AMERICA WEST RESOURCES WINS $8.3 MILLION COAL SUPPLY AGREEMENT WITH MAJOR POWER AGENCY IN WESTERN U.S.

SALT LAKE CITY, UT – (PR NEWSWIRE) – July 2, 2008 – America West Resources, Inc. (OTCBB:AWSR), a domestic coal producer with mining operations in Central Utah, today announced that the Company has agreed to supply a major power agency in the Western U.S. with coal produced from its Horizon Mine pursuant to a 12-month Coal Supply Agreement with a minimum contracted value of $8.3 million. America West will also offer this agency excess production above minimum contracted tonnage, and it has agreed to use its best efforts to accept it, thereby providing America West with the opportunity to realize up to $12.45 million in additional revenue.

America West recently announced that it commenced mining operations in a second section of its Horizon Mine, which is helping the Company to further accelerate coal production. According to Alexander Walker III, President and CEO of America West, “We are delighted to become a preferred supplier of coal to this major power agency and look forward to optimizing this new relationship to strengthen our operating platform and advance America West through what is proving to be a very exciting growth period in our history.”

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 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 1.4 million tons of coal from its owned and operated Horizon Coal Mine based in Central Utah. For more information, please visit 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 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 AWSR@efcg.net