Western Goldfields Closes $34.5M Bought Deal Financing



    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES
    OR TO ANY UNITED STATES NEWS SERVICES. ANY FAILURE TO COMPLY WITH THIS
    RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./

    TORONTO, Oct. 12 /CNW/ - Western Goldfields Inc. (TSX: WGI, OTC BB:
WGDFF.OB) (the "Company") is pleased to announce today that it has closed its
previously announced public offering of 9,840,000 common shares (the "Common
Shares") of the Company, at a price of $3.05 per Common Share for gross
proceeds to the Company of $30,012,000 (the "Offering"). The offering was
underwritten by a syndicate of underwriters co-led by Wellington West Capital
Markets Inc. and RBC Capital Markets and including Scotia Capital Inc. In
addition, the underwriters have exercised their option in full to purchase an
additional 1,476,000 Common Shares from the Company at the issue price for
additional gross proceeds to the Company of $4,501,800.
    The net proceeds of the Offering will be used for regional exploration
activities, test work on the non-oxide resources and expansion planning and
other expansion work at its Mesquite Mine, and for corporate development
activities and general corporate purposes. All amounts are in Canadian dollars
unless otherwise stated. The securities being offered have not been, nor will
they be, registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States or to, or for the
account or benefit of, U.S. persons absent registration or an applicable
exemption from registration requirements.
    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any state in which such offer, solicitation or sale would be unlawful.

    Western Goldfields Inc.

    Western Goldfields is a gold producer focused on completing the expansion
of its Mesquite Mine, located in Imperial County, California, and returning
the mine to full production. With a 2.8 million ounce gold reserve, the
Company is the only multi-million ounce US gold reserve not controlled by a
major gold company. The Company is fully permitted and fully funded, and
estimates production of 160,000-170,000 ounces of gold annually. In June 2007,
Western Goldfields announced that its production schedule has been moved ahead
by one full quarter, which will bring the company into full production by
January 2008.
    Western Goldfields Inc. is listed on the Toronto Stock Exchange and
trades under the symbol WGI, and is quoted on the OTCBB under the symbol
WGDFF.OB.

    Forward-Looking Information

    Certain statements contained in this news release and subsequent oral
statements made by and on behalf of the Company may contain forward-looking
information within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and similar Canadian legislation. Such
forward-looking statements are identified by words such as "intends",
"anticipates", "believes", "expects", and "hopes" and include, without
limitation, statements regarding the Company's plan of business operations,
timing and costs to recommence commercial production, potential increase in
estimates of mineral resources or reserves, economic viability of the Mesquite
Mine, financing options, including entering into a debt financing arrangement,
and the consequences thereof, potential contractual arrangements, receipt of
working capital, anticipated revenues, exercise of outstanding warrants, and
capital and operating expenditures. There can be no assurance that such
statements will prove to be accurate; actual results and future events could
differ materially from such statements. Factors that could cause actual
results to differ materially include, among others, the uncertainties involved
in interpreting drilling results and those set forth in the Company's Annual
Report on Form 10-KSB for the year ended December 31, 2006 filed with the U.S.
Securities and Exchange Commission, under the caption, "Risk Factors". Most of
these factors are outside the control of the Company. Investors are cautioned
not to put undue reliance on forward-looking statements. Except as otherwise
required by applicable securities statutes or regulation, the Company
disclaims any intent or obligation to update publicly these forward-looking
statements, whether as a result of new information, future events or
otherwise.

    The TSX has neither approved nor disapproved of the contents of this
    news release





For further information:

For further information: please visit www.westerngoldfields.com, or
contact: Brian Penny, Chief Financial Officer, (416) 324-6002,
bpenny@westerngoldfields.com; Julie Taylor Pantziris, Director, Regulatory
Affairs and Investor Relations, (416) 324-6015, jtaylor@westerngoldfields.com

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WESTERN GOLDFIELDS INC.

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