IMAGE RESOURCES NL - Capital/Financing Update 2003

Level 1, 11 Ventnor Avenue, West Perth, WESTERN AUSTRALIA, 6005 Ph: (08) 9486 7855 Fax: (08) 9486 7866

ASX Release Western Areas NL Website: www.westernareas.com.aii Email: [email protected]

ASX Code: WSA 28 November 2003

NEW NICKEL JOINT VENTURE - WINDARRA NORTH

The board is pleased to announce that agreement has been reached with Image Resources NL which enables Western Areas to earn a 60% joint venture interest in five exploration licence applications located northwest along strike from WMC's Windarra nickel mines near Laverton in Western Australia.

This agreement is consistent with Western Area's strategy of building significant exploration holdings in established nickel sulphide provinces. The planned exploration at Windarra North is not expected to detract from Western Area's activities at Forrestania where the focus is to bring the project into early production.

Based on magnetic and gravity data, Image has interpreted three areas that may represent extensions to the prospective Mount Windarra, South Windarra and Woodline Well ultramafic sequences, below alluvial cover. There is little evidence of previous effective nickel exploration on the Windarra North tenements.

WMC mined 7 million tonnes at 1.6% nickel (containing approximately 113,000 tonnes of nickel) at the Mount Windarra and South Windarra mines between 1973 and 1989. This production, as well as the nearby Woodline Well nickel occurrence, confirms the high prospectivity of the ultramafic sequences in this area.

Under the terms of the agreement Western Areas can earn a 60% interest in the tenements by expenditure of \$2 million within four years from the date of granting of at least three of the five tenement applications. Western Areas will also make staged cash payments totalling \$60,000 relating to the granting of the tenements and must spend \$200,000 on exploration before being able to withdraw from the agreement. The JV partners will work to have the tenements granted as soon as possible to enable drilling to proceed.