Weda Bay Announces Results From Metallurgical Test Programmes.

Business Editors

TORONTO--(BUSINESS WIRE)--Sept. 5, 2001

Recent metallurgical results have substantially improved the projected economics of the Weda Bay nickel/cobalt laterite project on Halmahera Island, Eastern Indonesia, by confirming that Weda Bay saprolite resources can be mined and utilised in conjunction with the limonite resources.

The testwork demonstrates recoveries of up to 95% of both nickel and cobalt from saprolite ore at atmospheric pressure.

Two approaches are being developed:

a) the use of saprolite to neutralize excess acid in HPAL leached

pulp. This reduces the need for limestone as well as

increasing valuable metal production.

b) Direct atmospheric leaching of saprolite in a separate

circuit.

The unusually fast reaction rates being experienced and the high metal recoveries from saprolite are believed to be related to the high reactivity of Weda Bay ore.

These results are currently being incorporated into a revised pre feasibility study base case as well as being included in the evaluation of a much lower capital cost scenario.

The Corporation believes this metallurgical advantage will materially enhance the value of the Weda Bay project.

WEDA BAY MINERALS INC.

John E. Lynch Chief Executive Officer

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.