Overview

Woulfe Mining – formerly known as Oriental Minerals Inc – is progressing a number of properties in South Korea. The majority of the projects are mines that were closed in the 1990s when metal prices dropped. Their most significant project is the Sangdong tungsten-molybdenum mine, which closed in 1992 after 40 years of operation. Drilling started in 2006, and the results have been used to complete a scoping study by Wardrop showing an NPV of $462 million. Woulfe is also evaluating the potential of Muguk Mine as a high-grade gold-silver mine. Historically, Muguk has been South Korea’s largest gold producing mine.

What We Like About Woulfe

• Only Western exploration company in South Korea
• Management team with experience in reopening formerly producing mines
• Sangdong tungsten-molybdenum mine is historically one of world’s largest tungsten producers
• Proximity to China – leading the global demand for tungsten.

Chief Properties

Sangdong Mine Project

Sangdong tungsten-molydbenum mine is located south-east of Seoul. Between 1947 and 1992 it was one of the world’s largest producing tungsten mines. It has had historical production rates of 600,000 tpa mainly from the six-metre thick Main Vein. Drilling by KORES (Korea Resources Corporation) during 1980-1987 discovered a deep molybdenum deposit below the remaining tungsten skarn resources.

In April, 2010 Woulfe released a Preliminary Economic Assessment, or Scoping Study prepared by Wardrop, a Tetra Tech Company, for the development of the Company’s Sangdong Project in Korea The Scoping Study is a key milestone showing positive economics.

Highlights:

• 26.4 % Internal Rate of Return (IRR)
• 3.4 years payback on US$ 289 M capital
• Direct operating costs of $32.50 /t processed
• US$462 million Net Present Value (NPV) at 8% discount value.

The base case commodity prices were as follows:

• Ammonium Paratungstate (APT) – US$250 /mtu
• Molybdenum – US$15.00 /lb Mo.

Approximately 36.1 million tonnes (Mt) of the Footwall Zone resource is confined within the preliminary mine plan with values of 0.33% WO₃ and 0.04% MoS₂. An economic evaluation was applied to this tonnage based on a pre-tax financial model for which the above numbers were returned on a pre-tax basis.

The Scoping Study also returned positive economics on a base case minus 20% metal pricing scenario. Three scenarios were considered and the highlights are shown in the table below:

The capital estimates consider 100% new mine development, giving no value to the existing vertical shafts, ventilation shafts or the 25km of underground development as the condition of the access is yet to be evaluated. The capital costs consider prices in Canada and Australia; as for the project in Asia, there is scope to improve on capital costs as we move to a Feasibility Study in early 2011.

Muguk Mine Project

Muguk Gold Field has been sporadically mined from 1913 into the 1990s. As Korea’s largest gold producing mine, Muguk recorded production of 8.15 tonnes of gold mined between 1934 and 1972, and was reopened between 1987-1998 producing at a rate of 200 tonnes per day, all from the No. 2 vein.

In April 2010 Woulfe commenced an initial two hole diamond drilling campaign, totalling 1,086 metres, to test the gold and silver mineralization at Muguk. In addition Woulfe has secured 1997 mine level plans, detailing resource blocks and grades that existed as at mine closure. These will be digitized and modelled to generate drilling targets so that NI 43-101-compliant resource estimates can be determined.

Management

Brian Wesson CEO/ President –Engineer with 30 years’ experience, has an MBA and Fellow of the Australian Institute of Mining and Metallurgy and Fellow of Australian Institute of Company Directors.

Mark Gelmon CFO Chartered Accountant and a member of the Institute of Chartered Accountants of B.C. He has served as an auditor, director, chief financial officer, corporate controller and accountant for several public and private companies.

Amelia Wesson Director/ VP Admin and Corporate- Principal of Westech who was instrumental in working with governments and staff to restructure the Vatukoula Mine from 2,200 staff to 700 and induct and retrain the staff. Amelia previously worked in companies servicing the large mines in South Africa giving her an excellent understanding of personnel and Administration.

Bill Kable VP Technical is an economic geologist with over 30 years experience in the minerals, oil and gas and broking industries. His specialisation is valuation and due diligence studies for public reports, corporate mergers, acquisitions and company floats. He has wide experience of projects throughout Australasia, Africa and South America

Colin Lutherborrow Resource geologist MAusIMM with 30 year experience in exploration and mine geology mainly with Pasminco. Colin has extensive experience dealing with similar mineralisation and delineating resources as laid down by the Canadian and Australian rules and guidelines for the reporting of ore resource.

Mr. Shin Chief Operating Officer Korea – 25 year career in Korean Tungsten Corporation rising to an executive position in domestic and international marketing of Tungsten, based out of Europe. Mr. Shin knows the mine, market and Tungsten business.

Advisor Dr Moon Phd in Geology from University of Tasmania on Sangdong Tungsten Project, with extensive career history with Korean Tungsten

Advisor Mr B.G. Kim Ex General Manager Mining of Sangdong mine when it closed. Mr Kim had 25 years service with Korea Tungsten and is qualified in mining and metallurgy and has extensive experience of the mine workings, production and processing of ore at Sangdong.

Advisor Mr K. Y. Jung Ex General Manager of Muguk Gold and Yeonwha Base metals mines when they closed, highly respected mining engineer in Korea and advisor to large companies

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