Permitting

Selwyn commenced baseline environmental and engineering studies in summer 2006 and has planned extensive work in summer 2007 to gather the information necessary to enter the permitting process by late 2008 under the YESSA process. A preliminary assessment of the site features and the character of the ores suggests that a mine can be developed in a manner that it has minimal long term environmental impact. The non-acid generating characteristics of the mineralization are very important in mitigating water contamination issues and waste management.

Selwyn has developed a tentative permitting and development schedule that would see the completion of permitting in late 2010 and receipt of permits in early 2011 in conjunction with completion of a bankable feasibility study. It is expected that construction will take 18 to 24 months and commissioning of the mill will occur in late 2012. Selwyn continues to evaluate opportunities to shorten the timelines; however, the current schedule is viewed as aggressive but achievable.

Selwyn Project Development Timeline

Selwyn has also commenced discussions with communities of the Kaska First Nation to negotiate a socioeconomic participation agreement to address environmental and social concerns and to explore opportunities for their participation in the economic benefits of the exploration and development of the Selwyn Project. The management team has a long history of working with the Kaska and seeks to broaden this relationship over the coming years. Part of the project borders the Northwest Territories and the settled land claim area of the Sahtu Dene and Metis. Selwyn has initiated communication with communities in the Sahtu in regards to activities in their settlement area.

Another key initiative is the reactivation of the land use permit for the historic mine access road constructed from Tungsten, NWT to the XY deposit. Selwyn has made its submissions for re-activation of this grandfathered road and is awaiting receipt of the permit and operating guidelines for its use. Tungsten and the Cantung mine have been a staging site for mobilization of equipment and supplies to the project, and the assistance and cooperation of North American Tungsten mine is gratefully acknowledged. Reactivation of the road will be invaluable for mobilizing equipment and supplies for future development activities; however, the road is not seen at this time as the main mine access road supporting production.

In addition to the assembling of a strong in-house environmental team to undertake the environmental, socioeconomic and related studies, the Company is establishing a senior advisory committee to oversee the permitting process and consultation with governments and communities to ensure effective permitting and development of the project. The size of the Selwyn Project is of considerable interest to many communities and governments and their support is valued in this large undertaking to ensure maximum benefits for all.