I have a 32GB key drive that I had formatted with the OSX extended encrypted FS. I wanted to reformat it as ExFat so that I could use it between Mac and Windows. The Disk Utility on the MAC will do this, however, when I selected my key drive, it did not show ExFAT as an option.
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Using Disk Utility on the MAC, you have to reformat first as an unencrypted disk. Then when you select the disk again, you will get options that include ExFAT.
First, "Erase" the key drive and select MAC OS Extended, not "encrypted". This step removes the encryption.
Then "Erase" again. This time you can select ExFAT as the format. Note: the disk will be shown as FAT, but the partition will show as ExFAT. This is apparently normal.