Freewest Resources Canada Inc.
TSX VENTURE : FWR

Freewest Resources Canada Inc.

October 09, 2007 10:47 ET

Freewest Resources Announces Filing of Quest Uranium Corporation Preliminary Prospectus

MONTREAL, QUEBEC, CANADA--(Marketwire - Oct. 9, 2007) - Freewest Resources Canada Inc. (TSX VENTURE:FWR) announces that it and Quest Uranium Corporation, a wholly-owned subsidiary of Freewest, have filed a preliminary prospectus with the securities commissions of each of the provinces of Canada. The prospectus will qualify the distribution by Freewest of 6,000,000 common shares of Quest to the shareholders of Freewest, who will receive one common share of Quest for approximately every 25 issued and outstanding Freewest shares on the distribution record date.

The record date for the distribution of the Quest Uranium shares will be set by the Board of Directors of Freewest in accordance with the policies of the TSX Venture Exchange. Freewest will issue a press release announcing the record date.

Quest Uranium Corporation was incorporated in June 2007 as a wholly-owned subsidiary of Freewest, with the intention of taking over the uranium assets and exploration activities currently carried on by Freewest, so that Freewest can devote itself solely to exploration for precious and base metals. Prior to the distribution record date, Quest Uranium will acquire the George River property from Freewest, as well as five uranium properties in Ontario and one uranium property in New Brunswick. The properties to be transferred by Freewest to Quest Uranium comprise Freewest's portfolio of uranium exploration properties and after the transfer, Freewest does not intend to be directly involved in uranium exploration. Freewest will retain rights to precious metals and base metals with respect to the George River property and the six other uranium properties.

The prospectus will also qualify a rights offering by Quest Uranium to its shareholders, under which each shareholder will receive one right for each issued and outstanding common share. Each right will give the holder the right to subscribe for one additional common share of Quest Uranium at a price of $0.15 per share. If the rights offering is fully subscribed, Quest Uranium will issue 6,000,000 common shares for gross proceeds of $900,000.

In connection with the rights offering, three senior officers and/or directors of Quest Uranium will enter into a standby purchase agreement with the company, under which they will agree to purchase, at the subscription price of $0.15, a number of common shares that is equal to the difference between 3,500,000 common shares ($525,000) and the number of common shares otherwise purchased under the rights offering. As a result of the standby purchase agreement, Quest Uranium will raise a minimum of $525,000 under the rights offering.

Quest Uranium also intends to effect a private placement of 4,750,000 "flow-through" shares and 250,000 common shares at a price of $0.30 per share, for gross proceeds to Quest Uranium of $1.5 million. The net proceeds from the private placement will be used to fund exploration on the George River property.

If the rights offering and private placement are fully subscribed, there will be 21 million issued and outstanding common shares of Quest. Of these, Freewest's shareholders will hold an aggregate of six million shares (28.6%), Freewest will hold four million shares (19%), subscribers in the rights offering will hold an aggregate of six million shares (28.6%), and subscribers in the private placement will hold an aggregate of five million shares (23.8%).

The rights offering by Quest Uranium, the distribution by Freewest of 6,000,000 Quest Uranium common shares to the shareholders of Freewest, and the proposed private placement by Quest Uranium are subject to regulatory approval, including that of the TSX Venture Exchange.

In response to inquiries from shareholders, Freewest also wishes to announce that its Board of Directors is not currently considering any changes to Freewest's outstanding share capital, whether by share consolidation or otherwise.

About Freewest Resources Canada Inc.

Freewest Resources Canada Inc. is a Canadian-based mineral exploration company focused on acquiring, exploring and developing quality gold, base-metal and uranium properties. Exploration is focused on these commodities in classical geological settings with established mineral endowment within Eastern Canada.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. The common shares being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the common shares may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.

Forward-Looking Statements

This press release may contain information and statements of a forward-looking nature concerning the future performance of Freewest Resources Canada Inc. and Quest Uranium Corporation. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. As a result, readers are advised that actual results may differ from expected results.

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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