Freewest Resources Canada Inc.

Freewest Resources Canada Inc.

December 20, 2007 14:05 ET

Freewest Acquires New Volcanic-Hosted Massive Sulphide Occurrence at Kirby Lake in the Onaman-Tashota Greenstone Belt, Northwestern Ontario

MONTREAL, QUEBEC--(Marketwire - Dec. 20, 2007) - Mackenzie I. Watson, President and CEO of Freewest Resources Canada Inc. (TSX VENTURE:FWR) (the "Corporation"), is pleased to announce the acquisition of the Kirby Lake base-metal property (the "Property") in a recently signed option agreement with local Thunder Bay prospectors. The 100%-owned Property comprising 8 mineral claims (502 hectares) is located in the Onaman-Tashota greenstone belt, approximately 10 kilometres north of the Trans Canada Highway (Highway 11) and 12 kilometres west of the Town of Geraldton. It can be explored year-round given its access by way of logging roads and proximity to infrastructure.

The Kirby Lake Property

To date, 2 prospective base-metal horizons have been identified on the Property, known as the Kirby Lake horizon (KLH) and the Kirby Lake North horizon (KLNH). The KLH hosts an historic zinc showing discovered in 1994 known as the Kirby pit. Grab sample assays obtained from the occurrence yielded up to 7.19% zinc, 2.94% lead and 11.03 oz/t silver. The host rocks at the occurrence are described as bleached, banded rhyolite that chemically, are characterized by strong sodium depletion. Six short drill holes (e-size core) testing the occurrence intersected garnetiferous rhyolite containing narrow massive pyrrhotite and chalcopyrite bands. Results from such drilling are inconclusive and the assays from it are not available.

The KLNH, discovered in 2007, is located 400 metres to the north of the KLH and contains 2 new massive and stringer-type sulphide occurrences. At the first occurrence, backhoe trenching and blasting uncovered stringer, semi-massive and massive pyrrhotite and appreciable chalcopyrite hosted within strongly chloritized rhyolite and locally, sedimentary rocks. Grab sample assays from this occurrence yield up to 2.54% copper and low zinc values. Two hundred and fifty (250) metres along strike to the west-northwest, a second massive sulphide occurrence was exposed by backhoe trenching. Here, massive pyrrhotite and disseminated chalcopyrite hosted in chloritized rhyolite, returned assays of up to 0.40% copper. Both of the new occurrences are capped by a laminated cherty exhalite and have never been tested by diamond drilling.

Airborne geophysical surveys flown by the Ministry of Northern Development and Mines (MNDM map 81325) reveal strong electromagnetic anomalies (conductors) and magnetic highs in intimate association with the new occurrences.

A map indicating the location of the Kirby Lake and Kirby Lake north horizons relative to the conductors and magnetic features on the Property is available on our website at

Regionally, the rocks that host mineralization at Kirby Lake comprise part of the 2770-2780 Ma Onaman assemblage (Stott et al. 2002). It comprises a variety of metavolcanic and metasedimentary rocks that immediately to the south of the Property, are in fault-bounded contact with mafic metavolcanic rocks and clastic metasedimentary rocks of the Beardmore-Geraldton belt. Both of the Onaman-Tashota and Beardmore-Geraldton greenstone belts have been the subject of intensive exploration efforts over the last few years. Ongoing precious and base-metal oriented exploration projects in the Kirby Lake locale, are currently being completed by Kodiak Exploration Limited, Premier Gold Mines Limited and Sage Gold Incorporated.

Planned Exploration Work

Early in 2008, Freewest plans a program involving line cutting, horizontal-loop electromagnetic surveys (HLEM) and total field magnetic surveys to create a geophysical data base over the occurrences. The ground geophysical surveys will be followed up by an initial program of diamond drilling testing these very prospective volcanic-hosted massive sulphide targets.

Under the terms of the agreement on the Property, Freewest may earn a 100% interest from the vendors by making cash payments, issuing shares of Freewest Resources Canada Inc. and incurring certain exploration expenditures over a 4-year period. The total in cash payments, issuance of Freewest shares and exploration expenditures over this period is $165,000, 100,000 and $700,000, respectively. The vendors retain a 2.5% Net Smelter Return Royalty on the Property of which Freewest may purchase 1.5% for the sum of $500,000 per each 0.5% increment.

Donald Hoy, P. Geo. (Ontario), Vice President of Exploration and a Director of Freewest Resources Canada Inc. is the Qualified Person on the Kirby Lake property (under National Instrument 43-101) and is responsible for the preparation of this news release.

Freewest is a well-funded mineral exploration corporation exploring for gold, base-metals and uranium in Eastern Canada. Corporate information on the Corporation as well as information on its properties 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 news release.

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