Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

August 24, 2006 17:00 ET

Southwestern Announces Share Buy-Back Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 24, 2006) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or "the Company") is pleased to announce its Board of Directors has approved a share buy-back program for Southwestern to acquire up to two million shares of the Company, subject to regulatory acceptance.

John Paterson, Southwestern's President and Chief Executive Officer, stated the Company's Board of Directors believes Southwestern's shares are undervalued. "Southwestern's current share price does not reflect our strong balance sheet and portfolio of highly prospective exploration properties," he said. "This plan reflects our Board's continuing confidence in the Company."

Southwestern has submitted a Notice of Intention to Make a Normal Course Issuer Bid ("the Bid") to the Toronto Stock Exchange ("the Exchange") to acquire up to two million shares of the Company, representing less than 5% of its issued and outstanding shares. If accepted by the Exchange, share purchases pursuant to the Bid will commence two trading days after the Company's news release confirming Exchange acceptance of the Bid. The Bid will be in effect for 12 months from that date. All common shares purchased by the Company under the Bid will be effected through the facilities of the Exchange and will be surrendered by the Company to its transfer agent for cancellation. Pursuant to the policies of the Exchange on normal course issuer bids, shares purchased by the Company under the Bid will be acquired at the market price of the shares at the time of acquisition and will be limited to 2% of the Company's issued and outstanding shares during any 30-day period. The Company currently has 46,220,436 shares outstanding. During the past 12 months, there were 80,000 common shares purchased at an average price of $9.46 and subsequently cancelled under the Company's previous share buy-back program.

About Southwestern

Southwestern is a Vancouver-based mineral exploration company engaged in the identification, acquisition, evaluation and exploration of gold, silver and base metals mineral properties in China and Peru. At the end of June 2006, the Company had working capital of $52.3 million, total assets of more than $100 million, and no long-term debt. Southwestern is a reporting issuer in British Columbia, Alberta, Manitoba, and Ontario and trades on the Toronto Stock Exchange under the symbol SWG.

Forward-looking Statements

Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.


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