Western Prospector Group Ltd.

Western Prospector Group Ltd.

June 17, 2008 16:11 ET

Western Prospector Reaffirms Its Position That Shareholders Should Reject Khan Resources' Inadequate Hostile Bid

Bid to Expire June 20

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2008) - Western Prospector Group Ltd. (TSX VENTURE:WNP) ("Western") today reaffirmed its advisory to shareholders to reject the inadequate hostile takeover bid from Khan Resources Inc., which expires on June 20, 2008.

The Khan bid offers 0.685 of a Khan common share for each Western share, with no cash component. Western's Board of Directors has unanimously determined the bid is inadequate. A Director's Circular filed to SEDAR on May 27, 2008, stated the Khan offer significantly undervalues the company.

"The Board is still actively pursuing other strategic alternatives with several different third parties to increase shareholder value," said Gordon Pridham, Chairman of the Special Committee.

On May 28, 2008, investment fund Anchorage Capital Master Offshore, Ltd. announced it will continue to support Western and will not tender to the Khan bid. The New York-based fund holds 18.9% of Western's outstanding common shares.

Western shareholders are not required to do anything in order to reject the bid; all that is required is to simply abstain from tendering to the offer.

"With the expiry approaching, we believe our shareholders recognize that Khan needs Western much more than Western needs Khan," said Eric Bohren, President and CEO.

"We have demonstrated our ability to advance the Gurvanbulag project toward a production decision, and we intend to grow shareholder value along with it," added Mr. Bohren. "Our strategic partnering program is to be in place by the end of the year, and the feasibility study for our Gurvanbulag uranium project in Mongolia is planned for completion in the third quarter, both of which will be key technical and valuation milestones for Western."

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. Readers are cautioned 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 Company undertakes no obligation to update this forward-looking information except as required by applicable law.

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

Contact Information