Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

July 10, 2008 07:30 ET

Southwestern Increases Interest in Maxy Gold Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2008) - Southwestern Resources Corp. (TSX:SWG), in accordance with regulatory requirements, announces it has acquired 1,000,000 shares of Maxy Gold Corp. ("Maxy") upon the completion of the sale to Maxy of 15 gold and base metal mineral exploration properties covering a total of 135,369 hectares in Peru.(1)

Prior to acquiring the above noted shares, Southwestern held 2,909,600 shares or 8.7% of Maxy's outstanding shares. Southwestern now holds 3,909,600, or 11.3%, of the 34,461,860 issued and outstanding shares of Maxy, which trades on the TSX Venture Exchange.

Southwestern has acquired the shares for investment purposes. Southwestern reviews its investments on a continuing basis and such holdings may be increased or decreased in the future.

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. The Company has a large portfolio of projects in Peru, including the Liam, Millo, Antay and Pacapausa projects in southern Peru. 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 news release that are forward-looking statements are based on the current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements due to a number of factors, including but not limited to, the Company's access to additional capital to fund future activities, the loss of mineral properties or the inability to obtain mining licenses, the inherently risky nature of the Company's activities and its lack of experience in bringing an exploration property into production, its ability to repatriate any earnings, foreign exchange fluctuations, the political stability and economic uncertainty of those areas in which the Company carries on operations and the lack of infrastructure in those areas, title risks, the risks and uncertainties associated with joint ventures and the Company's reliance on third parties, statutory and regulatory compliance, the adequacy and availability of insurance coverage, the Company's dependence upon employees and consultants and fluctuations in mineral prices and other risks detailed in the Company's filings with the Canadian Securities Authorities. These risks, as well as others, could cause actual results and events to vary significantly. The Company expressly disclaims any intent or obligation to update these forward-looking statements, unless the Company specifically states otherwise.

(1) For details of the sale of these properties to Maxy, please refer to the news release dated 17 March 2008, www.swgold.com.

Contact Information

  • Southwestern Resources Corp.
    Timo Jauristo
    Interim President & CEO
    (604) 669-2525
    or
    Southwestern Resources Corp.
    David Black
    Chair of the Board
    (604) 669-2525
    Website: www.swgold.com