HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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ref pg 17, FWR Directors' Circular recommending Rejection Oct 27, 2009

The poison pill does not necessarily trigger payments to Mr. Watson, Mr. Kay, and Mr. Hoy unless FWR loses control; rather, the FWR BOD approved separate agreements dated Oct 1, 2008 whereby FWR would make one-time lump sum payments of $4M, $1.25M, and $1.25M respectively in the event of a "change in control" of Freewest, as defined in the agreements.

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