Freewest Resources Canada Inc.

Freewest Resources Canada Inc.

July 11, 2007 11:08 ET

Freewest Acquires Croon Lake Uranium Property in Northwestern Ontario and Reports Start-Up of Drilling at Clarence Stream in New Brunswick

HIGHLIGHTS - Boulders on newly optioned Croon Lake uranium property in Northwestern Ontario assay up to 0.577% U3O8 (11.54 lbs/ton) - First drill hole testing deeper potential of the Central Zone at Clarence Stream returns 7.35 g/t gold over 3.50 metres

MONTREAL, QUEBEC, CANADA--(Marketwire - July 11, 2007) - Mackenzie I. Watson, President and CEO of Freewest Resources Canada Inc. (TSX VENTURE:FWR) today announces the acquisition of the Croon Lake uranium property (the "Property") in Northwestern Ontario as well as the start-up of diamond drilling at Clarence Stream in New Brunswick.


The 100%-owned Property consists of 4 claims (1032 hectares) and is located in the Arrel Lake map area, 48 kilometres northeast of the Town of Nipigon in northwestern Ontario. It was acquired from local Thunder Bay prospectors under the terms of an option agreement. Croon Lake is road accessible from Nipigon (total travel time of 45 minutes) and can readily be explored year-round.

In 1978, Essex Minerals Company explored the Property locale in programs involving geological mapping, prospecting, VLF electromagnetic surveys, radiometric surveys and diamond drilling (4 short holes). Prospecting by Essex resulted in the discovery of 3 boulders returning assays of 0.210% U3O8 (4.2 lbs/ton) and 0.300% U3O8 (6.0 lbs/ton). Follow-up work completed by Essex failed to locate the source of the mineralized boulders, described as intensely altered mylonitized diorite. In addition to the mineralized boulders, several highly radioactive occurrences were discovered on the Property, largely occurring within pegmatitic dikes and sills. None of the radioactive occurrences were reportedly sampled. Essex Mineral Company recommended additional work to trace the mineralized boulders to a bedrock source that was never completed.

Recent prospecting by Freewest located 2 of the 3 Essex boulders that were subsequently sampled. Four grab samples from the 2 boulders returned assays of 0.218% U3O8 (4.36 lbs/ton), 0.271% U3O8 (5.43 lbs/ton), 0.471% U3O8, (9.42 lbs/ton) and 0.577% U3O8 (11.54 lbs/ton). The presence of numerous equivalent uranium and equivalent uranium/equivalent thorium radiometric anomalies located up-ice from the boulders, provide immediate targets for exploration follow-up. These anomalies coincide with a major north-northeast-trending magnetic high that is suggestive of a major structural break.

Follow-up work and additional staking will be completed during August in an effort to trace the high-grade uranium boulders to a bedrock source.

The Property is underlain by Archean-age basement rocks comprising granitic gneiss intruded by pegmatitic and diabasic dikes. It lies immediately to the east of the Helikian-age Sibley basin or Nipigon basin, a continental sedimentary basin that is currently being extensively explored for various styles of uranium mineralization by several companies, including Benton Resources Corporation (BTC:TSX-V) and Rampart Ventures Limited (RPT:TSX-V).

Freewest can earn a 100% interest in the Property from the vendors by making cash payments, issuing shares of Freewest Resources Canada Inc. and incurring exploration expenditures totalling $120,000, 225,000 and $154,000 respectively, over a 4-year period. The vendor retains a 3.0% Net Smelter Return Royalty of which Freewest has the right to purchase 2.0% of, for the sum of $500,000 per each 0.5% increment.


Freewest also wishes to announce that is has commenced a deep drilling program in the Central Zone locale on its Clarence Stream property. Diamond drilling will test a 1000 metre-long portion of the high-strain zone that hosts the Central Zone and a number of other proximal gold deposits. Such drilling will test the zones at depths of 200 and 300 vertical metres with the prime object of increasing the mineral resource of such proximal zones.

Assays recently obtained from the first hole of this program, returned an intercept of 7.31 g/t gold over 3.50 metres (or 9.50 g/t gold over 2.5 metres) in drill hole CS07-262. Drilling will continue throughout the summer and fall field with drill results being released as they become available.

Glen Lutes, P. Geo. (New Brunswick) is the qualified person on-site on the Clarence Stream property. Donald Hoy, P. Geo. (Ontario), Vice President of Exploration and a Director of Freewest Resources Canada Inc. is responsible for the preparation of this news release.

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.

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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