Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA

Gowest Amalgamated Resources Ltd.

December 23, 2009 14:56 ET

Gowest Executes Definitive Agreement With Goldcorp to Acquire Goldcorp Properties Adjacent to the Frankfield East Deposit

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2009) - Gowest Amalgamated Resources Ltd ("Gowest" or the "Company")(TSX VENTURE:GWA) today announced that the Company has entered into a definitive agreement with Goldcorp Canada Ltd. ("Goldcorp"), manager of the Porcupine Gold Mines Joint Venture ("PJV"), and Goldcorp Inc., for the purchase of all Goldcorp's properties in Tully Township adjacent to the Company's 100% owned Frankfield Project. It is anticipated that the acquisition will be completed prior to the end of January 2010. The Frankfield Project area hosts the Frankfield East deposit which contains a 43-101 compliant 510,000 ounce resource (2.4 million tonnes @ 6.5 g/t). The deposit remains open along strike and at depth and appears to be part of a larger structurally controlled gold-hosting system.

The properties to be acquired include 15 unpatented mining claims (the "Staked Claims") consisting of 102 units covering approximately 4,080 acres (1,632 hectares) in the south central portion of Tully Township and contiguous to the eastern boundary of the Company's Frankfield Project. In addition, the Company will also acquire 13 leased mining claims (the "Leased Claims") with both surface and mining rights consisting of 13 units covering approximately 530 acres (212 hectares) in the central portion of Tully Township. Also included is an extensive exploration database for all of Tully township which was previously compiled by the PJV.

Greg Romain, President and Chief Executive Officer of Gowest, commented: "The acquisition of this property from Goldcorp is another excellent addition in the Company's effort to increase the potential for resource expansion at the Frankfield Project. These properties are strategically located along the eastern extension of the same geological structures which host the Frankfield East deposit mineralization." He went on to say; "This has been a very positive year at Gowest whereby we achieved our goals of consolidating the Frankfield project, closing a private placement for $6,572,688 and acquiring the Goldcorp claims. We are well positioned from both a land and treasury position to continue the development of the Frankfield Project."

The consideration payable by the Company for the transaction includes a 2% royalty on the net smelter returns ("NSR") derived from future production specifically from the Leased Claims, a 1% royalty on the NSR derived from future production specifically from the Staked Claims and $100,000 in cash. The Company will maintain an NSR buyout option for both the Leased Claims and Staked Claims valued at $500,000 for each 0.5% of the desired NSR. Goldcorp may elect not to sell the final 0.5% portion of its NSR.

In 2009, Gowest advanced Phase 1 of the development program for the Frankfield project. This has included a compilation of historical data in the area, new geological modelling, a high resolution geophysical survey of the entire Frankfield Project area and a comprehensive soil gas hydrocarbon (SGH) sampling program aimed at identifying gold anomalies. Details for Phase 2 of the program (scheduled for 2010) are presently being finalized and include:

- A new drill program aimed at expanding the known resource base at the Frankfield East deposit and exploring additional gold anomalies located along similar geological contact structures;

- Additional metallurgical testwork to better define processing alternatives for the Frankfield mineralization;

- Completion of an environmental baseline to allow for future bulk sampling and/or mining; and

- Evaluation of both site locations (greenfield/brownfield) for a Frankfield processing facility.

About Gowest

Gowest is a Canadian gold exploration and development company focused on financing, exploring, growing and mining its 100% owned Frankfield East gold deposit, part of the greater Frankfield Project in the prolific Timmins gold camp.

Forward-looking statements

This news release contains certain "forward looking statements" including in respect of a proposed acquisition of certain properties by the Company. Such forward-looking statements involve risks and uncertainties. The results or events depicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.

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