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Southwestern Withdraws Previously Announced Results for Its Boka Project Pending Further Review and Announcement
Southwestern Resources Corp. (TSX: SWG) ("Southwestern" or "the Company") announces that its special committee of independent directors (the "Committee"), formed on July 4, 2007 because of the delay in the Boka pre-feasibility study and the resignation of its former Chief Executive Officer, John Paterson, initiated a dual track process to review all aspects of the Boka Project. This included having the Company's senior operating management attend at the project site in China to review its control procedures and results and having the same reviewed by independent mining consultants. The Committee also retained Sangra Moller LLP as independent special counsel to advise with respect to the foregoing matters.
Based upon the results of such review to date, the Company has determined that there were deficiencies in its control procedures for its Boka Project and believes this resulted in errors in reported assay results, including those announced in 2007. Additionally, the review indicates that the integrity of certain drill core samples was compromised. As a result, the Company has dismissed John Zhang, its Yunnan based general manager for the Boka Project, and replaced him with a new appointee.
Accordingly, the Company hereby withdraws all its previously announced results for the Boka Project and advises that such results should not be relied upon.
The Company is continuing its detailed review of the Boka Project in an expedited manner, including additional field work and drilling new holes. The Company will make a further announcement when such results are available.