Selwyn Resources Ltd.: new high-grade mineralization extends XY West to the Northwest

Highlights

• XYC-280 intersected 24.80 metres grading 6.46% zinc and 2.02% lead, including 2.30 metres grading 26.85% zinc and 9.15% lead; and

• XYC-283 intersected 12.40 metres grading 6.06% zinc and 1.97% lead, including 4.80 metres grading 14.59% zinc and 6.36% lead

Discovery Details

In 2009, XYC-183 was drilled to confirm the presence of favourable strata identified in a historic drill hole completed in the 1970s. Although a fault had removed the host strata for zinc-lead mineralization in XYC-183, the favourable hanging wall and footwall rocks were present, thereby lending credibility to the concept that the structural panel between the XY West and Brodel deposits could host high-grade zinc-lead mineralization.

The new mineralized area northwest of the recently announced expansion area of the XY West deposit, (see August 15, 2011 news release), has been defined by six drill holes. These drill holes are in a separate structural panel between the Brodel and XY West deposits. The mineralized strata hosting the zinc-lead mineralization was intersected in XYC-280 from 277.70 to 317.70; however, it is important to note that the uphole contact is a fault structure, meaning this may not be a full representation of the favourable host strata. High-grade zinc-lead mineralization was cored from 278.20 to 303.00 metres for 24.80 metres grading 6.46% zinc and 2.02% lead including 2.30 metres grading 26.85% zinc and 9.15% lead.

The results in XYC-280 further strengthen SCML’s confidence in the correlation with similar mineralization to the southeast in the newly identified expansion area of the XY West deposit. The true thickness of this intercept is unknown at this time and additional geological and structural data is required in order to determine the true thickness of the wide-spaced drill holes.

The favourable host strata for zinc-lead mineralization in XYC-283 are present from 295.90 to 358.10 metres with there being two significant intercepts of high-grade zinc-lead mineralization. The first intercept is from 295.90 to 308.00 metres for 12.10 metres grading 6.03% zinc and 1.46% lead. The second intercept is from 329.70 to 342.10 metres for 12.40 metres grading 6.06% zinc and 1.97% lead including 2.30 metres grading 14.59% zinc and 6.36% lead. XYC-283 is located approximately 325 metres to the northwest from XYC-280. The true thickness of this intercept is unknown at this time and additional geological and structural data is required in order to determine the true thickness due to the wide-spaced drill holes.

Drilling in the structural panel between XY West and Brodel deposits has confirmed the presence of high grade zinc-lead mineralization; which continues to support the potential for defining of a large, new zone of high grade mineralization between XY West and Brodel deposits. The expansion area covered in this news release adds a minimum area of 300 to 350 metres by 200 to 250 metres with the favourable strata having an average thickness of 15 to 25 metres. This expansion area is in addition to that reported in the August 15, 2011 news release.

Investors are cautioned that there has not been sufficient drilling in the new discovery area to define a mineral resource to NI 43-101 standards, and it is unclear whether additional drilling will define a mineral resource between XY West and Brodel deposits. However, given that both XY West and Brodel deposits remain open for expansion, and the apparent lateral continuity of thick zones of zinc-lead mineralization suggests an excellent opportunity for growth of mineral resources in the target area. Additional definition drilling will be required prior to defining the mineral potential as a mineral resource to NI 43-101 standards.

Other drill results from this area include XYC-282, XYC-284, XYC-287, and XYC-289; which all host zinc-lead mineralization. The true thickness of these intercepts is unknown at this time and further geological and structural modeling is required in order to determine the true thickness due to the wide drill hole spacing.

One other drill hole was collared in this area off the same pad as XYC-284 and XYC-290; however, XYC-289 unfortunately had the favourable host unit for the zinc-lead mineralization removed by a fault zone that left both the hanging wall and footwall strata intact. It should be noted that XYC-290 also intersected a fault zone, but it occurred in the hanging wall to the favourable host unit: however, within the fault are two very high-grade sections of zinc-lead mineralization that were likely remobilized from the favourable strata intersected further down the hole.

The Selwyn Project exploration program is being reviewed by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo, and Mr. Wolfgang Schleiss, P.Geo., Manager of Exploration, who is responsible for on-site activities. Mr. Dunning and Mr. Schleiss are both Qualified Persons within the meaning of National Instrument 43-101. All assay data have undergone internal validation of quality assurance and quality control. Selwyn has established a sampling and assay control program with blind insertion of assay blanks, standards and duplicates for the Selwyn Project. A quality control and quality assurance program is in place at ACME Analytical Laboratories Ltd. (“ACME”) and includes blanks, standards and duplicates. At ACME, silver and base metal analyses are conducted by a 23-element, four-acid digestion, ore-grade ICP-AES technique.

All assay results from the definition drilling program are undergoing quality assurance and quality control review. Upon completion of this review, the data will form the basis for a new mineral resource estimate for inclusion in the bankable feasibility study that SCML is advancing with Wardrop Engineering. Several drill holes were positioned to define limits of bounding fault structures and/or areas of lower-grade zinc-lead mineralization in order to refine limits of the high-grade mineralization for the mine plan. Results from the definition drilling program continue to confirm the 3D geological and structural models for XY West deposit.

Selwyn’s primary focus remains the exploration and development of the properties that make up the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining Ltd. The Selwyn Project hosts large tonnages of zinc-lead mineralization which have the potential for large scale production, and could provide a secure supply of zinc and lead to meet the future needs of these markets in Asia and beyond. The recently announced acquisition of ScoZinc Limited provides Selwyn with a second opportunity for growth and the potential for production revenues in 2012.

This press release contains forward-looking statements concerning mineralization at and the development of the Selwyn Project and of the future prospects for the ScoZinc Mine. These forward-looking statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of factors beyond Selwyn’s control, including the results of exploration activities, economic evaluations and engineering studies, the availability of funds in the financial markets on terms acceptable to Selwyn and the public’s view of the economic value of the Selwyn Project and the ScoZinc Mine. Additionally, more drilling is required to confirm the potential of the new discovery areas, expansions of the current resource areas, and the extension of the higher grade deep mineralization to depth at the Selwyn Project. There is no assurance that such additional drilling will expand mineral resources or that the resources being defined can be developed as an economically attractive mine. Uncertainties associated with permitting and other factors could delay development of the Selwyn Project and of the ScoZinc Mine. Although Selwyn has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause results not to be as anticipated or intended. There is no assurance that such information will prove to be accurate, as future events could differ materially from those anticipated in such information and accordingly, there is no assurance that the Selwyn Project or the ScoZinc Mine will be developed into profitable mines. Readers should not place undue reliance on forward-looking statements.