June 29, 2007 ASX & TSX: WSA News Release DRILLING STEPPED UP AT FORRESTANIA NICKEL PROJECT AND UPDATE ON DIGGERS SOUTH PRE - FEASIBILITY STUDY The Board of Western Areas is pleased to announce that the Company is already moving to increase activities at the Forrestania Nickel Project following the successful pricing of the A$225 million of convertible bonds. This was announced on 19 June and closed today. Managing Director, Mr Julian Hanna, said Western Areas is now in a strong position to expand the high quality resource base and increase production from the Forrestania Nickel Project. We are seeing excellent progress in a number of areas including exploration, mine development, production and feasibility studies. Mr Hanna added that although our main focus is on the high grade Flying Fox mine, we are very encouraged by recent drilling at Diggers South which has the potential to be a major nickel system in its own right. This release provides an update of Western Areas activities at the end of June. The Company anticipates a steady flow of results from the start of the new financial year. Flying Fox Exploration Four surface and one underground diamond drill rigs are now drilling at Flying Fox. The current drilling program is designed to extend existing mineral resources and test areas with no previous drilling. Current targets shown on the long projection included in this release are: 1. Upper part of T1: following up a drill hole intersection with 3.3m of massive sulphides 2. Southern part of T1: following up a recent drill hole intersection of 2.6m @ 3.3% Ni 3. Northern part of T2: testing a previously undrilled area adjacent to the dolerite dyke 4. Upper part of T4: testing for extensions and defining a mineral resource at T4 5. T6: testing for extensions below the high grade T5 orebody (with Kagara Zinc Ltd) The first drill hole to test the potential at T6 is already at approximately 850m down hole depth. The target is at approximately 1400m down hole depth (1100m vertical depth). Flying Fox Production Massive sulphide ore is currently being mined from the 1150 stope at T Zero North and from the 1140 and 1130 ore drives at T Zero South. The 1130 ore drive is also being extended southwards along an ore zone which is additional to ore reserve defined by surface drilling. This ore drive will soon access high grade ore (estimated 6% nickel) from the recently defined T Zero South pod. Approximately 5,800 tonnes of ore was processed by LionOre last week. Flying Fox Development Decline development rates are currently above forecast with an average of 7m advance per day during the past week. Ground conditions in the main decline and ore drives are excellent. A new jumbo drill rig has arrived on site to complement the new underground mining fleet at Flying Fox which has been upgraded during the past few months. First production from the main part of the wide, high grade T1 ore body is on track for the December quarter.
Flying Fox Mineral Resource and Ore Reserve upgrades The drilling program at T1 and T2 is almost complete. A revised mineral resource estimate for T1/T2 is expected to be released in July followed by a revised ore reserve in August. Drilling has resumed at T4 to infill the high grade sulphide zone outlined previously and define a mineral resource in this area. Drilling is also testing for extensions to T4 below the T3 Fault. Diggers South Exploration A fifth surface diamond drill rig is operating at Diggers South. Two widely spaced diamond drill holes (SED 235 and SED 235W2W2) have been completed 200m below the current mineral resource, at approximately 800m vertical depth. Both drill holes intersected significant down hole widths (8m and 11.6m) of disseminated sulphide which are shown on the longitudinal projection in this release. Assay results are awaited for these drill holes. A down hole electromagnetic survey of SED 235 has defined a large off hole EM conductor some distance into the footwall of the Diggers South deposit. There is no drilling in this area and a diamond drill hole will test this interesting target when a suitable drill rig is available. In addition, metallurgical drill hole SED 210 W1/W1 intersected 14m down hole width of strongly disseminated sulphides plus 1m of massive sulphides in the upper part of the Diggers South mineral resource. This intersection is an area of higher grade mineralisation which is now being followed up with further drilling. Assay results are awaited for SED 210 W1/W1. Diggers South Pre Feasibility Study Western Areas has previously announced the pre-feasibility study for Diggers South would be released in the June quarter. The team involved in the Diggers South project is currently reviewing the potential for a significantly expanded development scenario at Diggers South. This scenario includes potential for a cutback on the existing Outokumpu open pit (Stage 1) which would provide access to remnant ore in the underlying Digger Rocks mine (Stage 2) and also provide access to Diggers South (Stage 3) by a 400m drive from Digger Rocks. The conceptual mine design is shown on the longitudinal projection. Results from this expanded pre-feasibility study are expected to be released early in the September quarter. The Digger Rocks open pit has potential for significant extensions and further drilling is required below the current design. Work is also in progress to accelerate the permitting process to dewater Digger Rocks and provide access to the underground mine development. New Morning/Daybreak Exploration Drilling is scheduled to commence in July to test the potential for a Flying Fox T5 type deposit below the granite intrusion at the base of the current mineral resource. Lynn Lake, Canada (WSA Option for 100%) As announced on 18 June, the initial drilling program at Lynn Lake intersected significant widths of disseminated sulphides at three of the four EM targets tested to date. Approximately 600 samples of diamond drill core have been cut and sent for assay and results will be announced when they are available.
-ENDS- For further details, please contact: Julian Hanna Craig Oliver Managing Director Western Areas NL Finance Director Western Areas NL Telephone +61 8 9486 7855 Telephone +61 8 9486 7855 Email: jhanna@westernareas.com.au Email: coliver@westernareas.com.au Ann Nahajski Investor Relations Porter Novelli Telephone +61 8 9386 1233 Email: anahajski@wa.porternovelli.com.au Or visit: www.westernareas.com.au QA-QC STATEMENT: Mr Adrian Black from geological consultants Newexco Services Pty Ltd ( Newexco ) is responsible for the verification and quality assurance of the Company s exploration data and analytical results from the Forrestania Nickel Project. Surface diamond drill hole collar surveys used differential GPS, downhole surveys employed a north seeking gyroscopic instrument; comprehensive density database; high assay confidence with systematic QA/QC procedures; and validated database. Samples of quarter core from the drill holes described in this release are prepared and analysed by ALS Chemex Ltd laboratory in Perth for nickel, copper, cobalt and other elements. Core samples are crushed and pulverised to 90% passing 75 microns then analysed for nickel by ore grade determination using the ALS OG 62 method. Assays standards are routinely inserted in the sample stream by Newexco for quality control. The information within this report as it relates to exploration and mine development activities is based on information compiled by Mr Julian Hanna. Mr Hanna is a member of AusIMM and is a full time employee of the Company. Mr Hanna has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hanna consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. FORWARD LOOKING STATEMENT: This release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. This announcement does not include reference to all available information on the Company or the Forrestania Nickel Project and should not be used in isolation as a basis to invest in Western Areas. Any potential investors should refer to Western Area s other public releases and statutory reports and consult their professional advisers before considering investing in the Company. For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company warrants that Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.