Southwestern Resources Corp.

Southwestern Resources Corp.

December 17, 2008 08:00 ET

Southwestern Resources Corp.: Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2008) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or the "Company") announces that, further to its press releases dated September 10 and November 6, 2008 regarding its agreement to settle the class actions (the "Class Actions") commenced against the Company in British Columbia, Ontario and Quebec (the "Settlement"), on November 14 and 17, 2008 respectively, the Quebec Superior Court and the British Columbia Supreme Court, among other things, certified the Class Actions and approved the Settlement. As previously announced the Ontario Superior Court of Justice made a similar order on November 3, 2008.

Further to its news releases dated September 16 and November 6, 2008 regarding the Letter of Intent ("LOI") with Hochschild Mining Holdings Limited, a subsidiary of Hochschild Mining plc, Southwestern announces that the parties have not completed the joint venture agreement and private placement contemplated thereunder. Although discussions are ongoing between the parties, there is no assurance that the transactions will complete as contemplated in the LOI.

Southwestern also announces the resignation of Thomas W. Beattie, the Company's Vice-President, Corporate Affairs and Corporate Secretary, effective as of November 30, 2008. The Company thanks Mr. Beattie for his service and wishes him the best in his future endeavours.

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 number of significant projects, including the Liam gold-silver project in 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. In addition, there can be no assurances that the abovementioned transactions will be completed upon the terms described or at all or that other actions will not be commenced against the Company in relation to the same subject matter.

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.

Contact Information

  • Southwestern Resources Corp.
    Timo Jauristo
    President & CEO
    (604) 669-2525
    Southwestern Resources Corp.
    David Black
    Chair of the Board
    (604) 669-2525