ASX Announcement 12 November 2010 HAZEL CREEK EXPLORATION UPDATE DRILLING CONFIRMS IOCG POTENTIAL AT A NUMBER OF PRIORITY PROSPECTS Eight Mile Creek East * EHDD005 intersected 41m @ 0.72% Cu & 0.17g/t Au incl 9m @ 1.54% Cu & 0.31g/t Au. * EHDD006 intersected 18m @ 0.77% Cu & 0.21g/t Au in pre-collar. * EHDD007 intersected 48m @ 0.71% Cu & 0.21g/t Au. * EHRC260 intersected 54m @ 0.51% Cu & 0.26g/t Au incl 30m @ 0.70% Cu & 0.36g/t Au * Mineralisation occurs as coarse grained chalcopyrite with associated magnetite.

The area has no outcrop, but significant magnetic anomalies require further drilling.

Grades are similar to Excos E1 Camp of deposits, and the drilled widths suggest significant tonnage potential. Turpentine Deposit Extensions * EHDD003 intersected 11m @ 2.01% Cu & 0.51g/t Au incl 3m @ 5.11% Cu & 1.35g/t Au. * EHDD001 intersected 35m @ 0.44% Cu & 0.09g/t Au incl 7m @ 1.29% Cu & 0.35g/t Au. Turpentine South * RC drilling has intersected similar style chalcopyrite mineralisation. Results are expected soon. Other Targets * Drilling is scheduled to test a number of high priority targets including a strong coincident magnetic/conductivity anomaly at Quail Creek, and follow-up to previous successful drilling at the Brumby Prospect.

Results will be released over the coming months when available. Exco Resources Ltd (ASX Code: EXS) is proactively engaged in a programme of exploration activities across a number of high priority targets within its portfolio of Cu-Au projects in North West Queensland. To view the announcement in full please visit: http://www.stocknessmonster.com/news-item?S=EXS&E=ASX&N=514988 On behalf of the Board of Exco Resources Ltd For further information contact: Michael Anderson Exco Resources Ltd Managing Director Phone +61 (0)8 9211 2000 Media Enquiries James Harris Professional Public Relations Phone +61 (0)8 9388 0944
FORWARD LOOKING STATEMENTS & COMPETENT PERSONS STATEMENT This report contains forward looking statements that are subject to risk factors associated with resources businesses.

It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. All references to dollars, cents or $ in this report are to AUD currency, unless otherwise stated. Information in this report relating to mineral resources and exploration results is based on data compiled by Excos Exploration Manager Stephen Konecny who is a member of The Australasian Institute of Mining and Metallurgy.

Mr Konecny has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Konecny consents to the inclusion of the data in the form and context in which it appears.
Information on Exco Resources Ltd Exco is an Australian-focused, ASX-listed mining and exploration company (ASX: EXS).

The Company has a dual focus on developing both the White Dam Gold Project in South Australia, and the Cloncurry Copper Project (CCP) in north-west Queensland. At White Dam, Exco has entered into a 75:25 operating joint venture with Polymetals Group Pty Ltd.

The project, which contains a resource inventory of 325,000 ounces of gold, achieved first gold production in April 2010 following a very successful construction and commissioning period.

The project was officially opened at a ceremony on the 10th of June 2010 and initial production rates have exceeded expectations by ~30%.

With costs of ~A$600/oz the project is already delivering significant revenues and is on track to repay its debt by December 2010 (more than 6 months ahead of schedule).

The relatively short-life project is currently expected to produce a total of 120,000oz (Excos share 90,000oz). Near mine exploration and resource development is underway and is expected to increase overall production and extend the life of the mine.

In north-west Queensland Exco holds a large, strategically located and highly prospective land package. The Cloncurry Copper Project (CCP) comprises numerous tenements and mining leases, which host the flagship E1 Camp, Monakoff, Mt Colin and Great Australia deposits.

Resources delineated for the project to date total 55.7Mt, containing 472,000 tonnes of copper and 394,000 ounces of gold, with further exploration upside and indicated resource development highlighting the potential for economic extraction of a significant portion of the resources. Exco completed a Pre-Feasibility Study (PFS) on the CCP in June 2008, which demonstrated the technical and commercial credentials of a 2Mtpa project. Encouraged by the positive PFS results, and with ongoing drilling delivering further resource upgrades, the Company commenced a Definitive Feasibility Study (DFS) on a slightly larger operation treating 3Mtpa through a concentrator facility located at the E1 Camp.

At this expanded throughput the project will produce ~25,000 tonnes of copper in concentrate per annum (25% more than envisaged by the PFS) with substantial by-product credits from gold, cobalt, magnetite and potentially uranium.

The Company has now submitted its Environmental Impact Statement (EIS) in pursuit of the relevant approvals for the project, and is reviewing its development strategy with a view to selecting a definitive option in the coming months. Exco also has a number of exploration joint ventures in Queensland with major companies including Xstrata, BHP Billiton Limited and Ivanhoe Mines Australia.

These JVs are managed by Excos partners, creating additional development options, and allowing the Company to maintain its primary focus on the CCP. The Board and management of Exco, backed by the Companys major shareholders including Ivanhoe Mines Australia, are committed to unlocking value from this highly prospective portfolio of projects, and we look forward to keeping shareholders informed of developments. Further information is available at www.excoresources.com.au
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