Western Areas NL - Third Quarter Activity Report



    /THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
    FOR DISSEMINATION IN THE U.S./

    ASX & TSX: WSA

    WEST PERTH, Western Australia, April 23 /CNW/ - The Board of Western
Areas (ASX & TSX: WSA) is pleased to report to shareholders that the March
quarter has been an outstanding period of growth for the Company. Progress has
been achieved in all the Company's core activities which include:

    
    Australia
     -  First quarter nickel production at Flying Fox mine
     -  Record mine development rates at Flying Fox
     -  High mine safety standards with 341 LTI free days
     -  Successful commissioning of mine related infrastructure
     -  Major mineral resource upgrade at Diggers South deposit
     -  Discovery of high grade massive sulphide at Diggers South
     -  Major mineral resource upgrade at New Morning/Daybreak deposit
     -  Consolidation of regional nickel exploration projects

    Canada
     -  Agreement for strategic holding at Lynn Lake nickel camp, Manitoba
     -  Encouraging progress on Maskwa nickel deposit pre feasibility study

    Corporate
     -  37% increase in WSA market capitalisation compared with December Q 06
     -  364% increase in value of investment in Mustang Minerals to A$14M
    

    Managing Director Mr Julian Hanna said "The team at Flying Fox has made
huge progress during the quarter by opening up the first orebody, T Zero, for
mining. High grade massive sulphide is already exposed in four areas at T 
Zero. 8,400 tonnes of mainly development ore have been treated already and the
mining rate is climbing steadily as further ore is accessed in the mine."
    In March, Flying Fox achieved a record 310m of total mine development for
the month following a number of initiatives undertaken at the end of 2006. As
a result, production from the large T1 orebody is expected to commence during
the December quarter.
    In addition, there have been major expansions of the mineral resources at
Diggers South and New Morning/Daybreak. The total of contained nickel in high
quality mineral resources for the four main deposits at Forrestania (Flying
Fox, New Morning/Daybreak, Diggers South and Cosmic Boy) has increased to
208,600 tonnes nickel. The Diggers South pre feasibility study is progressing
to plan with completion due in May 2007.
    Recent work at Diggers South and New Morning/Daybreak has highlighted the
potential for further significant discoveries. Two widely spaced drill holes
below Diggers South intersected high grade massive sulphide up to 7.8% nickel
and a reinterpretation of New Morning/Daybreak supports the potential that a
Flying Fox "T5 type" deposit may occur below the current limit of drilling.
Drilling these two areas recommences this quarter.
    The Company expanded its interests in Canada with an agreement for a
strategic holding at Lynn Lake, one of Canada's largest nickel camps which
produced 166,000 tonnes of nickel and 95,000 tonnes copper until 1976. A
helicopter VTEM survey has already been completed, several drilling targets
have been identified and a drill rig is being sourced.
    The full quarterly report with extended commentary can be viewed at the
company website www.westernareas.com.au

    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, 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 of Ravensgate, Mineral Industry Consultants (mineral resources), and
Mr Julian Hanna of Western Areas NL. Mr Haywood and Mr Hanna are members of
AusIMM and Mr Hanna is a full time employee 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 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 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.




For further information:

For further information: Julian Hanna, Managing Director - Western Areas
NL, Telephone +61 8 9486 7855, Email: jhanna@westernareas.com.au; Craig
Oliver, Finance Director - Western Areas NL, Telephone +61 8 9486 7855, Email:
coliver@westernareas.com.au; Ann Nahajski, Investor Relations - Porter
Novelli, Telephone +61 8 9386 1233, Email: anahajski@wa.porternovelli.com.au;
Or visit: www.westernareas.com.au

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WESTERN AREAS NL

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