Exco has released its Quarterly Activites and Cashflow Report for the period ending 31 March 2011.

Highlights include:

Cloncurry Copper Project (CCP), NW Queensland

• Xstrata to acquire the CCP for $175 million: Exco has entered into an agreement with Xstrata Copper for the sale of certain tenements of the Cloncurry Copper Project (CCP).
  
  

• Well funded post transaction strategy: Post the sale of the CCP, Exco’s focus will be to apply its funding and management expertise in adding further value to its remaining assets, such as the highly prospective Hazel Creek Project, and to actively seek appropriate asset acquisition opportunities.
  
  

• Distribution to shareholders: The board of Exco has indicated its intention to distribute up to $100m of surplus funds to shareholders, after providing for exploration and business development budgets.
  
  

• Conditions Precedent: The proposed transaction is subject to conditions precedent, including Exco shareholders approving the transaction and the eligible directors of Exco unanimously recommending that Exco shareholders approve the proposal.
  
  

• Gold production again ahead of expectations: JV production (100%) for the quarter was a record 25,237 ounces, up ~10% from the previous quarter, and again ahead of expectations.
  
  

• Substantial cash flows: Exco enjoyed net cash flows from White Dam of $24.4m for the quarter.
  
  Exco’s gold sales, from inception to 31 March 2011, have been at an average price of A$1,383/oz.
  
  

• Near mine exploration & resource development: A drill programme was undertaken at the new Rolling and Valley prospects with some encouraging results that will be followed up in the next quarter, as efforts continue to extend the life of the project.
  
  

• Final 2010 results: Encouraging results include 25m @ 0.94% Cu 0.53 g/t Au at Tanbah North and 10m @ 6.84 g/t Au from surface at the Uncle Toms Prospect.
  
  

• 2011 programmes about to commence: Site preparation is currently underway to enable follow up drilling across a number of high priority targets within both the CCP and Hazel Creek Project areas.
  
  

• Record cash position: Exco’s cash balances rose significantly during the period.
  
  Cash on hand at 31 March was A$35.8m, placing the Company in an extremely strong position, ahead of concluding the proposed sale of the CCP.
  
  

• Royalty arrangements: In March, CopperChem Limited advised that mining of oxide ores from Excos wholly owned Mt Colin deposit had been completed.
  
  Exco is entitled to a royalty and payment of A$117,000.
  
  In addition, CopperChem has advised Exco that it has commenced mining at the Great Australia Mine.
  
  Exco is entitled to a royalty on 1.7 million tonnes of sulphide ore contained within the Great Australia resource.
  
  Based on prevailing LME Cu prices this royalty is estimated to be in the order of A$19 to A$20 per tonne of ore mined.
  
  

To view the Quarterly Report in full, please click on the following link:

http://www.excoresources.com.au/investors-center/asx-announcements.aspx