Exco Resources Limited (ASX:EXS) Cloncurry Copper Project 22% Increase In Indicated Resources to 28Mt

Perth, July 23, 2009 AEST (ABN Newswire) - Exco Resources Limited (ASX:EXS)(PINK:EXRSF) 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 contains 80% of the contained copper within the CCP.

E1 CAMP

Detailed geological logging and modelling of the eastern portion of the deposit has now been completed.

This area has been re-estimated using ordinary kriging within the geologically and geochemically defined wireframes. The updated data has added to the confidence in this portion of the resource and allowed an additional 5Mt of resources to be classified as Indicated.

----------------------------------------------------Deposit  Class    Tonnes   Grade        Metal                         Cu%  Au g/t  Cu T    Au Oz----------------------------------------------------E1 Camp Indicated 24.6Mt 0.83 0.24   205,000 194,000        Inferred  20.2Mt 0.7  0.2    133,000 115,000----------------------------------------------------         TOTAL    44.8Mt 0.75 0.21   338,000 309,000----------------------------------------------------

Indicated resources at the E1 Camp now total 24.6Mt containing 204,500t of copper. This equates to 60% of the contained copper within the E1 resource being classified as Indicated.

The E1 resource estimate has been completed by the Company, 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.

CCP RESOURCES

Total resources for the CCP now comprise 51.0Mt @ 0.83% Cu & 0.23 g/t Au of which 28.0Mt @ 0.91% Cu & 0.25 g/t Au has been classified as Indicated The Company's interim goal of over 25 Mt 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.

FORWARD PROGRAMME

Recent work has led to an increased understanding of the geometry and continuity of the mineralisation at the E1 Camp. As part of the DFS for the CCP, this work will be incorporated into the design of the proposed open pits and project infrastructure.

Additional work is also underway including;

- Further geological and structural modeling

- Ongoing re-estimation of E1 Camp resources to incorporate additional data - with the aim to convert further portions of the Inferred resources to Indicated and potentially Measured

- Prioritisation of additional targets for future drilling

- Finalisation of the Environmental Impact Statement, ahead of submission in pursuit of the relevant project approvals.

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

Contact

Michael Anderson Managing Director Phone +61-8-9211-2000