Western Goldfields Inc.
TSX : WGI
OTC Bulletin Board : WGDFF

Western Goldfields Inc.

September 20, 2007 16:43 ET

Western Goldfields Announces a $30M Bought Deal Financing

- Proceeds of the offering will be used for general corporate purposes - Bought Deal will be underwritten by a syndicate led by Wellington West Capital Markets and RBC Capital Markets - 9,840,000 common shares at $3.05 per share

TORONTO, ONTARIO--(Marketwire - Sept. 20, 2007) - Western Goldfields Inc. (TSX:WGI)(OTCBB:WGDFF) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Western Goldfields Inc. (TSX:WGI)(OTCBB:WGDFF) (the "Corporation") is pleased to announce today that it has entered into an agreement with a syndicate of underwriters co-led by Wellington West Capital Markets Inc. and RBC Capital Markets and including Scotia Capital Inc. pursuant to which the underwriters have agreed to purchase 9,840,000 common shares (the "Common Shares") of the Corporation on a bought deal basis, at a price of $3.05 per Common Share to raise gross proceeds of $30,012,000 (the "Offering"). The financing is scheduled to close on or about October 12, 2007 and is subject to regulatory approval and completion of definitive documentation. The net proceeds of the Offering will be used for general corporate purposes. All amounts are in Canadian dollars unless otherwise stated.

The underwriters have the option to purchase from the Company up to an additional 1,476,000 Common Shares at the issue price at any time prior to 30 days following the closing of the Offering for further gross proceeds of $4,501,800, which would increase the Offering to $34,513,800 if fully exercised. The Common Shares to be issued under the Offering will be offered by way of a short form prospectus in all provinces of Canada, except Quebec.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Western Goldfields Inc.

Western Goldfields is a gold producer focused on completing the expansion of its Mesquite Mine, located in Imperial County, California, and returning the mine to full production. With a 2.8 million ounce gold reserve, the Company is the only multi-million ounce US gold reserve not controlled by a major gold company. The Company is fully permitted and fully funded, and estimates production of 160,000-170,000 ounces of gold annually. In June 2007, Western Goldfields announced that its production schedule has been moved ahead by one full quarter, which will bring the company into full production by January 2008. Western Goldfields Inc. is listed on the Toronto Stock Exchange and trades under the symbol WGI, and is quoted on the OTCBB under the symbol WGDFF.OB.

Forward-Looking Information

Certain statements contained in this news release and subsequent oral statements made by and on behalf of the Company may contain forward-looking information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation. Such forward-looking statements are identified by words such as "intends", "anticipates", "believes", "expects", and "hopes" and include, without limitation, statements regarding the Company's plan of business operations, timing and costs to recommence commercial production, potential increase in estimates of mineral resources or reserves, economic viability of the Mesquite Mine, financing options, including entering into a debt financing arrangement, and the consequences thereof, potential contractual arrangements, receipt of working capital, anticipated revenues, exercise of outstanding warrants, and capital and operating expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, the uncertainties involved in interpreting drilling results and those set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2006 filed with the U.S. Securities and Exchange Commission, under the caption, "Risk Factors". Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulation, the Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX has neither approved nor disapproved of the contents of this news release.

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