wsa - cheap as chips!!!

Looks like a resource estimate for T5 will be coming through early next week. This will be significantly higher than the expected 500,000 tonnes of nickel at 5%. Expect a rerating of the stock on next weeks announcement. WSA on track for minimum 6,000 tonnes of nickel by June next year.


WSA Western Areas NL 28 June 2005

LATEST DRILLING RESULTS FROM FLYING FOX AND PROGRESS ON THE FLYING FOX MINE DEVELOPMENT

The Board of Western Areas is pleased to announce further encouraging drilling results from the T5 deposit which indicate that potential for high grade mineralisation may extend well beyond the area currently tested.

The first Mineral Resource estimate for T5 is expected to be released next week. In addition, the rate of progress on the Flying Fox mine development has improved significantly with both declines now advancing within the dolerite dyke which is the main host for the declines. Flying Fox - T5 Drilling Results

• The majority of recent drill holes within the T5 resource area have intersected wide intervals of massive and matrix sulphides for which assays are awaited. Intersections include: 9.9m of massive sulphide in FFD 163 W1/W1 4.5m and 7.8m of massive / matrix sulphides in FFD 162 W4/W1 10.4m and 9.9m of massive / matrix sulphides in FFD 162 W4/W2

Although assays are required to confirm nickel grades, these results confirm the exceptional continuity of mineralisation at T5. A revised longitudinal projection of Flying Fox showing the location of these intersections will be released when assay results are received.

• Assay results have been received for two previously announced drill holes on the outer limits of the area currently being drilled for the initial T5 resource estimate.

FFD 163 W5 intersected 7.5m @ 7.9% nickel (including 5.7m @ 9.3% nickel) at the southern limit of drilling, in the deeper part of T5.

FFD 167 W2/W1 intersected 7.4m @ 6.1% nickel (including 3.7m @ 7.6% nickel) at the northern limit of drilling, near the dolerite dyke.

These results indicate that T5 may extend not only at depth but also north of the dolerite dyke. A longitudinal projection of Flying Fox showing the location of FFD 163 W5 and FFD 167 W2/W1 was included with a release on 14 June. (Note: FFD 163 W5 was incorrectly labelled as FFD 167 W5).

The initial Mineral Resource estimate for T5 will be released when final assay results from the remaining drill holes have been received and interpreted.

This is expected early next week.

Flying Fox - Mine Development Both the ventilation and the main access declines recently entered the dolerite dyke and the rate of advance has increased significantly. Western Areas’ geotechnical consultants have advised that due to the improved ground conditions, some of the ground support procedures can now be eased.

Since entering the hard, competent dolerite dyke, the rate of advance for both declines has increased from between 3 - 6m per day up to 9m per day.

As a result, the mine development rate for June is expected to meet and probably exceed forecast. Surface infrastructure at Flying Fox is now fully operational with site offices, mine workshop, grid power and communications recently installed.

Julian Hanna, Managing Director 28 June 2005
DISCLAIMER This announcement does not include reference to all available information on 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 ASX releases and statutory reports and consult their professional advisers before considering investing in the Company. The information within this report as it relates to geology and mineralisation was compiled by Mr Julian Hanna and Mr Adrian Black from Newexco. Mr Hanna is a member of the Australian Institute of Mining and Metallurgy and Mr Black is a member of the Australian Institute of Geoscientists. Mr Hanna and Mr Black have sufficient experience which is relevant to the activity which is being reported on to qualify as Competent Persons and consent to the inclusion of this information in the form and context in which it appears in this report.