share price rising, page-11

Western Plains Resources Ltd (ASX:WPG) held its annual general meeting at 11 am on 12 November 2007. The text of the address by the Chairman, Bob Duffin, to members is set out below.

On 4 July 2007 we announced that we had reached agreement with the Focus group,a consortium of Chinese investors, traders and a steel mill that, if it was located in
Australia would be this country’s second largest mill, to provide funding of up to $77.5 million for the development of Peculiar Knob, in return for offtake rights. $7.5 million of that amount has already been provided, by way of subscription for shares. There is a shortfall of $31.3 million between the capex estimate for project development and the funding agreed to by the Focus group. Today I am pleased to announce that Xin Sheng International Private Limited, a Singapore company related to Focus and to
whom Focus’s rights and obligations have been novated, has agreed to increase the amount of funding yet to be provided from $70 million to $115 million, plus the
possibility of an additional $20 million in working capital under certain circumstances.

The new funding of $115 million will be provided in the following manner:
• $9 million in ordinary equity at a price of $1.68 per share for the allotment of 5,357,143 WPG shares, by 25 January 2008;
• $11.5 million as a convertible note, redeemable at the Company’s election within 3 years of issue but convertible into ordinary equity at the above price if not previously redeemed; and
• Project debt facilities totalling $94.5 million.