Western Prospector Group Ltd.
TSX VENTURE : WNP
OTC Bulletin Board : WEPGF

Western Prospector Group Ltd.

October 11, 2005 16:04 ET

Western Prospector Group Ltd.: Private Placement of Common Shares

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2005) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH THE FACILITIES OF A U.S. NEWSWIRE SERVICE

Western Prospector Group Ltd. (the "Company") (TSX VENTURE:WNP)(OTCBB:WEPGF) has entered into an agreement with a syndicate of underwriters led by National Bank Financial and Haywood Securities Inc. for a private placement offering on a "bought deal" basis of 4.0 million common shares at a price of C$5.20 per share to raise gross proceeds of approximately C$21 million. The co-Lead Underwriters will have the option to increase the offering by up to 500,000 shares. Closing of the offering is expected to occur on or about October 31, 2005. All securities issued will be subject to a mandatory 4-month hold period from the date of closing.

The proceeds of the offering will be used to accelerate the exploration program at the Company's Saddle Hills Uranium Project in the Dornod Province of Mongolia, and for other general exploration and development costs at Saddle Hills.

The Underwriters will receive a cash commission equal to 6% of the gross proceeds of the Offering. In addition, the Company has agreed to issue the Underwriters at closing, broker warrants entitling the Underwriters, for a period of 12 months from the closing date, to acquire that number of Common Shares of the Company that is equal to 5% of the number of Common Shares sold under the Offering, at a price of C$5.20 per share.

Focused on the Saddle Hills Uranium Project, Western Prospector is an advanced-stage uranium exploration company. Located in Mongolia, in a region of established infrastructure, the 1,000 square kilometer Saddle Hills Uranium project is unique in that one of its uranium deposits, the Gurvanbulag, was previously readied for production. Opportunity exists for further discovery with additional uranium targets identified by the past drilling data and a recently completed airborne radiometric survey.

John S. Brock, President

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.

The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from targeted results. The Company relies upon litigation protection for forward looking statements.

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

Contact Information

  • Badger and Co.
    Blaine Monaghan
    Manager, Investor Relations
    604-687-4951 or toll free 1-800-403-2988
    ir@badgerandco.com