Exco Resources Limited (ASX:EXS) Quarterly Activities Report For June 2009

Perth, July 31, 2009 AEST (ABN Newswire) - Exco Resources Limited (ASX:EXS)(PINK:EXRSF) is pleased to provide to shareholders the June 2009 Quarterly Report which provides a summary of the progress made by your company during the quarter.

HIGHLIGHTS DURING THE QUARTER

On 11 June 2009 Exco announced the execution of a placement agreement to raise A$7.2m (before expenses) through the issue of approximately 30.6 million shares at 23.5 cents each. The primary purpose of the placement is to fund Exco's share of development costs for the White Dam Gold Project.

WHITE DAM GOLD PROJECT, SOUTH AUSTRALIA

JV Agreement: Exco and Polymetals Group Pty Ltd completed the formalities of their production joint venture agreement in June. Polymetals have acquired a 25% interest and will manage the implementation and operation of the project.

Joint Venture Partners Mandate Lender: On 17 July 2009, the Joint Venture partners mandated Barclays Capital to act as arranger in providing finance of up to A$16 million for the White Dam Joint Venture by way of a gold-linked prepayment facility. On 20 July Barclays confirmed that the facility had received internal approval subject to the completion of conditions precedent and final documentation.

Mining Tenement Bond Put in Place: Following approval of its Mining and Rehabilitation Programme (MARP) at White Dam by Primary Industry and Resources, South Australia (PIRSA), the Joint Venture paid its mining tenement bond in July. Preliminary site works have started with a view to first gold production in early 2010.

CLONCURRY COPPER PROJECT (CCP), NW QUEENSLAND

Indicated Resources increased by 22%: On 23 July 2009 the Company announced that Indicated resources at the Cloncurry Copper Project (CCP) have increased by 22% to 28.0Mt @ 0.91% Cu & 0.25 g/t Au. The Company's interim goal of over 25Mt of Indicated resources within the CCP, as the basis for the Definitive Feasibility Study, has now been achieved.

Project of Regional Significance: The Department of Infrastructure and Planning in Queensland has deemed Exco's Cloncurry Copper Project to be a "project of regional significance" for the purposes of the Water Resource (Great Artesian Basin) Plan 2006.

CORPORATE

On 11 June 2009 the Company announced the execution of a placement agreement to raise A$7.2m (before expenses) through the issue of approximately 30.6 million shares at 23.5 cents each.

The primary purpose of the placement is to fund Exco's share of development costs for the White Dam Gold Project.

sophisticated investors. Exco's largest shareholder Ivanhoe Australia Pty Ltd (ASX:IVA) participated in the placement.

The Company issued all of the placement shares utilising its 15% capacity under ASX Listing Rule 7.1.

ACCOUNTS

At the end of the June quarter Exco had A$10.8m in cash, which ensures that the Company will remain adequately funded for both its equity commitments in respect of the White Dam project and its other key objectives for the foreseeable future.

PROJECTS NOT LISTED

Projects that are not mentioned in this report have had no significant results during the present quarter or results are not yet available.

For the complete Exco Resources Quarterly Activities Report for June 2009, please click the link below:

http://www.abnnewswire.net/media/en/docs/61161-ASX-EXS-454969.pdf

Contact

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