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

Gowest Gold Ltd.

August 12, 2011 10:33 ET

Gowest Closes $2.9 Million Private Placement

TORONTO, ONTARIO--(Marketwire - Aug. 12, 2011) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) announces that it has closed its previously announced private placement (the "Offering"). Pursuant to the Offering, the Company issued and sold: (i) 7,022,930 flow-through common shares of the Company, at a price of $0.285 per share, for aggregate gross proceeds of $2,001,535; and (ii) 3,600,000 units ("Units") of the Company, at a price of $0.25 per Unit, for aggregate gross proceeds of $900,000. Each Unit is 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 any time on or prior to 5:00 p.m. (Toronto time) on August 12, 2013.

Salman Partners Inc. acted as agent in connection with the Offering and received a commission equal to 7% of the gross proceeds raised under the brokered portion of the Offering (which commission was reduced to 4% in respect of certain president's list purchasers). 800,000 Units were issued on a non-brokered basis.

The securities issued in connection with the Offering have a hold period expiring December 13, 2011. 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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