Western Prospector Group Ltd.

Western Prospector Group Ltd.

August 17, 2007 16:29 ET

Western Prospector Receives Notice From Mongolian Mineral Resources Authority

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2007) - Western Prospector (TSX VENTURE:WNP) has received notice from the Mineral and Petroleum Resources Authority of Mongolia (the "Minerals Authority") that Exploration License 7685X, covering part of Western Prospector's Gurvanbulag uranium deposit at the Saddle Hills Project in Mongolia, has been cancelled, as some prior exploration work and reserve determination were funded by the State budget. Western Prospector understands that in this regard, the Minerals Authority has determined that in total, 34 minerals licenses issued to 18 legal entities may be cancelled.

Western Prospector is working closely with its legal counsel in Mongolia to assess the implications of the notice from the Minerals Authority and the legal rights of the Company. The Company intends to vigorously oppose this determination.

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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