America West Resources Enters Into $3 Million in Debt and Equity Financing

Proceeds Will Allow for Company to Satisfy Creditor Repayment Conditions of Plan of Reorganization for Hidden Splendor Subsidiary 


SALT LAKE CITY, Oct. 14  /PRNewswire-FirstCall/ -- America West Resources, Inc. (OTC:AWSR) (BULLETIN BOARD: AWSR) , a domestic coal producer with mining operations in Central Utah, today announced that it has entered into a loan agreement that provides for up to $2.8 million of funding pending the entry of a final confirmation order allowing its wholly owned subsidiary, Hidden Splendor, to emerge from bankruptcy.

The $2.8 million one-year term loan will be secured by the Company's undeveloped leasehold known as "Columbia," a 5,200 acre property in Carbon County, Utah.  The loan will bear interest at a fixed rate of 17% per annum. The proceeds will be largely used to satisfy certain creditor repayment terms and conditions set forth by Hidden Splendor's plan of reorganization. Additionally, upon final confirmation, the investors have agreed upon purchase of 10 million shares of America West Resources' common stock for $200,000.

Dan Baker, America West's Chief Executive Officer, stated, "This financing marks another key step forward in America West's efforts to achieve Hidden Splendor's emergence from bankruptcy, at which time we will be free to focus exclusively on accelerating our expansion initiatives and capitalizing on the prevailing global demand for our clean coal."

About America West Resources, Inc.

Headquartered in Salt Lake City, Utah, America West Resources, Inc. is an established domestic coal producer focused on the mining of clean and compliant (low-sulfur) coal and its sale primarily to U.S. utility companies for use in generating electricity.  Since 2003, the Company has extracted over 1.3 million tons of coal from its owned and operated Horizon Coal Mine based in Central Utah.  For more information, please visit http://www.americacoal.com/ .

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Please refer to the Company's Form 10-KSB and other filings with the United States Securities and Exchange Commission (the "SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports.  Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at http://www.sec.gov/ .

               FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
                   ELITE FINANCIAL COMMUNICATIONS GROUP
                      Dodi B. Handy, President & CEO
 For Media Inquiries: Tiffany Korkis or John Morrison, Managing Directors
                           of Elite Media Group
                407-585-1080 or via email at 

DATASOURCE: America West Resources, Inc.



CONTACT:  Dodi B. Handy, President & CEO of Elite Financial

Communications Group; Tiffany Korkis or John Morrison, Managing Directors of

Elite Media Group, [phone], , all for America West

Resources, Inc.



Web site:  http://www.americacoal.com/ 

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