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PRESS RELEASE

FOR IMMEDIATE RELEASE

December 12, 2007                                                                                                              #07-36

Sherwood Reports Results of Pre-feasibility Study for Expansion of Minto Copper-Gold Mine

Increased Copper and Gold Production Supported by Study, Commencing Immediately

VANCOUVER, BRITISH COLUMBIA - Sherwood Copper Corporation (SWC: TSX-V) today announced results of an independent pre-feasibility study for the expansion of the Minto copper-gold mine in the Yukon.  This study increases reserves and lays out a path for significantly increased copper production, commencing immediately, and enhanced project economics.

?The completion of a pre-feasibility study that incorporates the Area 2 deposit, which was discovered and defined in 2006, represents another significant milestone in Sherwood?s relentless pursuit of value,? said Stephen Quin, President & CEO.  ?We have taken an exploration concept and, within 20 months, converted it into a reserve that supports a 45% increase in mill throughput and a 43% increase in total project copper and gold production with increased copper and gold production commencing immediately.  Given the very encouraging exploration in 2007, there would appear to be excellent opportunities for further resource additions that could potentially support additional production expansions or an increased mine life.?

Highlights

The Pre-feasibility Study technical report (?PFS?) lays out the basis for production from the Area 2 deposit at a higher mill throughput than was defined in the 2006 detailed feasibility study completed by Hatch Ltd. (?DFS?), the results of which were announced on August 28, 2006.  The PFS also incorporates a number of additional post-DFS optimizations.  Highlights of the PFS, as compared to the DFS include the following:

v      Processing increased to 3,500 tpd from 2,400 tpd;

v      Higher metal production commences in 2008 as a result of processing higher grades first;

v      43% increase in total copper and gold produced in concentrates;

v      39% increase in pre-tax net present value at a 7.5% discount rate, 75% after tax;

v      41% pre-tax IRR, 35% after tax based on $2/lb copper price plus completed forward sales;

v      52% pre-tax IRR, 46% after tax based on forward copper price plus completed forward sales.

The PFS represents an interim update on the Minto Project with resource estimates as of the end of 2006 and costs as of the end of 2007.  However, continued exploration success in 2007, which could result in further reserve increases beyond those outlined in the PFS, and other optimization opportunities, suggest that additional value remains to be extracted from the Minto Project and Sherwood will continue to pursue the crystallization of these value opportunities.

Basis of Pre-feasibility Study

In 2006, Sherwood identified and defined a promising deposit, Area 2, located immediately south of the Minto Main pit and drilled it to NI43-101 resource standards in 2006 with 79 holes totalling 18,134 m of diamond drilling, resulting in approximately the same drill spacing as the Minto Main deposit.  The Area 2 mineral resource was sufficiently promising to commission the independent PFS completed under the supervision of SRK Consulting (Canada) Ltd. (?SRK?).  In addition to looking at the economic potential of the Area 2 deposit, the study was expanded to incorporate several other concurrent Minto Project improvements that were identified post-DFS, including:

v      Implementation of coarser initial grinding in conjunction with a regrind of rougher cell concentrates;

v      Increase in mill capacity to 3,500 tonnes per day;

v      Rescheduling of open pit to maximize up-front grades;

v      Utilization of grid electrical power;

v      Review of waste rock and tailings deposition options;

v      Optimization of the pit slopes for the Main pit based on new geotechnical data and analysis;

v      Improved recoveries for partially oxidized material.

It is envisioned that, based on the results of this study, Minto Explorations (?MintoEx?) will seek amendments to its current operating permits from the Yukon government in order to increase production and modify operating parameters to accommodate these and other proposed operational improvements.

Mineral Resources

Lions Gate Geological Consulting Inc. (?LGGC?), in conjunction with SRK, conducted the mineral resource estimate for the Area 2 deposit.  LGGC and SRK have reviewed pertinent geological information in sufficient detail to support the data incorporated into the resource estimate.  SRK was actively involved during the estimation process, provided guidance with geostatistical analyses of copper and gold, estimation parameters to be used, and validated the copper and gold block models.  The previously disclosed mineral resources for the main Minto and Area 2 deposits (as of March 2007) are summarized below and are detailed in the table attached (see news releases dated February 26, 2007 and July 10, 2006 for additional details).

