Exco Resources Limited (ASX:EXS) Quarterly Activities Report For The Period Ending 31 March 2010

Perth, April 30, 2010 AEST (ABN Newswire) - Exco Resources Limited (ASX:EXS) (PINK:EXRSF) White Dam Gold Project is located in South Australia approximately 80kms west of Broken Hill. The project contains a resource inventory of 9.6Mt @ 1.05 g/t Au for 325,000oz contained.

WHITE DAM GOLD PRODUCTION JOINT VENTURE (WDGPJV)

The project is subject to a JV agreement whereby Polymetals Group Pty Ltd ("Polymetals") have acquired a 25% interest in the project. Exco and Polymetals have also entered into a management agreement, appointing Polymetals as project manager.

Polymetals is a privately owned company specialising in the development of remote small to medium size resource projects. In-house expertise includes metallurgy, mining and project management. Polymetals resource project successes have been due to its ability to develop and operate very cost effectively, often implementing novel processing options as is evident from their track record with projects such as the Hellyer Zinc Concentrate Project in Tasmania.

On the 11 September 2009 Exco announced that with its joint venture partner, Polymetals Group Pty Ltd, it had completed the financing arrangements in respect of the White Dam Gold Project. A A$16m gold-linked pre-payment facility had been secured which, together with equity funding from the JV partners of A$7.5m, would provide the full funding required to implement the project.

The project commenced construction in early October 2010.

Project construction activities continued to plan throughout the quarter with the exception of a few minor delays caused by several unseasonal rain events. One event in early January did cause minor damage to the partially completed leach pad; however, this has since been repaired and is currently subject to an insurance claim to recover repair costs.

All construction earthworks have now been completed with the exception of the partially-constructed drainage layer component of the leach pad which will be completed ahead of mining over the next several months. Plastic lining of the leach pad, drains and solution ponds was completed in February and the lining contractor has fully demobilised.

Ore extraction by the mining contractor (Lucas Earthmovers) from the Hannaford Pit commenced in January with 365,000 tonnes of ore placed by the end of March at an average grade of 1.02 g/t Au.

This coincided with the commissioning of the lime mixing and delivery facilities which apply lime slurry to the ore as it is placed on the leach pad for pH control during leaching.

The irrigation and cyanide mixing systems were commissioned and leaching of ore commenced on 13 March with the placement and commissioning of dripper irrigation on the first section of leach pad cell 1.

Percolation and drainage of leach solution through the ore is performing well and accumulation of gold in solution is occurring to plan.

Adsorption of gold onto carbon in the gold recovery plant commenced on 30 March. Commissioning of the remainder of the process plant facilities was completed early April with first gold production achieved on April 16. - See original announcement (released 19 April 2010).

The first shipment contained a total of 508 ounces of gold with subsequent pours indicating an increase in production in line with expectations. The ramp-up of gold production to the targeted rate of 50,000oz/annum is expected to take place over the next quarter.

Operation Staffing

Recruitment of the Polymetals operational workforce was completed with the planned manning levels of 27 reached in February coincident with the commencement of construction workforce demobilisation.

Around 40% of the operation's workforce are local residents with the remainder operating on a fly-in, fly-out basis. Full time contractors associated with the mining contractor and camp caterer are also at planned levels, totalling 32.

Additional Exploration and Resource Development

Having successfully achieved first production, the JV partners will now be prioritising exploration and resource development programs at both Vertigo and White Dam North with a view to extending the life of the mine and increasing life of mine production. Drilling activites are expected to commence within a few weeks.

CLONCURRY COPPER PROJECT, NW QUEENSLAND (EXCO 100%)

The Cloncurry Copper Project, located approximately 40km north east of the town of Cloncurry, includes both exploration and mining leases, and a resource base of in excess of 55Mt at 0.85% copper and 0.22g/t gold. The centre of gravity for the project is the E1 Camp located 8km east of the existing Ernest Henry Mine owned by Xstrata, in a region well serviced by infrastructure.

