Western Keltic Mines Inc.

Western Keltic Mines Inc.

January 05, 2005 09:30 ET

Western Keltic Corporate Update-Possible Corporate Transaction


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WESTERN KELTIC MINES INC.

TSX VENTURE SYMBOL: WKM

JANUARY 5, 2005 - 09:30 ET

Western Keltic Corporate Update-Possible Corporate
Transaction

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 5, 2005) - Western
Keltic Mines Inc. (TSX VENTURE:WKM) reports that it has received an
unsolicited expression of interest with respect to a possible corporate
transaction. The Board of Directors has struck an independent committee
of the Board to assist it in reviewing the expression of interest and
determining an appropriate response. This review is now underway. The
Company will provide additional information as it becomes available.

The Company's principal asset is it's 100% owned Kutcho Creek massive
sulphide project located 90 km east of Dease Lake, British Columbia. In
1985 Wright Engineers Limited(x) reported an open pit resource in the
Kutcho deposit of 14.9 million tonnes at 1.85% Cu, 2.62% Zn, 31.6 g/t Ag
and 0.37 g/t Au at a waste to ore ratio of 6:1 and an underground
resource in the adjacent Esso West deposit of 1.5 million tonnes at
3.37% Cu, 5.71% Zn, 63.4 g/t Ag and 0.54 g/t Au. In 2004, a 43-101
compliant report outlined a higher grade resource within the Kutcho
deposit of 6.4 million tonnes at 2.76% Cu, 4.07% Zn, 47 g/t Ag and 0.64
g/t Au. An updated resource estimate for both deposits - which will
include the results of a 2004 7,691 metres - 42 hole diamond drilling
program - is now in progress and should be made available by mid January.

The independent committee of the Board of Directors has retained Franzen
Mineral Engineering Limited, an independent consultancy, to assist with
their review of the expression of interest.

On behalf of the Board of Directors

Western Keltic Mines Inc.

Donald McInnes, President

(x) Note: It should be noted that the reserve and resource categories
quoted above are in compliance with current 43-101 standards with the
exception of the results as reported by Esso Minerals and Wright
Engineers, which should be considered as historical, but are believed to
be reliable and they reflect the standards of reporting at the time.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Western Keltic Mines Inc.
    Donald McInnes
    (604) 682-8414 or 1-800-501-1201
    Website: www.keltic.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.