Excelsior Mining Corp.

August 14, 2014

BUY, Venture Risk

Dundee target: C$1.00

Strategic Partnership Provides US$10MM to Advance Gunnison

MIN Secures Partner to Progress the Gunnison ISR Copper Project in Arizona

Excelsior has raised aggregate net proceeds of US$10MM through the issuance of 29.4MM shares to Greenstone Resources (a private equity fund), at a price of $0.34/share. These funds will be used for general corporate purposes, and to further progress the Gunnison project through technical studies including metallurgical studies and hydrological testing. We believe that the proceeds received from this offering, combined with the $4MM public equity issue completed in July and the $3MM royalty deal with Callinan, leave MIN well-positioned to complete bulk testing at Gunnison and the ensuing studies will support the preparation of a feasibility study for Gunnison which we expect to be complete by the end of next year. We estimate that pro-forma the offering (both tranches), MIN has approximately $19MM in cash. We note that the treasury offering was at a 36% premium to the pre-announcement price of $0.25/share, we believe that this is a vote of confidence from what is an experienced team of mining professionals that should support MIN with project progression and from a technical standpoint.

Greenstone Resources LP to own 28% of MIN Pro-forma

MIN has sold approximately 28% of the company to Greenstone for $10MM through a two-tranche treasury offering of ~32MM shares at $0.34/share (dilution of ~36%). The transaction is scheduled to close in two separate tranches. The first settlement is scheduled after 15 days of the announcement and will see Greenstone purchase 20.6MM shares (~19.9%) of MIN for ~US$6.4MM. The second tranche, requiring shareholder approval which MIN intends to obtain during their AGM scheduled for Sept. 30th (we assume shareholder approval is granted and have added both tranches to our NAV), is scheduled to close 15 days after the AGM, and will see Greenstone purchase the remaining 8.1% for US$3.6MM.

NAV Falls Slightly on Dilution, Price Target and BUY Rating Unchanged

Excelsior's Gunnison project represents the world's largest known potential ISR copper project. Gunnison is at an early stage regarding technical test work for a project that uses a lesser-known mining method for copper. We are maintaining our BUY recommendation, and target price of $1.00/share based on a 0.3x multiple (up from 0.2x to reflect slight de-risking post-financing) to our NAV of $3.04/share (down from $4.25/share on equity dilution from both tranches). MIN is trading at 0.06x NAV and 0.3 cents per lb (on an EV/lb resource basis), well below copper developer peers at 0.34x and 3.5 cents respectively. We base the targets for our universe of copper developers on 0.2-0.9x NAV depending on nearness to production and other factors. We believe that the multiple we use for MIN is conservative; it is based on the project's unique technical factors, permitting risk, early stage, and lack of bulk testing.