Few things:
- Yes, they're using the Hero Engine - that doesn't mean the game will have a lackluster engine like SWTOR did (they took the unfinished Hero Engine and completely rewrote it.)
- They're from the UK (Thetford, Norfolk) and not some shade chinese backyard vaporware Studio
- there's a subreddit (anyone surprised?) http://www.reddit.com/r/Exileonline/
- It's a MMO in a pre-alpha status ... there is a good chance this project will fail, due to the lack of investors, etc. etc. - a MMO is a huge project that requires a crapload of time and money