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There be more ZINC at Gays River, Nova Scotia!!!

There be more ZINC at Gays River, Nova Scotia!!!. October 30, 2012. Safe Harbour Statement.

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There be more ZINC at Gays River, Nova Scotia!!!

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  1. There be more ZINC at Gays River, Nova Scotia!!! October 30, 2012

  2. Safe Harbour Statement This presentation contains certain "forward-looking statements" within the meaning of applicable Canadian Securities laws. Forward-looking statements include without limitation, statements regarding future production, potential mineralization and reserves, exploration results, metallurgical recoveries, capital and operating costs, metal prices. In particular, they relate to statements concerning the future plans and objectives of Selwyn Resources Ltd. including, those for the Selwyn Project and those related to the re-start of ScoZinc operations which concern the estimated re-start capital and working capital requirements, the estimated ScoZinc operating costs and the estimated recovery and production rate, annual production and mine life for the ScoZinc operations. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Selwyn’s expectations relate to verification of mineral resources for ScoZinc, the realization of results for ScoZinc operations as reported by the current owner of ScoZinc and those risk factors generally are disclosed under the heading "Risk Factors" in Selwyn’s Annual Report and Annual Information Form which are filed with Canadian regulators on SEDAR (www.sedar.com).

  3. Think Zinc… No really… Think Zinc! Zinc Deposits of the World Mine Production Zinc Price Forecast • Zinc has been under explored for 30 to 40 years • Zinc has not been the commodity of choice for many years • Most Senior Mining Companies have only recently started returning to zinc

  4. MVT Zinc-Lead Deposits in Canada

  5. Exploring for Zinc in Nova Scotia Carbonate Hosted Carbonate Hosted, fault related Volcanogenic Massive Sulphide Jubilee Stirling Lime Hill Smithfield Walton • Gays River area • Main zone (Scotia mine) • Northeast zone (Scotia mine) • Getty deposit • Carrol’s Corner/Farm targets

  6. Gay’s River Peer Group

  7. What We Know: Low Cost Entry to Producer Group • ScoZinc Mine Operations: • Proven operating history (2007-2009). • Historical low-cost operations. • Restart planned for late 2013 • 57% Zn and 70% Pb concentrate • 85% and 86% Zn / Pb recoveries • Low Average Cost ($0.56/lbs Zn) • Infrastructure and Community: • Rail, road, and port in place. • Low cost power ($0.045/kwh). • Ample labour from local communities. • Strong government and local community support. • Exploration and Expansion: • Recent NI 43-101 mineral resource report update (August 2012). • District scale (34km) opportunities. Planned Production: 2,500tpd

  8. Focusing on Gays River Geological Model Coral reef growth Windsor seas Windsor Basin forms (335 MA) Today Windsor Basin fills in –Reef dies Zinc-Lead deposited in reef

  9. The Paleo-Shoreline is the Place to be… NE U/G N MAIN GETTY Hwy 224 SW Ext Carrolls Farm Target Mill Paleo-Shoreline Carrolls Corner Target Halifax 500 metres

  10. 2011 Drilling Success • Focus on SW Extension of the Main zone to aid incorporate additional resources and to examine opportunities of modeling the “entire mineralizing system”, not just the higher-grades as had been done • 39 drill holessuccessfully completed • 4,940.50 metresof exploration drilling around conceptualized open pit • 711 assay samplespassed QA/QC and used in mineral resource estimation 10

  11. 2011 Drilling Success • Focus on SW Extension of the Main zone to aid incorporate additional resources and to examine opportunities of modeling the “entire mineralizing system”, not just the higher-grades as had been done • 39 drill holessuccessfully completed • 4,940.50 metresof exploration drilling around conceptualized open pit • 711 assay samplespassed QA/QC and used in mineral resource estimation 11

