Gowest Gold Ltd.
TSX VENTURE : GWA
OTC Bulletin Board : GWSAF
FRANKFURT : 1GW

Gowest Gold Ltd.

April 21, 2011 14:34 ET

Gowest Completes Acquisition of Additional Mineral Rights Contiguous to the Frankfield Gold Project Near Timmins, Ontario

TORONTO, ONTARIO--(Marketwire - April 21, 2011) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF)(FRANKFURT:1GW) is pleased to announce that it has completed its previously announced (April 6, 2011) acquisition of the mineral rights in respect of a 64 hectare property contiguous to the Company's existing land package in Tully township, just north of the city of Timmins. Payment for the property consisted of $10,000 cash and 25,000 common shares of Gowest. The mineral rights have been purchased from an arm's length third party and are subject to an existing 3% net smelter royalty.

Gowest Gold Ltd. Outstanding Warrants

Gowest completed a private placement on December 22, 2009 for $6.5 million, which included warrants set to expire December 22, 2011. For clarity, each warrant entitles the holder thereof to acquire one common share of the Company at a price of $0.30. In the event that the closing price of the common shares of the Company listed on the TSX Venture Exchange is greater than $0.40 for a period of 20 consecutive trading days at any time after closing, the Company may, at its option, accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire 30 days thereafter.

The Company also granted Ubika the final stock option to acquire 100,000 common shares of the Company at an exercise price of $0.50 per share expiring February 22, 2014 as outlined in the engagement agreement which commenced November 23, 2010.

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.

Contact Information

  • Gowest Gold Ltd.
    Greg Romain
    President & CEO
    (416) 363-1210
    info@gowestgold.com

    Gowest Gold Ltd.
    Rory Quinn
    Investor Relations
    Toll Free: (877) 363-1218 or (416) 363-1210 ext. 208