Positive Results from Metallurgical Tests on Sulphide Mineralization Boka Gold Project, Yunnan Province, China.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 21, 2003

Southwestern Resources Corporation (SWG-TSX) is pleased to announce that metallurgical test work carried out by SGS Lakefield Research on sulphide-rich gold mineralization from the Company's Boka Gold Project indicates that 98.3 % of the gold in massive sulphide mineralization is recoverable by milling and conventional cyanide leaching. Four 200-kilogram mini-bulk samples of various types of mineralization were submitted to SGS Lakefield for testing and the results are listed below:

Sample # Tunnel      Type of Mineralization     Head Grade
         Location                              (grams per tonne gold)
---------------------------------------------------------------------
M-01     KD 24-13    Oxidized limonite-rich     17.9 gms/t gold
                     mineralization
                     Limonite after sulphide

M-02     XG-13-XG-15 Massive sulphide           57.8 gms/t gold
                     mineralization

M-03     XG-13-XG-15 Sulphide-carbonate         61.6 gms/t gold
                     quartz stockwork and
                     graphite-rich
                     mineralization

M-04     PD-6        Limonite-quartz            3.39 gms/t gold
                     stockwork mineralization

Mini-bulk samples M-01 and M-04 were milled to 80 % less than 200 mesh and samples M-02 and M-03 were milled to 90 % less than 200 mesh. All samples were then treated using conventional bottle roll leach testing with 92.1 % of the gold recovered in sample M-01 after a 48 hour leach, 98.3 % of the gold recovered in M-02 after a 72 hour leach, 94.7 % of the gold recovered in M-03 after a 72 hour leach and 96.4 % of the gold recovered in M-04 after a 48 hour leach. Work index testing on the mini-bulk samples returned low milling bond work index numbers, confirming that the mineralization types tested can be easily millable. Milling bond work indexes were 13.8 for sample M-01, 10.5 for sample M-02, 14.2 for sample M-03, and 14.7 for sample M-04.

Sample M-02 (massive sulphide) was also run through a gravity circuit resulting in 44.7 % of the gold being recovered using this technology. Additional gravity circuit testing of all other mineralization styles will be performed by SGS Lakefield.

John Paterson, President of Southwestern states "We are extremely pleased with the Lakefield results and confirmation that the gold associated with sulphide mineralization is free milling and not refractory. Also important is the fact that nearly half of the gold in massive sulphide can be recovered in a gravity circuit." Both results are consistent with observations drawn from petrological studies of Boka mineralization types carried out earlier by Dr. A. Miller of Kishar Research, Ottawa, Ontario, Canada.

The Company continues with its broad spaced drilling program as the first phase of exploration of the extensive gold system developing at Boka. This system extends for at least five kilometres along strike and is defined by extensive tunnel workings, the current drilling program, trenching and detailed systematic grid soil sampling. Drilling is concentrating in an area extending from Boka 1 South to Boka 7 located approximately two kilometres south of Boka 1 South. At Boka 7, sulphide-quartz-carbonate stockwork was encountered about 90 metres below the surface in drill hole B03-10. The Company is currently drilling two holes north of drill hole B03-10. Drill hole assay results will be released once received.

Gold mineralization within this system is associated with quartz-carbonate stockworks, sulphide-quartz-carbonate stockwork and massive sulphide replacement along foliation in carbonaceous slate, associated with a major north-south trending complex structural corridor.

For an update of drill hole locations see our website www.swgold.com.

The Boka Project is a Sino-Foreign Cooperative Joint Venture between the Company's wholly owned subsidiary and Team 209 of the Yunnan Nuclear Industry Group. Southwestern's subsidiary can earn a 90% interest in the Boka Project by contributing US$4 million to the Joint Venture Company over four years and making a payment of US$1.7 million to Team 209.

Quality Control

Southwestern has implemented a quality control program to insure best practice in all phases of its analytical work. SGS Lakefield Research is an internationally known metallurgical testing facility located in Ontario, Canada.

The Boka Project is being supervised and directed by Mr. John Paterson (Member, AUSIMM - qualified person for the Project), President of Southwestern Resources Corp.

Southwestern is exploring in several countries for precious and base metals, including the Liam silver-gold project in Peru where drilling is underway. The Company also explores for diamonds through its 33.7% owned affiliate, Canabrava Diamond Corporation, and has exposure to nickel-copper-PGM exploration through its 16% interest in Aurora Platinum Corp.

Since May 2003, the Company had a link on its website to an analyst's report. As that report was not NI 43-101 nor NP51-201 compliant and may not have been based on technical opinions of a qualified person, the Company has removed that link and confirms it is not endorsing that report.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk-Factors" and elsewhere in the Corporation's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.