GWR Closes $896,764 First Tranche of Brokered Private Placement

ARMSTRONG, BC, Oct 4 /CNW/ - GWR Resources Inc. ("GWR") (TSX Venture: GWQ) is pleased to announce that it has completed the first tranche of its previously announced brokered private placement (the "Private Placement") through Canaccord Genuity Corp. (the "Agent"), respecting 2,467,750 flow-through units ("FT Units") at a price of $0.16 per FT Unit and 3,346,160 non flow-through units ("NFT Units") at a price of $0.15 per NFT Unit, for gross proceeds of $896,764.00.  The net proceeds of this first tranche will primarily be used for ongoing drilling of its Lac La Hache property and for general working capital.

Irvin Eisler, President of GWR, stated: "I am delighted to have completed the first tranche of the Private Placement and that GWR can continue its 2010 exploration program at our flagship Lac La Hache property.  We are very encouraged by the results to date, as drilling has indicated a well developed, multi-gram gold trend in the Aurizon South Zone, during a period with record high gold prices, and a detailed ground magnetic survey has supported new discovery and extension of the high-copper magnetite skarns within our Spout Lake Zones."  

Each FT Unit is comprised of one flow-through share of GWR and one warrant, each warrant being exercisable into one non flow-through share of GWR until October 1, 2011 at a price of $0.25 per share.  Each NFT Unit is comprised of one non flow-through share of GWR and one warrant, each warrant being exercisable into one non flow-through share of GWR until April 1, 2012 at a price of $0.25 per share.

In consideration for providing its services in the Private Placement, the Agent received: (i) a cash commission representing 8% of the gross proceeds of the Private Placement; (ii) a corporate finance fee of $20,000.00; and (iii) non-transferable warrants to purchase 465,112 common shares of GWR (representing 8% of the number of units sold in the Private Placement) until April 1, 2012 at a price of $0.25 per share.

The TSX Venture Exchange (the "Exchange") has conditionally approved the Private Placement, and their final approval is subject to, among other things, GWR filing final documentation in connection with the Private Placement pursuant to policies of the Exchange.  All the securities of GWR issued to the subscribers and to the Agent are subject to a hold period which under the applicable securities laws and the Exchange policies will expire on February 2, 2011.

The securities sold in the Private Placement have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act"), and have not been offered or sold in the United States or to U.S. persons (as defined in Regulation S under the 1933 Act).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information:

Responsible Officer:  Harley Sinclair, Executive Vice President
Company Telephone Number:  [phone]