UPDATED MT COLIN RESOURCE MODEL

An updated resource model for the Mount Colin Deposit has led to an increase in overall tonnage with the deposit now estimated to contain 1.49Mt @ 2.47% Cu (at a 1.25% Cu cut-off). An Indicated resource (0.62Mt @ 3.14% Cu) has been drilled on an approximately 40 x 40m grid, with wider spaced drilling, at depth and along strike, being classified as Inferred.

A study on underground mining at Mt Colin was completed during the quarter and demonstrated technical and commercial viability. Mt Colin remains a valuable resource that may provide high grade ore for the early years of the project.

Additional drilling, geotechnical studies, hydro-geological studies and environmental studies have been planned at Mt Colin. This will include drilling of ~2,500m of RC and ~ 2,500m of Diamond core. This drilling has now commenced and results will be reported as soon as they have been received and processed.

A definitive feasibility study will commence on the underground mine in conjunction with the work already underway on the wider Cloncurry Copper Project.

For more detailed information in relation to the Mt Colin resource model update, please refer to the original announcement (released 4 March 2010).

CLONCURRY COPPER PROJECT - MAIDEN MEASURED RESOURCE

Detailed geological logging and modelling of the E1 deposits has now been completed based on currently available information. The updated data has added to the confidence in the resources and allowed 9.17Mt to be classified as Measured.

The E1 resource estimate has been completed by Exco, using the ordinary kriging interpolation method in Surpac within geologically and geochemically defined units. The drilling has been completed on a nominal 25x50m grid in the core of the deposit and 50x50m at depth and along strike. The resource has been extrapolated by half the drill spacing past the last drill hole for each of the host units. The company has had the resource reviewed by Runge Pty Ltd and it was found to be in accordance with the JORC code and therefore suitable for release.

Total resources for the CCP now comprise 55.7Mt @ 0.85% Cu & 0.22 g/t Au of which 37.9 Mt @ 0.86% Cu & 0.22 g/t Au has been classified as Indicated or Measured.

The Company's revised interim goal of over 30Mt of Indicated resources within the CCP, as the basis for the Definitive Feasibility Study (DFS), has therefore now been achieved.

The latest resource upgrades have also increased the Company's confidence that ongoing work will lead to the definition of a 25-30Mt mineable reserve as the basis for an operation, centred at the E1 Camp, treating 2.5 to 3Mtpa over a 10-year project life.

For more detailed information in relation to the E1 resource model update, please refer to the original announcement (released 7 April 2010).

FORWARD PROGRAMME

Two drill rigs have been mobilised and are on-site to further resource definition tasks. Final pit design and mine scheduling have commenced. Final geotechnical studies are in progress and will be completed during the next quarter.

The metallurgical testwork programme is ongoing and progress has been made in the areas of impurity removal, recovery optimisation and by-product recovery. Final process plant design will commence during the next quarter.

Key elements of the Definitive Feasibility Study including infrastructure design and discussions with infrastructure owners/providers in the region are ongoing.

The EIS approvals process is ongoing with the public consultation period concluding during the quarter. Matters arising from the consultation period are currently being addressed and Exco continues to work closely with DERM to expedite this process.

EXPLORATION & DRILLING UPDATE

HIGHLIGHTS

- Final Results from 2009 drilling at Tanbah have confirmed widespread copper and gold in most holes drilled to date.

- Significant copper and gold anomalism from EMRC309 which tested a buried magnetic anomaly in the Monakoff North area.

- Heritage Clearances and drill site preparation has been completed for a continuation of the Exploration programme over the next few months. Two drill rigs are currently on-site and a third will be engaged once site preparation has been completed.

Established resources at the Monakoff and Monakoff East Deposits together comprise 4Mt @ 1.32% Cu & 0.42g/t Au, containing 53,000t of copper and 54,000 oz of gold. A key aspect of these deposits is their relatively higher grade, such that finding additional sources of similar material is a high priority for the Company.

