Western Mines Group Ltd. provided update shareholders on the progress of diamond drill hole MTD023, at the flagship Mulga Tank Ni-Cu-PGE Project, on the Minigwal Greenstone Belt, in Western Australia's Eastern Goldfields, ahead of east coast roadshow this week. Hole MTD023 (EIS1) was designed to test the centre of the Mulga Tank Ultramafic Complex, drilling the inferred deepest part, in order to capture and characterise a complete cross-section of the intrusion. This is the first of two deep co-funded EIS holes to be drilled with the aid of WMG's EIS award.

To date, MTD023 has intersected a cumulative ~1,100m thickness of high MgO adcumulate dunite ultramafic across two sequences each >400m. These intervals possibly represent at least two major magmatic events. Both of these sequences were seen to be mineralised, with >550m containing disseminated magmatic sulphides (trace to 2%) that in a number of places coalesced into interstitial blebs (3 to 5% sulphide) and even approaching net textured (~10% sulphide).

The hole appears to validate WMG's lopolith (lenticular bowl) shaped geological model for the Mulga Tank Ultramafic Complex but mostly significantly it shows clear evidence for a very extensive magmatic nickel sulphide mineral system, with large volumes of mineralised ultramafic magma and a significant "footprint" across the Mulga Tank Complex. This result has very positive implications for the prospectivity of the project and confidence in ongoing exploration targeting. MULGA TANK PHASE 2 DIAMOND DRILLING PROGRAM WMG is currently undertaking a six-hole diamond drilling program, totaling 4,000-5,000m, to test a number of follow-up targets based on the results of the Company's first drilling program and ongoing exploration targeting work.

The targets and drill holes selected are based on a combination of geophysical modelling of recent DownHole Electromagnetic (DHEM) results and previous Moving Loop Electromagnetic (MLEM) results along with geological interpretation of the complex and geochemical vectoring work. The program includes two deep co-funded EIS holes to be drilled with the aid of WMG's EIS award. HOLE MTD023: Hole MTD023 (planned hole EIS1) is the second hole of the Phase 2 program and was designed to test the centre of the Mulga Tank Complex, drilling the inferred deepest part, in order to capture and characterise a complete cross-section of the intrusion.

This is the first of the two deep co-funded EIS holes. To date the hole has reached a depth of 1,240m and so far confirms WMG's geological modelling of a lopolith shape to the Mulga Tank dunite intrusion. The hole has intersected ~1,100m of variably serpentinised and talc- carbonate altered high MgO adcumulate to extreme adcumulate dunite ultramafic, beneath 56.5m of sand cover.

The dunite intersection is divided by an approximately ~44m thick basalt/dolerite unit (742.5-786.5m) that may represent a later dyke/sill, a xenolith or a horizon between two major magma emplacements. Disseminated magmatic sulphides (trace to 2%) were observed down the majority of the hole for >550m, starting from around 156m depth. In a number of places the disseminated sulphides coalesced into interstitial blebs (3 to 5% sulphide) between former olivine crystals and also approached net textured (~10% sulphide).

Both of the adcumulate dunite units were mineralised with the lower unit showing some of the richest sulphide intersections seen to date across the project. Similar disseminated sulphide mineralisation was observed in Phase 1 hole MTD020 and Phase 2 hole MTD022; recent mineralogical investigation work by the Company has shown the sulphide component of those holes to be dominated by relatively coarse pentlandite blebs. DOWN HOLE pXRF: The Company is methodically using a portable X-ray fluorescence (pXRF) device on site as part of its exploration and geochemical vectoring approach during the drilling program.

Spot pXRF readings for hole MTD023 have been taken at 50cm intervals down the core. This data is processed using WMG's in-house techniques and used to confirm the presence of working magmatic mineral processes and lithogeochemical vectors to aid further exploration and drill targeting. As at the date of this announcement 1,107m of core from MTD023 has been processed and this pXRF data is presented below.

In general the pXRF data confirms the rock to be high MgO, adcumulate to extreme adcumulate dunite down the length of the hole. The mean average Ni value across at total of 2,248 readings to date is 0.26% Ni, with individual spot values of up to 8.19% Ni where sulphide mineralisation was observed. A number of factors such as S, Cu and Ni content suggest the potential for a significant working nickel sulphide mineral system in this area with the second, lower section of dunite of particular interest with broad sections of high MgO, S, Cu and Ni results.

It is cautioned that spot pXRF readings may not be representative of the whole rock and only subsequent laboratory geochemical assay will determine widths and grade of mineralisation.