Mr. Brian Wesson reports

WOULFE MINING TO FAST-TRACK THE EVALUATION OF ITS MUGUK GOLD MINE

Woulfe Mining Corp. is fast-tracking the evaluation of its Muguk gold project in South Korea. Muguk was the largest gold mine in South Korea until its premature closure in 1997 due to low gold prices.

Woulfe has appointed AMC Consultants Pty. Ltd. of Melbourne as technical adviser to the project. AMC's initial brief is to:

• Prepare a three-dimensional (3-D) digital model of the Muguk mine workings using the available level plans and long sections -- completed;
• Update the extensive database comprising final survey of underground workings prior to closure, face grades, drill data, ore extraction data and process data -- work in progress;
• Prepare an NI 43-101-compliant resource estimate for the main mineralized structures.

Woulfe management can now turn its attention to Muguk as its flagship Sangdong tungsten-molybdenum project in South Korea is progressing at a rapid rate. The Sangdong feasibility study is well advanced and construction is scheduled to commence in early 2012.

The Muguk gold-silver mineralization is hosted within a series of parallel, steeply dipping quartz veins that extend discontinuously for 400 to 2,000 metres along strike and to a known depth of 800 metres. The average width of the veins is typically less than one metre, although the veins pinch and swell and can be up to two metres in width in places.

The two most significant veins are the No. 2 vein and the Three Brothers vein, or Samhyungje vein. The No. 2 vein was exploited between 1944 and 1972, and was developed to a depth of 755 metres along a strike length of 1,800 to 2,000 metres. The grades reportedly varied from seven grams per tonne (g/t) gold to 50 g/t gold. Reported production during this period was approximately 260,000 ounces of gold. The Three Brothers vein was exploited between 1984 and 1997, and was developed to a depth of 600 metres. Reported production during this period was approximately 328,000 ounces. There has been minor exploitation of a number of other veins, including Baksan, Geumyong, and No. 1 and 7-11 veins.

The executive general manager of the mine at time of closure is now an adviser to Woulfe and is assisting with the evaluation. He acknowledges that the operation was not profitable at the prevailing sub-$300 (U.S.) gold prices in 1997, but expressed the view that he was not in favour of closure given the known residual resources.

In 1994, Korea Resources Corp. completed a resource update on Muguk, resulting in a total reserve/resource estimate of 1,418,980 tonnes grading 13.5 g/t gold and 72.8 g/t silver, and containing 615,956 ounces of gold and 3,321,599 ounces of silver, based on a 10 g/t gold cut-off grade. Woulfe cautions that a qualified person has not done sufficient work to classify the historical estimate as current, that it is not treating the historical estimate as current and that the historical estimate should not be relied upon. The mine operated for a further three years after this estimate was undertaken.

In 2010, Woulfe completed a two-hole program at Muguk to comply with its mining rights obligations, which required a total of 750 metres to be drilled. Woulfe opted to target the secondary No. 7 vein to the west of the No. 2 and Three Brothers veins as known mining extended to a depth of a few hundred metres, and shorter holes could be confidently planned to avoid old mining cavities. The first hole intersected two metres at 5.6 g/t gold and 26 g/t silver at 414 metres depth, and the second hole intersected 0.36 metre at 16.6 g/t gold and 16 g/t silver at 386 metres depth.

In July, 2011, Woulfe commenced a third hole targeting the depth extension of the Three Brothers vein. This hole is currently at a depth of around 400 metres and is expected to intersect mineralization at around 735 metres. The objective of the current drilling program is to confirm the down-dip extension of the mineralization below the historic workings and to substantiate the grades that were reported in the lower levels.

With the completed 3-D model, AMC is now working on preparing the updated mineral resource estimate, with particular attention to those areas that were historically considered low-grade (below 10 g/t), given the very substantial increase in gold prices since mine closure in 1997.

Brian Wesson, Woulfe chief executive officer/president, comments that: "We are very pleased to be moving ahead with Muguk now that Sangdong is on track for development. Muguk is a very exciting gold project as it has a significant residual resource above 10 g/t gold. With the gold price now more than six times the price when the mine closed, there is potential to increase this resource significantly using a lower cut-off grade. There are numerous secondary mineralized veins within the mining field which add to the potential upside. The grades at Muguk are well above the average for operating gold mines worldwide, recently reported to be around two g/t gold."

This news release has been reviewed and approved in the form and context in which it appears by Woulfe's Canadian-based geological adviser, Pat Stephenson, PGeo, of AMC Mining Consultants (Canada) Ltd. Mr. Stephenson has appropriate qualifications and sufficient relevant experience to qualify as a qualified person for the reporting of exploration results for the Muguk deposit.

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