Far West Mining Ltd.: News Release.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 28, 2003

The First Hole Drilled in Gravity Target 4c3 on the BHP Billiton / Far West Mining Ltd. Candelaria Project in Northern Chile has Intersected Iron Oxide Hosted Copper-Gold (IOCG) Mineralization Averaging 2.47% Copper and 0.33 g/t Gold Over a 60 Metre Interval.

Far West Mining Ltd. is pleased to report that drilling on the BHP Billiton / Far West Mining Ltd. Candelaria Project in Northern Chile has intersected significant Iron Oxide Hosted Copper-Gold (IOCG) mineralization in Gravity Target 4c3.

A 13 hole (3,618m) reverse circulation (RC) drill program was recently carried out to test three Target Areas (4b, 4c, and 4d) in the Manto Verde district, that contain multiple FALCON(TM) airborne gravity/gradiometric anomalies with coincident, or spatially related, anomalous magnetic signatures. Three of the gravity Targets drilled (4c3, 4c9 and 4d1) have copper and iron mineralization occurrences in outcrop and in old mine workings, while two (4b1 and 4b3) are predominantly covered by young quaternary fill. All of the holes were drilled at -60 degrees with an average inclined depth of 278 metres. The drilling was performed by Antofagasta based Harris y Cia. Ltda., utilizing a Schramm drill capable of drilling to 400 metres.

Target Area 4d is centred some 10 kilometres south of Anglo American's IOCG type deposits at the Manto Verde mine, with 4c situated approximately 13 kilometres to the southeast. The 4b Target Area lies some 30 kilometres to the east-northeast of the mine. Four holes were drilled in Target 4d1, three in each of the 4c3 and 4c9 Targets, two in Target 4b1 and one in Target 4b3.

All of the holes drilled intersected mineralization and alteration assemblages characteristic of IOCG-type mineralizing systems. Assay results have now been received for all holes drilled.

Drilling Results

Target 4c3

The first hole drilled in the 4c3 Target has intersected significant copper-gold mineralization starting at a depth of 28 metres and averaging 2.47% copper and 0.33 g/t gold over a 60 metre interval. The intrusive host rocks in the mineralized zone are intensely quartz-sericite-carbonate altered. Roughly 50% of the zone consists of a mix of iron oxides (specular hematite and magnetite), strongly limonitic altered host rock, chalcocite with associated traces of chalcopyrite and bornite, vein quartz, and a variety of copper oxides. The copper oxides are abundant and occur in fractures and as disseminations.

The hole was drilled to test a zone to the west of historic workings located along the vertically dipping Santa Teresita fault structure. Mineralization associated with this north-south trending structure consists predominantly of iron and copper oxides associated with a quartz and carbonate stockwork.

    The assay results for the 60 metre interval in drill hole 4c3-001
averaging 2.47% copper and 0.33 g/t gold are reported below:

Interval in Metres   Interval   Gold                Copper (a)  Copper
from         To        (m)       ppm                   ppm           %
28           30         2      0.153                  5620        0.56
30           32         2      0.168    greater than 10000        1.04
32           34         2      0.045                  2660        0.27
34           36         2      0.173                  6820        0.68
36           38         2      0.930    greater than 10000        3.50
38           40         2      0.499    greater than 10000        3.55
40           42         2      1.365    greater than 10000        1.72
42           44         2      0.259                  5470        0.55
44           46         2      0.763    greater than 10000        5.83
46           48         2      0.433    greater than 10000        2.81
48           50         2      0.209    greater than 10000        1.15
50           52         2      0.042                  1840        0.18
52           54         2      0.247    greater than 10000        1.25
54           56         2      0.500    greater than 10000        3.85
56           58         2      0.178    greater than 10000        1.95
58           60         2      0.051                  1840        0.18
60           62         2      0.015                  1110        0.11
62           64         2      0.018                  2040        0.20
64           66         2      0.069                  9540        0.95
66           68         2      0.225    greater than 10000        3.54
68           70         2      0.084    greater than 10000        1.82
70           72         2      0.213                  5420        0.54
72           74         2      0.045    greater than 10000        1.01
74           76         2      0.736    greater than 10000       15.25
76           78         2      0.681    greater than 10000        5.86
78           80         2      0.522    greater than 10000        5.57
80           82         2      0.485    greater than 10000        3.53
82           84         2      0.596    greater than 10000        4.35
84           86         2      0.115    greater than 10000        1.70
86           88         2      0.055                  4930        0.49

(a) Copper assays greater than 10000 ppm are re-assayed to determine
    copper content in %

The first 24m of the hole returned background copper values averaging 32 ppm; increasing to an anomalous average value of 480 ppm over 6 meters prior to the 60 metre intercept. Traces of copper oxides were noted below 86m to a depth of 94m. The oxidized zone extends to a depth of 120m (roughly 105m vertically below surface), below which disseminated sulphides (pyrite and chalcopyrite) occur. Anomalous copper values (250-4380ppm Cu) below 86m extend to a depth of 208m, and average 673 ppm Cu across 120m. Below 208m, copper values return to background averaging 48 ppm Cu.

