Gowest Amalgamated Resources Ltd.

Gowest Amalgamated Resources Ltd.

May 11, 2009 17:13 ET

Gowest Announces Initial Closing and Increase in Size of Private Placement

TORONTO, ONTARIO--(Marketwire - May 11, 2009) -


Gowest Amalgamated Resources Ltd. (the "Corporation") (TSX VENTURE:GWA) announced today that it has issued and sold, on a non-brokered private placement basis, an aggregate of 3,942,857 "flow-through" common shares ("FT Shares"), at a price of $0.07 per FT Share, and 3,942,857 units ("Units"), at a price of $0.07 per Unit, for aggregate gross proceeds to the Corporation of $552,000 pursuant to the Corporation's previously announced private placement. Each Unit was comprised of one common share of the Corporation and one common share purchase warrant ("Warrant"), each Warrant being exercisable by the holder thereof to acquire one common share of the Corporation at a purchase price of $0.15 until 5:00 p.m. (Toronto time) on November 11, 2010.

The Corporation also announced today that it has received conditional approval from the TSX Venture exchange to issue and sell up to an additional 750,000 FT Shares and 750,000 Units pursuant to the private placement, for additional gross proceeds of up to $105,000, on the same terms and conditions as described above. Any additional securities to be issued pursuant to the private placement will be issued and sold by the Corporation no later than May 15, 2009.

The proceeds of the private placement will be used primarily to further explore and develop the Corporation's Frankfield Project located near Timmins, Ontario, and also for working capital purposes. The FT Shares will be "flow-through shares" under the Income Tax Act (Canada), and the proceeds raised from the sale of the FT Shares will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)) related to the exploration programs of the Corporation.

All of the securities issued in connection with the private placement are subject to a four month hold period in accordance with applicable securities laws.

The Corporation is a Canadian exploration company focused on advancing its gold projects located in Northern Ontario and Quebec.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding an offering, including the proposed use of proceeds of the offering. Actual developments may differ materially from those contemplated by these statements depending upon, among other things, the ability of the Corporation to raise the funds and decisions made by regulators. The forward looking statements contained in this press release represent the Corporation's views and expectations as of the date of this release and should not be relied upon as representing its views and expectations at any subsequent date.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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