MONTREAL, QUEBEC - Jan. 11, 2008 - Mackenzie I. Watson, President and CEO of Freewest Resources Canada Inc. (TSX VENTURE:FWR), (the "Corporation") announces that it has engaged PowerOne Capital Markets Limited of Toronto, Ontario as its exclusive agent for a best-efforts private placement of a maximum of 7,000,000 units at a price of $0.30 per unit, for maximum gross proceeds to Freewest of $2.1 million. Each unit will consist of one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share of Freewest at a price of $0.40 for one year after the closing of the private placement, subject to acceleration in certain events.
The units will be sold to "accredited investors" in Ontario, Alberta and British Columbia on a prospectus-exempt basis. Closing of the private placement is expected to occur on or about January 24, 2008.
The proceeds from the private placement will be used by Freewest for its exploration program on its properties located in the McFaulds Lake area of Northern Ontario and elsewhere, as well as for working capital and general corporate purposes.
In connection with the private placement, PowerOne Capital Markets Limited will receive a fee equal to 7% of the gross proceeds raised under the private placement, which it may elect to receive in cash, common shares, at a deemed issue price of $0.30 per share, or a combination of cash and shares. In addition, Freewest will issue a non-transferable broker warrant to PowerOne Capital Markets Limited entitling it to purchase a number of units equal to 10% of the number of units sold in the private placement. The broker warrant will be exercisable at a price of $0.30 per unit for one year after the closing of the private placement. Each broker unit will be comprised of one common share and one-half of a common share purchase warrant, with each whole warrant being exercisable for one additional common share of Freewest at a price of $0.40 per share for one year after the closing of the private placement, subject to acceleration in certain events.
The private placement is subject to regulatory approval, including that of the TSX Venture Exchange.
The securities issued in connection with the private placement will be subject to a four-month hold period under the policies of the TSX Venture Exchange and applicable securities legislation.
Freewest Resources Canada Inc. is a Canadian-based mineral exploration corporation exploring for gold and base-metals within Eastern Canada. Corporate information can be accessed on the Internet at www.freewest.com Freewest's shares are listed on the TSX Venture Exchange under the symbol FWR.
Investors are invited to visit the Freewest Hub at www.agoracom/IR/freewest where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to FWR@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
CONTACT INFORMATION:
Freewest Resources Canada Inc.
Mackenzie I. Watson
President and CEO
(514) 878-3551 or 1-888-878-3551
Fax: (514) 878-4427
Email: info@freewest.com
Website: www.freewest.com
