Exco Resources Limited (ASX:EXS) Cloncurry Copper Project Resources Grow To 51 Million Tonnes

Perth, April 20, 2009 AEST (ABN Newswire) - Exco Resources Limited (ASX:EXS)(PINK:EXRSF) The Cloncurry Copper Project (CCP) currently comprises three key regions of mineralisation, the E1 Camp, the Monakoff group of deposits and the Great Australia Deposit. The main focus of recent drilling campaigns has been the E1 Camp, which now contains 80% of the contained copper within the CCP.

E1 CAMP

The E1 Camp has previously been modelled and reported as four separate deposits (North, South, East and Central). Drilling success in the recently discovered Central Zone has led to a significant increase in total resources at E1, whilst detailed geological logging and modelling now shows that the deposits are geologically very similar and are linked through the geological and structural controls on the mineralisation.

As a result of this modelling the four deposits have been combined into one resource. The total E1 Camp resource (Indicated and Inferred) has increased by 17% and now comprises:

44.9Mt @ 0.76% Cu & 0.22 g/t Au (@ 0.3% Cu cut-off)

Importantly 19.6Mt @ 0.85% Cu & 0.25 g/t Au (or 49% of the contained Cu) has so far been classified and Indicated with the remainder as Inferred. Ongoing resource modelling, in particular at E1 South and E1 East, is expected to lead to further increases in the Indicated category.

The E1 resource estimate has been completed by the Company and its appointed consultants, using the ordinary kriging interpolation method in Surpac within geologically and geochemically defined units. The drilling has been completed on a nominal 40x40m 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.

MONAKOFF GROUP

Drilling completed during 2008, and subsequent resource modelling, has resulted in a 53% increase in the resource base at the Monakoff Group of deposits. Previously these deposits have been reported as Monakoff and Monakoff East, however detailed logging and geological interpretation has indicated that it is the same geological horizon that hosts both zones of mineralisation. Consequently they have been incorporated into a single resource.

The Monakoff deposits now contain 4.0Mt @ 1.32% Cu & 0.42 g/t Au, of which 50% is classified as Indicated.

The mineralisation is contained within a tabular body, dipping steeply to the south and extending along strike for over 1100m. The resource has been estimated using the ordinary kriging method in Surpac within geologically and geochemically defined units. The drilling has been completed on a nominal 50 x 50m grid in the shallow (better defined portions of the deposits) and approximately 75x75m at depth.

The resources are still open at depth and along strike.

PIT OPTIMISATIONS & FORWARD GEOLOGICAL PROGRAMME

Preliminary open pit optimisations have been completed on all the CCP resources highlighting the potential for economic extraction of a significant portion of the resources. Although not yet a reserve (as both Indicated and Inferred resources have been used in the optimisations), the studies suggest an in pit resource (Indicated and Inferred resources) in the order of 23Mt from the E1 camp, approximately 3Mt from the Monakoff Group, and around1.5Mt from the Great Australia deposit.

Additional work is underway including;

- Detailed geological logging of selected key drill holes
- Additional geological and structural modeling
- Re-estimation of E1 Camp resources to incorporate additional data - allowing additional resource conversion to Indicated.
- Identification of near term targets with the E1 Camp for the next phase of drilling
- Ranking of additional regional targets
- Pit optimisation studies
- Initial Reserve estimation

The Company remains confident that this 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.

CLONCURRY COPPER PROJECT: DEFINTIVE FEASIBILITY STUDY & APPROVALS UPDATE

The Definitive Feasibility Study (DFS) is progressing with a current focus on securing the necessary environmental approvals, which remain on the critical path for the project. The Company is targeting submission of the Environmental Impact Statement during the current calendar quarter (Q2/2009).

Significant progress has been made in defining and quantifying the metallurgical characteristics of the ore through the completion of a major testwork programme. Engineering details required for the environmental submissions have been completed including pit designs, detailed ground water assessments, tailings designs etc.

The CCP Pre-Feasibility Study (PFS) contemplated the establishment of a =2Mtpa concentrator facility at the E1 Camp. However, recent increases in resource and contained metal inventories from the E1 Camp fully support the Company's focus on a slightly larger operation treating 2.5 to 3Mtpa over a 10-year project life. At this expanded throughput the project will produce approximately 25,000 tonnes of copper (in concentrate) per annum; 25% more than envisaged by the PFS.

Further results and information will be provided as they become available.

For the full Exco Resources Limited Report please see the link below;

http://www.abnnewswire.net/media/en/docs/60489-ASX-EXS-443779.pdf

Contact

Michael Anderson Managing Director TEL: +61-8-9211-2000