$5 million placement, page-2

re: $5 million placement/rights issue Here is information about the placement and share issues:

"Placement

The Board of Western Areas NL is pleased to announce that Western Areas has reached in
principle agreement with Hartleys Limited to place $5 million to international and domestic
institutional and retail investors. A Prospectus to raise up to $5,000,000 at $1.00 per share has
been lodged today and a copy is attached. Hartleys Limited is Broker to the Offer.

The main use of funds will be for an exploration campaign at the Forrestania project to build on
the Company's high-grade resource base and to test a number of exciting new targets. Other uses
include the progression of the Bankable Feasibility Study in respect of the Forrestania Nickel
Project, exploration activities on other projects and to provide working capital.

Rights Issue

The Board is also pleased to announce that Western Areas will proceed with a non-renounceable
rights issue on a 1 for 20 basis at 95 cents per share. The rights issue is expected to raise a further
$4.8 million which will be applied to the ongoing exploration and development activities at the
Forrestania project, exploration activities on other projects and to provide working capital

The intended date of lodgement of the rights issue Prospectus is 9 July. The record date for
determining shareholder entitlement to participate in the rights issue will be set at seven days from
the lodgement of the rights issue prospectus with ASIC. "