Western Metals ceases negotiations for Parys MountainOn 4th...

Western Metals ceases negotiations for Parys Mountain

On 4th August 2008 Western Metals advised the market that following a detailed due diligence on the Parys Mountain project, it would not be proceeding with the acquisition on the terms previously announced.
Western Metals has remained in detailed discussions with Anglesey Mining plc since that time however the parties have been unable to agree on commercial terms that appropriately reflect Western Metals’ evaluation of the project risks. Accordingly, Western Metals has now ceased negotiations with Anglesey.
Western Metals remains committed to the acquisition of an advanced asset and is continuing to evaluate opportunities. The Company has in excess of $20 million in cash and is in a strong position to both weather the current global economic uncertainty and acquire appropriate assets through its focussed business development strategy.
In addition, exploration at the Company’s Tanzanian uranium prospects is continuing, with drilling results currently being evaluated prior to market release.

For further information contact:
George Bauk Paul Downie
Managing Director Porter Novelli (Perth)
Western Metals Limited (08) 9386 1233
(08) 6380 3600 0414 947 129
BACKGROUND TO WESTERN METALS
An emerging resource company developing a portfolio of world class Uranium and Base Metals Projects. The company has immediate plans, and the capability, to underpin value and accelerate growth through acquisition and exploration success.
COMPANY PROJECTS
URANIUM
A joint venture with Uranium Resources plc to explore in Tanzania. Western Metals has a 60% interest in the Mtonya Project, a 42.5% interest in an additional 10,413 km2 of tenements and a further 211 km2 under a 45% joint venture. The total licence area under Western Metals’ management is 14,062 km2.
BASE METALS
An agreement with BHP Billiton to explore for base metals in the West Georgetown region of northern Queensland. Western Metals has 100% ownership with BHPB retaining a claw back provision over one of the tenements (EL14722).
An option from BHP Billiton to purchase 100% interest in the Snowbird Nickel Project in the Northwest Territories of Canada by drilling one exploration drill hole and making a US$1,250,000 cash payment before 31 December 2009. BHP Billiton retains a 60% back-in right.
WMT has purchased from BHP Billiton a 100% interest in all exploration data relating to the Mid-Continent Nickel Project in Minnesota including all regional geophysical data, drill hole and analytical data.
Western Metals Limited
ABN 69 009 150 618
Unit 7, 100 Railway Road, Subiaco WA 6008 – PO Box 1674 Subiaco WA 6904
Tel: +61 8 6380 3600 Fax: +61 8 9382 8022 Em: [email protected] Web:
www.westernmetals.com.au
ASX: WMT/WMTO