January 13, 2012

Excelsior Mining Corp. (TSX-V: MIN) (Frankfurt: 3XS) (OTCQX: EXMGF) (“Excelsior”) is pleased to announce that it has filed a National Instrument (“NI”) 43-101 Technical Report dated November 18, 2011 on SEDAR at www.sedar.com. The Report is with respect to Excelsior’s Preliminary Economic Assessment (“PEA”) on the Gunnison Copper Project in southern Arizona, the results of which were announced in a December 1, 2011 press release.

Highlights of the North Star Gunnison Copper Project PEA include:
• After-Tax NPV of US$561.7 million (discounted at 7.5%, using US$2.50 copper price)
• After-Tax IRR of 30%
• Payback period of 3.6 years
• Initial capital costs of US$324.7 million (including SXEW plant, Infrastructure and Acid Plant)
• Total operating costs of US$0.68 per pound (averaged over life of mine)
• Royalty of US$0.01 per pound
• Annual production rate of 85.65 million pounds of copper
• Commercial production commencing in 2015, with a mine life of 20 years

Table 1. NPV Comparison of Acid Plant and Base Case Scenarios

NI 43-101 requires disclosure of any differences between the initial news release and the final Report. There was only one difference in the final report which is the discount rate for the calculation of the “Acid Plant” scenario is 7.5% in the Report as compared to 8% in the initial news release. The after-tax NPV for the Acid Plant scenario, discounted at 8% is US$526.1 million. The pre- and post-tax NPV’s for the two scenarios (Acid Plant vs. Base Case (no acid plant)) at the two different discount rates are summarized in Table 1 above.

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the conclusions reached in the PEA will be realized.

Project Summary

The Gunnison Copper Project is located approximately 65 miles southeast of Tucson, AZ. The project, which includes both the North Star and South Star deposits, currently has a total NI 43-101 indicated resource of3.21 billion pounds of oxide copper (511 M tons at 0.31% at the North Star deposit) and an inferred resource of 1.26 billion pounds of oxide copper (221 M tons at 0.29%; 159 M tons at North Star and 62 M tons at South Star). These oxide resources have the potential to be mined using in-situ recovery methods. The Gunnison property also has the added benefit of being situated in a very remote location, near an existing mining operation. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

About Excelsior

Excelsior is an exploration and development company with a copper project located within the copper porphyry belt of Arizona. The Gunnison Copper Project is located close to the required infrastructure and its oxide resource has the potential to be mined using in-situ recovery methods. The Excelsior team consists of experienced professionals with proven track records of advancing projects towards production. Excelsior’s exploration work on the Gunnison Property is supervised by Dr. Stephen Twyerould, Fellow of AUSIMM, President and CEO of Excelsior, and a Qualified Person as defined by NI 43-101. Dr. Twyerould has reviewed and approved the technical information disclosed in this news release.

Further details about Excelsior can be found at: http://www.excelsiormining.com. Further information about the Gunnison Copper Project can be found in the technical report filed on SEDAR at www.sedar.com entitled: “Gunnison Copper Project Preliminary Economic Assessment, NI 43-101 Technical Report” dated November 18, 2011.

ON BEHALF OF THE EXCELSIOR BOARD

"Stephen Twyerould"
President & CEO

For further information regarding this press release, please contact:

Excelsior Mining Corp.
Concord Place, Suite 300, 2999 North 44th Street, Phoenix, AZ, 85018.

JJ Jennex, Vice President, Corporate Affairs
T: 604-681-8030 x240
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
www.excelsiormining.com

Cautionary Note Regarding Forward-Looking Information
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the timing and amount of future production, the mineral resource estimate, the results of the PEA, the future exploration on and the development of the Gunnison Project and the ability to mine Gunnison using in-situ recovery mining techniques are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; issues in obtaining required permits; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and no securities regulatory authority has either approved or disapproved of the contents of this release.