Mt Alexander (25% interest in JV with BHP Billiton)

Western Areas retains a 25% interest in the Mt Alexander project located some 100km west of the town of Leonora. BHP Billiton, who currently manages the exploration activities, has previously announced extremely encouraging results from their drilling programmes. These include holes drilled at the Cathedrals Prospect which intersected high grade nickel/copper values associated with massive sulphide and indicate that it is a high grade nickel/copper/PGE discovery with significant exploration upside.

The drill results are considered to be very encouraging for a number of reasons:

1. Both intersections consist of fresh massive sulphide at shallow depth
2. The mineralisation is sparsely drilled along strike and down dip
3. High grade nickel is associated with high copper and PGE values
4. Highest PGE assays are: 6.7g/t Palladium, 0.9g/t Platinum, 1.0g/t Rhodium
5. The geological setting shows similarities to the Flying Fox mine, 350km south

BHP Billiton has indicated that further drilling is scheduled within the Cathedrals Prospect within the current financial year.