Gowest Gold Ltd.
TSX VENTURE : GWA
OTC Bulletin Board : GWSAF

Gowest Gold Ltd.

August 03, 2011 17:52 ET

Gowest Amends Terms of Previously Announced Private Placement

TORONTO, ONTARIO--(Marketwire - Aug. 3, 2011) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) announces that it has revised the terms of its previously announced private placement, as set out in the Company's press release of July 19, 2011. The Company now intends to offer for sale on a private placement basis (the "Offering"): (i) 7,017,600 flow-through common shares of the Company, at a price of $0.285 per share, for aggregate gross proceeds of 2,000,016; and (ii) 4,800,000 units ("Units") of the Company, at a price of $0.25 per Unit, for aggregate gross proceeds of 1,200,000. Each Unit will be comprised of one common share and one-half of one common share purchase warrant of the Company, with each whole common share purchase warrant being exercisable to acquire one additional common share of the Company at a price of $0.35 for a period of 24 months following the closing date of the Offering. Salman Partners Inc. (the "Agent") is acting as agent in connection with the Offering.

In addition, Gowest has agreed to grant to the Agent an over-allotment option, exercisable in whole or in part prior to the closing of the Offering, to increase the size of the Offering by up to an additional 1,754,400 flow-through common shares (for additional gross proceeds of up to $500,004). Upon closing, the Agent will receive a commission equal to 7% of the gross proceeds raised under the Offering.

Closing of the Offering is expected to occur on or about August 12, 2011 and is subject to regulatory approvals. The securities issued in connection with the Offering will have a hold period expiring 4 months and 1 day from the closing date of the Offering. The net proceeds will be used to advance the Company's Frankfield gold project and for general corporate purposes.

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit. Gowest is exploring additional gold targets on the Frankfield land package and continuing to evaluate acquisition targets in the vicinity of the Frankfield project area, part of the prolific Timmins, Ontario gold camp.

Forward-looking statements

This news release contains certain "forward looking statements". Such forward-looking statements involve risks and uncertainties. The results or events depicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.

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