Resource Inventory

The January 1983 resource estimate by Dr. John Morganti of Placer Dome was restated by Al Burgoyne, P.Eng., in June 2005 to bring it into compliance with National Instrument 43-101. In the restatement of mineral resources, the historical Indicated mineral resources were re-classified into Inferred mineral resources, and the historical Inferred mineral resources were restated as as Mineral Potential.

* The resources are those reported by J. Morganti, January 1983 which have been reclassified to be NI 43-101 compliant. See www.sedar.com for June 2005 NI 43-101 compliant report written by A.Burgoyne, P.Eng.

Since acquiring the Selwyn Project in 2005, Selwyn has, through methodical exploration of its properties in the Selwyn Basin, spent approximately $44.48 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 7 major deposit discoveries; noting that the Selwyn Project now contains 13 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 three years.

The Indicated mineral resources for the Selwyn Project now total 154.35 million tonnes grading 5.35% zinc and 1.86% lead for a metal content of 18.19 billion pounds of zinc and 6.31 billion pounds of lead (see Table 2). The Inferred mineral resources total 231.54 million tonnes grading 4.54% zinc and 1.42% lead for a metal content of 23.19 billion pounds of zinc and 7.23 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. Drilling in 2007 was very successful in upgrading of Inferred mineral resources to Indicated mineral resources, as well as upgrading Mineral Potential into both Indicated and Inferred mineral resources.

The updated mineral resource estimate was prepared by Non-Independent Qualified Person, John J. O'Donnell, P.Geo., the onsite Qualified Person for Selwyn in conjunction with Independent Qualified Person, Cliff Pearson, P.Geo., of Pearson Geological Ltd., Victoria, BC. Mr. Pearson has overseen the resource estimation, and audited and reviewed the writing of the related NI 43-101 compliant Technical Report. In accordance with National Instrument 43-101, the Technical Report was filed on SEDAR on March 14, 2008.

Table 1: NI 43-101 Compliant Metal Content Growth from 2006 to 2008

Notes for Table 1:

1. Mineral Resources reported above have been calculated as of January 28, 2008 in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum 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 570 drill holes, totalling 123,442 metres, successfully completed on the Selwyn Project over three separate periods: 1973 to 1981, 2000, and 2005 to 2007.

Table 2: Selwyn Project 2008 Mineral Resource Estimate

Table 3: Selwyn Project 2007 Underground Target Mineral Resource Estimate

Notes for Table 3:

1. Mineral Resources reported above have been calculated as of January 28, 2008 in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum 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 570 drill holes, totaling 123,542 metres, successfully completed on the Selwyn Project over two separate periods: 1973 to 1981 and 2005 to 2007.

Surrounding these NI 43-101 compliant mineral resources, are exploration targets with a mineral potential of 225 to 235 million tonnes grading from 4.0 to 5.0 % zinc and 1.0 to 2.0 % lead. Any areas discussed as possessing mineral potential are not defined through drilling and are conceptual based upon a detailed geological model and as a result are solely exploration targets. This means that further definition drilling will be required for inclusion of any mineral Potential in Indicated and Inferred mineral resources. An investor should be aware that it is uncertain if further drilling of these targets will result in any of them being shown to posses a NI 43-101 compliant mineral resource.