WESTERN AREAS NL 1

March 2010Mining and developing high grade, low cost, long life nickel mines

WESTERN AREAS NL

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The information contained in this presentation has been prepared by Western Areas NL. No representation or warranty, express or implied, is or will be made in or in relation to, and no responsibility or liability is or will be accepted by Western Areas NL, employees or representatives as to the accuracy or completeness of this information or any other written or oral information made available to any interested party or its advisers and any liability therefore is hereby expressly disclaimed.No party has any obligation to notify opinion changes or if it becomes aware of any inaccuracy in or omission from this presentation. All opinions and projections expressed in this presentation are given as of this date and are subject to change without notice.

This document contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause the performance or achievements of Western Areas NL to differ materially from the information set forth herein, although such information reflects forecasts and projections prepared in good faith based upon methods and data that are believed to be reasonable and accurate as at the dates thereof and although all reasonable care has been taken to ensure that the facts stated herein are accurate and that the forward-looking statements, opinions and expectations contained herein are based on fair and reasonable assumptions. Western Areas NL undertakes no obligation to revise these forward-looking statements to reflect subsequent events or circumstances. Individuals should not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determination with respect to the forecasted periods, which reflect Western Areas NL’s view only as of the date hereof.

The information within this PowerPoint presentation was compiled by Mr. Julian Hanna and the information as it relates to mineral resources and reserves was prepared by Mr. Dan Lougher and Mr. John Haywood. Mr. Hanna, Mr. Lougher and Mr. Haywood are full time employees of Western Areas. Mr. Hanna, Mr. Lougher and Mr. Haywood are members of AusIMM and 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Hanna, Mr. Lougher and Mr. Haywood consent to the inclusion in this presentation of the matters based on the information in the form and context in which it appears.

DISCLAIMER AND FORWARD LOOKING STATEMENT

THIS DOCUMENT IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

OR FOR DISSEMINATION IN THE U.S.

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PRODUCTION

1. Double production to target 20,000tpa (44Mlb pa) nickel2. Major ramp up (tonnes and grade) starts June Q 20103. Maintain cash cost <US$2.50/lb

DEVELOPMENT

1. Double capacity of processing plant by 30 June2. Feasibility study for new 10 year underground mine3. Complete major capital spend to sustain 25,000tpa nickel

GROWTH

1. Extend mineral resources / ore reserves. Target >10 years2. Discover next Flying Fox type deposit at Forrestania3. New nickel discovery at Sandstone Project announced 8th March

OTHER

1. Secure major offtake + funding partner for Finland projects2. Commence nickel sales to Jinchuan in China

WESTERN AREAS – 2010 GOALS

BOARDTerry Streeter Chairman and 16.6% shareholderJulian Hanna Managing Director and CEOCraig Oliver Finance Director and Company SecretaryDaniel Lougher Operations DirectorDavid Cooper Independent DirectorRobin Dunbar Independent Director, Toronto basedRick Yeates Independent Director

Western Areas – Corporate

ASX & TSX LISTED - ASX 200

ISSUED CAPITAL: 179M shares, 11M options

MARKET CAPITAL: A$860M @ A$4.80/share

WEBSITE: www.westernareas.com.au

FINANCIAL

CASH (31 Dec 2009): A$90.7M plus ~A$28.4M Receivables & Working Capital

FINANCE FACILITIES: A$80M (drawn to A$60M) ANZA$45M BHP Billiton

CONVERTIBLE BOND: A$209M - 8% coupon - converts $8.16 - July 2012

NET DEBT: A$200M

EXPLORATION: A$13M Budget in CY2010

DIVIDEND POLICY: 50% net profit after tax

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WESTERN AREAS – Core Assets

1. Flying Fox and Spotted Quoll Mines – 100%. Two highest grade nickel mines in world, based on ore reserves. Target sustained 25,000 tpa (55M lbs) by 2011, low cash cost (US$2.00 – 2.50/lb Ni). Major established infrastructure.

2. Regional Nickel Projects – Dominant position in 500km nickel province in Australia. 6 projects in joint ventures earning up to 70%. 4 recent nickel discoveries.

