Selwyn Resources Ltd : Selwyn Announces $4 Million Flow-Through Share Financing

#700 - 509 Richards Street Vancouver, British Columbia Canada V6B 2Z6

Telephone: [phone]

Toll-free: 1-888-989-9188

Fax: [phone]

Trading Symbol: SWN.TSX-V [e-mail]

News Release -2012-01 www.selwynresources.com

Not for Distribution to U.S. Newswire Services or Dissemination in the United States

News Release

Selwyn Announces $4 Million Flow-Through Share Financing

Vancouver, BC, January 12, 2012 - Selwyn Resources Ltd. (SWN.TSX-V) is pleased to announce it has entered into an engagement letter to raise through a best efforts brokered private placement to qualified purchasers, up to $4 million from the sale of flow-through common shares ("Flow-Through Shares") ("the Offering"). The Offering will be carried out by a syndicate of agents ("Agents") lead by Industrial Alliance Securities Inc. The Agents will receive a cash commission equal to 6% of the gross proceeds from the sale of the Flow-Through Shares. The Offering is scheduled to close on or about January 31, 2012 and is subject to acceptance by the TSX Venture Exchange.

The Offering will consist of up to 16,000,000 Flow-Through Shares at a premium price of $0.25 per share. The Flow-Through Shares sold will be subject to a 4 month hold period.
Proceeds of the Offering will be used by the Company to incur exploration expenditures on the Company's ScoZinc properties in the province of Nova Scotia and/or the Selwyn Project in the Yukon Territory.
Selwyn's primary focus remains the exploration and development of the properties that make up the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining Ltd. The Selwyn Project hosts large tonnages of zinc-lead mineralization which have the potential for large-scale production, and could provide a secure supply of zinc and lead to meet the future needs of these markets in Asia and beyond. The ScoZinc Mine owned by Selwyn's wholly owned subsidiary, ScoZinc Limited, provides Selwyn with a second opportunity for growth and production revenues in the near term.

This press release contains forward-looking statements concerning the Offering and the advancement of the Selwyn Project and the ScoZinc Mine. These forward-looking statements, which include, among other things, the proposed closing date for the Offering, are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of market conditions for securities, commodities, the results of exploration activities and engineering studies, the availability of capital on terms acceptable to Selwyn, regulatory approval, and other risk factors beyond Selwyn's control. As a result, there is no assurance that the Offering will be completed or that the Selwyn Project or the ScoZinc Mine will be advanced to production or that timelines for development of the Selwyn Project and the ScoZinc Mine will be achieved.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. All dollars in this release are in Canadian funds.

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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.

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For more information contact:

Dr. Harlan Meade, President and CEO
Catalin Chiloflischi, Manager of Investor Communications
Telephone: [phone]
Toll-free: 1-888-989-9188
Facsimile: [phone] [e-mail] www.selwynresources.com

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