Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA

Gowest Amalgamated Resources Ltd.

August 08, 2006 11:50 ET

Gowest to Undertake $200,000 Private Placement and Commence Drilling North of Timmins, Ontario

TORONTO, ONTARIO--(CCNMatthews - Aug. 8, 2006) - Gowest Amalgamated Resources Ltd. ("Gowest" or the "Company")(TSX VENTURE:GWA) announces that it proposes to raise up to $200,000 by way of a non-brokered private placement of up to 800,000 units of the Company (each, a "Unit") at a price of $0.25 per Unit. Each Unit will consist of one common share of the Company, to be issued on a "flow-through" basis, and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one common share of the Company at a price of $0.35 per share for a period of 18 months from the closing date of the private placement.

The proceeds of the private placement will be used to fund an exploration program 50 km northeast of Timmins, Ontario, in Reaume Township. This property, which is 1200 metres square, was staked because of the potential for nickel-copper mineralization. The acquisition of the property was based on the review and interpretation of the latest airborne geophysical survey of the area, namely, the Timmins Area Megatem II Survey. Previous work in the area indicates the presence of significant nickel-copper mineralization, which was detected by drilling conducted two kilometres east of the property.

Gowest has acquired an 85% interest in the property and will be responsible for 100% of the exploration costs to a limit of $1,000,000. R.J. Bradshaw, the President and Chief Executive Officer of the Company, who holds the remaining 15% interest in the property, will retain the minority 15% interest and has granted Gowest a right of first refusal in respect of his interest.

Ground geophysics on the property indicates the presence of a coincident magnetic- electromagnetic anomaly, a primary target for drilling. A secondary target, although better defined, may have been partially tested in the past.

It is expected that a drill rig will become available later this month. Initially the rig will drill two holes on a property in Prosser Township in search for gold mineralization. Gowest holds a 50 % interest in this property, optioned from Falconbrige, about 30 km northeast of Timmins. The remaining interest in the property is held by Newstrike Resources Ltd. (TSX VENTURE:NR) (35%) and Mr. Bradshaw (15%). After completion of this drilling program, the rig will be mobilized north to the Reaume Township site.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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