The 4c3 Target is defined by a 3km by 5km zone of generally north trending anomalous gravity signatures with partially coincident airborne magnetic anomalies up to 1.5km in diameter. The 4c3 anomaly covers a 15 square km zone of high gravimetric and magnetic relief within the 4c Target Area.

The geology in the 4c3 area consists of hornfelsed volcanic rocks which have been intruded by diverse multi-episodic mafic to felsic intrusive plutons and dikes. The geological setting is similar to that observed at the nearby producing Manto Verde Mine.

Two additional holes, 4c3-002 and 4c3-003, were drilled in the 4c3 target area and are located 705m and 1700m respectively, north of 4c3 001. Drill hole 4c3-002 intersected strong quartz-sericite-carbonate alteration with sections of anomalous copper mineralization ranging up to 558 ppm Cu. The copper values in drill hole 4c3-003 were not anomalous.

Target 4c9

Three holes were drilled in the 4c9 area targeting several iron-copper bearing structures within areas of high gravity and magnetic relief. Holes intersected zones of strong potassic and quartz-sericite alteration with associated pyrite and chalcopyrite mineralization. Broad zones with anomalous copper assay values returned grades up to 3080 ppm Cu across sample intervals of 2m. It should be noted that the 4c9 Target area is contiguous with the 4c3 area to the northeast, and like 4c3, covers approximately 15 square km.

Target 4d1

The 4d1 anomaly area is underlain by a broad mylonite package associated with a splay of the Atacama fault zone, south of and directly on trend with the Manto Verde fault system. Four holes tested two geophysical anomalous signatures in the area. Old mine workings in the area of the anomaly host iron and copper oxide mineralization. Several mineralized structures with narrow intervals of copper-bearing massive iron oxides were intersected, the best of which graded 2.94% Cu across a 4m zone in hole 4d1-002. Several narrow and weak Cu anomalous zones were intersected in the remaining holes, but none reached economic grade.

Targets 4b1 and 4b3

These targets are located southeast of the historic Santo Domingo IOCG district. Three holes tested distinct gravity anomalies that were partially or completely covered by young quaternary fill. Iron oxide mineralization with traces of associated copper oxides was present in limited exposures on surface. All holes intersected sequences of intercalated calcareous sediments and volcaniclastic rocks with widespread earthy hematite alteration. Copper grades are generally low, however, sporadic zones of disseminated chalcopyrite in target 4b3 yielded values up to 2330 ppm copper across sample intervals of 2m.

Sampling and Assaying Procedures

Reverse circulation drill cuttings were collected over 2m intervals and split in a standard riffle splitter. Two 1/8th splits averaging 2-3kg per sample were collected from each interval. One sample was kept on site as a reference reject, and one sample was sent to ALS-Chemex labs in La Serena, Chile, for copper and gold analyses. Gold was analyzed by fire assay with an atomic absorption finish using a 50g pulverized sample cut. Copper was analysed by atomic absorption methods. A few samples from each hole were analyzed for 27 elements using an aqua regia digestion and atomic absorption methods.

Quality control of the sampling process consisted of introducing duplicate samples at regular 25 sample intervals. Two different standard samples, provided by BHP Billiton, were inserted every 25 samples for quality control of the analytical procedures. Blank samples consisting of regular industrial cement, were also submitted every 50 samples.

As previously reported, Farwest Mining Ltd. has entered into agreements with BHP Billiton to explore for IOCG deposits in eight prospective areas covering 468,650 ha along 250 kilometers of the Candelaria Belt. The areas were flown utilizing BHP Billiton's proprietary FALCON (TM) gravity /gradiometric system. Field crews have examined all of the significant gravity anomalies outlined by the survey and a total of 27 Target Areas have been selected for follow up exploration.

Under the Agreement with BHP Billiton, Far West can earn a 70% participating interest in a Target Area by carrying out up to 2,000m of drill testing. BHP Chile has the right (via back-in or earn-in) to acquire, in stages, up to a 70% participating interest in any mineral deposit discovered within a Target Area by solely funding ongoing exploration, making various cash payments to Far West and carrying Far West through to completion of a final feasibility study. Far West and BHP Billiton are sharing the FALCON (TM) survey costs.

The exploration information for the Candelaria Project is reported under a quality assurance program supervised by Robert E. Hindson, P. Eng., Chief Executive Officer, President and a director of Far West, and Patricio Varas, P. Geo., Vice-President and a director of Far West, both of whom are qualified persons under National Instrument 43-101 and both of whom have reviewed, verified and approved the contents of this press release.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.