SUNWARD CLOSES $51.3 MILLION FINANCING WITH ELECTRUM STRATEGIC ACQUISITIONS LLC, PAULSON & CO. INC., AND TOCQUEVILLE ASSET MANAGEMENT

TSX-V: SWD

VANCOUVER, Jan. 13 /CNW/ - Mr. Philip O'Neill, Chief Executive Officer and Director of Sunward Resources Ltd. (the "Company" or "Sunward") (TSX-V: SWD), today announced that the Company has closed the sale, on a private placement basis, of the maximum number of Units contracted for in the financing described in the Company's News Release of December 15, 2010 (the "December News Release") - that is, 38,000,000 Units at a purchase price of $1.35 per Unit - for aggregate gross proceeds totalling $51.3 million (all figures are in Canadian Dollars). Each Unit consists of one common share of Sunward and one common share purchase warrant of Sunward ("Warrant") which entitles the holder thereof to acquire one common share of Sunward for an exercise price of $1.65 prior to the third anniversary of the closing date.  As described in the December News Release, Electrum Strategic Acquisitions LLC ("Electrum"), a member of the Electrum Group of Companies ("Electrum Group"), led the financing by subscribing for 25.95 million Units.  In addition, Paulson & Co. Inc., on behalf of the several investment funds and accounts managed by it ("Paulson") subscribed for 10.2 million Units and Tocqueville Asset Management ("Tocqueville") subscribed for 1.85 million Units.  All securities issued under the private placement will be subject to a hold period expiring on May 13, 2011.  Upon conclusion of this placement, Electrum, Paulson, and Tocqueville will own 26.9%, 10.6%, and 1.9% of Sunward on a fully-diluted basis, respectively.

Said Mr. O'Neill: "Sunward is very pleased to welcome Electrum, Paulson, and Tocqueville as shareholders of the Company.  These groups are among the world's most astute precious metals investors and their major involvement in Sunward represents a strong indication of the high prospectivity of our projects.This placement recognizes the tremendous value of the Company's key asset - the 3.7-million-ounce, 100%-owned Titiribi gold and copper porphyry project in Antioquia, Colombia ("Titiribi"). The Company can apply its strengthened balance sheet towards continuing to build value at Titiribi and facilitating closing of its earlier-announced acquisition of La Muriel Mining Corporation ("Murindo")."

William Natbony, President of Electrum, said: "This is an ideal investment for the Electrum Group.  Both Titiribi and Murindo are large, highly prospective projects with significant growth potential.  We are looking forward to working with the management of Sunward to advance the Company's exceptional portfolio of projects along the value chain for the benefit of all shareholders."

About the Titiribi Project:

The Cerro Vetas mineralized body at Sunward Resources' Titiribi project hosts an inferred resource of 230 million tonnes at an average grade of 0.5 grams per tonne gold and 0.2 percent copper using a 0.3-gram-per-tonne-gold cut-off (NI 43-101 technical report dated May 19, 2010).  The project is located approximately 70 kilometres southwest of the city of Medellin, Colombia, in Antioquia department, within the historical Titiribi mining district (estimated total gold production of three to five million ounces). Access is by paved highway from Medellin.

Mineralization at Titiribi is hosted within a number of porphyry stocks and porphyritic dikes and sills. The dominant mineral associated with mineralization is chalcopyrite, which occurs as disseminations and in veinlets. Plagioclase and secondary biotite are also significant within the mineralized assemblage. Mineralization appears to be related to extensive potassic alteration, with propylitic and argillic alteration also widespread, along with lesser phyllic alteration.

Over 36,000 metres of drilling has been completed at Titiribi to date, including approximately 14,600 metres completed historically by previous operators, including Gold Fields and Windy Knob Resources, along with more than 21,400 metres completed by Sunward Resources. The mineralized body at Cerro Vetas remains open in all directions and at depth. Sunward Resources currently has four drill rigs operating to expand mineralization at the Titiribi project.

About The Company:

Sunward Resources is a well-capitalized Canadian-based company focused on the exploration of gold/copper porphyry projects in Colombia. The Company has strong operational expertise in Colombia and is currently drilling its Titiribi Project southwest of Medellin with a goal of increasing the NI 43-101 inferred resource.

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Sunward Resources Ltd. and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Sunward Resources Ltd. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Sunward Resources Ltd. disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

Neither 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.

SOURCE Sunward Resources Ltd.

For further information:

SUNWARD RESOURCES LTD.

Investor Relations:    
Scott Koyich       
(403) 619-2200      
scott@sunwardresources.com     

    Corporate Contact:
Dave Forest
(604) 417-2960
dave@sunwardresources.com

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Sunward Resources Ltd.

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