Finland Nickel/Copper/Zinc Project – Earning 75% in JV with dominant position in 180km long metal province in Finland. Target to define and develop large deposits similar to Talvivaara mine. Minimum target 20,000 tpa (44M lbs) Ni production.

• Offtake – agreements with two nickel smelters, BHP Billiton and Jinchuan Group

• Growth Strategy – to become Australia’s 2nd largest and lowest cost nickel producer 5

1. 12 months production to Dec 09:2. 244,000t @ 3.8% Ni for 9,190t Ni (20.2M lbs Ni)

3. Higher cash cost in Dec Q 09 the result of completion of major development of T4 ore body

4. Rapid ramp up of production from Flying Fox and new Spotted Quoll mine to start June Q 10

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PRODUCTION AND CASH COSTS

Production Statistics - Flying Fox

Mar Qtr Jun Qtr Sep Qtr Dec QtrRolling 12 MonthTotal

Flying Fox - Ore Tonnes Mined Tn's 77,501 59,098 54,150 53,618 244,367 Ni % 3.7% 4.3% 3.7% 3.3% 3.8%

Ni Tonnes Mined Tn's 2,833 2,570 2,015 1,776 9,193

Flying Fox - Ni Tonnes Produced

Total Ore Processed Tns 58,802 62,447 60,064 64,985 246,298 Ni % % 3.5% 4.4% 3.8% 3.1% 3.7%Ave. Recovery % 87% 90% 91% 88% 89%

Ni Tonnes in Concentrate Tns 1,805 2,435 2,066 1,791 8,097

Ni Tonnes in Concentrate Sold Tns 888 2,783 3,091 6,762

StockpilesConcentrate Tns 11,070 1,382 Grade % 15.1% 13.2%

Ore Tns 28,823 17,456 Grade % 2.9% 3.4%

Contained Ni in Stockpiles Tns 2,517 773

Financial Statistics - Flying FoxMar Qtr Jun Qtr Sep Qtr Dec Qtr Total

Group Production Cost/lbMining Cost (*) A$/lb 1.92 2.02 1.76 3.30 2.21 Haulage A$/lb 0.26 0.11 0.12 0.14 0.15 Milling A$/lb 0.52 0.54 0.77 0.96 0.69 Admin A$/lb 0.25 0.15 0.22 0.16 0.19 By Product Credits A$/lb (0.02) (0.01) (0.12) (0.21) (0.08) Cash Cost Ni in Con (***) A$/lb 2.93 2.81 2.74 4.34 3.16 Cash Cost Ni in Con/lb (***) US$/lb (**) 1.98 2.14 2.29 3.95 2.54Exchange Rate US$ / A$ 0.68 0.76 0.83 0.91 0.81

Note. Grade and recovery estimates are subject to change until the final assay data is received in accordance with the Offtake agreements.

(*) Mining Costs are net of deferred waste costs and inventory stockpile movements(**) US$ FX for Relevant Quarter is RBA ave daily rate (Dec Qtr = A$1:US$0.9107)(***) Payable terms are not disclosed due to confidentiality conditions of the offtake agreements. Cash costs exclude royalties.

GRADE RANGE 3-5% NICKEL

• Target Production – >25,000 tpa Nickel from 2 main mines. 3 other potential mines

• Cash Flow – Maximise value from Flying Fox and Spotted Quoll mines

• Growth Strategy – Fund growth without impacting profits from core assets

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FORRESTANIA – Targets and Growth Strategy

Note: production target graph represents WSA targets based on an estimate of annual nickel production from Flying Fox, initial potential production estimates from Lounge Lizard and preliminary estimates from Spotted Quoll. Production targets are not all based on ore reserves or completed feasibility studies and may be varied at any time. Potential or existing investors should not rely on these production targets as a basis to invest in Western Areas NL.

