Freewest Resources Canada Inc.

Freewest Resources Canada Inc.

January 18, 2007 13:07 ET

Freewest Drilling East Zone Extensions at Clarence Stream, New Brunswick

MONTREAL, QUEBEC--(CCNMatthews - Jan. 18, 2007) - Freewest Resources Canada Inc. (TSX VENTURE:FWR) (the "Company"), is pleased to announce that diamond drilling has resumed at the site of the East Zone on its Clarence Stream gold property (the "Property") in New Brunswick. The 100%-owned Property comprises 11,296 hectares and is located 70 kilometres southwest of Fredericton in Charlotte County, southwestern New Brunswick.

The East Zone comprises one of 10 gold deposits on the Clarence Stream property and contains an Inferred Mineral Resource(1) of 75,810 tonnes grading 6.36 g/t gold (uncut) yielding 15,509 ounces of gold. To put this into context, the East Zone has only been tested by 17 drill holes over an intermittent 700-metre strike length and to a maximum depth of 70 metres. Clearly, there is excellent potential to increase the gold resource at the East Zone through detailed infill drilling along the 700-metre strike length of it and with additional drilling below the 70-metre level.

It is anticipated that this drilling campaign will involve the completion of 30 to 40 drill holes scheduled for completion in late February. Drill results will be released as they become available.

Freewest also announces that it has recently amended its Lizar property agreement with the original vendors such that in lieu of paying $60,000 in advance royalty payments on the Lizar property on or before January 12, 2007, Freewest will make a total payment of $30,000 and issue 80,000 treasury shares of Freewest (subject to regulatory approval). The $30,000 payment will not be deductible against net smelter return proceeds in consideration of the vendors' acceptance of this modified amount. The Lizar property is situated 40 km south of Hornepayne Ontario and has gold and base metal potential. Freewest has already earned a 100% interest in the Lizar property.

In other news, Freewest announces that it has held a final closing of its previously-announced private placement by issuing 100,000 units at a price of $0.15 per unit, for gross proceeds to Freewest of $15,000. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share of Freewest at a price of $0.25 per share for a period of eighteen months. An initial closing was held on December 27, 2006 for gross proceeds of $135,000.

Freewest will use the proceeds from the issuance of the units for working capital and general corporate purposes.

Under applicable securities legislation and the policies of the TSX Venture Exchange, the common shares and warrants issued by Freewest at the final closing are subject to a four-month hold period expiring on May 19, 2007. As a result of the closing of the private placement, Freewest has 137,964,825 issued and outstanding common shares.

Donald Hoy, P. Geo. (Ontario), Vice President of Exploration and a Director of Freewest Resources Canada Inc. is responsible for this news release.

Freewest is a well-funded mineral exploration company exploring for gold, uranium and base-metals within Eastern Canada. Corporate information can be accessed on the Internet at Freewest's shares are listed on the TSX Venture Exchange under the symbol FWR.

(1) The Inferred Mineral Resource of the East Zone is National Instrument 43-101 compliant.

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

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