Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.
Zincore Metals Inc.

Zincore Metals Inc.

October 27, 2006 08:00 ET

Southwestern Resources Corp.: Zincore Metals Prices Initial Public Offering and Files Final Prospectus

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 27, 2006) -

THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S., AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Southwestern Resources Corp. (TSX:SWG) ("Southwestern") announces that Zincore Metals Inc. ("Zincore"), a wholly owned subsidiary, has filed a final prospectus in connection with its initial public offering ("IPO") of 38 million common shares at $0.50 per share.

The IPO is being underwritten by a syndicate led by Canaccord Adams, and including Raymond James Ltd. and Octagon Capital Corporation. Zincore has granted the underwriters a 30-day option to purchase up to two million additional shares at the IPO price to cover over-allotments, if any. Gross proceeds will be $19 million plus an additional $1 million if the over-allotment option is exercised. The IPO is expected to close on or about November 8, 2006.

Southwestern's President and CEO John Paterson said: "Creating a pure zinc company allows Southwestern to focus on its core gold and copper properties while raising capital for Zincore to advance its promising zinc assets. Southwestern will remain the largest shareholder in Zincore following the IPO and will benefit from its growth and value creation."

Net proceeds from the IPO will be used by Zincore for exploration, drilling and technical work on its Accha-Yanque zinc oxide project and other zinc properties, as well as general and administrative costs and general working capital. Southwestern will hold 38.6 million shares in Zincore (a 51.74% interest prior to the exercise of any over-allotments), which includes 2.6 million shares issued to Southwestern to repay a $1.3 million loan and two million shares Southwestern purchased in the IPO. Southwestern's shares are subject to escrow restrictions allowing for equal releases over an 18-month period, and 34 million of Southwestern's shares are subject to a lock-up agreement for two years from the closing of the offering.

Zincore has received conditional approval for the listing of its common shares on the Toronto Stock Exchange ("TSX") under the symbol ZNC, subject to Zincore fulfilling all the final listing requirements of the TSX.

About Zincore

Zincore's strategy is to become a leading, low-cost zinc producer with the immediate objective of advancing its Accha-Yanque zinc oxide project toward a development decision through a disciplined process of exploration, drilling and resource definition, and technical studies. The company holds a portfolio of other zinc exploration properties in southern Peru and intends to pursue additional zinc opportunities elsewhere in Latin America and China.

About Southwestern

Southwestern is a Vancouver-based mineral exploration company focused on grass roots discoveries of gold and copper in southern Peru and the acquisition of early- to advanced-stage gold projects in China. At the end of June 2006, Southwestern 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 Southwestern's periodic filings with Canadian securities regulators and in the prospectus of Zincore in connection with the offering which is filed on SEDAR. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Southwestern and Zincore do not assume the obligation to update any forward-looking statements.

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