  12. The 2012 Paradigm Shift in Mineral Resources • A complete rethink of known mineral resources and how each deposit was defined • Review the application of cutoff grades to ore deposit boundaries for opportunities • Internal review 1,400 historical drill holes not previously reviewed for opportunities • 55% increase in Measured category mineral resources from July 2011 • 65% increase in Indicated category mineral resources from July 2011 • 13% decrease in Inferred category mineral resources from July 2011 • 26.8% increase overall in the size of the Gays River deposit mineral inventory 12

  13. The 2012 Paradigm Shift in Mineral Resources • Not just a 26.8% increase in mineral resources, but an increase in metal content • The increase in metal content within the deposit provides upside for operations • The additional zinc and lead could effect PEA cashflows; engineering in-progress! • 14% increase in Zinc overall in the deposit from July 2011 • 32% increase in Lead overall in the deposit from July 2011 13

  14. Where did that Paradigm shift occur at Gays River? Glacial Till Glaciofluvial Sand De-dolomite High-grade ore Trench Low-grade ore in Dolomite EUREKA!! Gypsum or Anyhydrite Till Ore Dolomite Trench Gypsum Conglomerate Anyhydrite 14

  15. Can you spot the zinc-lead mineralization? Previous dolomite waste rock is now potentially available to schedule to be mined, as now inside resource model.

  16. July 2011 vs. August 2012 Gays River deposit

  17. October 2011 NI 43-101 PEA Assumptions The following estimates are forward looking statements based on the revised operating results and re-start plan prepared by an independent consultant engaged by Selwyn in Q2 2011. Selwyn cautions that results based on the technical assumptions underlying the estimates are subject to verification of cost estimates and may differ from those forecast. Key assumptions were confirmed in NI-43-101 mineral resources and PEA report published on Sedar.

  18. Next Step – Update 2011 PEA & project economics Areas to Watch – Internal engineering work is ongoing to maximize benefits from the newly updated, expanded mineral resource base for the Gays River deposit at ScoZinc Mine; updated PEA prior to end of 2012 A possible increase in what could be mineable mineral resource base due to the substantial additional mineralization identified in newly published NI 43-101 resource; Possible expanded mining limits due to the additional mineralization, notably the lower-grade, disseminated category; A possible new, optimized mining schedule to take advantage of the newly identified additional mineralization, meaning better efficiencies in a variety of areas of the mine operations that could lower overall operating costs; A possible longer mine life through the injection of more metal being milled over a longer mining schedule that will benefit the overall cashflow modeling of the mine; And a possible decrease in the overall strip ratio for the open-pits, meaning lower haulage and re-handling costs. 18

  19. Next Step: Re-evaluate the Northeast zone 19

  20. Next Step: Re-evaluate the Getty deposit 20

  21. Next Step: Follow-up VTEM surveys • Four major areas flown by helicopter survey (1) Walton block (2) Smithfield block (3) Musquitdoboit block (4) Stirling block • AEM survey calibrated at Gays River deposit • Total area covered ~388km2 • Total line kilometres flown ~ 2,288 • Extensive Target Generation Inititative • Extensive literature and data review • Priority matrix analysis completed • Late 2012 and 2013 work programs planned 21

  22. Future Exploration – Carrolls Corner & Carrolls Farm Carrolls Farm Carrolls Corner 22

  23. A Thought to Ponder for the Future… Scheduled Depletion of Several Large and Medium Mines Commencing 2012 In a January 12, 2010 Research Note by Credit Suisse, they projected the need for a 60% increase in mine production by 2016 - this means more than 6,000,000 tonnes of new mine development. In October 2010, Xstrata Zinc President stated we could loose 1.9M tonnes of mine supply by 2016 while only adding 800,000 tonnes; and expected that we will need 7 million tonnes of new mine supply by 2020 and 14 million tonnes by 2025 to meet demand. 23

  24. Selwyn Project, Yukon ScoZinc, Nova Scotia There is a Very Bright Future for Zinc

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