25,000t Ni

35,000t Ni 7 Year Mine Production Targets

8.2% Ni

7.4% Ni

8.8% Ni

9.2% Ni

7.9% Ni

8.2% Ni

7.4% Ni

8.8% Ni

9.2% Ni

7.9% Ni

Growth by Exploration

High priority to discover another Flying Fox or

Spotted Quoll type deposit

CENTRAL YILGARN NICKEL PROVINCE – Western AustraliaWestern Areas dominates nickel 500km long nickel province

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100% OWNED FORRESTANIA NICKEL PROJECT

• Deposit Type – high grade massive sulphides underlying granite intrusions

• Mineral Resources – rapid growth in Mineral Resources & Ore Reserves

• Flying Fox Mine – 95% conversion from Mineral Resources to Ore Reserves

• Target – >1.0Mt nickel in Mineral Resources at Forrestania Nickel Project

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FORRESTANIA – potential to develop into a “world class” nickel camp

Note: The above graph shows current announced Mineral Resources for the Flying Fox, Spotted Quoll, Diggers South, New Morning and Cosmic Boy deposits it also includes Kagara’s Ltd’s announced Mineral Resource for the Lounge Lizard deposit.This excludes low grade Mineral Resources at Flying Fox and Lounge Lizard.

400,000t Ni

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WSA Ore ReservesAustralian Nickel DepositsGlobal Nickel Deposits

Note: Flying Fox and Spotted Quoll open pit are ore reserve grades. Spotted Quoll underground and Diggers South are based on scoping studies and feasibility studies and New Morning and Cosmic Boy are estimates of underground mining grades.

Global Nickel Ore Reserve Grades

Current high quality Mineral Resources

FORRESTANIA NICKEL PROJECT – WESTERN NICKEL BELTTwo high grade mines - excellent potential for more discoveries.

10New Morning

Drilling in progress to extend Mineral Resources

T1/T2 Deposit – in production1,300 t nickel in high grade (3.5% Ni) Ore Reserves

T4 Deposit – in production11,730 t nickel in high grade (3.9% Ni) Ore Reserves

Lounge Lizard – first ore Dec 09, drilling in progress53,100 t nickel in high grade (4.6% Ni) Mineral Resources

T5 Deposit – first production January 2010.( intersection: 78m @ 9.3% Ni in ore reserve )66,370 t nickel in high grade (6.6% Ni) Mineral Resources58,820 t nickel in high grade (5.6% Ni) Ore Reserves

T6/T7 – Mineral Resource drilling required

Excellent potential for extensions north & below deposit

Flying Fox Mine – longitudinal projection (1st mine)

Five high grade nickel deposits to 1400m depth.

Mine decline currently at 940m vertical depth

Mineral Resources 2.5Mt @ 5.5% Ni for 140,000t Ni(Flying Fox plus Lounge Lizard)

Ore Reserves increase at depth from 3.9% to 5.6% nickel

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Flying Fox – grade distribution of T4, T5, T6 and T7

12• High Grade Core - >5% Ni zones extend over 500m vertical extent

• Geometry – structure of high grade ore shoots now apparent

• Potential Extensions – North of T5, T6, T7 still to be drilled

• Depth Extensions – Open at depth. T7 rotated 45 degrees and moved northwards below fault

NEW INTERPRETATION

OPEN

OPEN

Flying Fox – continuous high grades to 1400m depth

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- 400m

- 200m

- 600m

- 800m

-1400m

- 1200m

LEWINSKI LODE

TOP OF T5 DEPOSIT

First massive sulphide ore (8% Ni) exposed in

30m wide crosscut.

Stoping starts April 2010

PROBABLE ORE RESERVE – OPEN PIT MINE390,000 @ 5.1% Ni containing 19,900t Nickel

Estimated cash cost : US$2.00/lb Ni------------------------------------------------------

CURRENT MINERAL RESOURCE2Mt @ 6.2% Ni for 125,460t Nickel (to 640m depth)

Target: >150,000 tonnes nickel

FEASIBILITY STUDY FOR MAJOR UNDERGROUND MINE

Target 10 years mine life up to 10,000tpa nickel

DRILLING REQUIRED FOR EXTENSIONS

High grade nickel intersected in widely spaced Drill holes. Best intersection 3.5m @ 6.5% Ni

