SWEF Terrawinds Resources Corp. Announces Termination of Tax Indemnity Claims Filing Period

TORONTO, Aug. 1, 2013 /CNW/ - SWEF TERRAWINDS RESOURCES CORP. ("SWEF Terrawinds") today confirmed that the period for tax indemnity claims to be filed by SWEF Terrawinds investors ("Investors") expired on July 31, 2013. New tax indemnity claims received after July 31, 2013 will not be processed.  The filing period for tax indemnity claims was extended in 2010 to expire in July 31, 2012, and was further extended in 2012 to expire on July 31, 2013. SWEF Terrawinds has regularly notified Investors of the extensions of the tax indemnity claims filing period and of their entitlement to indemnification for taxes.  Accordingly, SWEF Terrawinds has determined to end the tax indemnity claim filing period and proceed to the next step in the wind-up of SWEF Terrawinds.

SWEF Terrawinds is now focused on completing the previously announced redemption of its non-voting common shares (each a "Share").  Investors will receive a final cash distribution amount per Share in an amount equal to: (A) the total amount of cash or cash equivalents standing to the credit of SWEF Terrawinds, less (i) the amount required to redeem the outstanding preferred shares in the capital of SWEF Terrawinds (being $100 in aggregate); and (ii) an amount equal to the existing and contingent liabilities determined by the directors of SWEF Terrawinds in good faith; divided by (B) the total number of outstanding Shares.

The redemption of the Shares is part of a wind-up plan of SWEF Terrawinds and related entities previously approved by Investors in 2007. The redemption of the Shares is expected to occur prior to the end of 2013. The final cash distribution will be distributed by SWEF Terrawinds to Investors' stock brokers who will place the money in Investors' brokerage accounts that hold the Shares.  The Shares will be cancelled upon redemption.

Forward Looking Statements

This press release contains forward looking information within the meaning of applicable securities laws, including forward looking information relating to the expected timing of the redemption of the Shares and the completion of the wind-up of SWEF Terrawinds. All forward looking statements are inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward looking statements. We consider the assumptions on which these forward looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These forward looking statements involve a number of risks, uncertainties and assumptions, including the risk of future tax assessments, litigation or other unanticipated expenses.

SWEF Terrawinds disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise, except as required by law. These risks may cause the actual results, performance or achievements of SWEF Terrawinds to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. These cautionary statements expressly qualify all forward looking statements attributable to SWEF Terrawinds.

SOURCE: SWEF TERRAWINDS RESOURCES CORP.

For inquiries, please contact Judson Martin, Chairman of SWEF Terrawinds, by email at [email protected] or by facsimile at 416-352-5728.  Additional information concerning SWEF Terrawinds is available at www.sweflp.com.