Western Areas Limited WNARF

RESULTS CONFIRM FLYING FOX T6 AND T7 DISCOVER

[jfallenangel]

RESULTS CONFIRM FLYING FOX T6 AND T7 DISCOVERIES AND NEW INTERPRETATION UPGRADES T4 Nickel producer Western Areas NL today announced significant assay results (up to 9.8% nickel) from the new T6 and T7 nickel sulphide zones at the Flying Fox mine. Excellent high grade intersections (including 9.3m @ 5.1% nickel and 6.5m @ 6.5% nickel) were also reported from two recent drill holes at the T4 zone. This has contributed to an improved interpretation for T4 which highlights substantial additional potential in this area of the mine. Managing Director, Mr Julian Hanna, said “The results provide further confirmation about the outstanding continuity of high grade (>5% nickel) massive sulphide mineralisation over a wide area and the potential to extend Flying Fox well beyond the current 10 years mine life.” T6, T6 Fault and T7 Sulphide Zones: Drill hole FFD 136 W4: Assay results have confirmed significant nickel in the first drill hole to test the T6 and T7 EM conductors at Flying Fox. Results compare closely with previously announced values estimated using a portable Niton XRF analyser. FFD 136 W4 intersected three main nickel zones: 1. T6 21.6m @ 1.0% nickel from 1397.5m down hole depth 2. T6 Fault 3.6m @ 2.9% nickel from 1556.3m down hole depth 3. T7 7.3m @ 3.3% nickel (incl 1.2m @ 9.8% nickel) from 1640.4m The T6 intersection includes a wide zone of disseminated nickel sulphide. The T6 Fault and T7 intersections include massive and stringer sulphides with intervals of granite and sediment. The results are consistent with the location of this drill hole near the southern margin of the stacked EM conductors interpreted on the attached long projection. Drill hole FFD 136 W4/W1: The second drill hole to test T6 and T7 intersected massive and stringer sulphides 50-70m north of FFD 136 W4 and are expected to contain high grade nickel. FFD 136 W4/W1 intersected two main sulphide zones: 1. T6 1.7m massive/stringer sulphide & 12m disseminated sulphide 2. T6 Fault 1.0m massive sulphide The T6 and T6 Fault mineralisation appears to be improving north towards the centre of the EM targets. FFD 136 W4/W1 is interpreted to have passed below the T7 target, staying in the footwall sediments underlying the prospective contact. A third drill hole is underway to test the large T7 EM conductor above FFD 136 W4/W1 and 200m below the T5 ore body. T4 Sulphide Zone: Excellent results have been received from two recent drill holes in a previously untested area in the northern part of T4. These results are: • FFD 190 W2 9.3m @ 5.1% nickel from 761.8m downhole depth • FFD 190 W2/W2 6.5m @ 6.5% nickel from 756.9m downhole depth Assay results are awaited from a third drill hole (FFD 190 W2/W1) which intersected 7.2m of massive and stringer sulphides in this area of T4. These results combined with an improved understanding of the overlying T1 ore body have resulted in a new interpretation of the potential at T4. Drilling at T4 is now targeting a much larger area along a 450m strike length extending from north of the dolerite dyke towards the southern tenement boundary. Flying Fox – Mine Development and Production Ore is currently being stoped from several faces in the T Zero ore body. Nickel grades are steadily increasing compared with earlier production from the T Zero development drives. The main decline is at 1010m RL and a crosscut to the large T1 ore body is underway with first production expected in November. Initial high grade massive sulphide ore from T1 will be extracted from 3-5m wide stopes, increasing up to 10m wide in the central part of the deposit. This is expected to result in a sharp increase in ore production compared with T Zero The revised T1 ore reserve is expected to be released in the middle of October. Koolyanobbing Nickel Project – Exploration Drilling Diamond drilling has commenced at the 100% owned Jocks Dream nickel prospect, 200km north of Forrestania. Three diamond drill holes are planned as an initial test below a 500m long nickel sulphide zone discovered in the 1970s and extended by Western Areas in 2006 using a combination of IP surveys and RC drilling. Previous drilling has intersected significant occurrences of partly oxidized massive sulphides at shallow depth. Previously announced intersections include: • KDRC 014 5m @ 2.1% nickel (including 1m @ 4.0% nickel) from 74m • JDP 005 7m @ 2.4% nickel (including 3m @ 4.4% nickel) from 39m The target of the current drilling is primary high grade massive nickel sulphide mineralisation. -ENDS-