Southwestern Water Makes Further Progress in Development of Significant Fresh Water Discovery in Colorado

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FOR IMMEDIATE RELEASE

Southwestern Water Makes Further Progress in Development of Significant Fresh Water Discovery in Colorado

COLORADO, DENVER, Nov. 4 -/E-Wire/-- Southwestern Water Exploration Company (Ticker SWWE) today announces that is has reached the next advanced level in bringing into service the large fresh water reservoir it discovered deep underground in Colorado.

The Southwestern Water discovery could lead to a significant increase in the amount of fresh water available for homes, farms and industry in a region of Colorado hard hit by drought and chronic water shortages.

In March 2002, Southwestern Water's outside drilling team and independent engineering consultants, following the completion of a test well, confirmed the existence of a large fresh water aquifer at depths previously not thought to contain deposits of potable water. The water is of high quality, meeting all EPA primary standards for fresh drinking water, and so can go directly from reservoir to tap without any additional purification other than state required chlorinization.

Southwestern Water's engineering consultants, the leading firm of Knight Piesold, has now completed its full review of this new water reservoir. The Knight Piesold estimate is that the Southwestern Water reservoir contains at least 300,000 acre-feet of water. The reservoir can produce, according to the same engineering analysis, 3,000 to 6,000 acre feet of water per year, enough to supply the water needs of a town of around 10,000 people. At this rate of production, the Southwestern Water reservoir will last for a minimum of 100 years.

The price of water in this region of Colorado is currently averaging $15,500 per acre-foot for Colorado Big Thompson (CBT) delivery.

Southwestern Water, to bring this reservoir more rapidly into production, has now retained the services of independent water appraisers and water brokers to sell the production on an annualized basis.

Southwestern Water is also now actively investigating the potential of two additional aquifers the company has located underground in Colorado. These are expected to contain deposits of fresh water similar or greater in size to the earlier discovery this year.

In addition, Southwestern Water also recently completed a private placement of 100,000 shares of its treasury stock (Rule 144) at a price of $1.50 per share. The purchaser also received warrants to purchase an additional 600,000 shares at $2.50 per share over the next three years. These funds will go toward Southwestern Water's planned development of a large underground water aquifer in south Texas.

SOUTHWESTERN WATER is a leading firm in the exploration and development of new sources of fresh water in the American West. Unlike other publicly quoted water companies, Southwestern Water is wholly focused on discovering new large aquifers, and concentrates on the location of fresh water at deep depths underground. To do so, the company makes use of its proprietary imaging and modeling software and database.

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward looking statements include statements about the importance ofdata we have obtained and statements that are not historical facts, including statements which are preceded by the words "intends," "will," "plans," "expects," "anticipates," "estimates," "aims," and "believes" or similar words. For such statements, Southwestern Water Exploration Co. claims the protection of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from expectations. Important factors that could cause actual results to differ include, but are not limited to, the following: future quarterly or annual financial results, the timing, success and cost of leasing, drilling, legal and marketing. These forward-looking statements represent Southwestern Water Exploration Co.'s ("SWWE") judgment as of the date of this release. Southwestern Water Exploration Co. ("SWWE") disclaims, however, any intent or obligation to updates these forward-looking statements

Southwestern Water Exploration Co

Southwestern Water Exploration Co.,

Steven Misner or Thomas Lenney, 800/661-9169

http:// www.southwesternwater.com

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