Western Prospector Group Ltd.
TSX VENTURE : WNP

Western Prospector Group Ltd.

February 28, 2008 19:31 ET

Maximum Discontinues Litigation Against Western

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2008) - Western Prospector Group Ltd. ("Western") (TSX VENTURE:WNP) is pleased to report that Maximum Ventures Inc. ("Maximum") has agreed to discontinue its Statement of Claim against Western, initiated in the Supreme Court of British Columbia on March 2, 2006. The discontinuance will formally occur when Plaintiff's counsel signs a Notice of Discontinuance and it is filed with the Court.

Maximum's Statement of Claim sought a declaration that Western held all Mongolian properties acquired from Mr. Kenneth de Graaf, or his companies, in trust for Maximum. The trust declaration sought by Maximum related to certain of Western's material Mongolian properties including a portion of the company's Saddle Hills uranium interests.

Western and its co-defendants are now entitled to reimbursement of a portion of their legal costs in an amount to be determined by the court. This reimbursement will include $242,000 that Maximum placed in a trust account for such costs, with additional payment subject to court review.

In discontinuing its case, attorneys for Maximum have threatened to initiate a new action against Western and other defendants suggesting that Maximum held a right of first refusal on certain Mongolian properties acquired from Mr. de Graaf or his companies. Acknowledging that no such action has been filed, Western believes that the potential allegations against it are without merit.

It is Western's understanding that the discontinuance by Maximum does not affect the action initiated by Anchorage Capital Master Offshore Ltd. ("Anchorage"), a major shareholder of Western, in the Supreme Court of British Columbia (see press release March 6, 2007). Anchorage seeks general and punitive damages for allegations of Maximum's failure to disclose under the securities legislation and breaches of the Competition Act.

Eric Bohren, President and CEO

Note Regarding Forward-Looking Statements

This press release and other written or oral communication from the Company may include certain statements that may be considered "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Statements other than historical facts, that address possible future events, plans or developments are forward-looking statements. Such statements may be identified by the use of words such as "will", ""may", "expects", "estimate", "intend" or the use of the future or conditional tense. Certain material factors or assumptions were applied in drawing our conclusions and making those forward-looking statements. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements.

Risks and uncertainties that could cause actual results to differ materially from those in our forward-looking statements include, among other things, the fact that we are a mineral exploration and development company which activity involves an inherent degree of risk and may not result in our developing a body of commercial ore; the long time horizons involved in the mineral exploration and development projects; risks associated with operating and holding mineral interests in other countries, particularly Mongolia; the outcome of litigation which may be commenced against the Company and others in the Supreme Court of British Columbia, in which the potential plaintiff, Maximum Ventures, Inc. may seek, among other things, a declaration that Maximum held a right of first refusal on certain of the Company's material Mongolian properties, including a portion of the Saddle Hills uranium interests; the numerous operating hazards and liabilities, including possible environmental liabilities, inherent in mineral exploration and development; significant costs and capital requirements; risks associated with securing and maintaining title to properties or enforcing agreements with other third parties; the need for significant and continued availability of capital and financing; commodity prices; general economic, market or business conditions; and, governmental policies and legislation.

These forward-looking statements are based on certain material factors and assumptions, including general business and economic conditions; the terms and conditions governing our exploration and development programs; the ability of third-party services providers to deliver products or services in a timely manner; and, the reliability of information provided to the Company by third parties, among others. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this release are given as of the date hereof. Readers are cautioned not to place undue reliance on these forward looking statements as there can be no assurance that the conditions, events, plans or assumptions on which they are based will occur. Readers should perform their own detailed, independent investigation and analysis of the Company before making any investment decision and are encouraged to seek independent professional advice. All of the forward-looking statements in this document are expressly qualified by the above.

This news release may use the terms "inferred resources", "indicated resources", "mineral resources" and "resources". Western advises investors that although these terms are recognized and required by Canadian securities regulations (under National Instrument 43-101 "Standards of Disclosure for Mineral Projects"), the US Securities and Exchange Commission does not recognize these terms. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. This News Release may use the terms "preliminary economic assessment" and "preliminary assessment report". Western Prospector cautions investors and readers that this assessment is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

Readers are cautioned that the above list is not exhaustive and that risks may change or new risks may emerge. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com and available on the Company's website at www.westernprospector.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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