               Minto Project Mineral Resource Estimate Including Reserves (@ 0.5 %Cu cut-off)

Mineral Reserves

The Area 2 deposit is proposed to be developed as an open pit following the depletion of the current Main pit.  Similar to the 2006 DFS for the Main deposit, the Main/Area 2 combined mine plan focuses on accessing and milling the high-grade ore first, with lower grade material sent to stockpiles for blending and processing later in the mine life.

Mine design for both pits was initiated with the development of a Net Smelter Return (?NSR?) model.  The model included estimates of: metal prices, exchange rate, mining dilution, mill recovery, concentrate grade smelting and refining payables and costs, freight and marketing costs and royalties.  The NSR model was based on a 15m x 15m x 3m block size for the Area 2 and Main Pit combined.  The NSR block model was then used with the MineSight Lerchs-Grossman algorithm to determine the optimal mining shell.  Detailed mine planning and scheduling was then conducted on the optimal pit shell and a mineral reserve was estimated as summarized below and detailed in the table attached.

                    Minto Project Mineral Reserves (@ 0.62 %Cu cut-off)

Mine Plan

During 2007, MintoEx began a process of post-DFS optimization of its mine plan, resulting in accelerated production for the Main pit.  The accelerated PFS mine plan was implemented at the Minto mine during the latter part of 2007, and will continue into 2008.  The post-2008 mining sequence was then divided into four phases. The first phase sees the completion of mining in the Main pit in approximately 2010 followed by three phases in Area 2 and is based upon providing the required ore per period with maximum grade while deferring stripping as long as possible.  The Main and Area 2 pits will be mined sequentially, with the stripping of the Area 2 pit beginning after the completion of mining in the Main pit.  Area 2 waste is then used to fill the Main pit.  Mill feed will come from stockpiled main pit ore during the Area 2 stripping phase.  The entire project has a life-of-mine production duration of eight years, with one additional year required for the mill to process the remaining stockpiles ? a total of nine producing years.  The life-of-mine production schedule is shown in the table below.

                          Minto Project Life-of-Mine Production Schedule

Since the date of this production schedule, additional work has been undertaken to smooth out the production schedule and further optimize metal production; this work will be an on-going process as additional information is incorporated from 2007 drilling and subsequent activities.

Processing

The Minto concentrator initiated production in May 2007 with a design daily production rate of 1,563 tpd.  A Phase 2 expansion of the Minto concentrator to 2,400 tpd was engineered and approved for construction at a capital cost of $15.8 million and is expected to be complete at the end of 2007 and commissioned in January 2008.  Based on extensive metallurgical testing previously reported (see news release dated June 12, 2007) and additional testing subsequent to that, a Phase 3 mill expansion to 3,500 tpd has been designed incorporating the benefits of grinding coarser and various other process optimizations demonstrated in bench test work completed post-DFS.  One of these post-DFS optimizations may include the installation of a gravity gold recovery plant in the grinding circuit in order to recover any free gold that may be present, however no benefit from this optimization has been assumed in the PFS since the benefits of this will have to be demonstrated through production.

Production

The following sets out the copper, gold and silver in concentrates and estimated payable metal detailed in the PFS.

             Minto Project Life-of-Mine Metal Production Forecast

As noted above, additional smoothing of production is planned post-PFS as part of an on-going process of open pit optimization.

Metal Pricing

In the PFS, un-hedged pricing was maintained at the DFS assumptions of $2.00 US/lb copper, $550 US/oz gold and $9.00 US/oz silver (the ?Base Case?).  Discussions related to the appropriateness of this price, in consideration of current copper pricing and the debate surrounding pricing of copper futures, were limited and satisfied by the opportunity to modify and report these effects during the financial sensitivity analysis.  Hedging of metals and prices were applied for periods 2007 to 2011 based on forward sales contracts in place as of Sept 25, 2007.  These metal hedging gains were included in the project cash flow and represented undiscounted revenue of $0.18 US/lb of copper.

              Summary of Metal Price Hedging

In the Base Case, the foreign exchange rate was defined by MintoEx as being 1.13 C$:US$ and did not include any allowance for exchange rate risks that might be incurred in future years of the project ? the value of 1.13 C$:US$ was maintained for the life of the project, as were the flat metal price assumptions noted above.  A scenario involving the current forward curve for copper, spot prices for gold and silver and parity for the US$ was evaluated (the ?Forward Case?).

