Western Areas Announces December 2015 Quarterly Activities Report - Seite 2

December Quarter 2015 Highlights:

1. There were ZERO lost time injuries for the quarter which continued the zero LTIFR achieved at the end of April. The Company has now operated for over 20 months without an LTI.
2. Flying Fox mine production was 76,163t of ore mined at 4.2% for 3,183 nickel tonnes (7.0M lbs).
3. Spotted Quoll mine production was a record at 81,318t of ore at 4.6% for 3,734 nickel tonnes (8.2M lbs).
4. Mill throughput was 152,435t of ore at an average grade of 4.6% nickel with recovery of 89.3% for 6,256 nickel tonnes. Half year mill production totals 12,507 nickel tonnes.
5. Unit cash cost of production of nickel in concentrate was A$2.24/lb, being a slight reduction on last quarter.
6. Consolidated cash at bank was A$29.9m.
7. Encouraging resource extension results at Flying Fox including 6.3m at 8.0% nickel in the T6 area of Flying Fox

The full activities report can be viewed at the Company's website www.westernareas.com.au

COMPETENT PERSON'S STATEMENT:

The information within this report as it relates to exploration results, mineral resources and ore reserves is based on information compiled by Mr Charles Wilkinson, Mr Andre Wulfse and Mr Dan Lougher of Western Areas Ltd. Mr Wilkinson, Mr Wulfse and Mr Lougher are members of AusIMM and are full time employees of the Company. Mr Wilkinson, Mr Wulfse and Mr Lougher have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.' Mr Wilkinson, Mr Wulfse and Mr Lougher consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.

FORWARD-LOOKING STATEMENT:

This release contains certain forward-looking statements including nickel production targets. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and expected costs.

This announcement does not include reference to all available information on the Company, the Forrestania Nickel Operation or the Cosmos Nickel Complex and should not be used in isolation as a basis to invest in Western Areas. Potential investors should refer to Western Areas' other public releases and statutory reports and consult their professional advisers before considering investing in the Company.

For Purposes of Clause 3.4 (e) in Canadian instrument 43-101, the Company warrants that Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

Dan Lougher
Managing Director
Western Areas Ltd
[phone]
[e-mail]

David Southam
Executive Director
Western Areas Ltd
[phone]
[e-mail]

Shane Murphy
FTI Consulting
[phone]/0420 945 291
[e-mail]
www.westernareas.com.au