Weda Bay Minerals Inc.

Weda Bay Minerals Inc.
Eramet S.A.

March 27, 2006 13:25 ET

Eramet S.A. and Weda Bay Minerals Inc. Announce Mailing of Offering Documents and Directors' Circular to Shareholders of Weda Bay Minerals Inc.

PARIS, FRANCE and TORONTO, ONTARIO--(CCNMatthews - March 27, 2006) -

Offer in connection with previously announced all-cash bid

Eramet S.A. ("Eramet") (EURONEXT PARIS:ERA) and Weda Bay Minerals Inc. ("Weda Bay") (TSX:WDA) announced today that the companies have jointly mailed offering documents, together with a Directors' Circular supporting Eramet's offer (the "Offer"), to the shareholders of Weda Bay in connection with Eramet's previously announced offer to acquire all of Weda Bay's outstanding common shares in a fully-financed, all-cash transaction for total consideration of approximately C$270 million, or C$2.70 per common share.

As described in the offering documents, the Offer holds attractive benefits for Weda Bay shareholders, including premiums of:

(i) 170% over the $1.00 price at which Weda Bay recently raised approximately $17.6 million in a private placement;

(ii) 37% over the 3-month volume weighted average price of the common shares immediately preceding the date of the announcement of the Offer; and

(iii) 12.5% to the closing price of the common shares on the TSX on March 14, 2006, the last trading day prior to the announcement of the Offer.

The Board of Directors and a Special Committee of independent directors of Weda Bay have both determined unanimously that the consideration under the Offer is fair to the holders of the common shares of Weda Bay. The Board and Special Committee have unanimously recommended that shareholders accept the Offer and deposit their common shares into the Offer. RBC Capital Markets, as financial advisor to Weda Bay, has advised the Special Committee and Board of Weda Bay that the consideration under the Offer is fair, from a financial point of view, to the shareholders of Weda Bay.

Certain large institutional shareholders of Weda Bay representing approximately 42 percent of the fully diluted shares outstanding, including Millennium Partners L.P., have agreed, under certain circumstances, to tender to the Offer.

The Offer is subject to customary conditions including the acceptance by holders of at least 75 percent of Weda Bay's common shares (on a fully diluted basis) and the receipt of necessary regulatory approvals.

The Offer will be open for acceptance until 11:59 p.m. EST on May 1, 2006, unless extended or withdrawn.

Shareholders may obtain a copy of the take-over bid circular, directors' circular and other materials (when available) at the SEDAR web site at or from Georgeson Shareholder Communications Canada Inc. at 1-866-776-9664.

Eramet is being advised by Merrill Lynch & Co. and Lette, Whittaker. Weda Bay is being advised by RBC Capital Markets and Fasken Martineau.

Note: Certain information contained in this press release is forward looking and is subject to unknown risk or uncertainties. Actual results, performance or achievements may differ materially from the anticipated results, performance or achievements or results implied by such forward-looking information. There can be no assurance that any transaction between Eramet and Weda Bay will occur, or will on the timetable contemplated hereby.

Weda Bay Minerals is an exploration and development company that controls the Halmahera Nickel Cobalt Project at Weda Bay, Halmahera in Eastern Indonesia. Halmahera is one of the largest undeveloped nickel projects globally.

Eramet is an integrated mining and metallurgy group that produces non-ferrous metals and their chemical derivatives, high-performance special steels, nickel alloys and superalloys and high-performance parts for industry. With its historical roots in nickel mines, which it has been operating for over a century in New Caledonia, Eramet actively pursues a policy of growing and broadening its business base. Focusing on the development of high value added materials, the Group has global positions in all three of its lines of business: high performance alloys & special steels, manganese and nickel.

Contact Information