New interpretation of the theory about Sangdong tungsten mine

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Glanville is of the opinion that the after-tax value of Sangdong, after paying the 2% net smelter return royalty, is approximately US$300 million, within a reasonable range from US$200 million to US$400 million. This Valuation Opinion takes into account a 50% reduction from the calculated net present value, as the project Prefeasibility and Feasibility Studies are yet to be completed. Woulfe is on target to publish the Prefeasibility Study and the full Feasibility Study later this year.

In the method used for this valuation, annual cash flows are projected over the expected life of the project, and these cash flows are then discounted at an appropriate rate to arrive at a Net Present Value. A comprehensive in-house cash flow model has been prepared and reviewed by Glanville. That comprehensive model has been utilized by Glanville to generate cash flow projections based on a number of different input parameters and assumptions, some of which are different from those utilized by Woulfe (including a higher estimated capital cost). Some of the key input assumptions include a sales price of US$375 per metric tonne unit of WO3 (in ammonium paratungstate), a twenty-one year mine life at an annual mill-feed production rate of 1.2 million tonnes, an average grade of 0.41% WO3, and an after-tax constant-dollar discount rate of 8%.

Brian Wesson, CEO and President of Woulfe, commented, 'The Valuation Opinion is within the range we were expecting. We undertook this valuation to assist the Woulfe Board in evaluating potential transactions that may eventuate. With this document in hand, the Board will be in a better position to make decisions in the best interest of Woulfe shareholders.'

As the information provided in the Valuation Opinion does not contain an economic analysis which conforms with National Instrument 43-101, the economic viability of Sangdong will remain uncertain until completion of at least the Prefeasibility Study, which is expected in a couple of month

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