Freewest Resources Canada Inc.

Freewest Resources Canada Inc.

October 23, 2007 17:35 ET

Freewest Resources Announces Closing of $500,000 "Flow-Through" Private Placement With Mineralfields

MONTREAL, QUEBEC--(Marketwire - Oct. 23, 2007) - Freewest Resources Canada Inc. (TSX VENTURE:FWR) announces that it has completed a private placement by issuing 1,923,074 "flow-through" common shares to six limited partnerships associated with MineralFields Group of Toronto, Ontario at a price of $0.26 per share, for gross proceeds to Freewest of $500,000.

Each share is accompanied by one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share of Freewest at a price of $0.40 until October 23, 2008.

In connection with the private placement, Freewest paid a finder's fee to Limited Market Dealer Inc., consisting of 76,923 common shares and a compensation option entitling Limited Market Dealer Inc. to purchase up to 192,307 units of Freewest, representing 10 % of the number of "flow-through" common shares sold in the private placement. The compensation option is exercisable at a price of $0.26 per unit until October 23, 2008. Each unit will be comprised of one common share of Freewest and one-half of a common share purchase warrant. Each whole warrants will entitle the holder to purchase one additional common share of Freewest at a price of $0.40 until October 23, 2008.

Freewest also paid Limited Market Dealer Inc. a due diligence fee of $20,000, representing 4% of the gross proceeds raised in the private placement.

Under applicable securities legislation and policies of the TSX Venture Exchange, the common shares and warrants issued in the private placement are subject to a hold period expiring on February 24, 2008.

Freewest will use the proceeds from the private placement for exploration work on its properties.

As a result of the private placement, there are 148,943,254 common shares of Freewest issued and outstanding.

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

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at First Canadian Securities®, a division of Limited Market Dealer Inc., is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service-friendly terms, with investors both within, and outside of MineralFields Group.

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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