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To: LoneClone who wrote (59903)	6/2/2010 6:35:07 PM
From: LoneClone	Read Replies (1) \| Respond to of 193209

Selwyn Resources Commences Work and Advances Joint Venture Transaction With Chihong Wed Jun 2, 4:05 PM ca.news.finance.yahoo.com VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 2, 2010) - Selwyn Resources Ltd. (TSX VENTURE: SWN.V) ("Selwyn") is pleased to inform investors that it has commenced the 2010 exploration, permitting, engineering and development program at Selwyn Project. The Company also notes that it has reached agreement on and signed the key contracts with Yunnan Chihong Zinc & Germanium Co. Ltd. ("Chihong") related to the joint venture transaction initially announced December 14, 2009. Chihong will acquire a 50% interest in a joint venture to be formed for the Selwyn Project by making an investment of CDN$100,000,000 (see December 14, 2009 and March 2, 2010, news releases) (the "Transaction"). Chihong has informed Selwyn that it expects to complete the remaining regulatory approvals, transfer of funds and the close of the Transaction around mid-August 2010. Selwyn has re-opened the camp and expects to start geotechnical and exploration drilling shortly. The geotechnical drilling will confirm conditions for the preferred tailings facility sites and is part of extensive additional engineering work required to complete a Project Report for submission to the Yukon Environmental and Socioeconomic Assessment Board. Exploration drilling will start with infill drilling of the XY Central Deposit to upgrade Inferred mineral resources to the Indicated category for use in the bankable feasibility study being prepared by Wardrop Engineering (see January 5, 2010 news release). Later in the program, additional infill and exploratory drilling will be undertaken on Don Deposit and its extensions. The drilling is to confirm a mineral resource base adequate to support the mining of 5,000 tpd from XY Central deposit and 3,000 tpd from the Don deposit as the base case for the Wardrop feasibility study. The Yukon Water Board continues to review Selwyn's application for a Type B Water Licence which is required to undertake initial underground development and test mining in the XY Central deposit. Chihong Transaction Highlights: 1. All of Selwyn's mineral and other assets associated with the Selwyn Project will be made subject to a new Canadian Joint Venture ("Joint Venture") between Selwyn and Chihong; 2. A new company ("Operating Co.") will be established, owned 50% by each of Selwyn and Chihong, to act as the operator to carryout the programs of the Joint Venture. The Board of Operating Co. will have equal representation from each of Selwyn and Chihong; 3. Chihong will deposit CDN$100,000,000 in cash to a bank account set up by Operating Co. with a Canadian chartered bank, which funds will be used to fund programs of the Joint Venture. Chihong will earn a 50% interest in the Joint Venture by expending these funds on joint venture programs, including those related to the completion of a bankable feasibility study and permitting of a mine at Selwyn. The Selwyn Project represents one of the largest undeveloped resources of zinc and lead in the world and is uniquely located in the politically attractive and stable jurisdiction of the Yukon. It is therefore both a unique opportunity and a strategic asset that could provide a long term secure supply of zinc and lead to the markets of the Pacific Margin. This news release contains forward-looking statements concerning the proposed transaction with Chihong, the future financing and development of the Selwyn Project, the objectives of exploration activities to be carried out at the Selwyn Project and Selwyn's future prospects in maintaining its 50% interest in the Selwyn Project. These statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to complete the proposed transaction with Chihong, whether due to an inability to reach agreement on the terms of the formal documentation or the failure to obtain necessary regulatory or other required approvals, the failure of exploration activities to upgrade Inferred resources to Measured and Indicated categories, the failure of Selwyn to raise funds to enable it to meet its pro rata share of expenditures for the Selwyn Project and other risk factors, both financial and technical, that are beyond Selwyn's control. There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Contacts Dr. Harlan Meade Selwyn Resources Ltd. President and CEO (604) 801-7240 or Toll-free: 1-888-989-9188 Jasmin TamDoo Selwyn Resources Ltd. Manager of Investor Communications (604) 801-7240 or Toll-free: 1-888-989-9188 (604) 689-8355 (FAX) info@selwynresources.com www.selwynresources.com