Potential remains open along strike and at depth

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Spotted Quoll Mine – longitudinal projection (2nd mine)

Spotted Quoll – continuous high grade Nickel to 600m.New high grade zone discovered 400m below resource

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Initial design for U/G mineOre Reserve and Feasibility due

before June 2010

Western Spotted Quoll at Forrestania. Western Areas funds

research of this rare marsupial

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Spotted Quoll Mine, Stage One open pit

FIRST HIGH GRADE PRODUCTION FROM OPEN PIT - expected April 2010

Weathered granite (white) overlying

mineralised ultramafic/sediment sequence

Cosmic Boy – (proposed 3rd mine)

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Portal exposed for new development - 2009

Outokumpu Mine 1994

COSMIC BOY – first ore expected from South End deposit, to be accessed from existing mine decline.

Large nickel system, open at depth

MINERAL RESOURCE - CORE ZONE ONLY

Indicated Mineral Resource3.0Mt @ 1.5% Ni for 44,700t Ni

Drilling required to extend resource to south.Diggers South part of an 8km long nickel system

Diggers South – (proposed 4th mine)

SURFACE SITE WORKS COMPLETE

Intention to use existing Outokumpu mine infrastructure to access Core Zone at 200m depth

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Forrestania – major infrastructure complete

ACCOMMODATION VILLAGE

490 rooms with all amenities

INFRASTRUCTURE

Major roads, airstrip, grid power, village, offices

Plant: 10 years tailings storage, bore fields etc

STAFF AND CONTRACTORS

Experienced & highly skilled mining workforce

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AWARD WINNING GEOLOGICAL TEAM Forrestania core yard

Cosmic Boy nickel concentrator – Stage One upgrading to Stage Two

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DOUBLING CAPACITY OF THE CONCENTRATOR TO 550,000tpa

ORE

EXPECT UPGRADE TO BE FULLY COMMISSIONED JUNE 2010

2010 and 201125,000t Ni total

WESTERN AREAS – offtake agreements

JINCHUAN SMELTER

GANSU, CHINA

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BHP BILLITON SMELTER

KALGOORLIE

2009 onwards10,000tpa Ni

2012 onwards 12,000tpa Ni

NEW NICKEL DISCOVERY ANNOUNCED 8TH MARCH 2010SANDSTONE JOINT VENTURE: 400km north of Forrestania.

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• 30m intersection of disseminated, stringer and vein sulphides in second drill hole

• Preliminary grade estimates range from 1.0% to 9.5% nickel. Assays awaited.

• Drilling has commenced to test potential for major new “Nickel Camp” over wide area

NICKEL PRICE – strong recovery past 12 months

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$4 FLOOR

$10 CAP

5 YEAR SPOT NICKEL 1 YEAR SPOT NICKEL

5 YEAR LME STOCKS

AUSTRALIA CANADA CHINA RUSSIA FINLAND BRAZIL AFRICA 2 nickel camps 4 nickel camps 1 nickel camp 2 nickel camps

BHP BILLITON VALE INCO JINCHUAN NORILSK NORILSK VOTORANTIM BCL

XSTRATA JILIN JIEN

1 smelter 4 smelters 3 smelters 4 smelters 1 smelter 1 smelter 1 smelter

Western Areas FNX Talvivaara * Mirabela * Norilsk

IndependenceMustang * Xstrata

MincorCrow Flight *

Panoramic Liberty *Victory *

C. Royalties *

Xstrata

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NICKEL SULPHIDE - smelters and producers

1 colour coded for offtake party

2 nickel camp is >1.0Mt contained nickel

3 * project : commissioning or feasibility stage

PECHENGA

THOMSON

JINCHUAN

KAMBALDA

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ITA

SUDBURY

NORIL

SK

DULUTH

HONEYMOON

WELL

KABANGA

FORRESTANIA

 

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1883 1890 1897 1904 1911 1918 1925 1932 1939 1946 1953 1960 1967 1974 1981 1988 1995 2002 2009