The region around Monakoff is host to a number of buried magnetic anomalies of similar size and intensity to that associated with the known deposits. Moreover, adding to the prospectivity is the fact that the geological and structural setting of these anomalies appears similar to both Monakoff and the E1 deposits to the North.

Results for the final 2 holes drilled last year have been received with encouraging results from EMRC309 which tested a strong discrete magnetic anomaly. The hole intersected widespread zones of magnetite with associated anomalous copper and gold. This hole had anomalous copper and gold throughout the basement rocks from 18 to 119 metres, with peak values in 2m sampled intervals of 0.18% Cu and 0.36 g/t Au.

Further Native Title Heritage surveys have been completed and drill access has been cleared for follow up drilling in May 2010.

Final results have been received for the final 7 RC holes drilled late in 2009 at the Tanbah Prospect. Significant widespread low grade copper and gold mineralisation has been intersected in most holes drilled at Tanbah. Best new results from Tanbah include:

- ECRC330 36m @ 0.50% Cu & 0.33 g/t Au from 8-44m
- ECRC337 52m @ 0.36% Cu & 0.19 g/t Au from 12-64m

- ECRC338 44m @ 0.56% Cu & 0.42 g/t Au from 42-86m

Within these broad lower grade zones are areas of stronger mineralisation:

- ECRC330 6m @ 0.88% Cu & 0.96 g/t Au from 38m

- ECRC337 12m @ 0.60% Cu & 0.33 g/t Au from 46m

- ECRC338 14m @ 0.83% Cu & 0.75 g/t Au from 48m

- ECRC338 8m @ 0.74% Cu and 0.4 g/t Au from 74m

The Tanbah Cu-Au Prospect occurs within a meta-sedimentary package of rocks near the contact of a volcanic sequence of rocks. The area is characterised by complex folding and widespread oxide copper occurrences at surface, some of which have been the subject of small historical excavations. The meta-sedimentary rocks are accompanied by irregularly distributed calc-silicate breccias. Mineralisation intersected so far occurs at the contact of meta-sediments and the calc-silicate breccias, and more generally throughout the meta-sedimentary rocks. Oxide copper minerals occur in approximately the top 20 metres of drill holes, and pyrite and chalcopyrite (sulphides) are present below this. There are also zones containing highly elevated cobalt (e.g. ECRC338 44m @ 535ppm Co including 10m @ 1142ppm Co).

At present there is insufficient data to determine the geometry of these copper rich zones and diamond drilling is planned to enable structural interpretation and targeting higher grade areas. Further RC drilling will enable an assessment of the overall size of the mineralised system.

Canteen Prospect

Three holes were drilled at the southern extension of the large magnetic/radiometric anomaly at Canteen. Widespread sulphides and magnetite alteration were encountered with associated copper gold and uranium anomalism, however no higher grade zones were intersected in these 3 holes. Further drilling will continue to the south over significant surface copper anomalism.

CORPORATE

RESIGNATION OF DIRECTOR

Non-executive director, Mr Craig Burton, tendered his resignation to the Board of Exco Resources Ltd on 30 March 2010.

Craig has been a director of the Company since 2001. His decision to retire is due to extensive current and ongoing business commitments.

The Board wishes to express its appreciation of his substantial contributions to the Company.

Please refer to the original announcement (released 30 March 2010).

ACCOUNTS

With a cash balance at the end of March of A$13.5m Exco is in a strong position to achieve its immediate corporate, exploration and project development objectives across the project portfolio.

PROJECTS NOT LISTED

Projects that are not mentioned in this report have had no significant results during the present quarter or results are not yet available.

For the complete Exco Resources Quarterly Activities Report for the period ending 31 March 2010, please click the following link:

http://www.abnnewswire.net/media/en/docs/62752-ASX-EXS-489409.pdf

Contact

Michael Anderson Managing Director Exco Resources Limited Phone: +61-8-9211-2000