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Woulfe Mining: Exploration and Development of World-class Mines in South Korea

Overview

Woulfe Mining Corp (TSXV:WOF) is progressing a number of properties in South Korea, one of the fastest growing, high-tech industrialized economies in the world. The company’s primary focus is bringing one of the world’s largest past producing tungsten mines, the Sangdong mine, back into production. Woulfe’s goal is to commence production at the mine in the fourth quarter of 2013 at an initial production rate of 1.2 million tonnes per annum.

The company is also advancing its Muguk gold-silver mine, formerly South Korea’s largest producing gold mine. Woulfe’s portfolio includes a number of other key lead-zinc and base metal properties with significant known mineralization and excellent exploration potential.

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Investment Highlights

• Only Western resource exploration company in South Korea
• Management team has experience in reopening formerly producing mines
• Sangdong tungsten-molybdenum mine is historically one of the world’s largest tungsten producers
• Efficient educated labour pool
• Project in close proximity to China, the global leader in tungsten demand
• Strategic partnership with Berkshire Hathaway’s IMC

Key Properties

Sangdong Tungsten-Molybdenum Mine Project

The Sangdon Tungsten-Molybdenum Project is located 187 km south east of Seoul. Before its closure in 1992, the mine was the world’s leading producer of tungsten for 40 years with an historical production rate averaging 600,000 tons per annum (tpa). The mine closed due to low metal prices, not the exhaustion of resources. The most recent scoping study indicates that the property has over 40 years’ of mine life remaining.

The property boasts substantial underground infrastructure and above ground infrastructure includes access to roads, water and power.

In April, 2012 Woulfe released a Feasibility Study, prepared by Wardrop, a Tetra Tech Company, for the development of the Sangdong Project in Korea.

Highlights:

• 65.5 % Internal Rate of Return (IRR)
• 2.2 years to break even
• 53.88 Resources to be infill drilled
• US$535 million Net Present Value (NPV) at 8% discount value.

In May 2011, Woulfe successfully completed phase one of a drill program which focused on verifying historical data and upgrading resources to support the pre-feasibility study. Phase two targeted the unmined Hangingwall and Footwall mineralized zones on Level one and above, as well as the main mineralized zone above the Sangdong Level. Woulfe reached full feasibility stage in June 2012.

The crusher at the process plant is designed fro 2.4 million tpa and the initial milling capacity will be 1.2 million tpa, but can be readily expanded to 2.4 million tpa.

In July 2011, Woulfe announced that Wardrop had completed an interim resource update for the Sangdong mine in South Korea on the mineralization within the Upper Section of the mine. The interim resource estimate update from Wardrop showed an Indicated Resource of 5,968,000 tonnes grading 0.42% WO₃ and0.04% MoS_2, and an Inferred Resource of 18,572,000 grading 0.45% WO₃ and 0.05% MoS_2.

Muguk Mine Project

The Muguk gold-silver project, once Korea’s largest producing gold mine, operated for many years before closing in 1997 on depressed gold. A total of 8.15 tonnes of gold was reportedly mined between 1934 and its 1972 closure. The mine was re-opened in 1987, producing at a rate of 200 tonnes per day from the No. 2 Vein until its most recent closure.

In 1998, Korea Resources Corporation (KORES) reported that the property contained a combined resource of 1,418,980 tonnes @ 13.5 g/t gold, 72.8 g/t silver (615,956 oz gold and 3,321,599 oz silver). This historical resource estimate does not meet with NI 43-101 standards.

In April 2010, Woulfe began an initial two-hole drill campaign, totaling 1,086 meters, to test the gold and silver mineralization at Muguk. Additionally, Woulfe has secured 1997 mine level plans, detailing resource blocks and grades that existed at mine closure. These will be digitized and modeled to generate drilling targets so that NI 43-101 compliant resource estimates can be determined.

In June 2011, the Company commenced a drill campaign on the down dip extensions of the Three Brothers Vein. Woulfe received an updated NI 43-101 for the project in Q1 2012. Results showed that the Woulfe lease covers a further eight veins with positive results from one vein. The Company plan to develop the Muguk project once Sangdong realizes its true value.

