WSA announces: Results confirm Flying Fox T6 and T7 discoveries and new interpretation upgrades T4



    /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, Oct. 8 /CNW/ - Nickel producer Western
Areas NL today announced significant assay results (up to 9.8% nickel) from
the new T6 and T7 nickel sulphide zones at the Flying Fox mine. Excellent high
grade intersections (including 9.3m @ 5.1% nickel and 6.5m @ 6.5% nickel) were
also reported from two recent drill holes at the T4 zone. This has contributed
to an improved interpretation for T4 which highlights substantial additional
potential in this area of the mine.
    Managing Director, Mr Julian Hanna, said, "The results provide further
confirmation about the outstanding continuity of high grade (greater than 5%
nickel) massive sulphide mineralisation over a wide area and the potential to
extend Flying Fox well beyond the current 10 years mine life."

    T6, T6 Fault and T7 Sulphide Zones:

    Drill hole FFD 136 W4: Assay results have confirmed significant nickel in
the first drill hole to test the T6 and T7 EM conductors at Flying Fox.
Results compare closely with previously announced values estimated using a
portable Niton XRF analyser.
    FFD 136 W4 intersected three main nickel zones:

    
        1.  T6         21.6m @ 1.0% nickel from 1397.5m down hole depth
        2.  T6 Fault   3.6m @ 2.9% nickel from 1556.3m down hole depth
        3.  T7         7.3m @ 3.3% nickel (incl 1.2m @ 9.8% nickel)
                       from 1640.4m

    The T6 intersection includes a wide zone of disseminated nickel sulphide.
The T6 Fault and T7 intersections include massive and stringer sulphides with
intervals of granite and sediment.

    The results are consistent with the location of this drill hole near the
southern margin of the stacked EM conductors interpreted on the attached long
projection.

    Drill hole FFD 136 W4/W1: The second drill hole to test T6 and T7
intersected massive and stringer sulphides 50-70m north of FFD 136 W4 and are
expected to contain high grade nickel.
    FFD 136 W4/W1 intersected two main sulphide zones:

        1.  T6         1.7m massive/stringer sulphide & 12m disseminated
                       sulphide
        2.  T6 Fault   1.0m massive sulphide

    The T6 and T6 Fault mineralisation appears to be improving north towards
the centre of the EM targets. FFD 136 W4/W1 is interpreted to have passed
below the T7 target, staying in the footwall sediments underlying the
prospective contact. A third drill hole is underway to test the large T7 EM
conductor above FFD 136 W4/W1 and 200m below the T5 ore body.

    T4 Sulphide Zone:

    Excellent results have been received from two recent drill holes in a
previously untested area in the northern part of T4. These results are:

        -  FFD 190 W2        9.3m @ 5.1% nickel from 761.8m downhole depth
        -  FFD 190 W2/W2     6.5m @ 6.5% nickel from 756.9m downhole depth

    Assay results are awaited from a third drill hole (FFD 190 W2/W1) which
intersected 7.2m of massive and stringer sulphides in this area of T4. These
results combined with an improved understanding of the overlying T1 ore body
have resulted in a new interpretation of the potential at T4. Drilling at T4
is now targeting a much larger area along a 450m strike length extending from
north of the dolerite dyke towards the southern tenement boundary.

    Flying Fox - Mine Development and Production

    Ore is currently being stoped from several faces in the T Zero ore body.
Nickel grades are steadily increasing compared with earlier production from
the T Zero development drives.
    The main decline is at 1010m RL and a crosscut to the large T1 ore body is
underway with first production expected in November. Initial high grade
massive sulphide ore from T1 will be extracted from 3-5m wide stopes,
increasing up to 10m wide in the central part of the deposit. This is expected
to result in a sharp increase in ore production compared with T Zero.
    The revised T1 ore reserve is expected to be released in the middle of
October.

    Koolyanobbing Nickel Project - Exploration Drilling

    Diamond drilling has commenced at the 100% owned Jocks Dream nickel
prospect, 200km north of Forrestania. Three diamond drill holes are planned as
an initial test below a 500m long nickel sulphide zone discovered in the 1970s
and extended by Western Areas in 2006 using a combination of IP surveys and RC
drilling.
    Previous drilling has intersected significant occurrences of partly
oxidized massive sulphides at shallow depth. Previously announced
intersections include:

        -  KDRC 014    5m @ 2.1% nickel (including 1m @ 4.0% nickel)
                       from 74m
        -  JDP 005     7m @ 2.4% nickel (including 3m @ 4.4% nickel)
                       from 39m
    

    The target of the current drilling is primary high grade massive nickel
sulphide mineralisation.
    The full 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 exploration results,
mineral resources or ore reserves is based on information compiled by
Mr Julian Hanna. Mr Hanna is a member of AusIMM and is a full time employee of
the Company. Mr Hanna has sufficient experience which is relevant to the style
of mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the
2004 Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves.' Mr Hanna consents 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. An example of a forward-looking statement in this release is 'The
T6 and T6 Fault mineralisation appears to be improving north towards the
centre of the EM targets.' 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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