Freewest Resources Canada Inc.

Freewest Resources Canada Inc.

December 21, 2006 10:08 ET

Freewest Acquires Claw Lake Uranium Property in Northwestern Ontario

MONTREAL, CANADA--(CCNMatthews - Dec. 21, 2006) - Consistent with its strategy of acquiring quality uranium exploration projects at reasonable cost in Canada, Freewest Resources Canada Inc. (the "Company") (TSX VENTURE:FWR) today announces the acquisition of the Claw Lake uranium property (the "Property"). The 100%-owned Property consists of 256 mineral claims comprising 10,240 acres (4,144 hectares) and is located approximately 60 kilometres north-east of the town of Savant Lake in northwestern Ontario. A network of new logging roads provides excellent year round access to the Property.


The Claw Lake property was acquired by staking and consists of 2 claim groups known as Claw Lake East (16 claim units) and Claw Lake West (240 claim units). The prime target acquired, comprises a strong extensive (15 kilometre by 10 kilometre) uranium in-lake sediment anomaly, containing several sites characterized by high uranium values including 131, 66, 65, 59 and 50 parts-per-million uranium, respectively(i). The high uranium values are also supplemented by anomalous values of molybdenum and Rare Earth Elements, indicative of a possible intrusion-related style of uranium mineralization.

Subsequent data compilation completed in the vicinity of the uranium in-lake sediment anomaly, also revealed the presence of a coincident airborne radiometric anomaly (equivalent uranium and equivalent uranium/equivalent thorium) defined by a regional survey flown by the Geological Survey of Canada and Atomic Energy of Canada Ltd. in 1975. The combined extent of the uranium in-lake sediment and airborne radiometric anomalies are suggestive of a potentially very large area for uranium mineralization.

Map 1 depicting the uranium in-lake sediment anomaly and Map 2 depicting the equivalent uranium radiometric anomaly accompany this press release and are posted on the Freewest website at

The Property is located at the north-eastern end of the Savant Lake greenstone belt in the Wabigoon Subprovince and is largely underlain by granitoid rocks of Archean age. Mapping by the Ontario Geological Survey (Sanborn-Barrie 1990) in the Property area, indicate that the intrusive rocks are of tonalitic to monzogranitic composition.

A review of historical data indicates that minimal uranium-oriented exploration work has been completed in the area. Accordingly, an exploration program involving a detailed airborne radiometric survey and follow-up prospecting is planned by the Company for the spring of 2007 on the Property.


In other developments, the Company is assessing various ways to manage and finance the diverse portfolio of properties it currently holds under the umbrella of Freewest Resources Canada Inc. Specifically, management is of the view that the current share price does not does not fully reflect the value of its diverse asset base that includes gold, base-metal and uranium properties. In particular, it is felt that the Company's promising uranium property (George River) under its current arrangement is not generating shareholder value in Freewest in view of the uranium price and the encouraging results generated at George River this fall in its initial phase of exploration.

Accordingly, a number of options are under consideration including spinning out the Company's uranium assets to a new company. This would help unlock value for the benefit of Freewest's shareholders and help create an attractive investment vehicle. The mandate of the new company would be to acquire and explore uranium properties and to secure partnerships to assist in financing and exploring such properties.

Freewest management notes that such considerations are at a preliminary stage and any proposals will be subject to shareholder approval, required regulatory approvals and securing of financing for the new company.

Don Hoy, P. Geo., Ontario, Vice President of Exploration and a Director of Freewest Resources Canada Inc. is the Qualified Person on the Claw Lake property and is responsible for the preparation of this news release.

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

(i)Uranium analyses performed by Instrumental Neutron Activation Analyses (INAA) and Inductively Coupled Plasma - Mass Spectrometry techniques by Actlabs of Ancaster, Ontario

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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