Economics

The PFS costs were based on, in order of preference, actual contract costs, Minto 2007 and 2008 budget estimates and the 2006 DFS estimates.  The principal differences between the 2006 DFS, 2007 PFS are set out in the table below, which illustrates both the Base Case and Forward Case.

Comparison of 2006 DFS and PFS (Base Case & Forward Case)

As noted above, the DFS used flat metal prices throughout the life of the study, whereas the PFS Base Case uses the same metal prices (US$2.00/lb Cu, US$550/oz Au and US$9.00/oz Ag) for unhedged production but actual forward contract pricing for the metal forward sold.  The Forward Case uses a conservative forward case of the current forward copper prices (which decline over time due to backwardation) but the current spot prices for gold and silver (without the benefit of the contango in these commodities) for unhedged production, actual forward contract pricing for the metal forward sold, and a US$ at parity with the Canadian dollar.

Exploration

The 2007 exploration drilling focused mostly on nine separate exploration target areas in addition to a small program dedicated to geotechnical/metallurgical drilling at the Main and Area 2 deposits as part of the PFS.  One hundred and two exploration and geotechnical drill holes were completed for 23,618 metres, including ten holes drilled for geotechnical and metallurgical purposes; five in the Main pit and five at the Area 2 deposit.  Significant new copper-gold mineralization was discovered at Gap, Copper Keel South and Airstrip SW, while Area 118 was expanded from a localized historic drill occurrence to what MintoEx now believes may be the discovery of a significant new deposit.  Assays are still pending on 34 drill holes.  The remainder of the 2007 drill results will be reported over the next month or so, as they become available, and this information will be used to complete new NI 43-101 compliant mineral resource estimates and lay out the priorities for a significant 2008 exploration program to follow up on the exciting 2007 discoveries.  Only geotechnical and metallurgical technical results were incorporated into the PFS; none of the 2007 drill assay results are incorporated into the PFS. Final 2007 drill assay results will be incorporated into new resource calculations to be completed by the end of Q1 2008.

Grid Power Connection

The PFS assumes that grid power will be established on site at the end of 2008.  A preliminary Power Purchase Agreement (?PPA?) was entered into and subsequently amended, as announced by MintoEx February 12, 2007 and May 30, 2007.  The rates for electrical power supply were set out in the PPA and are expected to provide power at an estimated $0.10 per KWh, a significant saving over the current cost of on site diesel generation.  As noted in a news release dated December 7, 2007, MintoEx has interest only payments for three years after completion of the grid connection, and principal and interest payments for four years thereafter on the main line, while the spur line has principal and interest payments commencing upon completion of the grid connection for a seven year period.  Also in that news release, MintoEx reported that Yukon Energy had received all approvals required for the construction of the grid extension and spur line to the Minto Mine, and construction related field activities have commenced.

Capital Costs

No mining capital was included in the economic analysis for the PFS as it is assumed that the mine will continue to be serviced by a mining contractor that will provide their own equipment fleet.  MintoEx currently uses a mining contractor with whom it has a contract extending to the end of 2009.   SRK has estimated capital costs for the Phase 3 mill expansion at $3.2 million.  The capital cost estimate is based on the purchase of new equipment items for the Phase 3 expansion, principally for the pebble crusher, regrind mill and paste thickener.  Construction labour and materials costs for the installation of the Phase 3 equipment items were based on recent construction rates experienced at Minto.  Capital costs for EPCM, indirect expenses, and spares were factored as a percentage of the total direct construction.  A 15% contingency was applied to the direct construction costs.  Other capital costs related to the increase in mill capacity and the mining of Area 2 include a total of $16 million for grid power, $1.5 million for various pumps and pipelines associated with paste and in-pit slurried tailings deposition and $2 million for additional mine closure costs.  Total project capital costs, including the current operation, includes $52 million during pre-production in 2006 and another total of $99 million for the remainder of the project ? a total of C$151 million.

                   Minto Mine - Summary of Life-of-mine Capital Costs

It should be noted that the above capital schedule has all capital related to the connection to grid power expensed in 2008, whereas the contract with Yukon Energy has payments made over time as noted in the news releases referenced in the ?Grid Power Connection? section above.

