Found the leak. Any suggestions on fixing it?

 

Its all the way to the right in this picture...

 

Unfortunately, it is looking like you are going to need a new piece there as you have very little metal left there for a repair to be done on. A competent muffler shop should be able to get you a new silencer and do the necessary repair work for under $200.

 

Some Versachem or fiberfix may work on it, worth a try

 

It happen with one of my other car, I used some exhaust sealing compound to cover the crack, then I used the tape I bought in Peps Boys (I forgot the name of the tape) taped it around the sealed crack, after it heated by the exhaust the tape is hard like steel. you want to give it a try.