Plans for 2013

Management

Hubert Marleau – Interim President and CEO
Mr. Marleau is a Director of Palos Capital Corporation. With over 40 years of experience in the business and financial community, Mr. Marleau has raised funds privately and publicly for hundreds of emerging and mature companies, structured many mergers and acquisitions, as well as designed and created numerous financial deals in Canada. Mr. Marleau has worked at the executive level of several large investment banks notably, Nesbitt Thomson Inc., and Levesque Beaubien Inc. in addition to his own firm, Marleau, Lemire Inc. Throughout his career, Mr. Marleau has been a board member for a multitude of publicly traded companies, governor of the Vancouver and Montreal stock exchanges, a member of the listings committee of the Toronto Stock Exchange, and director of the Investment Dealer Association of Canada.

Amelia Wesson – VP Admin and Corporate
Ms. Wesson has more than 20 years of experience providing administration services to large mining operations including managing and training personnel. She manages all administration, human resources and community development for Woulfe.

John Icke – Director
Mr. Icke has been the president and CEO of Resinco, formerly Longview Capital Partners, since January of 2008. He has more than 25 years’ global management experience in both the private and public sectors. Prior to Resinco, Mr. Icke was the principal of JRI Strategy Consultants Inc. His other previous positions include serving as president of Accenture Business Services for Utilities, president and CEO of Lily Cups Inc., founding director and chairman of the Canadian Polystyrene Recycling Association, corporate vice-president and general manager of Indigo N.V.’s worldwide packaging business as well as CEO and executive vice-president of Sweetheart Cup, a subsidiary of Fort Howard.

David Constable – Director
Mr. Constable is a geologist with more than 40 years of exploration and development experience in Canada and internationally. He holds a BSc (Hons) and an MBA. Mr. Constable is a chartered director specializing in investor relations for large and small companies and has worked with such companies as Normandy Mining Limited and FNX Mining Company Inc. He is a director of Canadian and dual-listed resource companies and is currently chairman of U308 Corp. and Rockcliff Resources Inc.

Ned Goodman – Director
Mr. Goodman is President and CEO of Dundee Capital Markets, President and CEO of Dundee Corporation. Mr. Goodman is also Chancellor of Brock University, Chairman Emeritus of the Canadian Centre for Diversity, a Governor of Junior Achievement of Canada, a Director of Dundee Corporation, Corona Gold Corporation, 360 VOX Corporation (formerly Leisure Canada Inc.), Dundee Energy Limited, Dundee Real Estate Investment Trust, Dundee International Real Estate Investment Trust, Dundee Precious Metals Inc., Eurogas International Inc., and Ryan Gold Corp.

Tiger Kim – CEO and President (Korean Subsidary)
Mr. Kim is the Chief Executive Officer of Sangdong Mining Corp. and Muguk Gold Corp., the largest tungsten mine in the world and the largest gold mine in Korea, respectively. Sangdong Mining (Korea Tungsten), which has been closed since 1993, is now in the process of preparing its re-opening and commencement of production in Q1 2013.

Through his 30 years of investment banking and corporate finance at Citicorp, Morgan Stanley, Salomon Brothers and Peregrine, a particular thrust has been placed on natural resources sector by consummating numerous transactions in non-ferrous metal and energy sectors. Advisory and mergers and acquisition transactions of non-ferrous metal and energy companies had been his primary focus. Representative clients include but not limited to Korea Zinc, LG Copper (currently LS Nikko), Aluminum of Korea, Korea Electric Power Corp.etc.

Bog-Gon Kim – Technical Advisor
Mr. Kim was formerly the general manager of mining for the Sangdong Mine prior to its closing, and worked for Korea Tungsten a total of 25 years.  He is qualified in mining and metallurgy with extensive experience in mine workings, production and ore processing at Sangdong.

Dr. Kun Joo Moon – Technical Advisor
Dr. Moon holds a doctorate in geology from the University of Tasmania and his dissertation focused on the Sangdong Tungsten Project. He has an extensive career history with Korea Tungsten.

Kwan-Yi Jeong – Technical Advisor
Mr. Jeong was formerly the general manager of Muguk Gold and Yeonwha Base Metals before their closing. He is a highly respected mining engineer in Korea and an advisor to several large companies.

Marion McGrath – Corporate Secretary
Ms. McGrath has been actively engaged in the securities industry for over 25 years. She has served as a director and officer for numerous public companies in a corporate administrative capacity. Ms. McGrath is the owner of IO Corporate Services Limited, a company which provides corporate and accounting services to various publicly-traded Canadian companies. Prior to organizing IO Corporate, she was a senior paralegal with a Vancouver-based securities law firm.