Market Overview

FairWest Energy Announces Private Placement of Series 3, Convertible Debentures


CALGARY, ALBERTA--(Marketwire - Oct. 24, 2012) - FairWest Energy Corporation (TSX VENTURE:FEC) ("FairWest" or the "Company") announces that, subject to regulatory and TSX Venture Exchange approval, it is proceeding with a private placement (the "Private Placement") of up to $5,000,000 of Series 3, 10% Secured, Subordinated, Convertible, Redeemable Debentures (the "Debentures"). Each Debenture will be priced at $1,000 and will be convertible into Common Shares at a price of $0.10 per share until December 31, 2016. The proceeds from the sale of the Debentures will to be used to pay Series 1, 14% Secured, Subordinated, Convertible, Redeemable Debentures ("Series 1") on maturity and to redeem Series 2, 14% Secured, Subordinated, Convertible, Redeemable Debentures ("Series 2") and other general corporate purposes. The Company may pay Finder's Fees of up to 8% cash; however no Finder's Fees will be paid for subscriptions received from related parties, insiders and holders of Series 1 or Series 2 debentures who elect to participate in the Private Placement. Insiders may participate in the Private Placement for up to $3,300,000 of Debentures. The first closing of the Private Placement is expected to take place on November 27, 2012 followed by a final closing on December 7, 2012. All securities issued pursuant to the Private Placement will be subject to a four month hold pursuant to applicable securities legislation.

About FairWest Energy

FairWest (TSX VENTURE:FEC) is a Calgary, Alberta based junior oil and gas company engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids in the provinces of Alberta and Saskatchewan.


This news release may contain certain forward-looking statements, including management's assessment of future plans and operations that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

319,654,775 Common Shares Issued

FairWest Energy Corporation
Vern Fauth
Chief Executive Officer

FairWest Energy Corporation
Douglas O. McNichol
President and Chief Operating Officer

FairWest Energy Corporation
Marion D. Mackie
Chief Financial Officer

FairWest Energy Corporation
(403) 264-4949
(403) 269-1761 (FAX)

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