Passport urges WGI Heavy Minerals, Incorporated's board to focus on the promises made to company's shareholders



    (WGI Heavy Minerals, Inc.; TSX: WG)

    SAN FRANCISCO, CA, June 27 /CNW/ - PASSPORT CAPITAL, LLC (Passport)
confirmed that WGI Heavy Minerals, Incorporated's (WGI) shareholders voted to
elect the management nominees to WGI's board of directors at the annual
shareholders' meeting held on June 25, 2008. Passport had proposed that an
alternate slate of directors be nominated to WGI's board.
    Passport now expects WGI's re-elected board to take the actions required
in order for WGI to fulfill its stated intention of returning cash to WGI's
shareholders following the completion of the sale of WGI's subsidiary,
Transworld Garnet India (Pvt.) Limited (TGI). Passport also fully expects
WGI's board to focus its efforts to fulfil the recent promises made to WGI's
shareholders, namely, to enhance both short and long-term shareholder value by
rectifying past operating and corporate governance issues, by reducing fixed
costs and by leveraging the value in the company's underlying assets.
    Passport reiterates that the funds it manages are long-term,
value-oriented shareholders which have been shareholders of WGI since
September 2003. Passport's recent actions were not an attempt to take "control
of WGI's board" or its cash resources. Passport's goal was to effect change in
WGI's status quo in order to stop the dismal decline in WGI's share price and
to increase WGI's value for the benefit of all shareholders. As noted on June
18, 2008 by RiskMetrics Group (formerly Institutional Shareholders Services or
ISS), Passport "might have been the catalyst to some of the recent changes in
WGI". As a value investor whose interests are aligned with WGI's other
shareholders, Passport will continue to press WGI's board to take the steps
required to unlock the value that exists in WGI.

    PASSPORT CAPITAL, LLC

    Passport Capital, LLC is a San Francisco based global investment firm
with approximately US$4.5 billion of assets under management. Passport and its
principals have extensive experience investing in the Canadian, U.S. and
global capital markets. The funds it manages are long-term, value-oriented
shareholders which, as of the date hereof, collectively own or control an
aggregate of 3,080,500 common shares of WGI, representing approximately 13.1%
of the currently outstanding common shares, making them today the largest
shareholders of WGI.

    Certain statements contained in this press release may constitute
forward-looking statements. Such statements reflect Passport's current views
and intentions with respect to future events and are subject to certain risks,
uncertainties and assumptions. Many factors could cause the actual results,
performance, actions or achievements of WGI or others that may be expressed or
implied by such forward-looking statements to vary from those described herein
should one or more of these risks or uncertainties materialize. Such factors
include, but are not limited to, economic, business, technological,
competitive and regulatory factors as well as the terms of contractual
commitments to which WGI is subject of which Passport is not aware.





For further information:

For further information: Passport Capital, LLC, (415) 321-4600)

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PASSPORT MANAGEMENT, LLC

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