Southwestern to Voluntarily Terminate Its U.S. Registration and SEC Reporting Obligations: Financial News

Southwestern to Voluntarily Terminate Its U.S. Registration and SEC Reporting Obligations
Friday September 19, 2008 7:00 am ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 19, 2008 -- Southwestern Resources Corp. (Toronto:SWG.TO - News) ("Southwestern" or the "Company") announces that it has filed today a Form 15F with the U.S. Securities and Exchange Commission (the "SEC") to voluntarily terminate the registration of its common shares under section 12(g) of the Securities Exchange Act of 1934 (the "Exchange Act"). Southwestern expects that this termination of registration will become effective 90 days after its filing with the SEC. As a result of this filing, Southwestern's reporting obligations with the SEC, including an annual report on Form 20-F and reports on Form 6-K, will immediately be suspended.

Southwestern's consolidated financial statements are prepared in accordance with Canadian generally accepted accounting principles and the Company will continue to meet its Canadian continuous disclosure obligations through filings with the applicable Canadian securities regulators. As a Toronto Stock Exchange-listed reporting issuer, all of the Company's filings can be found on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

The Company is current with all requirements under U.S. securities laws. It is not listed on any U.S. exchange and administrative burdens and costs associated with being a U.S. reporting company have significantly increased in the past few years, particularly in light of SEC Sarbanes-Oxley requirements. The preparation time and costs associated with preparing U.S. filings and meeting SEC regulatory requirements are substantial, and overall the Company's management believes that these administrative burdens and their associated costs far outweigh any benefits derived from the Company's foreign issuer status with the SEC.

About Southwestern

Southwestern is a Vancouver-based mineral exploration company engaged in the identification, acquisition, evaluation and exploration of gold, silver and base metals mineral properties. The Company has a number of significant projects, including the Liam gold-silver project in Peru in joint venture with Hochschild Mining plc. Southwestern is a reporting issuer in British Columbia, Alberta, Manitoba, and Ontario and trades on the Toronto Stock Exchange under the symbol SWG.

Forward-looking Statements

Statements in this news release that are forward-looking statements are based on the current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements due to a number of factors, including but not limited to, the Company's access to additional capital to fund future activities, the loss of mineral properties or the inability to obtain mining licenses, the inherently risky nature of the Company's activities and its lack of experience in bringing an exploration property into production, its ability to repatriate any earnings, foreign exchange fluctuations, the political stability and economic uncertainty of those areas in which the Company carries on operations and the lack of infrastructure in those areas, title risks, the risks and uncertainties associated with joint ventures and the Company's reliance on third parties, statutory and regulatory compliance, the adequacy and availability of insurance coverage, the Company's dependence upon employees and consultants and fluctuations in mineral prices and other risks detailed in the Company's filings with the Canadian Securities Authorities.

These risks, as well as others, could cause actual results and events to vary significantly. The Company expressly disclaims any intent or obligation to update these forward-looking statements, unless the Company specifically states otherwise.