Resource Inventory

Since acquiring the Selwyn Project in 2005 until 2009, Selwyn has, through methodical exploration of its properties in the Selwyn Basin, spent approximately $56 million on exploration activities developing a very detailed, 3D geological model that continues to demonstrate the strong continuity of the stratabound, zinc-lead SEDEX-type mineralization. The continuity of the Active Member has now been traced for 37.5 kilometres by drilling activities with another 28.5 kilometres of very favourable strata unexplored on Selwyn's Yukon mineral claims. Selwyn has made 9 major deposit discoveries; noting that the Selwyn Project now contains 14 drill defined deposits and zones that include mineralization in both the open pit and underground environments. Table 1 summarizes the significant growth in metal content over the last five years.

In 2010, Selwyn Chihong Mining Ltd., the joint venture company created to advance the project, completed $22.2 million of expenditures, including an extensive diamond drilling program in the XY Central and Don deposits to upgrade mineral resources to the measured and indicated category. It also undertook exploratory drilling in the XY West deposit to confirm the continuity and extent of the high-grade mineral resources. Approximately $7.6 million were spent on environment and engineering studies to support the bankable feasibility study and permitting activities.

As of Sept 12, 2011, the NI 43-101 Indicated mineral resources for the Selwyn Project now total 180.69 million tonnes grading 5.25% zinc and 1.83% lead for a metal content of 20.91 billion pounds of zinc and 7.33 billion pounds of lead (see Table 2). The Inferred mineral resources total 216.04 million tonnes grading 4.47% zinc and 1.38% lead for a metal content of 21.29 billion pounds of zinc and 6.57 billion pounds of lead (see Table 2 below). The Inferred mineral resources are generally adjacent to the main areas of drilling in the deeper part of the Active Member. Areas of Inferred mineral resources require more closely spaced drill holes to improve the confidence level for their inclusion in Indicated mineral resources. These closer spaced drill holes will be done from surface drill stations.

The Sep 2011 updated mineral resource estimate was prepared by Independent Qualified Persons, Mr. Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd., Burnaby, British Columbia, who undertook the 3D modeling and resource estimation; and Mr. Cliff Pearson, P.Geo., Pearson Geological Inc, Victoria, British Columbia, who undertook the detailed field evaluation of data collection protocols at the project worksite. Mr. Jason Dunning, P.Geo., a Non-Independent Qualified Person, has reviewed the updated mineral resource estimates and approved the contents of this news release.

Table 1: NI 43-101 Compliant Mineral Resource Content Growth from 2006 to 2011

Table 2: Selwyn Project 2011 Mineral Resource Estimate

Table 3: Selwyn Project 2009 Underground Deposit Mineral Resource Estimate

Notes for Table 3:
1. Mineral Resources reported above have been calculated as of February 25, 2009 in accordance with the standards of the CIM 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 all 582 drill holes, totaling 126,127.2 metres, successfully completed on the Selwyn Project over three separate periods: 1973 to 1981, 2000, and 2005 to 2008.

Mineral Potential

In addition to the Indicated and Inferred mineral resources estimated in the Sept 12, 2011 NI 43-101 report, the mineral potential remains unchanged from those stated in the 2009 mineral resource estimate (see February 26, 2009 news release); which contains between 245 and 255 million tonnes with an estimated grade of between 4.0 - 5.0% zinc and 1.0 - 2.0% lead. The mineral potential represents the down dip and strike extension of the Indicated and Inferred mineral resources taken from a polygonal long-section model. The mineral potential appears to represent a small portion of the interpreted extent of the rock units that host all known zinc-lead mineralization at Selwyn Project. Zinc-lead sulphide mineralization has now been defined over 37.5 kilometers of strike length with the drilling results from the 2005 through 2011 drilling campaigns. Importantly, all drill holes that have intersected the favourable host rocks have contained zinc and lead sulphide mineralization. The possible quantity and grade of this mineral potential is conceptual in nature, as there has been insufficient drilling to define a mineral resource and it is uncertain if additional exploration will result in any of this potential being realized as a mineral resource.