Operating Costs

The operating costs in the PFS come from three main sources:

v      the DFS for the Main Pit;

v      New supply contracts signed by MintoEx; and

v      The 2008 life-of-mine budget numbers from MintoEx.

Mining costs are based on the mining contract with Pelly Construction and the explosives contract with Dyno Nobel Canada.  The costs for these contracts are used throughout the project life.  Diesel fuel cost is assumed to be $0.85/litre delivered to site.   Unit costs are generally higher than in the DFS as a result of cost escalation in the past two years (including diesel, labour, explosives and consumables).

Summary of PFS Operating Costs

MintoEx?s cost assumptions for 2008 are based on higher costs for almost all inputs and a US$ at parity with the Canadian dollar.  Further, the Minto Mine only has limited operating experience on which to base these estimates and will strive to see unit cost reductions realized over the coming periods.

Concentrate Sales

Minto has an established concentrate purchase contract with MRI Trading AG (?MRI?).  Under the terms of the contract, MRI has the obligation to buy all of Minto?s concentrate production and Minto has the obligation to sell all of its concentrate production to MRI.  The contract is in effect from July 2007 to June 2010.  The MRI contract may be extended by mutual agreement for one or more years. 

Sensitivity Analysis

The project was evaluated for sensitivity to the commodity price of copper, operating expenses, capital expenditures, grade of Cu and production tonnage. All sensitivities were assessed for the range of -15% to +15% and compared to the resulting 0% discounted NPV.  0% discounted NPV derivations were done for both pre-tax and after-tax cash flows.

Both the pre-tax and after taxation cash flow models show the project is most sensitive to changes to the copper grade.  This sensitivity is somewhat mitigated in the mine plan by the significant use of stockpiles to allow the early extraction of higher grade ore and the ability to blend different grades to provide a consistent mill feed. 

Copper price is the variable that demonstrates the second greatest sensitivity.  In Minto?s case, the Cu price is buffered by the fact that a significant portion of its production in the first 4 years of operation has contractual price guarantees so a reduction or increase in the market price of copper has a tempered affect on the NPV. 

Many of Minto?s major operating expenses including mining, explosives, TCs and RCs and concentrate transport are covered by contracts and, therefore, offer considerable protection from variances in the next 2 to 4 years.   The project is relatively sensitive to the tonnage of ore milled.

The project economics do not exhibit appreciable sensitivity to capital costs as the Area 2 plan and Phase 3 mill expansion require relatively little new capital.  Also, all of the initial Minto Mine construction capital has been spent and therefore has no risk of price escalation for the main contraction. 

                          Base Case Pre-tax NPV Summary @ 0% Discount Rate (C$ millions)

Permitting

The Minto Mine is currently permitted to process up to 912,500 tonnes of ore per year, or 2,500 tonnes per day.  Implementation of the PFS requires the processing rate to be increased to 3,500 tonnes per day.  In addition, a new pit at Area 2 and a number of other development approaches are outlined in the PFS that would require amendments to existing permits.  MintoEx intends to make formal application for the required permit amendments in early 2008 and plans to work closely with Yukon Government, Selkirk First Nation and other stakeholders through these permit amendments.

Project Opportunities

A number of project opportunities are identified in the PFS, including: the potential to add additional reserves through continued exploration, further optimization of the mine plan, improved waste management to reduce costs and underground mining potential for deeper, higher grade areas.

Project Risks

A number of project risks are outlined in the PFS, including: the ability to obtain permit amendments in a timely manner, external influences such as metal prices and exchange rates, recoveries, capital cost and grade control.

Resource Estimation Methodology

Lions Gate Geological Consulting Inc. (?LGGC?), in conjunction with SRK Consulting (Canada) Ltd. (?SRK?), conducted the Mineral Resource estimate for the Area 2 deposit.  LGGC and SRK have reviewed pertinent geological information in sufficient detail to support the data incorporated in the resource estimate.  Ali Shahkar, P.Eng. of LGGC is the Qualified Person under National Instrument 43-101 responsible for the estimate.  SRK was actively involved during the estimation process, provided guidance with geostatistical analyses of copper and gold, estimation parameters to be used, and validated the copper and gold block model.

