ScoZinc Restart Plan

With the closing of the acquisition of ScoZinc, Selwyn commenced the detailed planning of the restart of the Scotia Mine; which is now referred to as the ScoZinc Mine. Expansion of the management team has progressed to provide the specific experience and skills for mine operations. ScoZinc seeks to build a strong management team to manage and operate the mine as a stand-alone operational unit with Selwyn providing senior management oversight. Previously, the local communities provided much of the workforce for the mining and milling and many of those are expected to return to the mine easing the challenge of re-staffing of operations.

Selwyn proposes to finance the acquisition, restart and working capital through a combination of debt and equity with a strong preference to utilize debt and minimize share equity portion. Efforts to secure the restart financing have been frustrated by difficult market conditions and it is uncertain when such financing will be completed. In the interim, ScoZinc is undertaking care and maintenance and limited refurbishment of mine and mill facilities.

Key to the success of the restart is the refurbishment of the mill to ensure high availability and increased mill capacity. Secondly, it is important to get ahead of the stripping of waste and stockpiling of low grade ores and provide access to the high grade mineralization in the lower benches.

The restart of the Scotia Mine is seen as the first step in unlocking the potential for continued exploration and development within the Windsor Basin. It also provides Selwyn with an operating base in Nova Scotia to pursue other exploration and development opportunities.

On November 21, 2012 Selwyn released the results of an update to the August 30, 2011ScoZinc's Preliminary Economic Assessment (“PEA”) Report for Scotia Mine Restart.

The updated PEA reports:

• 2,500 tonnes per day mill processing plan;
• Unit operating costs of $52.89 per tonne milled for the first five years ($42.31 per tonne milled for the life-of-mine);
• Mine and mill restart capital expenditures (CAPEX) of CAD $31.5 Million (including $1.1 million contingency and $3.3 million of working capital);
• Base Case zinc and lead prices of US$1.10 and US$1.20/lb respectively;
• Exchange rate of 1 Canadian dollar to 1 US dollar;
• Project pre-tax NPV 8% of CAD $69.3 million (NPV 5% - CAD $79.1 million);
• Project pre-tax Internal Rate of Return (IRR) of 63.3%;
• Zinc C1 or Direct cash cost of production (after deducting credits for lead) for the first five years is CAD $0.60/lb to be optimized through ongoing studies;
• Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first five years of operations averages CAD $24.8 million per annum.

The updated PEA was reviewed by Qualified Person, Joseph Ringwald, VP Mining with Selwyn Resources Ltd.

For complete PEA details please see August 30, 2011 news release available under the 2011 News section of the website and SEDAR filings on www.sedar.com, November 23, 2012 news release.

ScoZinc continues to advance the detailed engineering and operations planning to achieve improvements in operating parameters and reduction of operating costs. The largest component of restart capital is the lease and purchase of mining equipment for operating. Equipment availability and costs may vary greatly as market conditions change.