Freewest Resources Canada Inc.
TSX VENTURE : FWR

Freewest Resources Canada Inc.

March 12, 2009 10:08 ET

Freewest Discovers Significant Vanadium Mineralization on Its Dalhousie Mountain Property, Abitibi Region, Quebec

HIGHLIGHTS: - Diamond drilling yields significant near-surface vanadium mineralization including 0.58% V2 O5 over 30.53 metres, 0.67% V2 O5 over 12.94 metres and 0.64% V2 O5 over 24.00 metres - Vanadium mineralization is closely associated with a two (2) kilometre-long magnetic anomaly that has only been partially drilled

MONTREAL, QUEBEC--(Marketwire - March 12, 2009) - Freewest Resources Canada Inc. (TSX VENTURE:FWR) (the "Company") today announces results from the late 2008 diamond drilling program completed on its Dalhousie Mountain property (the "Property"). The Property comprising 3,730 hectares, is located 60 kilometres southeast of Mattagami and is well accessed by a network of forestry roads branching off the Val d'Or - Chibougamau Provincial Highway. It is situated within the Bell River Igneous Complex in the Abitibi region of Quebec, an area that has seen intermittent exploration for nickel, copper, platinum-group-metals and vanadium since the 1950's.

THE VANADIUM TARGET:

Previously completed work by Freewest on the Property identified a large area of vanadium mineralization within an intermittent outcrop area of approximately 1.8 kilometres by 0.3 kilometres, yielding up to 1.27% V2O5 from blasted outcrop samples. Bulldozer stripping and detailed grid work exposed appreciable iron-oxide mineralization containing vanadium as well as associated chalcopyrite and pyrrhotite, hosted within gabbroic and pyroxenitic rocks. Grab samples returned assays up to 1.03% V2O5. In addition to the bulldozer stripping, a concurrent ground magnetic survey was also completed to provide a geophysical data base to correlate with the mineralization. The survey delineated a strong persistent magnetic anomaly over a 2 kilometre strike length and over a 300-metre width that likely outlines the potential area for vanadium mineralization.

Five (5) drill holes totaling 1000 metres were completed during December 2008 to test the subsurface extent of the vanadium mineralization. The drilling tested a 400-metre long segment of the mineralized trend (see Map 1).

Map 1 comprises part of this news release and is posted on the Freewest website at www.freewest.com.

DIAMOND DRILLING RESULTS:

Significant vanadium mineralization was intersected in 3 drill holes (DM-01-08, DM-03-08 and DM-04-08) of the 5 drill holes completed, covering a strike length of about 400 metres. In 3 of the drill holes that hit, an upper zone of mineralization is present while a narrower lower zone was intersected in 2 of the 3 drill holes. Highlighting the results is an intercept of 0.64% V2O5 over a core length of 24.00 metres that includes a higher grade section yielding 1.00% V2O5 over 7.00 metres. Vanadium intercepts are characterized by the occurrence of semi-massive to massive iron oxide mineralization hosted within fine to medium-grained gabbro and pyroxenite. Drill holes DM-02-08 and DM-05-08 intersected only weak zones of iron oxide mineralization. The details of the vanadium drill intersections are as follows:



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Hole No. From To Interval Fe Ti V V2O5
(metres) (metres) (metres) (%) (%) (ppm) (%)
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DM-01-08 11.75 42.28 30.53 30.61 2.93 3263 0.58
including 11.75 23.75 12.00 35.82 3.74 4195 0.75
then 91.86 107.86 16.00 27.58 2.50 2605 0.47
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DM-03-08 17.76 30.70 12.94 32.14 3.29 3750 0.67
then 140.33 147.10 6.77 20.96 2.42 2733 0.49
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DM-04-08 37.17 61.17 24.00 32.35 3.15 3612 0.64
Including 38.17 45.17 7.00 44.00 4.52 5597 1.00
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Management is encouraged by the initial drilling results generated as it clearly establishes the potential of the Property to host significant vanadium mineralization. Notably, the Property has not been systematically explored for vanadium in the past.

Also of note, is the fact that the northern portion of the ground magnetic anomaly is associated with numerous vanadium showings discovered during the 2008 exploration program. The northern portion of the magnetic anomaly was not tested during the recent drilling campaign and thus presents an excellent target for additional vanadium mineralization.

VANADIUM FUNDAMENTALS:

Vanadium, a strategic metal, is a critical element in the production of high-quality metal alloys. About 90% of the vanadium produced globally is converted into ferrovanadium (FeV). Ferrovanadium is used as a steel additive to produce high-strength steel alloys, thus increasing durability. The steel alloys are used in the production of oil and natural gas pipelines, high-speed cutting tools, surgical instruments, jet engines and in structural steel used in the construction of multi-storey buildings. The balance of vanadium produced is used as an additive and catalyst in the chemical industry (5%) and is incorporated as a component with titanium to produce specialty titanium alloys for the aerospace industry (5%).

Over the last 5 years, the United States Geological Survey reports that 98% of world mine production is derived from South Africa, China and Russia. Major steel producing regions of the world including North America, Western Europe, Japan and Korea are large net importers of vanadium. Primary mine production of vanadium accounts for roughly 30% of total world supply. Another 55% of the world vanadium supply is derived from co-production as a by-product during steelmaking, while the other 15% is derived as secondary production from oil residues, spent catalysts and fly ash. Figures for vanadium mine production are tabled below.



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Vanadium
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World Mine Production (metric tons)
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2004 2005 2006 2007 2008(est) (% of total)
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USA nil nil nil nil nil 0%
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China 14,000 17,000 17,500 19,000 20,000 33%
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Russia 8,000 15,100 15,100 14,500 16,000 27%
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S. Africa 17,200 25,000 22,000 24,000 23,000 38%
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Other 1,000 1,100 1,100 1,000 1,000 2%
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Total 40,200 58,200 55,700 58,500 60,000 100%
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Source: (U.S. Geol. Survey) Mineral Commodity Summary


Luciano Vendittelli, P. Geo. (Quebec), is the Qualified Person responsible for the preparation of the news release. Roger Moar, P. Geo. (Quebec) is the Qualified Person on-site at the Dalhousie Mountain property.

Freewest is a well-financed mineral exploration corporation with over C$7.5 million in working capital. It is actively exploring for gold, base-metals and chromite within eastern Canada. Corporate information can be accessed on the
Internet at www.freewest.com. 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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