Western Prospector Group Ltd.

Western Prospector Group Ltd.

September 11, 2007 14:30 ET

Western Prospector Group Ltd.: No Risk of "Revocation" of Exploration Licenses in Mongolia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 11, 2007) - Western Prospector Group Ltd. ("Western Prospector") (TSX VENTURE:WNP) today received a statement issued by the Mineral Resources and Petroleum Authority of Mongolia ("MRPAM").

Luvsanvandan Bold, Chairman of MRPAM reported that the August 14, 2007 notice of revocation was an "unlawful revision of these licenses", that no licenses had been invalidated by him in his capacity as Chairman of MRPAM, and that on-going investment in Mongolia was welcome.

Western Prospector reported on August 17th and August 21st, 2007, that notices of revocation from MRPAM had been received covering a portion of the Gurvanbulag uranium deposit and several satellite deposits (licenses 7685X and 3367X). Gurvanbulag is one of several uranium deposits held within Western Prospector's Saddle Hills Uranium project in northeast Mongolia.

The statement from Chairman Luvsanvandan Bold, reprinted in its entirety, follows.


September 10, 2007

Welcoming the active and valuable inputs from different stakeholders in the mining industry and some foreign countries' representatives in the past few days, I would like to take this opportunity to officially address the recent issue concerning some mineral exploration licenses.

Expressing my sincere thanks for your keen attention and interest in mining sector's development of Mongolia let me give you the following explanations:

It is obvious that the notice of August 14, 2007 given by MRPAM Cadastral Centre to 18 international and national companies about invalidation of their exploration licenses has caused a serious concern among them as well as other investors.

The notice was given following the recommendations of the State Audit Board, which discovered that the area covered by the 34 licenses out of more than six thousand currently effective licenses, had been explored by state budget in the past and according to law, passed by Parliament on July 8, 2006, the exploration licenses had to be revoked, because they were covering mineral deposits ready for mining development.

In this connection, I would like to emphasize that if the concerned license holders change them into exploitation or pre-exploitation or production licenses in accordance with the Minerals Law they are most welcome. Important is to accept the legal framework that companies can not anymore continue possessing exploration licenses in areas where exploration has finalized long ago and instead they are obliged to move on to develop the deposits. They have absolutely no risk to loose their rights, if they fulfill the legal requirements.

To let you know, so far not a single license out of the 34 has been invalidated by me, because Mongolian Government has no hidden agenda to take away these licenses. So let me assure you that the MRPAM is fully committed to strictly following the Minerals Law, which protects interests of both foreign and domestic investors. As a matter of fact every mining operation conducted according to the law is running with no disruption. For example, one of the largest mining projects with foreign investment Boroo Gold has been enjoying excellent advantages thanks to the stability agreement and has extracted in its operation years total of 26 tons of gold (not including the 2007 production), while paying no income taxes. I am very confident that Ivanhoe Mines' Oyu Tolgoi Investment Agreement, which has been recently approved by the Government, will pass the Parliament soon.

I greatly encourage the international and national companies to continue their oil and gas exploration projects and programmes. Petroleum exploration has become another great investment opportunity in Mongolian resources sector. Mining policy of Mongolia as well as our international standard licensing system will not be changed, because it is a cornerstone of our national development and prosperity.

So finally, there is no need to worry about the unlawful revision of these licenses. Let us cooperate and continue our business as usual.

Thank you,

Luvsanvandan Bold, Chairman

Mineral Resources and Petroleum Authority of Mongolia"

In connection with applications made earlier, Western Prospector expects that MRPAM will now expedite the conversion of some of its exploration licenses to mining licenses.

Western Prospector continues with exploration leading to feasibility studies at its Saddle Hills Uranium Project, and expects to release the results of a preliminary economic assessment progress report within the next few weeks.

John S. Brock, President and CEO

Forward-Looking Information:

This release includes certain statements that may be considered "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Such statements are identified in this release by the use of words such as "will" and "expects" and "may" as well as the use of the future or conditional tense. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing and general economic, market or business conditions, and government policies and legislation. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. These statements are based on a number of assumptions, including assumptions regarding general business and economic transactions and exploration and development programs on reasonable terms, the ability of third-party services providers to deliver services in a timely manner, and the reliability of information provided to the Company by third parties. 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.


In the news release of March 3, 2006, the Company advised that a lawsuit naming it as a defendant has been commenced in the Supreme Court of British Columbia, in which the plaintiff, Maximum Ventures, Inc., is seeking, among other things, a declaration that the Company holds certain of its material Mongolian properties, including a portion of the Saddle Hills Uranium interests, in trust for Maximum. The Company is of the view that Maximum's allegations against it are without foundation or merit and, as previously noted will vigorously defend the action and take all appropriate steps to protect its interests. In this regard a trial date has been set for February 25, 2008. Additional information on this issue is available at the Company's website at www.westernprospector.com.

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

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