Whitemud Resources Announces Proposed $15 million Convertible Debenture
Financing with Werklund Capital

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Oct. 26 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the "Company") (WMK - TSXV) is pleased to announce that it has accepted a proposal with Werklund Capital Corporation "Werklund Capital" whereby Werklund Capital  will provide $15 million in secured convertible debenture financing.  This proposal is subject to regulatory and stakeholder approvals, and due diligence by Werklund Capital.  The Board of Directors of Whitemud unanimously support this proposal.

This proposed new secured convertible debenture for $15 million ("Werklund Capital  Debenture") will be convertible at a price of $0.30 per Whitemud common share and is to mature in 48 months.  The Werklund Capital Debenture will be used for working capital purposes and to retire/convert Whitemud's existing and outstanding $10.5 million debentures (the "Existing Debentures").  Up to 40% of the principal amount and accrued interest on the Existing Debentures shall be retired for cash at a 10% discount to face value.  No less than 60% of the principal amount plus any accrued interest on the Existing Debentures shall be converted into Common Shares at a price of $0.30 per share on or prior to closing of the transaction with Werklund Capital.

The financing is targeted to close by November 30, 2010.  The Company's bank has agreed to extend credit terms of the Company's Line of Credit up to $950,000 until that date.  Provided that by November 30, 2010 Werklund Capital agrees to complete the transaction, the bank has agreed to extend credit terms until December 20, 2010 for the Company to secure stakeholder approval, if required.  All outstanding debt to the bank will be demanded to be repaid at that time.  As of October 22, 2010 the Company had drawn approximately $600,000 on the bank Line of Credit.

"This proposed financing will position Whitemud to accelerate sales towards sustained profitability.  We will be able to build on our momentum of sales growth in Canada and in the U.S. through our new distribution relationship with a leading supplier of performance additives to the concrete industry," says Burl Aycock, Whitemud's CEO.

"We believe this funding will provide the capital that Whitemud needs to reach profitability and are excited to help bring a product to market that will greatly enhance the performance of concrete while offering unprecedented value to the cement industry and significantly reducing its carbon footprint through lower CO₂ emissions," says Dave Werklund, Werklund Capital's Chairman.

Since the signing of the supply and distribution agreement with the Company's new U.S. distribution partner on July 27, 2010, the Company has initiated truckload shipments of Whitemud(MK) into northern California and Missouri.  Several large infrastructure transportation projects, waste water and water treatment plants, parking structures, and underground mines in California, Nevada, Montana, and Arizona have been targeted for sales over the next number of months.  Whitemud(MK) has successfully been incorporated into concrete pipe and precast products through a concrete producer in Ontario and is currently being used in a potash plant expansion project in Saskatchewan.  Meanwhile, shipments continue to grow in the oilfield services market.

About Werklund Capital Corporation

Werklund Capital is one of Canada's largest family office investment companies.  Based in Calgary, Alberta Werklund Capital was founded by Mr. David P. Werklund, a successful and respected Calgary businessman who built CCS Inc. into one of Canada's largest environmental services companies.

About Whitemud Resources

Whitemud Resources Inc. is a Canadian-based corporation that is exploiting a large kaolin deposit in southern Saskatchewan. The Company produces Whitemud(MK) , cement-grade metakaolin that enhances the performance of cement used in construction using a patented process that minimizes environmental impact. The Company is positioned to benefit from expanding North American infrastructure needs and growing environmental pressures facing the cement industry. Visit www.whitemudresources.com for more information.

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

Forward Looking Statement

This press release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections and guidance or other statements that are not statements of fact, and guidance or other statements that are not statements of fact, including without limiting the generality of the foregoing, statements regarding the expectations: (i) of obtaining regulatory and stakeholder approval of the contemplated financing with Werklund Capital on the terms proposed or at all; (ii) of satisfactory due diligence by Werklund Capital in respect of the financing;  (iii) of closing the contemplated financing with Werklund Capital; (iv) of the sale or use of Whitemud's metakaolin in several large infrastructure projects or at all; and (v) the continued growth of shipments to the oilfield services market.  Actual results may vary from the forward looking information provided. The statements are made in reliance on the assumptions that: (i) the financing with Werklund Capital will receive all necessary approvals and will close; (ii) its new distribution arrangement will continue and (iii) it will be in a position to market metakaolin to potential new customers. The statements are subject to risks, including risks that the approvals necessary for financing will not be obtained or the financing will not close, current economic conditions in general, industry specific risks relating to the sale, acceptance and distribution of concrete additives, and those other risk factors related to the Company's business more specifically set forth in its prospectus and Annual Information Form. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.

For further information:

Burl Aycock, CEO, Whitemud Resources, Telephone: [phone] or Kelly Babichuk, President and COO, Whitemud Resources, Telephone: [phone]