Western Prospector Continues Dispute With Adamas Mining Over Joint Venture

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2008) - Western Prospector Group Ltd. (TSX VENTURE: WNP.V) ("Western") responded today to the Mongolian district court's ruling in favour of Adamas Mining Co. Ltd. ("Adamas") regarding its claim for release of the joint venture exploration license from escrow to Adamas. Western continues its joint venture dispute with Adamas and intends to vigorously pursue all actions to complete the joint venture according to the Letter Agreement of December 7, 2004 ("Letter Agreement") between the two companies.

"We do not believe there is any merit in this ruling and we will continue all courses of action to constructively bring about the final joint venture agreement with Adamas so that the project can be advanced to a production decision," said Eric Bohren, President and CEO.

The Western-Adamas joint venture involves exploration license 3367X in Mongolia covering the Mardiagol and Nemer deposits, and a portion of the Dors deposit. The joint venture dispute does not impact Western's NI 43-101 classified resources or the Feasibility Study for Gurvanbulag, which is scheduled for completion in the fourth quarter of 2008.

In 2007 and 2008, Western met with Adamas on multiple occasions and filed legal actions in court in Mongolia to compel Adamas to honor its joint venture obligations detailed in the Letter Agreement (see Western news releases dated December 21, 2007 and February 14, 2008). Despite these efforts and Western's approximate C$4 million expenditure on the joint venture project, Adamas refuses to cooperate with Western to complete the joint venture and advance the project toward production.

In 2007 and 2008, the courts in Mongolia denied Western's claim to compel Adamas to honor its commitments in the Letter Agreement. On October 20, 2008, a Mongolian district court found in favor of an Adamas claim to release the joint venture license from escrow to Adamas based on the judge's interpretation that the joint venture is null and void. Western believes there is no merit in this ruling and intends to appeal it once it receives the written judgment from the trial judge.

Western has complied with all of its obligations pursuant to the Letter Agreement, which include a cash payment to Adamas in the amount of C$750,000, a four year exploration work program of at least C$1.35 million and payments of yearly license fees. The Letter Agreement states that on or before December 31, 2007, Western would have earned its 70% ownership in the joint venture and its right as sole operator of the joint venture once these payments were made. However, Adamas has refused to comply with the Letter Agreement to sign the final joint venture agreement and work in cooperation with Western to advance the project into production.

In July 2007, Mr. Koyanagi, President of Adamas, sent a letter to Western stating that due to the increase in uranium prices, Western should increase its cash payment to Adamas from C$750,000 to C$2.5 million. Given that the joint venture terms had already been agreed upon, and that Western had already made cash payments to Adamas, Western believes that this demand was in violation of the Letter Agreement.

Note Regarding Forward-Looking Statements

This press release and other written or oral communication from the Company may include certain statements that may be considered "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Statements other than historical facts that address possible future events, plans or developments are forward-looking statements. Such statements may be identified by the use of words such as "will", ""may", "expects", "estimate", "intend" or the use of the future or conditional tense. Certain material factors or assumptions were applied in drawing our conclusions and making those forward-looking statements. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. Readers are cautioned that risks may change or new risks may emerge. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com and available on the Company's website at www.westernprospector.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contacts

Eric Bohren
Western Prospector
President and CEO
(604) 675-6985
(604) 608-3413 (FAX)
Email: ir@westernprospector.com
Website: www.westernprospector.com

Barnes McInerney Inc.
News media
Camilla Bartosiewicz
(416) 367-5000 ext. 240
Email: cbartosiewicz@barnesmcinerney.com