Western Areas NL
TSX : WSA
ASX : WSA

Western Areas NL

November 21, 2006 16:16 ET

Western Areas NL Announces C$20 Million Equity Financing in North America

TORONTO, ONTARIO--(CCNMatthews - Nov. 21, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Western Areas NL (the "Company")(TSX:WSA)(ASX:WSA) is pleased to announce that it has entered into an agreement with Sprott Securities Inc. and BMO Capital Markets (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase from the Company 6,666,667 Units at a price of C$3.00 per Unit on an underwritten private placement basis (the "Offering") for a total of C$20 million. Each Unit shall consist of one ordinary share and one-quarter of a share purchase warrant. Each whole share purchase warrant shall entitle the warrant holder to acquire one additional ordinary share at an exercise price of C$4.00 for a period of 36 months following the closing of the Offering.

The Underwriters shall also have the option to purchase up to an additional 1,333,333 Units at the same issue price of C$3.00 per Unit on the closing date of the Offering for an additional C$4 million. The Offering is scheduled to close on or about December 7, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX.

The net proceeds of the Offering will be used to contribute to the financing of the Flying Fox mine expansion, for projects and corporate acquisitions, to assist in restructuring Western Areas nickel hedge position, to increase exploration drilling at the Forrestania nickel project as well as for general corporate purposes.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

About Western Areas

Western Areas is an Australian based nickel sulphide explorer and producer. The company has a current market capitalisation of approximately A$570 million. Western Areas is one of only two nickel companies listed on both the Australian and Toronto Stock Exchanges. (TSX:WSA)(ASX:WSA)

The company's core asset is the 100% owned Forrestania Nickel Project, located 400km east of Perth, Western Australia. The primary discovery in the Forrestania Nickel Project, Flying Fox, is one of the highest grade nickel mines in the world.

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