Fronteer Development Group Inc. to seek to acquire NewWest Gold Corporation; enters into agreement with Significant Shareholder


    LAKEWOOD, CO, June 28 /CNW/ - Fronteer Development Group (TSX and AMEX -
FRG)("Fronteer") and NewWest Gold Corporation (TSX- NWG)("NewWest") announced
today that Fronteer has entered into a lock-up agreement (the "Lock-Up
Agreement") with NWG Investments Inc. (the "Significant Shareholder"), the
owner of approximately 86% of the outstanding common shares of NewWest,
pursuant to which the Significant Shareholder has agreed to tender to and
support a transaction (the "Proposed Transaction") whereby Fronteer would seek
to acquire all of the outstanding common shares of NewWest on the basis of
0.26 of one common share of Fronteer for each common share of NewWest.
    Fronteer and NewWest have entered into a mutual confidentiality agreement
pursuant to which NewWest has granted to Fronteer a 30 day exclusivity period
in which to complete due diligence and pursuant to which NewWest has agreed
not to solicit other proposals. Fronteer and the Significant Shareholder have
also entered into an exclusivity agreement pursuant to which the Significant
Shareholder has agreed not to solicit other proposals for a 30 day period. The
Lock-Up Agreement permits the Significant Shareholder to tender its NewWest
common shares to a superior transaction in certain circumstances and subject
to certain conditions, including offering Fronteer an opportunity to match any
such proposal and the payment by the Significant Shareholder of a termination
fee to Fronteer in the amount of C$5.6 million.
    Fronteer's obligation to proceed with the Proposed Transaction is subject
to a number of conditions including Fronteer being satisfied, in its sole and
absolute discretion, with its due diligence investigations. The Significant
Shareholder can terminate the Lock-Up Agreement in certain circumstances,
including if Fronteer has not made an offer to all holders of NewWest common
shares by August 17, 2007. Under the Proposed Transaction, the exchange ratio
of 0.26 common shares of Fronteer for each issued share of NewWest represents
a value of approximately C$3.20 per share based upon the closing price of
Fronteer on the TSX on June 28, 2007. This represents a premium of 36.17% to
the closing price of NewWest's shares on the TSX on June 28, 2007 and 37.93%
based on the 20 day volume weighted average trading price of NewWest's common
shares on the TSX.
    There are currently 67,857,681 Fronteer common shares outstanding and
58,392,000 NewWest common shares outstanding. Should the Proposed Transaction
be completed and Fronteer acquires 100% of the NewWest common shares, current
Fronteer shareholders would own approximately 81.7% of Fronteer and current
NewWest shareholders would own approximately 18.3% of Fronteer.
    A special committee of the NewWest board of directors has been
established to consider the transaction. The committee has not yet made any
recommendation to the board of directors of NewWest in respect of the proposed
    NewWest has engaged GMP Securities L.P. as its financial advisor and
Stikeman Elliott LLP as its legal advisor. Fronteer's financial advisor is
Canaccord Capital Corporation and its legal counsel is Cassels Brock &
Blackwell LLP. The Significant Shareholder is being advised by Goodmans LLP.
    No agreements have been reached between NewWest and Fronteer, other than
the confidentiality agreements described above. There can be no assurances
that any agreements will be reached or that a transaction will result.


    Fronteer is an exploration and development company with a track record of
making big discoveries. Not including the results of the above transaction,
Fronteer will have exposure to approximately C$42 million in
exploration/development expenditures and 130,000 metres of drilling throughout
2007. Fronteer has approximately $105 million in cash, no debt, and holds
approximately a 46.8% interest in Aurora Energy Resources (AXU - TSX), a
leading Canadian uranium company with a market valuation in excess of
C$1.1 billion.

    For further information on Fronteer visit or
    Camon Mak, Investor Relations
    Glen Edwards, Media Relations
    PH) 604-632-4677 or Toll Free 1-877-632-4677


    NewWest is one of the largest holders of precious metals mineral rights
in Nevada's gold trends, spanning approximately 623,000 acres. NewWest holds
19 exploration projects, including advanced-stage projects with measured and
indicated resources. NewWest's goal is to move its projects into production.

    For further information on NewWest visit or contact:
    NewWest Gold Corporation
    Stephen Alfers
    President and Chief Executive Officer
    PH) 303-425-7042

    This news release includes certain "forward-looking statements" within
the meaning of Canadian securities laws. Forward-looking statements involve
risks, uncertainties and other factors that could cause actual results,
performance, prospects and opportunities to differ materially from those
expressed in such forward-looking information. Forward-looking information in
this news release includes but is not limited to, a transaction with Fronteer,
economic performance, statements regarding potential mineralization and
reserve exploration, and future plans and objectives of NewWest Gold
Corporation including future exploration and development.

    Any number of important factors could cause actual results to differ
materially from these forward-looking statements, including those set out in
the Company's Annual Information Form as of December 31, 2006, as well as
future results. Although the Company believes that the assumptions and factors
used in preparing the forward-looking statements are reasonable, undue
reliance should not be placed on these statements, which only apply as of the
date of this news release, and no assurance can be given that such events will
occur in the disclosed timeframes or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.

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