WSA Announces: Drilling Extends Spotted Quoll to 450m Depth and EM Survey Defines Three New Anomalies

PERTH, AUSTRALIA--(Marketwire - June 2, 2008) - THIS NEWS RELEASE IS The Board of Western Areas (TSX: WSA.TO)(ASX: WSA.AX) is pleased to announce two significant exploration developments:

1. Ongoing drilling has extended Spotted Quoll 250m below the initial mineral resource announced on 18 April 2008. All recent drill holes have intersected massive or matrix sulphides supporting the potential for developing a significant underground mine below a 160m open pit which is expected to commence production in 2009.

2. Preliminary results from the current EM survey in progress along the 25km long Western Nickel Belt has identified three discrete EM anomalies south of Spotted Quoll. These anomalies occur in favourable geological settings and warrant drilling to test whether potential exists for deposits similar to Spotted Quoll. Further work is in progress to confirm the potential of these targets before drilling is carried out.

The priorities of the current exploration program at the Forrestania Nickel Project are to:

- extend the high grade mineral resource at Spotted Quoll. On 18 April 2008, the first mineral resource was announced which comprises a total of 545,600t at an average grade of 6.3% nickel for 34,500t contained nickel to 200m depth. A scoping study for an initial open pit indicates a very robust, low cost mine based on the mineral resource.

- discover another high grade nickel deposit similar to Spotted Quoll. Spotted Quoll was discovered by drilling a subtle EM anomaly in an area with no previous significant exploration results. Flying Fox and Spotted Quoll are both located under flat lying granite intrusions along the Western Nickel Belt.

Spotted Quoll - Drilling Results

Recent intersections outside the current mineral resource include the high grade results listed below. In addition, WBD 068 (the deepest drill hole at Spotted Quoll to date) intersected 2m of matrix sulphides at 450m vertical depth. It is interesting to note that the deepest drilling at Spotted Quoll is only as deep at the top of the first major ore body at Flying Fox, T1.

    WBD 65    10.3m @ 5.0% nickel from 234.1m down hole depth
    WBD 57    5.5m @ 6.0% nickel from 341.6m down hole depth
    WBD 62    3.3m @ 12.9% nickel plus 1.2m @ 11.7% nickel from 63.9m depth
    WBD 63    1.3m @ 9.9% nickel from 170.1m down hole depth
    WBD 61    4.0 plus 4.6m of massive sulphide from 209.9m down hole depth

These results confirm the excellent continuity of the deposit below the conceptual open pit and the potential for a significant increase in the size of the mineral resource. Locations of the recent drill hole intersections are shown on the sections included in this release.

Preliminary Results - EM survey

The moving loop EM survey along the Western Nickel Belt is using the same techniques that resulted in the discovery of Spotted Quoll in October 2007. Approximately 25% of the 3 month EM survey has been completed over part of the area south of Spotted Quoll.

Although the survey is not complete, preliminary results have been received and interpreted by geological and geophysical consultants Newexco. Newexco has advised the following:

"A large strike length stratigraphic conductor has been confirmed along the eastern margin of the survey and subtle anomalies have been identified at 3 locations. These anomalies are currently being modeled and reconciled against historic drilling and newly interpreted geology.

"One of these anomalies located 5.7km south of Spotted Quoll is considered a priority target. Preliminary modeling of this target shows two interpreted sources to the anomalous response. One is a large amplitude elongate stratigraphic anomaly to the east and the other is a smaller more confined anomaly to the west. Drill hole BD 005 drilled at -55 degrees to the west in 1996 intersected "barren" massive sulphides that averaged 355ppm nickel and 535ppm copper from 78.2m to 80.6m down hole. A down hole electromagnetic survey (DHTEM) was carried out in drill hole BD 005 and an in-hole anomaly was observed at 80m depth consistent with the zone of barren massive sulphides. A stronger, long wavelength DHTEM anomaly (which is centred at 100m down hole) is interpreted to be sourced by a strong conductor located to the north of the drill hole consistent with the surface EM response. A new drill hole is warranted to test the more substantial response to the north of hole BD005 as the barren massive sulphides may represent the fringe of something more significant."

Work is in progress on the other two subtle EM anomalies identified by the EM survey to date. These anomalies, which are located approximately 3km south of Spotted Quoll, don't appear to have been adequately tested by previous drilling.

To view the full release including pictures and diagrams please visit www.westernareas.com.au and follow the news release links.

QA-QC STATEMENT:

Mr Adrian Black from geological consultants Newexco Services Pty Ltd ("Newexco") is responsible for the verification and quality assurance of the Company's exploration data and analytical results from the Forrestania Nickel Project. Surface diamond drill hole collar surveys used differential GPS, down hole surveys employed a north seeking gyroscopic instrument; comprehensive density database; high assay confidence with systematic QA/QC procedures; and validated database. Samples of quarter core from the drill holes described in this release are prepared and analysed by ALS Chemex Ltd laboratory in Perth for nickel, copper, cobalt and other elements. Core samples are crushed and pulverised to 90% passing 75 microns then analysed for nickel by ore grade determination using the ALS OG-62 method. Assays standards are routinely inserted in the sample stream by Newexco for quality control.

The information within this report as it relates to the EM survey including collection and interpretation of the EM data (and the associated geological and geochemical data) has been compiled and undertaken by Mr Bill Amann and Mr Adrian Black from independent specialist consultants Newexco. The information as it relates to the Spotted Quoll project is based on information compiled by Mr Julian Hanna who is a full time employee of Western Areas.

Mr Amann and Mr Black are members of AIG and Mr Hanna is a member of AusIMM and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.' Mr Hanna, Mr Black and Mr Amann consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.

FORWARD LOOKING STATEMENT:

This release contains certain forward-looking statements. Examples of forward looking statements used in this release are: 'supporting the potential for a significant underground mine below a 160m open pit expected to commence production in 2009', and 'These anomalies occur in favourable geological settings and warrant drilling to test whether potential exists for deposits similar to Spotted Quoll', and 'the potential for a significant increase in the mineral resource' and 'may represent the fringe of something more significant' and 'these anomalies, which are located approximately 3km south of Spotted Quoll, don't appear to have been adequately tested by previous drilling'. Forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements.

This announcement does not include reference to all available information on the Company or the Forrestania Nickel Project or the Spotted Quoll deposit 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 public releases and statutory reports and consult their professional advisers before considering investing in the Company.

For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company warrants that Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

Contacts

Julian Hanna
Western Areas NL
Managing Director
+61 8 9486 7855
Email: jhanna@westernareas.com.au

Craig Oliver
Western Areas NL
Finance Director
+61 8 9486 7855
Email: coliver@westernareas.com.au
Website: www.westernareas.com.au

Ann Nahajski
Porter Novelli
Investor Relations
+61 8 9386 1233
Email: anahajski@wa.porternovelli.com.au