Western Prospector Group Ltd.

Western Prospector Group Ltd.

December 17, 2008 18:00 ET

Western Announces Upgraded Resource Estimate for Gurvanbulag

Increased Resources To Be Incorporated Into Definitive Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2008) - Western Prospector Group Ltd. (TSX VENTURE:WNP) is pleased to announce an upgraded resource estimate for its Gurvanbulag uranium project in Northeast Mongolia. This revised estimate will be incorporated into Western's Definitive Feasibility Study, due for completion later this month.

Field work to obtain the revised data involved dewatering the Gurvanbulag underground workings, followed by underground mapping, sampling and radiometrically logging underground percussion holes plus additional surface drilling. As a result, Western has upgraded much of its Indicated and Inferred Resources to Measured and Indicated Resources. Total resources have increased as well. The new resource estimate, using a cut-off grade of 0.08% U3O8, is set out in Figure 1 below.

Figure 1 -- Mineral Resources for the Gurvanbulag Central Zone, at a cut-off grade of 0.08% U3O8

Hanging Footwall Totals
Wall Zone Both
Zone Zones
Resources Tonnes %U3O8 Tonnes %U3O8 Tonnes %U3O8 Lbs U3O8
(1)(2) (millions)
Measured 224,000 0.194 550,000 0.261 774,000 0.242 4.1
Indicated 1,316,000 0.174 2,194,000 0.180 3,510,000 0.178 13.8
Measured &
Indicated 1,540,000 0.177 2,744,000 0.196 4,284,000 0.189 17.9
Inferred 233,000 0.135 562,000 0.122 795,000 0.126 2.2

(1) Mineral resources that are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, taxation,
sociopolitical, marketing or other relevant issues.

(2) The quantity and grade of reported inferred resources in this estimation
are uncertain in nature and there has been insufficient exploration to
define these inferred resources as an indicated or measured mineral
resource and it is uncertain if further exploration will result in
upgrading them to an indicated or measured mineral resource category.

The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines, as prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

This updated mineral resource estimate was undertaken by Independent Qualified Persons, Eugene Puritch, P.Eng., Antoine Yassa, P.Geo. and Tracy Armstong, P.Geo. of P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario.

The resources estimated by P&E are limited to the area of resources previously estimated by SRK Consulting (Canada) Inc. and do not extend into areas where additional historic resources exist as calculated by the former Soviet project operators. The increase in both quantity and quality of the resource estimate is due to the additional sampling and geological mapping that has been accomplished in more than a year of underground work as well as additional surface drilling. The very detailed sampling available from radiometrically logged underground percussion holes has contributed to the quantity of estimated Measured Resources.

The resources extend from surface to a depth of 500 metres and do not extend into areas where additional historic resources exist as calculated by the former Soviet workers. The deposit is open down dip. There are a few Soviet surface holes that demonstrate the down dip extension of the zone as deep as 800 metres. In order to obtain sufficient additional data at depth to enable a resource estimate, Western envisages exploring the down dip extension from underground workings to be established after the deposit goes into production.

The estimate forms the basis for the ongoing Feasibility Study being led by Aker Metals, with contributions from P&E, Melis Engineering, SGS Lakefield Research, Golder Associates, all of Canada; Redpath Mongolia (the mining contractor on site), Avarga zam LLC and EcoTrade LLC of Mongolia and "Sibteplomontaj" JSC of Russia.

Gerald Harper, PhD, P.Geo, Senior Vice President Mongolian Operations of Western Prospector Group Ltd. is a qualified person as defined under NI 43-101 and has reviewed the technical information presented in this news release.

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 news release.

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