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Mt N

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lDiscovery Year

SULPHIDE MINE DISCOVERY DECLINING

NICKEL – supply issues from 4 different sources

2 largest nickel camps contribute ~40% global production -

discovered >80 years ago

NO MAJOR NEW DISCOVERIES

1) NICKEL SULPHIDES

3) NICKEL PIG IRON

Chinese nickel pig iron contributes 5-10% global production

KEY: REQUIRES SURPLUS POWER CAPACITY TO EXPAND IN CHINA

2) NICKEL LATERITESLaterite & Ferro Nickel contribute

~40% global production

KEY: HIGH CAPEX REQUIRES SUSTAINED HIGH Ni PRICE

NICKEL PIG IRON - ENERGY INTENSIVE

4) BACTERIAL LEACHING

Talvivaara in Finland is first large scale commercial mine. Target 50,000 tpa Ni, <US2.50/lb costs

$1Bn CAPEX, LOW ENERGY

KEY: LOW ACID CONSUMPTION

‘BIOHEAP’ – New growth opportunity for Western Areas

• Use – low cost treatment of large, low grade nickel and copper sulphide deposits

• Technology – bacterial leaching of ores to produce a range of refinery products

• History – 15 years of testwork on many projects with world wide patents

• Opportunity – treat large low grade nickel deposits in Australia and Finland

• 100% Owned – Western Areas has acquired technology with global patents

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Power LineNew Access Gate

Talvivaara Ni/Zn/Cu mine – bacterial leaching operation

TALVIVAARA OPEN PIT, CENTRAL FINLAND – World’s largest Bacterial Leaching Nickel Mine

Announced Targets - From 2010 : 30,000 tpa Nickel, 60,000 tpa zinc, 10,000 tpa copper. From 2012 : 50,000 tpa Nickel

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Mt Ni% Cu% Zn% Co%505 0.23 0.13 0.50 0.02

Measured + Indicated Mineral Resource at

Dec 2008

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New Access Gate

Exploring for Talvivaara type deposits – 6 major projects

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Potential to become a major Ni/Zn/Cu metal province

23 Targets with similar magnetic /EM signature to Talvivaara

Minimum target 10M tpa ore for >20,000tpa nickel

Low acid consuming sulphide ore suited for leaching

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New Access Gate

Kokkomaki / Hakonen Project – Talvivaara region (8 Targets)

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TARGET : K1 and K2

Test coincident magnetic and EM

anomaly

15km N of Talvivaara

TARGET : H1 and H2

Test coincident magnetic and strong EM

anomaly

3km E of Talvivaara

Note: Geophysical data acquired from GTK/Finnish

Geological Survey

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New Access Gate

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Rautavaara – 60km south of Talvivaara Mine

TARGET : R1 and R2 – initial drilling completed

Define mineral resource at R1

Rautavaara and Paltamo Projects (12 Targets)

Paltamo – 50km north of Talvivaara Mine

TARGET : P1 – drilling February / March 2010

Test coincident magnetic and EM anomalies

Note: Geophysical data acquired from

GTK/Finnish Geological Survey

129m @ 0.22% Ni, 0.39% Zn and 0.11% Cu

Similar to Talvivaara grades

NICKEL INDUSTRY – Summary

• Sulphides – Nickel industry needs another “World Class” sulphide discovery

• Laterites – required to meet demand (high capex requires sustained high nickel price)

• Nickel Pig Iron – China expanding production but constraints (energy intensive)

• Bacterial Leaching – Being developed for low cost treatment of sulphide ores

• Price – analysts underestimate the impact of medium to long term supply issues

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WESTERN AREAS – Summary

• Goal – to be Australia’s 2nd largest & highest grade nickel producer by 2011

• Flying Fox Mine – rapid increase in low cost production expected June Q 2010

• Spotted Quoll Mine – high grade open pit & underground mine, first ore June Q 2010

• Growth Strategy – exploration based. Exciting new discovery at Sandstone JV

• Prestige Industry Awards – “Digger Award 2008” and “Prospector Award 2009”

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