Mr. Cameron MacDonald reports

AURWEST RESOURCES ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT

Aurwest Resources Corp. has closed its previously announced non-brokered private placement for gross proceeds of $248,770 through the issuance of 2,250,668 flow-through shares at a price of three cents per FT share and 7,725,000 conventional units at a price of 2.5 cents per conventional unit.

Each FT share consists of one flow-through common share issued at a price of three cents per common share. Each conventional unit consists of one common share and one common share purchase warrant with each warrant entitling the subscriber to purchase one additional common share at a price of five cents per common share for a period of 24 months from the date of issuance subject to the company having the right to force conversion of the warrants, if at any time from and after the date of issuance, the daily volume-weighted average trading price of the company's common shares on the Canadian Securities Exchange equals or exceeds 10 cents per common share for 20 consecutive trading days.

The proceeds of the private placement will be used primarily to finance Aurwest's continuing exploration program at the Weaver Lake option and other Canadian exploration expenditures of the company and for general corporate purposes.

The company has paid $6,388.50 in finders' fees to Ventum Financial Corp., Leede Financial Inc. and Raymond James Ltd. pursuant to the offering (a 7-per-cent cash commission).

Participation by insiders of the company in the offering constitutes a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). A total of three insiders participated in the offering, acquiring a total of 1.8 million units for gross proceeds $45,000. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a), respectively, as the fair market value of the securities issued to, and the consideration paid by, such insiders does not exceed 25 per cent of the company's market capitalization.

Closing of the offering is subject to the company receiving approvals from the Canadian Securities Exchange. All securities sold under the offering will be subject to a four-month-and-one-day hold period.

We seek Safe Harbor.