Selwyn Expands Scope of Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 7, 2011) - Selwyn Resources Ltd. (TSX VENTURE:SWN) ("Selwyn") updates investors on the progress of the feasibility study for the Selwyn Project, a joint venture between Selwyn and Chihong Canada Mining Ltd. ("Chihong"). Chihong is a wholly owned subsidiary of Yunnan Chihong Zinc & Germanium Co. Ltd. and is earning a 50% joint venture interest in the Selwyn Project, with the expenditure of $100 million on exploration and development on the project.

Wardrop, a Tetra Tech Company ("Tetra Tech") was engaged in January 2010 to undertake the engineering and technical work required for a feasibility study for the Selwyn Project. The initial proposed work on the development plan is nearing completion; however, based on recent promising drilling results, and other new information, it has been determined that the scope of the proposed engineering work and feasibility study needs to be expanded and revised. A range of additional programs are being considered to further advance the Selwyn Project.

Highlights:

• Following recent promising drill results on the Don Connector, Selwyn Chihong will carry out 12,000 metres of diamond drilling to evaluate inclusion of the new mineralization in the mine plan for the Don Deposit;

• Selwyn Chihong will undertake estimation of mineral resources and preliminary mine planning on the XY West deposit to evaluate inclusion of the new mineralization in the mine plan for the XY Deposit; and

• Selwyn Chihong intends to evaluate inclusion of dense-media separation technology in the processing plan as a means of reducing mill operating costs and increasing the amount of zinc and lead to be processed through the mill.

As at September 30, 2011, Selwyn Chihong Mining Ltd. ("Selwyn Chihong"), the joint venture company formed between Selwyn and Chihong to manage the Selwyn Project, has spent approximately $73 million of the $100 million that Chihong is required to spend to earn a 50% interest in the Selwyn Project.

Mineral Resource and Mine Plan Expansion

Selwyn filed an updated NI 43-101 compliant mineral resource report for the XY Central and Don deposits on SEDAR on October 24, 2011. The new mineral resources are based on extensive definition drilling in these deposits. They are the basis for initial mine planning being advanced in the Tetra Tech feasibility study. In addition, Selwyn has recently announced favourable exploration drill results in news releases dated June 7, July 5, 19, August 15, and September 6, 19 and 29, 2011 that provide details of exploration drilling on the XY West, Don and Don Connector deposits.

Don Connector Drilling

Exploration drilling over the past year in the XY West and at depth in the area between the Don and Don East deposits, referred to as the Don Connector, has defined excellent mineral potential that may be beneficial to include in the mine plan being evaluated (see August 15, 2011 news release). To advance this goal, Selwyn Chihong will resume drilling on the Don Connector to confirm the presence of significant new mineral resources and, if successful, undertake preliminary mine evaluation to determine whether these mineral resources should be integrated into the current mine plan. Investors should be cautioned that it is unclear at this time whether the additional drilling on this target will result in mineral resources to NI 43-101 standards.

Selwyn Chihong plans to drill an additional 12,000 metres in the Don Connector area to better define the tonnage and grade of the shallow dipping mineralization. The target area has dimensions of 900 metres by 250 metres, with several thick intercepts of high grade mineralization indicated from the recent drilling. The mineral potential of this target is characterized by drill hole Don 192 that intersected a true thickness of 54.94 metres grading 7.78% zinc and 2.84% lead, including several zones of very high-grade mineralization (see June 7, 2011 news release). The new drilling is projected to be completed by March 2012, at which time, a new mineral resource estimate will be completed for the Don Connector, and an evaluation undertaken to determine whether this resource should be included in the mine plan for the feasibility study.

XY West Evaluation

In the recent major drilling program, Selwyn Chihong completed 22,488 metres of diamond drilling in 57 holes on the XY West deposit. A new mineral resource estimate is in progress to provide an updated mineral resource for the XY West deposit. The proximity of the mineralization in the XY West deposit to the XY Central deposit, and modest pre-development requirements for accessing this mineral deposit, makes it an attractive addition to the mine plan being developed for the XY Central deposit.

Dense Media Separation

As part of the review of metallurgical processing for the project, the potential application of dense media separation ("DMS") technology was re-evaluated. DMS was evaluated in the original Selwyn Project Preliminary Assessment report (see January 18, 2007 news release) and its application was considered favourable for inclusion in the processing plan. However, that report was based on the mining of several of the mineral deposits by open pit methods; whereas the new development plan focuses on the mining of the XY Central and Don deposits by underground methods.

Preliminary information from a recent re-evaluation of the inclusion of DMS in the crushing circuit indicates that it could provide significant reductions in overall energy consumption in the processing of the mineralization. Additional work is planned to further evaluate both the implications of including DMS in the current mill plan and what amendments would be needed to the mill plan to accommodate the DMS circuit. The benefits of a DMS circuit include the rejection of non-mineralized material within the ore, resulting in a reduction in material to be milled and a corresponding increase in grade of mineralization being milled, along with an overall reduction in power consumed for grinding.

Feasibility Study

Refinements to the feasibility study will focus on the reduction of operating costs in the mill, impacts on the mine plan and optimization of the mining sequence. The possible inclusion of DMS in the crushing circuit and the addition of the Don Connector and XY West to the mine plan could provide significant improvements to the overall development plan for the Selwyn Project. Selwyn and Chihong Canada will continue to evaluate these opportunities as they continue to refine the feasibility study. Selwyn Chihong continues to evaluate various alternative power opportunities. These refinements are expected to delay finalization of the feasibility study until mid 2012.

The Company

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. 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 recent acquisition of ScoZinc Limited provides Selwyn with a second opportunity for growth and production revenues in the near term. The re-development of the ScoZinc Mine will enhance the Company's capacity to develop the Selwyn Project.

Forward Looking Statements

This press release contains forward-looking statements concerning the advancement of the Selwyn Project and the results of the feasibility study that is being carried out on the Selwyn Project. 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 market conditions for commodities, the results of exploration activities and engineering studies, the availability of capital on terms acceptable to Selwyn and other risk factors beyond Selwyn's control As a result, there is no assurance that the Selwyn Project will be advanced to production or that timelines for development of the Selwyn Project will be achieved.