Gowest Gold Ltd.
TSX VENTURE : GWA

Gowest Gold Ltd.

August 26, 2015 12:35 ET

Gowest Announces Program to Encourage Early Exercise of Warrants

TORONTO, ONTARIO--(Marketwired - Aug. 26, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Gowest Gold Ltd. (the "Corporation" or "Gowest") (TSX VENTURE:GWA) announced today that it will be initiating a program (the "Program") designed to encourage the early exercise of up to 50,000,000 of its outstanding unlisted warrants issued between June 23, 2014 and September 30, 2014 (the "Warrants"). Under their original terms, the Warrants are exercisable acquire one common share of the Corporation at a price of $0.11 for a period of 24 months from date of issuance.

As an inducement to encourage the early exercise the Warrants, the Corporation will be reducing the exercise price of the Warrants from $0.11 to $0.06 for a limited time period (the "Early Exercise Period"), which will commence at 9:00 a.m. (Toronto time) on Friday, August 28, 2015 and expire at 5:00 p.m. (Toronto time) on Tuesday, October 27, 2015.

If all outstanding Warrants are exercised during the Early Exercise Period, the Corporation will receive aggregate gross proceeds of $3,000,000. To the extent that holders of the Warrants take advantage of the opportunity to exercise their Warrants pursuant to the Program, this will strengthen Gowest's current cash position and provide the Corporation with additional working capital to accelerate the development of its Bradshaw Gold Deposit.

Holders of Warrants who elect to participate in the Program will be required to deliver the following to the Corporation prior to the expiry of the Early Exercise Period: (i) a duly completed and executed Exercise Form, in the form which accompanies the certificate representing the Warrants; (ii) the original certificate representing the Warrants being exercised; and (iii) the aggregate exercise price payable to the Corporation by way of certified cheque, money order, bank draft or wire transfer in lawful money of Canada.

Following the expiry of the Early Exercise Period, the exercise price of the Warrants will revert to $0.11 and the Warrants will remain outstanding and continue to be exercisable for common shares of the Corporation on their original terms. There can be no assurance that some or all of the Warrants will be exercised pursuant to the Program.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This release does not constitute an offer for sale of securities in the United States.

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.

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Corporation's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100-square-kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43-101 compliant Indicated Resource estimated at 2.1 million tonnes ("t") grading 6.19 g/t Au containing 422 thousand oz Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre-Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves, using a 3 g/t Au cut-off and utilizing a gold price of US$1,200 / oz, totalling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.

Forward-Looking Statements

This news release may contain certain "forward looking statements". Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. 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 Corporation disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

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