Freewest Resources Canada Inc.
TSX VENTURE : FWR

Freewest Resources Canada Inc.

December 28, 2006 15:56 ET

Freewest Resources Announces Closing of a Private Placement

MONTREAL, QUEBEC--(CCNMatthews - Dec. 28, 2006) - Freewest Resources Canada Inc. (TSX VENTURE:FWR) announces that it has held a first closing of a private placement by issuing 900,000 units to investors in Quebec at a price of $0.15 per unit, for gross proceeds to Freewest of $135,000. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share of Freewest at a price of $0.25 per share for a period of eighteen months.

The sale of the 900,000 units represents the first tranche of a private placement of up to 3,333,333 units, for maximum gross proceeds to Freewest of $500,000. Freewest anticipates that a second closing will take place on or about January 18, 2006.

Freewest will use the proceeds from the issuance of the units for working capital and general corporate purposes.

Under applicable securities legislation and the policies of the TSX Venture Exchange, the common shares and warrants issued pursuant to the private placement are subject to a hold period expiring on April 28, 2007. The first closing of the private placement has increased the number of outstanding common shares of Freewest to 137,864,825.

Freewest is a well-financed mineral exploration company exploring for gold, base metals and uranium in 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 press release.

Contact Information