Freewest Resources Canada Inc.
TSX VENTURE : FWR

Freewest Resources Canada Inc.

May 11, 2006 15:10 ET

Freewest Acquires George River Uranium Property in Northeastern Quebec

MONTREAL, QUEBEC--(CCNMatthews - May 11, 2006) - Freewest Resources Canada Inc., (TSX VENTURE:FWR)

HIGHLIGHTS:



- New strategic uranium property acquisition comprising 175,000 acres
in north-eastern Quebec

- Large property offers excellent potential to host Proterozoic-age
iron oxide-copper-gold-uranium deposits, unconformity-related
uranium deposits and disseminated intragranitic uranium deposits

- Property contains at least three documented uranium occurrences
with grades of up to 0.38 percent U3O8


Mackenzie I. Watson, President and CEO of Freewest Resources Canada Inc., (the "Company") today announces that the Company has made a new and strategic property acquisition known as the George River property (the "Property"). The Property is located close to the Quebec- Labrador (Newfoundland) border, approximately 175 kilometres northeast of Schefferville and 125 kilometres west of the Voisey's Bay nickel-copper-cobalt deposit, currently being mined by Inco Limited in Labrador.

THE ACQUISITION:

The Company has completed the staking of 1,541 mineral claims (7 claim groups) totaling 175,000 acres within the George River area of north-eastern Quebec. Research and compilation of available data was completed by Freewest staff, forming the basis of area selection criteria and included Government lake sediment geochemical maps, geological maps and mineral deposit databases. Systematic compilation of the data outlined at least 7 high-priority exploration targets characterized by a combination of uranium lake sediment anomalies, favourable geology and documented bedrock uranium and associated radioactive occurrences.

A publication illustrating uranium-in-lake sediment geochemistry and uranium bedrock mineralization was recently released for the Province by the Quebec Ministry of Natural Resources (QMNR) (Beaumier et al. 2006). A vast area encompassing anomalous to highly anomalous uranium in lake sediments was outlined in the George River area of North-eastern Quebec and provided the initial targets for staking of the Property (Map 1).

Government geological maps indicate that the George River area is situated within an intracratonic anorogenic belt comprising part of the Proterozoic-age Churchill Province. The central portion of the George River area is dominated by a large north-south-trending sedimentary basin consisting of mudstone, greywacke, quartzite and marble. A number of large intrusions of variable composition but also of Proterozoic age postdate the sedimentary basin and are the dominant lithotype in the Property area (Map 2).

The two maps referred to in this news release are posted on the Freewest website at www.freewest.com.

The youngest intrusions in the George River area are peralkaline or A-type granites, that host rare-earth element (REE) mineralization and radioactive minerals such as at the nearby Strange Lake REE deposit in Labrador. Such intrusions and associated mineralization are indicative of high heat flow and are closely linked with iron oxide-copper-gold uranium deposits (IOCG).

Scanning of the mineral deposits database within the Property area revealed the presence of three bedrock uranium occurrences, two of which occur in granitic intrusions and a third that is hosted within metasedimentary rocks. A single sample collected by QMNR during a geological mapping program at one of the occurrences yielded an assay of 0.38% U3O8 within a granitic pegmatite body. No significant exploration has been completed on any of the uranium occurrences. Elsewhere on the large Property, there are abundant occurrences of magnetite, hematite and sulphide mineralization as well as radioactive elements including yttrium, niobium and zirconium.

EXPLORATION MODEL AND POTENTIAL FOR THE GEORGE RIVER PROPERTY:

Iron Oxide-Copper-Gold-Uranium Deposits

Numerous IOCG deposits occur in intracratonic anorogenic provinces of Proterozoic age. Their magmatic affinity is commonly linked to A and I-type high-temperature granites. Mineralization is dominated by magnetite, hematite, copper, gold, silver, uranium and rare-earth elements hosted in splays off major crustal-scale structures.

The world class Olympic Dam IOCG deposit located in south-central Australia is the largest uranium deposit in the world containing 2.0 billion tons of 1.6% copper, 0.60 g/t gold, 3.5 g/t silver and 0.06% U3O8. It is an epigenetic deposit consisting of fault-controlled hematite-rich granitic breccias that host mineralization. A wide-spread alteration halo consisting of magnetite and hematite envelops the deposit for up to tens of kilometres in diameter.

Unconformity-Related Uranium Deposits

Unconformity-related uranium deposits commonly comprise uranium mineralization occurring at the base of Proterozoic sandstone sequences where it unconformably overlies Early to Middle Proterozoic basement rocks. All of Canada's uranium production currently is from this deposit type in the Athabasca Basin where the deposits are intimately related to the unconformity between the Late Proterozoic Athabasca sandstone and Archean and Lower Proterozoic basement rocks.

These deposit types tend to be very high-grade and some are exceptionally high grade as at Cigar Lake where the average grade is close to 20 percent U3O8.

Disseminated Intragranitic Uranium Deposits

This deposit type is associated with intrusive rocks including peralkaline granites, alaskite, syenites and pegmatites. Favourable provinces for this style of mineralization include reducing and oxidized sequences of Proterozoic age.

The largest of this deposit type is the Rossing deposit in Namibia that contains 150,000 tonnes of U3O8. A second example is the Boka deposit in Alaska hosted within peralkaline granite (1000 tonnes of U3O8). Canadian examples include the Johan Beetz uraninite pegmatite and Mount Laurier pegmatites in Quebec.

Freewest management is very enthusiastic about the Property acquisition and stated: "The George River area of Quebec represents an exceptional opportunity for the Company and offers excellent potential for the discovery of economic uranium deposits of various types including IOCG, unconformity-related and intrusion-hosted deposits. This area of Quebec is under-explored and has never been the focus of significant uranium exploration in the past."

Luciano Vendittelli, P. Geo., is the Qualified Person on the George River uranium property and is responsible for the preparation of this news release.

Freewest is a well-funded mineral exploration company exploring for gold, base-metals and uranium 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.

The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this press release.

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