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Gowest’s Frankfield gold project on growth trajectory, updated 43-101 resource estimate expected in March

www.gowestgold.com • 416.363.1210

Greg Romain
President and CEO

Since acquiring 100% interest in the Frankfield East gold project in the prolific Timmins gold camp in Ontario in 2009, Gowest Amalgamated Resources (TSXV: GWA) has made significant strides in developing the property. Results of its 2010 drill program, which will be released this quarter, are expected to show a doubling of the potential from the initial 43-101 resource estimate of 0.5 million ounces to over 1 million ounces. Greg Romain, president and CEO, discusses Gowest’s plan to aggressively turn this gold asset into a firm and steady source of cash flow by as early as 2013.

Resource Intelligence: Could you update us on your Frankfield East gold project in Timmins?

Greg Romain: We started off with a 0.5-million-ounce 43-101 resource estimate that was approximately 400 metres strike length and 90% of that resource was about 400 metres in depth. In 2010 we doubled the size of the envelope so the potential now is in excess of 1 million ounces and the strike length has gone from 400 metres to 750 metres and we’re down to a depth of about 850 metres. This year we will be drilling down to about 1,000 metres.

RI: Were the results what you expected?

GR: The 43-101 resource is about 6.5 to 7 grams with 3 to 4 metre mining width and the weighted average of all the holes drilled on the 2010 drill campaign, which is approximately 20,000 metres, was again a weighted average of about 6.8 grams at about 3.5 to 4 metre mining width. It’s held up very well and it’s still open at depth.

RI: What’s next for the project?

GR: Our plan, and currently we are on plan, is to come out with an updated resource later this Q1, a scoping study in Q2, and permitting by Q3. If everything goes according to plan we would be looking at mine development by year end 2012 and production by late 2013. Our goal is to produce 100,000 ounces a year over a 10-year mine life. This is early and we still have to work through the scoping study, but our estimates are in the neighborhood of $600 to $700 an ounce cost. In the short term we are looking at outsourcing the mining and the milling. That is a short-term goal and we believe it has the potential to be a multimillion ounce deposit. We want to get it into production sooner rather than later to capture the higher metal prices.

RI: What value does your company immediately provide to investors?

GR: The key value we offer shareholders is a good long-term investment, but in the short term it is where we are in the development curve. We are putting out a new resource this quarter which I believe can only assist our share price. We are currently being valued very conservatively at $60 per ounce, based on in situ ounces while our peer group is valued about twice that amount. There’s been a lot of work done behind the scenes that we haven’t been able to talk to the market about. We expect our scoping study to be robust and have a short-term plan that will see us get into production sooner rather than later, and then probably a long-term component which would see a lower cost per ounce but higher capital requirements to build our own processing facilities. We’ll be doing 18,000 metres of drilling in the winter and then upgrading our resources from inferred into measured and indicated, a development the market tends to take very well.

RI: You’ve had a very busy 2010.

GR: Yes, yet we’ve done as much work in one year than the previous incarnation of the company had done in the previous 10. We started in 2009 with a fairly small, albeit consolidated claim block and we quadrupled our land position to 25 square kilometres in 2010. We’re aggressively working on acquiring other land that is contiguous to the property that sits along the fault that runs through the Frankfield deposits. We’ve visited every processing and milling facility within 100 km of the project up in Timmins and there is excess capacity. A number of the companies would like to work with us and we actually signed a non-disclosure agreement with one of them.

RI: Give three reasons why investors should consider Gowest.

GR: First of the three key things are the people. What separates Gowest from many other small exploration companies of our size is the management team. We have people that are mining engineers and metallurgists and most have built mines in Guatemala and Mexico. The second one is the location of the project, Timmins, a very mining-friendly jurisdiction that has produced 70 million ounces of gold over the last hundred years. Finally, it’s the growth potential. We’re right at the beginning of what is traditionally the steepest part of a junior gold company’s valuation curve as it advances from purely exploration to advanced exploration and then to mine development.

RI: Is there anything else that you think investors should know?

GR: I think we are undervalued and if you look at some of the other comparables in the area and what some of the analysts predict, there is significant upside as we move forward.

Investor Highlights:

• Experienced exploration and mine building management team
• Comprehensive development program in place to leverage high gold price by advancing Frankfield project rapidly – 2012 mine development target
• Current mineralized potential in excess of 1 million ounces. Deposit drilled 750m along strike to 830m at depth (deposit and remains open at depth)
• Current market cap reflects in situ value of only $67/oz based on initial 510,000 oz resource (2.4 million tonnes @ 6.5g/t, 3.5-4m widths) Typical industry valuation: $85 -$137 per oz
• Updated 43-101 resource estimate expected in Q1, PEA planned in Q2
• Outstanding gold exploration targets in addition to the Frankfield East deposit