Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

May 25, 2005 16:00 ET

Southwestern Implements New Share Purchase Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 25, 2005) - Southwestern Resources Corp. (TSX:SWG) today announced its intention to acquire up to 2,000,000 shares of the Company. As The Toronto Stock Exchange (the "Exchange") has accepted the Company's Notice of Intention to Make a Normal Course Issuer Bid, purchases may occur between May 27, 2005 and May 26, 2006.

Management is of the opinion that the shares of Southwestern are undervalued in the current market and current share prices do not reflect its strong balance sheet and portfolio of highly prospective exploration properties. Shares acquired by the Company under the Normal Course Issued Bid will be cancelled.

All common shares purchased by the Company under the Issuer Bid will be effected through the facilities of the Exchange and will be surrendered by the Company to its transfer agent for cancellation. The Company is limited, pursuant to the policies of the Exchange on issuer bids, to purchase not more than 860,123 shares (2% of the Company's 43,006,174 outstanding shares) during any 30-day period. Shares purchased pursuant to the Normal Course Issuer Bid by the Company will be acquired at a price that is not higher than the last independent trade of a board lot of common shares of the Company.

Southwestern Resources Corp. is exploring in several countries for precious and base metals. The Company has a number of significant projects including the Boka Gold Project in China with Team 209, the Liam Gold-Silver Project in Peru with Newmont Peru Limited and the Antay Porphyry Copper-Gold Project in Peru with Anglo American Exploration Peru S.A. as well as the 100% owned Accha Zinc Project in Peru. The Company is also exploring for porphyry copper-gold in a large area of southwestern Yunnan Province, China under a Joint Venture with Newmont Overseas Exploration Limited.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation'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.

Contact Information

  • Southwestern Resources Corporation
    John G. Paterson
    President
    (604) 669-2525
    or
    Southwestern Resources Corporation
    Thomas W. Beattie
    VP, Corporate Development
    (604) 669-2525
    (604) 688-5175 (FAX)
    info@swgold.com
    http://www.swgold.com