FairWest Energy Corporation
TSX VENTURE : FEC

FairWest Energy Corporation

August 30, 2010 12:55 ET

FairWest Energy Announces Second Quarter Financial Results and Corporate Developments

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2010) - FairWest Energy Corporation ("FairWest" or the "Company") (TSX VENTURE:FEC) announces that the Company has filed its Unaudited Financial Statements and Management's Discussion and Analysis ("Financials") for the six months ended June 30, 2010 on SEDAR. The full text of the Financials can be found at www.sedar.com and on the Company's website at www.fairwestenergy.com.

The Company is pleased to announce the appointment of Douglas O. McNichol as President, Chief Operating Officer and Director effective immediately,. Prior to FairWest, Mr. McNichol was the President, CEO and Director of Regal Energy Ltd. and prior thereto the President, CEO and Director of Lexxor Energy Inc. Mr. McNichol graduated with a Bachelor of Science Degree in Mechanical Engineering from the University of Calgary in 1980. He is a Professional Engineer and a member of APEGGA. Vern Fauth continues as Chairman and Chief Executive Officer.

The Company also announces that it has amended the terms of its previously announced private placement Unit Offering. Subject to regulatory and TSX Venture Exchange approval, the Company intends to amend the offering from Units of flow through common shares, common shares and warrants to a private placement of 40 million flow-through common shares priced at $0.07 per share for gross proceeds of $2.8 million. Proceeds from the offering will be added to working capital and used to fund a portion of the Company's 2010 Capital Budget including optimization and workover activities on existing wells and participation in the Company's Fall drilling program.

The Company also advises that the Board of Directors approved the granting of 500,000 options to purchase common shares of the Company at an exercise price of $0.10 to an officer of the Company. The options have standard vesting provisions and expire five years from the date of issue. 

About FairWest Energy

FairWest (TSX VENTURE:FEC) is a Calgary, Alberta based junior oil and gas company engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids in the provinces of Alberta and Saskatchewan.

READER ADVISORY

This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

149,279,936 Common Shares Issued

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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