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Mackie Research Updates Coverage and Speculative Buy Recommendation for Excelsior Mining - Video Posted on

Mackie Research Updates Coverage and Speculative Buy Recommendation for Excelsior Mining - Video Posted on

Vancouver, British Columbia--(Newsfile Corp. - July 26, 2013) - Investment firm Mackie Research has updated coverage on Excelsior Mining (TSXV: MIN) (OTCQX: EXMGF) (Frankfurt: 3XS). Following the announcement that the company had entered into a Share Purchase and Royalty Option Agreement with Callinan Royalties Corporation (TSXV: CAA), analyst Barry Allan re-iterated his speculative buy rating, dropping his target price to $1.50 from $2.00, a healthy premium of 838% to the $0.16 price the day the report was issued. has produced a "video news alert" based on this report. If this link is not enabled, please visit and enter "Excelsior” in the search box.

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Excelsior’s principal asset is its flagship Gunnison Project, located within the Copper Porphyry Belt of Arizona. The North Star deposit contains a NI 43-101 compliant measured and indicated resource of 3.2 billion pounds of oxide copper, and an inferred resource of 830 million pounds of oxide copper. The Gunnison Copper Project is situated close to the required infrastructure and its oxide copper resource has the potential to be mined using in-situ recovery methods.

With respect to the Share Purchase agreement, Excelsior will issued 6.25 million shares to Callinan at $0.16 per share, for gross proceeds of $1 million. Under the Royalty Option arrangement, Callinan will acquire 0.5% gross revenue royalty on the Gunnison project for consideration of $2 million. The closing of this $3 million initial investment is expected to occur by July 31, 2013

Callinan will also have the option to acquire addition gross revenue royalties of 1.5% for consideration of $9 million based on the successful completion of development milestones, and 1.0% for $10 million, which would be used as part of the capital required for mine construction.

The Chairman of Excelsior, Mark Morabito, stated, “This transaction stands as confirmation of the financial viability of the Gunnison Copper Project.”

The upfront cash payment of $3 million provides Excelsior’s balance sheet with a much needed capital infusion in a relative non-dilutive manner to meet its working capital requirements, as the company had only $800,000 in cash at the end of the first quarter of 2013.

Analyst Barry Allan stated, “We assume that Callinan will exercise its option to acquire the full 3% gross revenue royalty for total consideration of $21 million in our financial model. In addition, we have also pushed back our project commercialization date from 2015 to 2017. “

The shares are currently trading at $0.16 well below Mackie Research’s new target price of $1.50, and with 66.2 million shares outstanding after the closing, the company will be capitalized at $10.6 million.

For more information, please visit the company’s website or contact JJ Jennex, Vice President of Corporate Affairs at 604-681-8030 ext 240 or email [email protected].

For more information about Mackie Research or to obtain the report on Prophecy Platinum, contact your nearest Mackie Research office. Their branches are listed on their website at

About InvestmentPitch, a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals, specializes in producing three minute videos based on news releases and research reports.

Barry Morgan, CFO
[email protected]

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