Our proved reserves at December 31, 2010 are estimated at 1.5 trillion cubic feet equivalent (Tcfe) with a pre-tax PV10, a non-GAAP measure, of $1.4 billion, calculated pursuant to SEC pricing rules, which are based on the simple average of the first of the month reference natural gas and oil prices for the prior twelve month period, adjusted for energy content, quality and basis differentials. For 2010, the reference price was $4.38 per Mmbtu for natural gas and $79.43 per Bbl for oil which resulted in an adjusted price of $4.37 per Mmbtu for natural gas and $75.83 per Bbl for oil. At year end 2010 our proved reserves were 55% proved developed and 97% natural gas. Based on our estimated full year 2010 production of 112 Bcfe, our reserve life equates to 13.4 years. Using the five year futures strip price at December 31, 2010 averaging $5.23 per Mmbtu for natural gas and $93.09 per Bbl for oil, as adjusted for energy content, quality and basis differentials our estimated proved reserves, would have been 1.6 Tcfe with a pre-tax PV10 of $2.1 billion.

Proved Reserves
(Bcfe)
2010 2009 Increase
Proved developed 822 643 28 %
Proved undeveloped 677 316 114 %
Total 1,499 959 56 %

We estimate our total net resource potential to be approximately 11.3 Tcfe as of December 31, 2010. Our year end proved reserves and estimated unproved resource potential do not include any effects of our previously announced Marcellus shale acquisition from Chief Oil & Gas LLC (Chief). Chief received a required waiver from a third party and on January 11, 2011, the purchase price was released from escrow. We have also entered into a definitive agreement with a private company for the purchase of additional Marcellus shale properties with associated shallow production primarily in Jefferson and Clarion counties in Pennsylvania for $95 million, which is expected to close in the first quarter of 2011. BG Group, plc (BG Group) has the right to participate for 50% of these acquisitions. The total resource potential, including proved reserves, attributable to these acquisitions is approximately 3.4 Tcfe, of which 1.7 Tcfe would be net to EXCO if BG Group elects to participate in these acquisitions.

We currently hold approximately 76,000 net acres prospective for the Haynesville and Bossier shales. Pro forma for the closing of the two previously mentioned Marcellus shale acquisitions and assuming BG Group elects to participate in these acquisitions, we will hold approximately 152,000 net acres prospective for the Marcellus shale. This acreage position across both plays would result in a total shale drilling inventory of approximately 9,300 gross potential drilling locations.

The information in this release is unaudited and subject to revision. Audited and final results will be provided in our Annual Report on Form 10-K for the year ended December 31, 2010 currently planned to be filed with Securities and Exchange Commission by the end of February 2011. We believe that the presentation of pre-tax discounted present value is relevant and useful to our investors because it presents the discounted future net cash flows attributable to our proved reserves prior to taking into account future corporate income taxes and our current tax structure. We further believe investors and creditors use pre-tax discounted present value as a basis for comparison of the relative size and value of our reserves as compared with other companies. EXCO's pre-tax discounted present value as of December 31, 2010 may be reconciled to its standardized measure of discounted future net cash flows as of December 31, 2010 by reducing EXCO's pre-tax discounted present value by the discounted future income taxes associated with such reserves. This reconciliation is not currently available and will be included, along with additional reserve disclosure, in our 2010 earnings release.

Additional information about EXCO Resources, Inc. may be obtained by contacting EXCO's Chairman, Douglas H. Miller, or its President, Stephen F. Smith, at EXCO's headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by visiting EXCO's website at www.excoresources.com. EXCO's SEC filings and press releases can be found under the Investor Relations tab.

• EXCO Resources, Inc. Reports Year End 2010 Proved Reserves

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The Board of Directors of the Company intends to establish a Special Committee of the Board comprised of independent directors to consider, among other things, the proposal. The Board of Directors cautions the Company's shareholders and others considering trading in its securities that the Board of Directors has just received the proposal and no decisions have been made by the Board of Directors or the Special Committee with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made or accepted, that any agreement will be executed or that any transaction will be consummated.

The full text of the proposal letter from Mr. Miller is as follows:

"October 29, 2010

Board of Directors
EXCO Resources, Inc.
12377 Merit Drive, Suite 1700
Dallas, Texas

Gentlemen:

I am pleased to express my interest in acquiring all of the outstanding shares of common stock of EXCO Resources, Inc. (the "Company") at a cash purchase price of $20.50 per share. I have preliminarily discussed this proposal with Oaktree Capital Management, L.P., on behalf of its funds and accounts under management, Ares Management LLC, on behalf of one or more of its funds under management, and Boone Pickens, and each has expressed an interest in pursuing the acquisition with me.

I believe that $20.50 per share is very compelling and in the best interest of the Company and its public shareholders and that the shareholders will find this proposal attractive. This valuation represents a premium of 38% over today's closing price of the Company's common shares. The acquisition would be in the form of a merger of the Company with a newly-formed acquisition vehicle.

I would continue as Chairman and Chief Executive Officer following the transaction and expect that the Company's senior management team would remain in place. I anticipate continuing to run the business in accordance with our current practice and maintaining the Company's valuable employee base, which we view as one of its most important assets.

I would expect to reinvest a significant portion of my equity ownership as part of this transaction. The remaining funds necessary to consummate the transaction would come from senior management, outside investment partners and, as needed, third party debt financing.

My familiarity with the Company means that I will be in a position to proceed very quickly with this transaction. I expect that you will establish a special committee of independent directors to consider this proposal on behalf of the Company's public shareholders with guidance from its own legal and financial advisors. I welcome the opportunity to present this proposal to the special committee as soon as possible.

Of course, no binding obligation on the part of the Company, myself or any of my potential investment partners shall arise with respect to this proposal or any transaction unless and until such time as definitive documentation that is satisfactory to us, recommended by the special committee and approved by the Board of Directors is executed and delivered.

I look forward to working with the special committee and its legal and financial advisors to complete a transaction that is attractive to the Company's public shareholders. Should you have any questions, please contact me.

Sincerely,

Douglas H. Miller"

Mr. Miller has advised the Company that J.P. Morgan Securities LLC and Goldman, Sachs & Co. are acting as his financial advisors and Vinson & Elkins LLP is acting as his legal counsel in connection with this proposed transaction.

Additional information about EXCO Resources, Inc. may be obtained by contacting the Company's President, Stephen F. Smith, at EXCO's headquarters, 12377 Merit Drive, Suite 1700, Dallas, Texas 75251, telephone number (214) 368-2084.

If the proposal is accepted by the Company, the acquiring person or entity and the Company will be required to make certain filings regarding the proposed transaction with the Securities and Exchange Commission ("SEC"). Investors and security holders are urged to read all such filings regarding the proposed transaction, if and when the transaction proceeds and such filings are made, because they will contain important information. Free copies of any such filings (if and when they become available) and other documents filed by the Company with the SEC may be obtained at the SEC's web-site at http://www.sec.gov. Information concerning any participants in any solicitation of the Company's shareholders that is made in connection with the proposed transaction will be disclosed when available.

EXCO Resources, Inc. Announces Receipt of Proposal to Purchase All of Its Common Stock for $20.50 Per Share in Cash

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