that they have to raise money at a firesale price, diluting so much future upside.

All the best,

Mark

Response from JJ Jennex of Excelsior

Peter Grandich has asked me to shed some light on our current market valuation. To start, I’ve attached the one-year chart for the TSX-Venture; it shows that the trend of the past 12-months has been down and that since March of this year, the index has been under serious selling pressure. Unfortunately, Excelsior has been caught up in this along with most of the companies in the junior mining space. In this environment, investors are selling at any level even, as you point out, at a loss.

Metals markets have always been and will always be cyclical; this is a fact of life in the mining industry. This can be stressful for the investor but the opportunity is that quality companies routinely go on sale; we are certainly in one of those periods now. The good news is that Excelsior has not seen its market valuation erode because of anything materially negative within the company. Excelsior’s project remains among the most exciting on the TSX-V backed by an experienced and capable management team. Regardless of the market conditions, we are going to navigate our way through as we look to make Excelsior a true market success.

Returning to the chart, one could certainly make the argument that the TSX-V is forming a bottom. A more positive market sentiment will return at some point, but in the meantime, we will continue to act very strategically concerning our future financings as we balance the company’s financial requirements with the desire to minimize further dilution.

Excelsior’s Chairman Mark Morabito comments on MIN

Best wishes,

JJ Jennex, B.A.Comm.,

VP Corporate Affair