The film is based on a novel which was set in Scotland but Cox relocated it to Tasmania. Although an earlier script was written by another writer, Cox wrote the screenplay for the film over eight days while on holiday on a Greek Island. Half the budget was provided by the Film Finance Corporation.[4][5] According to Cinema Papers, the budget for the movie was AUD$2.0m, but director Paul Cox claimed it was actually AUD$1.5m.[6]
It's a very religious film. Because of that, it is not very commercial, is not very successful. I think it's a very good film... Exile is about the sea. It's also about society, how it always destroys the individual: that we're not the end product of that society, we're just there to be manipulated and used. It's about a man kicked out of society who really becomes himself. He shines, burns through all the rubbish of the mind and the body. He has to somehow survive physically as well, and he does it quite brilliantly. People even get jealous of him. They ban him and exile him.[7]