WESTERN AREAS NL

Western Areas announced a number of drill hole intersections in a new area of the Flying Fox mine in Western Australia which has had minimal previous drilling. Recent drilling has resulted in the following intersections: 13.2m @ 10.0% Ni, from 217.1m down hole depth in FUG 417, 5.3m @ 10.2% Ni, from 173.0m down hole depth in FUG 420, and 12.4m @ 8.3% Ni, from 228.9m depth (prelim. Niton estimates) in FUG 471. Western Areas states these drilling results confirm that potential exists to extend the high grade Lewinsky Lode located at the top of the large T5 deposit, for over 150m south of the current mineral resource. Drill hole FUG 471 intersected 12.4m @ 8.3% nickel approximately 4 metres inside Kagara’s Lounge Lizard tenement and indicates continuity across the boundary. Follow up drilling at Lounge Lizard will be conducted once the underground drill drive is completed later this year. Ore Reserves in the Lewinsky Lode (excluding the recent drill holes) contain 146,000 tonnes at an average grade of 4.3% nickel for 6,350 tonnes of contained nickel. The recent drilling results suggest potential to double the size of this deposit to the Lounge Lizard boundary.