Gowest Amalgamated Resources Ltd.

Gowest Amalgamated Resources Ltd.

March 27, 2009 11:57 ET

Gowest Announces Proposed Private Placement

TORONTO, ONTARIO--(Marketwire - March 27, 2009) -


Gowest Amalgamated Resources Ltd. (the "Corporation") (TSX VENTURE:GWA) announced today that it intends to complete a non-brokered private placement of up to 4,000,000 "flow-through" common shares (the "FT Shares"), at a price of $0.07 per FT Share, and up to 4,000,000 units (the "Units"), at a price of $0.07 per Unit, for aggregate gross proceeds to the Corporation of up to $560,000 (the "Offering"). Each Unit will be 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 for a period of 18 months following the closing date of the Offering. Purchasers under the Offering will be required to purchase an equal number of FT Shares and Units.

The proceeds of the Offering will be used primarily to further explore and develop the Corporation's Frankfield Project located near Timmins, Ontario, and also for working capital purposes. Certain insiders of the Corporation may participate in the Offering. 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.

Completion of the financing is subject to receipt of TSX Venture Exchange approval. All of the securities issuable in connection with the Offering will subject to a hold period expiring four months and one day after the closing date of the Offering.

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.

It is anticipated that the closing of the Offering will occur on or about April 17, 2009.

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 a proposed 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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