Freewest Resources Canada Inc.

Freewest Resources Canada Inc.

March 06, 2008 16:21 ET

Freewest Resources Announces Closing of $3 Million Private Placement

MONTREAL, QUEBEC--(Marketwire - March 6, 2008) - Freewest Resources Canada Inc. (TSX VENTURE:FWR) announces that it has completed its previously-announced private placement by issuing 8,571,428 units to accredited investors at a price of $0.35 per unit, for gross proceeds to Freewest of $3 million. Each unit consists of one common share and one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share of Freewest at a price of $0.50 for one year after the closing of the private placement, subject to acceleration in certain events.

In connection with the private placement, Freewest paid a finder's fee to PowerOne Capital Markets Limited of Toronto, Ontario consisting of 600,000 common shares at deemed issue price of $0.35 per share, representing 7% of the gross proceeds raised under the private placement, and a "finder's warrant" entitling PowerOne Capital Markets Limited to purchase up to 857,143 units of Freewest, representing 10 % of the number of units sold in the private placement. The finder's warrant is exercisable at a price of $0.35 per unit until March 6, 2009. The units issued on the exercise of the finder's warrant will be identical to those issued in the private placement. The finder's warrant may be exercised for one year after the closing of the private placement.

Under applicable securities legislation and policies of the TSX Venture Exchange, the common shares and warrants issued in the private placement are subject to a hold period expiring on July 7, 2008.

The proceeds from the private placement will be used by Freewest for its exploration program on its properties located in the McFaulds Lake area of Northern Ontario and elsewhere, as well as for working capital and general corporate purposes.

As a result of the private placement, there are 176,236,233 common shares of Freewest issued and outstanding.

Freewest is a well-funded mineral exploration company exploring for gold and base-metals within 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 news release.

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