West High Yield acquires three claims at Record

Dec 19, 2013

WEST HIGH YIELD ANNOUNCES CORPORATE DEVELOPMENTS

West High Yield (WHY) Resources Ltd. has provided an update on the following corporate developments:

The company acquired additional mineral claims representing 17.4 per cent of mineral claims held on the company’s Record Ridge magnesium property.
The company, as part of its continuing investigations of magnesium metallurgy, has engaged Orion Laboratories LLC of Oak Ridge, Tenn., to conduct laboratory-scale metallurgical testwork to evaluate some novel approaches to the extraction and production of magnesium oxide (MgO), magnesium (Mg) and iron-bearing silicon (Si) from mineral samples provided by the company. The testwork is being conducted under the supervision and direction of Dr. James G. Blencoe, PhD (Stanford University), president and chief executive officer of Orion.
The company has engaged SRK Consulting (U.S.) Inc. of Lakewood, Colo., to prepare a project review (gap analysis) report.
The company held its annual shareholder meeting on Dec. 18, 2013, and all resolutions were approved including reappointment of directors Frank Marasco Jr., Ross O. Drysdale, Pat Nelson and Ian F.T. Kennedy.

Acquisition of additional mineral claims

The company has recently completed the purchase of three additional mineral claims that are joining and contiguous to its Record Ridge magnesium property. The additional mineral claims total 1,376 hectares and were purchased for a purchase price of $22,201. These additional mineral claims represent 17.4 per cent of the company’s mineral claims holdings and were acquired because of their proximity to the known magnesium mineralization and potential use in any future project development.

MINERAL CLAIMS

Tenure                               Hectares         Expiry

1023877                                465.67  Nov. 18, 2014
1020435                                402.32  June 21, 2014
1000746                                508.38   Nov. 1, 2016
2013 claim total                     1,376.37
Prior claims                         6,515.12
Total                                7,891.49

Orion metallurgical testing

Orion has been engaged to conduct laboratory-scale metallurgical testwork to evaluate the potential of using new chemical technologies to extract and produce magnesium oxide, magnesium and iron-bearing silicon from mineral samples provided by the company. Orion has not yet completed this testwork or reported progress to date. The company anticipates future progress reporting as reports become available. The Orion’s testwork is being conducted under the supervision and direction of Dr. James G. Blencoe, PhD (Stanford University), president and chief executive officer of Orion.

SRK independent project review gap analysis

On June 4, 2013, the company released the results of a preliminary economic assessment (PEA) on its 100-per-cent-owned Record Ridge project. The Record Ridge property is an intermediate advanced exploration-stage magnesium project located in Southern British Columbia. The PEA was prepared by SRK and has been filed on the company’s SEDAR profile and is also available on the company’s website.

The PEA presumes a conventional open-pit mine, a novel hydrometallurgical processing plant, a calcined magnesia intermediate product plant along with a fused magnesia production plant with pretax net present value (NPV) using a 5-per-cent discount rate of $1,339-million (U.S.) and internal rate of return (IRR) of 21 per cent, and a posttax NPV of $830-million (U.S.) using a 5-per-cent discount and posttax IRR of 17 per cent.

SRK was more recently engaged to prepare a project review gap analysis in respect of the company’s Record Ridge project. SRK is anticipated to provide the company with an independent review of the project in a technical memorandum in January, 2013. It is anticipated that SRK will review available documentation and information pertaining to the Record Ridge project and comment on its sufficiency for use in a prefeasibility study (PFS). SRK will conduct a desktop review of the minimum reporting requirements for a PFS and assess gaps which should be addressed prior to or over the course of the study. It is anticipated that SRK will provide the following as a result of this review:

A list of those gaps in the company’s currently available data and information which should be addressed in a PFS;

General recommendations for how those gaps can be remedied;
A conceptual budget and schedule for completion of a PFS based on assumptions that the gaps can be addressed either prior to or as a part of the PFS.

We seek Safe Harbor.

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