Selkirk Metals Financial News

Decline Intersects E-Zone Massive Sulphide as Drilling Continues with Two Rigs

August 25, 2008 - Selkirk Metals Corp. ("Selkirk" or the "Company") is pleased to provide this update of operations on the Ruddock Creek Property, located 100 km north-northwest of Revelstoke in the Kamloops and Revelstoke Mining Divisions, British Columbia.

The decline, which is now at a length of 972 meters, has intersected the lower portion of massive sulphide mineralization at the Deep E-Zone. The decline, which is being driven at grade of -15%, is entering the mineralization from the footwall of the Zone and will continue until the Zone has been crossed completely and the upper contact or hanging wall has been intersected. Geological mapping and visual examination of the massive sulphide mineralization confirm the high percentages of sphalerite (Zn) with galena (Pb) with accessory pyrite and pyrrhotite that characterize the E-Zone. Similar massive sulphide mineralization has been defined to date throughout not only the E-Zone but overall throughout the five kilometer long "Ruddock Creek Massive Sulphide Horizon". "We are very pleased that this major underground development and exploration program continues to meet our expectations and confirm not only the location but most importantly the character of the E-Zone massive sulphides as known from the surface diamond drilling programs in 2004 to 2007," stated Gordon Keevil, President.

In addition to completing the decline, which is expected to ultimately reach a length of approximately 1000 meters, the 900E crosscut will be completed. This crosscut will be 200 meters in length and is inclined upward at 10%. Four drill stations will be established at a 50 meter spacing along the crosscut to provide the drilling spacing necessary to complete a scoping study level resource calculation on the entire 1.2 kilometer length of the E-Zone as outlined to date. Approximately 10,000 meters of drilling is planned. It is important to note that the decline was located to encounter the E-Zone at the deepest most westerly known point. As indicated by the previous drill results, the E-Zone is thick and high grade at this location and is open to the west. The planned underground diamond drilling program will extend the Zone to the West.

To date, five drill holes have been completed from a drill station located 650m from the portal entrance. A total of 1554.1m of NQ drilling has been completed to date. All holes have now been sampled and sent in for assay. A second drill has been mobilized and is setup at a drill station 785m from the portal entrance. This drill will evaluate the western extension of the E-Zone horizon. Drilling from this location is scheduled to commence by the weekend of August 23, 2008. Once the current drill hole is completed from the 650m drill station, this rig will be moved to the first drill station located along the 900m east crosscut. Drilling with both drills will continue throughout the fall.

"We are very pleased with the continued excellent progress of the underground program and would like to acknowledge the work of our Project Management and Procon Mining and Tunneling Ltd., the prime contractor on site. We look forward to the completion of the decline, underground development program and the ongoing results from the diamond drilling program," stated Gordon Keevil, President. Operations on the Ruddock Creek Property are being conducted under the supervision of the Company's Qualified Person (as defined by NI 43-101), Jim Miller-Tait, P.Geo., Vice President of Exploration.

Corporate Update
Mr. Edward Yurkowski was recently appointed to the Board of Directors. Also, Alan Savage resigned as a director of the Company. The Company thanks Mr. Savage for his contributions to the Company.

Edward Yurkowski is the President of Procon Mining & Tunnelling Ltd., a Burnaby-based company involved in mining contracting. As a founder of the Procon Group of Companies in 1992, Mr. Yurkowski guides the corporate governance and business development functions of the company. Prior to that, he was President of Tonto Mining from 1981 - 1991. Mr. Yurkowski received his Bachelor of Science in Civil Engineering in 1971 from the University of Saskatchewan and he currently serves as a board member of Imperial Metals Corporation, a TSX-listed company, and serves on the advisory boards of Madison Minerals Inc., International Bethlehem Mining Corporation and Columbia Yukon Explorations Inc., all of which are Exchange-listed companies.

On Behalf of the Board of Directors:

(signed) "Gordon Keevil"

Gordon Keevil, President

For further information on Selkirk Metals Corp. please visit our website at www.selkirkmetals.com.