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EXCO Resources, Inc. Closes $725 Million Partnership with Harbinger Group Inc. Related to Conventional Oil and Natural Gas

  EXCO Resources, Inc. Closes $725 Million Partnership with Harbinger Group
  Inc. Related to Conventional Oil and Natural Gas Properties in Texas and
  Louisiana

Business Wire

DALLAS -- February 15, 2013

EXCO Resources, Inc. (NYSE: XCO) (“EXCO”) announced today that it closed its
conventional oil and natural gas partnership (the “Partnership”) with
Harbinger Group Inc. (NYSE: HRG) (“HGI”), effective February 14, 2013, and
received net proceeds of $573.3 million, after preliminary closing
adjustments. The cash proceeds received by EXCO were used to repay a portion
of its revolving credit facility. EXCO’s revolving credit facility now has a
$900 million borrowing base with $541 million drawn.

The Partnership holds conventional oil and natural gas assets previously owned
by EXCO in West Texas, including and above the Canyon Sand formation, as well
as in the Danville, Waskom, Holly and Vernon fields in East Texas and North
Louisiana, including and above the Cotton Valley formation. Under the terms of
the definitive agreements announced on November 5, 2012, the Partnership
acquired the oil and natural gas assets from EXCO for $725 million of total
consideration. The purchase by the Partnership was funded with approximately
$225 million of bank debt, $348.3 million (after preliminary closing
adjustments) in cash contributed from HGI and $119.2 million (after
preliminary closing adjustments) in oil and natural gas properties and related
assets being contributed by EXCO. EXCO has a 50% interest in the general
partner of the Partnership and a 24.5% limited partnership interest in the
Partnership. After giving effect to the 2% general partner interest in the
Partnership, EXCO and HGI own an economic interest in the Partnership of 25.5%
and 74.5%, respectively. The Partnership will be governed by a Board of
Directors of the general partner consisting of two EXCO directors and two HGI
directors. EXCO will continue to manage and operate the assets as contract
operator of the properties and provide services pursuant to contract operating
and administrative service agreements with the Partnership.

EXCO and HGI intend to opportunistically add incremental cash flow to the
Partnership through the acquisition of other mature, conventional assets over
time. On February 14, 2013, the Partnership agreed to acquire certain
conventional oil and natural gas assets in the Danville, Waskom and Holly
fields in East Texas and North Louisiana, including and above the Cotton
Valley formation, from an affiliate of BG Group plc for $132.5 million, with
an economic effective date of January 1, 2013 and subject to customary closing
adjustments. These properties represent an incremental working interest in
properties that EXCO contributed to the Partnership. This transaction is
expected to close in March 2013. The Partnership intends to fund the
acquisition using its revolving credit agreement. In connection with this
acquisition, EXCO and BG Group plc agreed to remove these assets from their
East Texas/North Louisiana joint venture arrangement, including the
termination of the area of mutual interest that was previously applicable to
shallow rights acquisitions in the East Texas/North Louisiana area.

Douglas H. Miller, EXCO’s Chief Executive Officer, commented, “We are pleased
to finalize the private partnership transaction with Harbinger Group and look
forward to a long and profitable association. This partnership vehicle allows
our companies the opportunity to capitalize on a robust market for
conventional assets and to build a very substantial entity over the next few
years. We are appreciative of the efforts of our collective teams in getting
this transaction closed.”

The foregoing summary does not purport to be a complete description of the
transaction and related agreements. Interested parties should read EXCO’s
other announcements and public filings regarding this transaction and related
agreements by reviewing EXCO’s filings with the Securities and Exchange
Commission (www.sec.gov). We will provide additional financial and operating
data in connection with our 2012 earnings release scheduled for February 20,
2013 and the related conference call on February 21, 2013.

EXCO Resources, Inc. is an oil and natural gas acquisition, exploitation,
development and production company headquartered in Dallas, Texas with
principal operations in East Texas, North Louisiana, Appalachia and West
Texas.

Harbinger Group Inc. (HGI) is a diversified holding company. HGI’s principal
operations are conducted through subsidiaries that offer life insurance and
annuity products, and branded consumer products such as batteries, personal
care products, small household appliances, pet supplies, and home and garden
pest control products. HGI is principally focused on acquiring controlling and
other equity stakes in businesses across a diversified range of industries and
growing its existing businesses.

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 our website at
www.excoresources.com. Our SEC filings and press releases can be found under
the Investor Relations tab.

This release may contain forward-looking statements relating to future
financial results, business expectations and business transactions. Business
plans may change as circumstances warrant. Actual results may differ
materially from those predicted as a result of factors over which EXCO has no
control. Such factors include, but are not limited to: estimates of reserves,
commodity price changes, regulatory changes and general economic conditions.
These risk factors and additional information are included in EXCO’s reports
on file with the Securities and Exchange Commission (“SEC”). EXCO undertakes
no obligation to publicly update or revise any forward-looking statements.

Contact:

EXCO Resources, Inc.
Douglas H. Miller, 214-368-2084
Chairman
or
Stephen F. Smith, 214-368-2084
President