Project Overview

The Selwyn Project is located in eastern Yukon and straddles the border with the Northwest Territories (NWT). More than 90 percent of the district is in the Yukon, with only the southeast end extending across the border into the NWT.

The Selwyn Project is the consolidation of the Howard's Pass Joint Venture lands acquired from Placer Dome and Cygnus mines Ltd., and Selwyn's wholly owned lands in the Selwyn District. Selwyn has completed more than $70 million of exploration on them in the period 2005 through 2009. Subsequently the Selwyn Chihong joint venture has expended approximately $78 million in 2010 and 2011.

The property consists of 7,450 hectares of mineral claims in the Yukon and 2,162 hectares of Mining Lease lands in the Northwest Territories, referred to as the Howard's Pass Joint Venture. In addition, Selwyn has 19,294 hectares of mineral claims in the Yukon and 3,373 hectares of wholly owned claims in the Northwest Territories. These claims and mining leases provide Selwyn control over 66 kilometres of the favourable strata in this giant zinc-lead district.

Selwyn spent approximately $22.0 million on exploration on the Selwyn Project in 2005 and 2006 resulting in discovery of seven new mineralized zones that confirm that the deposit is one continuous mineralized deposit having a length of at least 38 kilometres. Placer Dome published a global mineral resource in January 1983. This mineral resource is not NI 43-101 compliant and in June 6, 2005, Selwyn published a NI 43-101 report qualifying the previous Placer Dome mineral resource estimate. Selwyn published a new NI 43-101 compliant mineral resource in March 2006 focusing on resources that were amenable to open pit mining. A total of 191 drill holes were completed in 2007 resulting in a significant expansion of mineral resources that were released in April 2007 (see May 2, 2007 NI 43-101 report, amended October 12, 2007 available on the SEDAR website). See also Resource Inventory herein for updated mineral resource inventory.

The summary table illustrates the growth in mineral resources and contained metals in the Indicated and Inferred mineral resource categories.

Table 1: NI 43-101 Global Mineral Resource Growth from 2006 to 2012

Table 2: Selwyn Project May 2012 Global Mineral Resource Estimate

Notes for Table 2:

1. Mineral Resources reported above have been calculated as of May 10, 2012 in accordance with the CIM Best Practices and National Instrument 43-101.
2. A 2% zinc grade cut-off was applied to the new mineral resource estimate.
3. The Mineral Resource Estimate uses information from 798 drill holes, totalling 199,698.60 metres, completed on the Selwyn Project over three separate periods: 1973 to 1981, 2000, and 2005 to 2011.

In addition to the Indicated and Inferred mineral resources there is significant Mineral Potential that with additional drilling could increase Indicated and Inferred mineral resources. The aggregate of Selwyn mineral resources in all categories clearly puts Selwyn Project in the class of the giant zinc deposits. The table below illustrates the size of the World's SEDEX (Sedimentary Exhalative) deposits to which class the Selwyn Project belongs. SEDEX comprise most of the world's largest zinc deposits with a few notable exceptions: Antamina (skarn), Mehbiadad (replacement) and Brunswick and Kidd Creek (VMS).

World's Largest Undeveloped Zinc Deposits (Brook Hunt)

World's Largest Undeveloped Lead Deposits (Brook Hunt 2010)