Northwater Resources, Inc. Announces Assay Results

Business Wire, August 7, 2006

VANCOUVER, British Columbia -- Northwater Resources, Inc. (OTCBB:NWRS) (the "Company") is pleased to announce that further Geological work in its highly mineralized collapsed caldera (volcano) in Mexico has defined a highly mineralized structure with a strike length of 4 km with cross faulting extending a minimum of 1.5 km each side of the main mineralized zone. Every sample has contained both gold and silver values from everywhere on the property which is about 10,000 hectares.

The program provides for the logical development of the property suite to include the major shear and fault line systems that cross the structure and appear to be responsible for much of the mineral enrichment processes. The main orientation of the zoning is roughly north/south, with large east/west cross structures. Localized enrichment along the large quartz zones in the faults has been observed along strike lines in excess of 1.6 km. Several parallel fracture systems have been reported by crews working on the property and similar mineralization types have been encountered. Work is continuing on the mapping, assaying and petrographic examination of the mineralized rock types located to date.

As previously reported, the 184 assays taken from channel samples during the February-March 2006 field work related to a series of exposures, test-pits and trenches covering about 2 km of favourable structure along the main crest lines and hilltops. Several locations returned values in the range of 1.2% to 1.5% copper, and up to 6.38% copper. All assays returned gold and silver values ranging from anomalous to 13.25 grams gold and 958 grams silver per tonne. Zinc values of up to 1.9% and lead values of more than 1% were also encountered in some samples. Further assay results are expected in the near future.

In addition, there is a huge zone of large flake graphite, carrying an estimated 3 million tons of product with initial testing indicating 85% graphite with overall carbon content of 90% (including the graphite). High grade large flake graphite has a market price of up to $2,000 US per ton, which has a growing market worldwide with all new manufacturing technologies utilizing nano particles of graphite for lightweight high strength structures.

The Company's exploration programs are managed by a qualified professional in accordance with recognized industry standards. Sample preparation and analysis will continue to be done by ALS Chemex.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the further exploration work, any future assay results, the existence of 3,000,000 tons of high grade graphite product and the existence of a highly mineralized gold and silver structure. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, future exploration and the results inherent in mineral exploration faced by an exploration stage company.

These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate.