Mr. Brian Wesson reports

WOULFE MINING'S' GOLD PROJECT RESOURCE INCREASE AND PROJECT ECONOMIC FOR DEVELOPMENT

Woulfe Mining Corp.'s Three Brothers vein (one of nine mineralized veins within the project area) inferred resource has increased to 900,000 tonnes grading 10 grams per tonne (g/t) gold at a cut-off of four g/t gold with a minimum mining width of 1.2 metres (approximately 289,000 ounces). The mineralization also contains silver, but silver has been excluded from the mineral resource estimate due to a lack of data, and was not modelled as part of the preliminary economic assessment (PEA).

Some areas of the vein that were previously considered not to have reasonable prospects of economic extraction are now considered to be potentially minable due to a revised access strategy that AMC Consultants has developed as part of the PEA. These additional areas have sufficient sample support to be included in the inferred resource. Additional production data from the period 1992 to 1996, demonstrate that the mined ore bulk density was generally 2.7 tonnes per cubic metre and this has been used in the current mineral resource estimate. This differs from the 3.5 tonnes per cubic metre originally stated by Woulfe, and the three tonnes per cubic metre used by AMC in the Jan. 10, 2012, release. AMC has also increased the cut-off grade from three g/t gold to four g/t gold to make it consistent with the PEA.

The main reasons for the difference to the inferred resource released on Jan. 10, 2012, are:

• The proposed decline access strategy allows smaller and more dispersed packages of the resource to potentially be mined, relative to the original shaft access strategy. Addition of the smaller packages of the resource has increased the tonnage by 475,000 tonnes and decreased the grade by one g/t gold.
• The bulk density has been changed from three tonnes per cubic metre to 2.7 tonnes per cubic metre. Decreasing the bulk density has decreased the tonnage by 90,000 tonnes, with no change in the gold grade.
• The change in cut-off grade from three to four g/t gold. Increasing the cut-off grade has decreased the tonnage by 5,000 tonnes, with no significant change in the gold grade.

The net effect of these changes is to increase the tonnage and lower the grade of the inferred mineral resource relative to the Jan. 10, 2012, release, from 520,000 tonnes at 11 g/t gold to 900,000 tonnes at 10 g/t gold.

NB: AMC considered the economics of only one vein in the field of nine veins in the PEA. On this basis alone, the assessment indicated it is economic to reopen the field. The update of the inferred resource is principally a result of the PEA access method, and the increased inferred resource does not imply that the PEA requires updating.

The financial metrics of the project are summarized below:

Net present value (8-per-cent discount rate):  $31.8-million (U.S.)

Internal rate of return:  22 per cent

Gold price:  $1,600 (U.S.)

Mine life:  Seven years

Production rate:  145,000 tonnes per year

Average gold recovered per year:  26,000 ounces

Operating cost:  $676 (U.S.) per ounce

Woulfe cautions that the PEA is preliminary in nature. It is based on an inferred mineral resource. Inferred resources are based on limited information, and grade continuity has been assumed, but not verified. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource that is the subject of the PEA will be converted into mineral reserve. No mineral reserves were estimated as part of the PEA.

Brian Wesson, chief executive officer of Woulfe, comments that AMC has assessed the economics of one vein of nine at Muguk and have shown that it is economic to open Muguk to unlock the upside potential in the Three Brothers vein on strike and downdip and in the other veins in the field. The company's recent focus has been the Sangdong project, which is moving forward into construction. Muguk will now be moved forward as the company's exploration staff is freed up from Sangdong and the permanent staff takes control. Sangdong now has 65 staff.

The AMC resource estimate has been reviewed and approved in the form and context in which it appears by Woulfe's geological adviser, Dr. Andrew Fowler, MAIG, MAusIMM, PhD, BSc, of AMC Consultants Pty. Ltd., and Woulfe's mining engineering adviser, Edward Gleeson, MAusIMM (CP), BEng (mining). Dr. Fowler and Mr. Gleeson have appropriate qualifications and sufficient relevant experience to qualify as qualified persons for the reporting of a mineral resource for the Three Brothers vein of the Muguk gold mine.

We seek Safe Harbor.