EXCO Resources, Inc. Enters into Forbearance Agreements

DALLAS–(BUSINESS WIRE)–December 21, 2017 – EXCO Resources, Inc. (NYSE: XCO) ("EXCO" or
the "Company") today announced that it has entered into forbearance
agreements (the “Forbearance Agreements”) with the administrative agent
and the majority of lenders under its reserve-based credit agreement
(the “Credit Agreement”), holders of approximately 87% of the
outstanding aggregate principal amount of its senior secured 1.5 lien
notes due March 2022 (the “1.5 Lien Notes”) and lenders holding
approximately 81% of its outstanding senior secured 1.75 lien term loans
due October 2020 (“1.75 Lien Term Loans”) (collectively, the “Forbearing
Creditors”).

Under the terms of the Forbearance Agreements, the Forbearing Creditors
have agreed to forbear from exercising any and all remedies available to
them under the Credit Agreement, the 1.5 Lien Notes and the 1.75 Lien
Term Loans as a result of the Company not making the December 20, 2017
payment due under the 1.75 Lien Term Loan, as well as certain defaults
arising as a result of the Company’s failure to meet affirmative
covenants under its Credit Agreement as of December 31, 2017, among
other things. The Forbearance Agreements will expire upon the earlier of
11:59 PM (Eastern Time) on January 15, 2018 or the occurrence of certain
events specified in the Forbearance Agreements.

The Company also announced it has received a commitment for a $250
million debtor-in-possession financing in the event that the Company
elects to pursue a filing of voluntary petitions under Chapter 11 of the
U.S. Bankruptcy Code.

Harold L. Hickey, EXCO’s Chief Executive Officer and President, said,
“We are continuing to explore strategic alternatives to address our
financial position and maximize the value of the Company. The
Forbearance Agreements provide EXCO with additional time and flexibility
as we continue our ongoing and constructive discussions with our
stakeholders regarding the Company’s capital structure. We remain
committed to acting in the best interest of our stakeholders and will
continue to take actions to strengthen our financial position.”

As previously announced, EXCO's next quarterly interest payment of
approximately $27 million, based on the paid in-kind interest rate of
15.0% on the 1.75 Lien Term Loans, was scheduled to occur on December
20, 2017, and was required to be paid in-kind pursuant to the terms of
the indenture governing the 1.5 Lien Notes. The Company did not make the
interest payment on the 1.75 Lien Term Loans on December 20, 2017.

The Company, together with the Audit Committee of the Board of
Directors, is continuing to explore strategic alternatives to strengthen
the Company's balance sheet and maximize the value of the Company, which
may include seeking a comprehensive out-of-court restructuring or
reorganization under Chapter 11 of the U.S. Bankruptcy Code. As
previously announced, the Company has retained PJT Partners LP as
financial advisor and Alvarez & Marsal North America, LLC as
restructuring advisor. The Company continues to retain Kirkland & Ellis
LLP as its legal advisor to assist the Audit Committee and management
team with the strategic review process.

Additional information on the Forbearance Agreements is contained in a
report on Form 8-K, which has been filed with the Securities and
Exchange Commission.

About EXCO Resources, Inc.

EXCO Resources, Inc. is an oil and natural gas exploration,
exploitation, acquisition, development and production company
headquartered in Dallas, Texas with principal operations in Texas, North
Louisiana and the Appalachia region. EXCO’s headquarters are located at
12377 Merit Drive, Suite 1700, Dallas, TX 75251.

Forward-Looking Statements

This release may contain forward-looking statements relating to future
financial results, business expectations and business transactions.
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: discussions regarding EXCO’s restructuring, EXCO’s
liquidity, sources of capital resources and ability to maintain
compliance with debt covenants, continued volatility in the oil and gas
markets, the continued listing of EXCO’s common shares on the NYSE, the
estimates of reserves, commodity price changes, regulatory changes and
general economic conditions. These risk factors are included in EXCO’s
reports on file with the SEC. Except as required by applicable law, EXCO
undertakes no obligation to publicly update or revise any
forward-looking statements.

Contacts

EXCO Resources, Inc.
Tyler Farquharson, 214-368-2084
Vice
President, Chief Financial Officer and Treasurer
www.excoresources.com