The estimates for copper and gold grades were completed on April 2, 2007 using Gemcom?s?
3-dimensional block model commercial mine planning software, and checked by SRK with non-commercial software.  An estimate for the silver grades was completed on June 20, 2007.  More than 98% of the value of the deposit is in copper and gold, the remaining 2% is in silver.

Mineralization was interpreted in 5 domains (in some cases sub-domained into separate lenses) and statistical analysis for each metal carried out for each zone. Wireframes of these zones were created and used to inform a 15m by 15m by 3m (vertical) block model for resource estimation. Assays were then composited into 3.0m intervals and statistical analysis completed for each metal and variography estimated for the mineralized domains. Ordinary kriging was used to interpolate grades for copper and gold into the block model. Bulk density measurements collected during core logging were interpolated into the block model using Inverse Distance method. Blocks were then classified into Measured, Indicated and Inferred categories based on the number of drill holes and the average distance of the composites used to estimate each block. The grades and tonnages reported in this resource estimate represent the material contained within the mineralized portion of the classified blocks.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.  Mineral Resource estimates do not account for mineability, selectivity, mining loss and dilution.  These Mineral Resource estimates include Inferred Mineral Resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.  There is also no certainty that these Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves once economic considerations are applied.

Technical Report

A NI43-101 compliant Technical Report will be filed within the next week on SEDAR and, once filed, can be accessed under Sherwood?s profile at www.sedar.com.

Minto Project

The Minto Mine is a high-grade open pit copper-gold deposit located in the Yukon Territory of Canada.  Sherwood acquired the Minto Project in June 2005 and, in just two years from its acquisition, completed a bankable feasibility study, arranged project financing, and built a $100 million open pit copper-gold mine. Commercial production commenced on October 1, 2007.  In parallel with these development activities, Sherwood has been running an exceptionally successful exploration program that has resulted in multiple discoveries of high grade copper-gold mineralization across its Minto Mine property.  Sherwood plans to continue this ?growth from within? strategy along with further operational optimizations in its relentless pursuit of value.

Sherwood

Sherwood?s successful consolidation of the ownership of the Minto Project provides a unique investment opportunity ? participation in a high-grade, open pit copper-gold mine located in Canada with tremendous exploration potential on the property.

Quality Assurance

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Stephen P. Quin, P. Geo., President & CEO for Sherwood Copper Corporation.  The following SRK employees are QPs for this project; Marek Nowak, P.Eng. ? Resource Estimation; Andrew Ham, AUSIMM ? Geology; Terry Mandziak, P.E. (CO) ? Waste dumps and Tailings Impoundments; Mike Levy, P.G. (WY) ? Geotechnical; Tom Rannelli, P.Eng. - Economic Modeling; Gordon Doerksen, P.E. (WY) - Project Overview; Dino Pilotto, P.Eng. ? Mining and Reserves; Stephen Day, P.Geo. ? Geochemistry.  Ali Shahkar, P.Eng. of LGGC is the Qualified Person under National Instrument 43-101 responsible for the resource estimates.

Additional Information

Additional information on Sherwood and its Minto Project can be obtained on Sherwood?s website at http://www.sherwoodcopper.com.

On behalf of the board of directors

SHERWOOD COPPER CORPORATION

?Stephen P. Quin?

Stephen P. Quin

President & CEO

For further information please contact Stephen Quin, President of Sherwood Copper Corp.

or Brad Kopp or Kristy Reynolds at (604) 687-7545 or (888) 338-2200

** INTERNET ADDRESS: www.sherwoodcopper.com **

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release. This news release may contain forward looking statements which are not historical facts, such as ore reserve estimates, anticipated production or results, sales, revenues, costs, or discussions of goals and exploration results, and involves a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, metal price volatility, volatility of metals production, project development, ore reserve estimates, future anticipated reserves and cost engineering estimate risks, geological factors and exploration results.   See the Company?s filings for a more detailed discussion of factors that may impact expected results.

               Minto Project Mineral Resource Estimate Including Reserves (@ 0.5 %Cu cut-off)

                                                                                                  * From DFS

                     Minto Area 2 Mineral Resource Estimate Excluding Reserves (@ 0.5 % Cu cut-off)

                        Minto Project Mineral Reserves (@ 0.62 %Cu cut-off)