Freewest Resources Canada Inc.
TSX VENTURE : FWR

Freewest Resources Canada Inc.

November 12, 2009 14:16 ET

Freewest Announces Settlement on Challenge to Shareholder Rights Plan

- Shareholder rights plan to remain in effect until December 1, 2009

- Settlement provides Freewest with sufficient time to negotiate value-enhancing alternative transaction under Exclusivity Agreement

MONTREAL, QUEBEC--(Marketwire - Nov. 12, 2009) - Freewest Resources Canada Inc. (TSX VENTURE:FWR) is pleased to announce that it has reached a settlement with Noront Resources Ltd. with respect to Freewest's Shareholder Rights Plan, adopted in 2008. Freewest and Noront have agreed that the Shareholder Rights Plan will remain in effect until 5 p.m. on December 1, 2009, at which time Freewest will waive the application of the Shareholder Rights Plan with respect to Noront's unsolicited all-share offer made on October 13, 2009 for the outstanding shares of Freewest. As part of the settlement, Noront will not proceed with its application to the Bureau de decision et de revision en valeurs mobilieres for a cease-trade order against the Shareholder Rights Plan.

"We are very pleased with this settlement", said Mackenzie I. Watson, President and Chief Executive Officer of Freewest. "This means with absolute certainty that our Shareholder Rights Plan will remain in effect until December 1. We continue to believe that Noront's offer is inadequate and that it should be rejected by Freewest's shareholders. Yesterday, we announced that we had signed a Confidentiality and Exclusivity Agreement with a third party, under which we will negotiate on an exclusive basis until December 1, 2009. This settlement on the Shareholder Rights Plan gives us sufficient time to reach a value-enhancing agreement with the third party and to sign a definitive agreement by December 1, all to the benefit of Freewest's shareholders", added Mr. Watson.

Freewest is a well-financed mineral exploration company. It is actively exploring for gold, base-metals and chromite within eastern Canada. Corporate information can be accessed on the Internet at www.freewest.com. Freewest's shares are listed on Tier 1 of the TSX Venture Exchange under the symbol FWR. Freewest can give no assurances that it will enter into a definitive agreement with the third party or that a transaction with the third party will ultimately be completed.

Forward-Looking Statements

This news release contains statements that constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities legislation. More particularly, this news release contains forward-looking information concerning the possibility of Freewest Resources Canada Inc. ("Freewest") signing a definitive agreement with a third party pursuant to a Confidentiality and Exclusivity Agreement. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Freewest. Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Freewest will derive therefrom. Forward-looking information is based on the estimates and opinions of Freewest's management at the time the information is released and Freewest does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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