Far West Provides Further Details On Candelaria Project And $2,000,000 Financing.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 4, 2003

Far West Mining (TSXV:FWM)

Candelaria (IOGC) Project

As first disclosed in a press release dated September 5, 2002, Far West Mining Ltd. ("Far West") under its Strategic Alliance with BHP Billiton entered into an agreement (the "Agreement") with BHP Chile Inc. to explore for Iron Oxide Hosted Copper-Gold (IOCG) deposits in the Candelaria Copper Belt of northern Chile.

The north/south trending Candelaria Copper Belt, lies 50 kilometers to the east of the coast and is centered approximately midway between the cities of Antofagasta and La Serena. The Belt, which is bounded on the west by the Atacama fault zone and on the east by a series of sub parallel faults, hosts numerous copper deposits, including Candelaria and Manto Verde.

The exploration staff of BHP Billiton and BHP Chile, who generated the project, designed a program to locate hematite-dominant IOCG deposits in geological settings, in the Candelaria Belt, that bear similarities to those hosting Australia's significant Olympic Dam deposit and the recent Prominent Hill discovery.

BHP Billiton's proprietary FALCON(TM) gravity gradiometer technology was utilized to conduct an airborne survey over four prospective areas along 180 kilometers of the northern half of the Candelaria Belt. The cost of the airborne survey is to be shared by both parties. The areas surveyed were selected on the basis of known IOCG mineralization and alteration that occur within magnetically active domains, the presence of favourable structural settings and the availability of open ground. BHP Chile conducted an extensive land acquisition program in advance of the airborne survey.

A review of preliminary airborne data from the FALCON(TM) gravity gradiometer survey was carried out in Santiago, Chile in early September, 2002. A team of Far West and BHP Billiton personnel identified in excess of 20 "Target Areas" containing one or more distinct airborne gravity anomalies that have signatures that could represent the presence of IOGC mineralization.

Factors considered in the selection of Target Areas included the following: the size and intensity of the gravity signatures, host lithology, associated magnetics, structural setting, mineralization, alteration, proximity to past or currently producing mining operations, percentage of Quaternary cover and land ownership.

Under the terms of the Agreement, 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, however (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.

Subject to the successful completion of the Financing by Far West, a 10,000 m program of reverse circulation drilling is to be conducted. Geological mapping of Target Areas, with an emphasis on mineralization, alteration and structure will be carried out prior to drilling. Gravity modeling may be carried out to aid in the selection of drill sites.

As of today's date, Far West has not prepared, nor is it required to prepare, a technical report on the Candelaria Project pursuant to National Instrument 43-101. A technical report on the Candelaria Project will be prepared in the future when required under National Instrument 43-101. Financing

As first disclosed in a press release dated November 12, 2002, Far West intends to complete a financing (the "Financing") of up to $2,000,000. The Financing will be comprised of convertible debt units ("Offered Units") offered at a price of $0.32 per Offered Unit, which will be converted, or deemed to be converted, into units ("Converted Units") consisting of one common share in the share capital of Far West ("Common Share") and one half of one common share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder thereof to purchase a further Common Share at a price of $0.45 per Common Share for a period of one year from the date of the closing of the Financing. An agent may be involved in the Financing who will receive a commission of 7%, and an option of 15%, of the Offered Units sold.

A majority of the funds raised from the Financing will be used by Far West to fulfill its requirements under the Agreement and to earn an interest in the Candelaria Project. Pursuant to the Agreement, Far West is required to pay for 50% of the Falcon survey costs, and is required to carry out up to 2,000 metres of drill testing on each Target Area in order to earn up to a 70% interest in the Target Area. More specifically, the $2,000,000 raised pursuant to the Financing will be used as follows:

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Amount                               Use
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$500,000        Payment to BHP Billiton for the Falcon airborne survey
                already conducted on the Candelaria Project - 50% of
                flying costs required pursuant to the Agreement.
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$1,100,000      Target definition, identification and reverse
                circulation drilling in the Candelaria Project Target
                Areas required pursuant to the Agreement.
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$400,000        Working Capital for the next 12 months
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On December 31, 2002, Far West completed the closing of the first tranche of the Financing by the sale of 1,541,250 Offered Units at a price of $0.32 for gross proceeds of $493,200. Insiders of Far West purchased 156,250 Offered Units for proceeds of $50,000. The closing of the first tranche of the Financing was approved by regulatory authorities on January 27, 2003. Far West intends to complete the second tranche of the Financing prior to March 31, 2003.

FAR WEST MINING LTD.

"Robert E. Hindson"

Robert E. Hindson, P.Eng.

President and C.E.O.

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