Western Prospector Group Ltd.

Western Prospector Group Ltd.

June 12, 2008 06:00 ET

Western Readies Bayanbulag Coal Deposit for Production

Regulatory Filing Advances Near-term Production Strategy

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2008) - Western Prospector Group Ltd. (TSX VENTURE:WNP) ("Western") reports it has filed an independent resource report with the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) for its Bayanbulag coal deposit.

The report, which conforms to Mongolian reporting standards, was required for regulatory purposes. It represents another important milestone for Western's near-term production strategy for the planned Gurvanbulag uranium mine.

The report, prepared by Enkhbayar B. and Byambaa S., identifies brown or thermal coal in a horizontal, near-surface seam suitable for open pit mining. Bayanbulag is located adjacent to a regional highway, 27 kilometres northwest of Choibalsan, which is the regional capital of Dornod province.

Western acquired the Bayanbulag deposit in 2007 with the intent to mine the coal as a fuel source for its Gurvanbulag uranium mine development, which will need heating for mine air and surface buildings. Since then, several regional third parties indicated interest in purchasing coal from Western for their own needs. As a result, Western is developing a mining plan to serve the dual purpose of its own needs as well as possible sales to other customers.

Bayanbulag's coal resources were initially drill sampled by Soviet workers in 1951-52. In 2007 Western drilled an additional 12 holes to prepare for the current resource report. The deposits that are the subject of the report lie within an approved Mining License with the balance extending onto the adjacent Exploration License. Western owns 100% of each license. The deposit is open to the west and southwest. The coal is within a single continuous flat-lying seam ranging in thickness to more than 25 metres with the upper contact ranging from 2 to 25 metres below surface (see attached section). A small portion of the top of the coal seam has been exposed in a test pit.

"Advancement of our Bayanbulag coal deposit supports Western's near-term production strategy, and further underscores the scale of our production-ready infrastructure," said Eric Bohren, President and CEO. The infrastructure includes a 10 MW power line, a 200-person camp and a cellular phone connection to the national network. Western has also created Mongolian-national training programs and scholarships. Western has spent over $71 million to date in project exploration, development and infrastructure investments.

The report was not prepared in accordance with NI 43-101 (Standards for Disclosure for Mineral Properties) and therefore should not be relied upon. It has been prepared in accordance with Mongolian standards, which are the only standards acceptable to the Mongolian State Mineral Reserve Committee ("MSMRC"). The MSMRC must approve all resources prior to any applications for mining and must approve Mining Licenses and mining plans before production can be initiated.

To view the accompanying map please visit the following link: http://media3.marketwire.com/docs/wnpmap612.pdf

Gerald Harper, PhD, P.Geo, Senior Vice President Mongolian Operations of Western Prospector Group Ltd. is a qualified person as defined under NI 43-101 and has reviewed the technical information in this news release.

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.

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