Western Areas Announces Excellent Results Continue at Spotted Quoll

PERTH, AUSTRALIA--(Marketwire - Sept. 26, 2008) - THIS NEWS RELEASE IS The Board of Western Areas (TSX: WSA.TO)(ASX: WSA.AX) is pleased to announce further very encouraging results from the drilling program underway at Spotted Quoll. Positive results are coming from all three areas being tested outside the current mineral resource. These are:

- Above the mineral resource. Drilling between 40-50m vertical depth is intersecting significant mineralisation including drill hole WWRC 023 which intersected 11m @ 8.7% nickel (Niton estimate - refer to disclaimer).

- Below the current mineral resource at approximately 450m vertical depth. All six drill holes have intersected massive, matrix and disseminated sulphides over 2.1m to 4.9m widths, confirming the excellent continuity of the deposit.

- At 600m vertical depth. Only three drill holes have been drilled in this area with the most recent, WBD 109 W2/W1 intersecting 2.1m @ 4.4% nickel (Niton estimate - refer to disclaimer).

Assay results are awaited to confirm the Niton nickel grade estimates reported above.

On 2 September 2008, Western Areas announced a mineral resource estimate for Spotted Quoll which comprises a total 1,045,900 tonnes at an average grade of 7.2% nickel for 75,140t contained nickel. Based on reported mineral resources, Spotted Quoll is already one of the highest grade nickel deposits in the world within 12 months since its discovery.

The following conclusions can be made:

1. The mineral resource averages 206t (454,000lb) of contained nickel / vertical m. At current nickel prices, this equates to approximately A$4M of nickel / vertical m.

2. Drilling to date has cost only 3 cents/lb nickel to define the mineral resource.

3. Spotted Quoll shows exceptional continuity of width and high grades throughout and the deposit remains open below 320m vertical depth.

The recent, widely spaced drilling below the mineral resource has resulted in a revised interpretation which indicates that the deposit may plunge to the north, parallel to the main fault. Clearly, a large amount of additional drilling is required to confirm this interpretation and to define the limits of the deposit. There are currently four drill rigs on site.

Discussion

These results again support the potential for a major underground mine below the proposed open pit. In this event, production could significantly exceed the 8,000 tpa nickel target over a longer mine life. A mining proposal for the Spotted Quoll open pit has been lodged with the target for first ore production from the open pit being the September Q 2009.

Western Areas expects to be able to announce a revised mineral resource estimate at Spotted Quoll during the December quarter.

The full release including diagrams can be seen at www.westernareas.com.au.

QA-QC STATEMENT:

Note: The nickel grade estimates for drill holes WBD 109, WBD 116, WBD 109W2/W1 and WWRC 023 quoted in this release are indicative only and have been estimated from systematic readings using a NITON XLt 592 portable analyser which is not JORC compliant.

The mineralisation described in this release which is being intersected in drilling 'above the mineral resource' (including WWRC 023) includes both nickel sulphide and oxidised nickel sulphide mineralisation. Test work is underway to determine metallurgical recoveries of oxidised nickel sulphide type mineralisation at shallow depth at Spotted Quoll.

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, downhole 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 mineral resources and mine development activities is based on information compiled by Mr John Haywood and Mr Julian Hanna of Western Areas NL. Mr Haywood and Mr Hanna are members of AusIMM and are full time employees of the Company. Mr Haywood and Mr Hanna 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 Haywood and Mr Hanna 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. These include: "Based on reported mineral resources, Spotted Quoll is already one of the highest grade nickel deposits in the world within 12 months since its discovery", and "revised interpretation which indicates that the deposit may plunge to the north, parallel to the main fault", and "These excellent results confirm the potential for a major underground mine below the proposed open pit", and "In this event, production could significantly exceed the 8,000 tpa nickel target over a longer mine life", and "Western Areas expects to be able to announce a revised mineral resource at Spotted Quoll during the December quarter". 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 9334 7777
Email: jhanna@westernareas.com.au

Craig Oliver
Western Areas NL
Finance Director
+61 8 9334 7777
Email: coliver@westernareas.com.au
Website: www.westernareas.com.au

Shane Murphy
Porter Novelli
Investor Relations
+61 8 9386 1233
Email: smurphy@wa.porternovelli.com.au