Weda Bay Minerals Announces Completion of $17.6 Million Private Placement.

TORONTO -- Company funded through Halmahera Nickel Cobalt Project Definitive Feasibility Study 

The Board of Weda Bay Minerals Inc. (TSX:WDA) (the "Company") is pleased to announce the closing of a previously announced private placement for the sale of 17.6 million Units (the "Units") of the Company at C$1.00 per Unit for gross proceeds of C$17.6 million. Each Unit consists of one common share of the Company and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at a price of C$1.50 for 24 months.

Millennium Partners, L.P. ("Millennium"), previously a 19.9 per cent shareholder in the Company, subscribed for 8.8 million Units. Following this private placement Millennium now controls 27.37 per cent of the Company. Institutional accounts managed by Capital Guardian Trust Company also subscribed for 8.8 million Units and collectively now controls 12.4 per cent of Weda Bay Minerals Inc. Completion of this private placement was subject to the Company receiving the written consent of the majority of eligible shareholders. Such consents were received from 58.9 per cent of shareholders.

The funds raised from the placement will go towards the Definitive Feasibility Study of the Company's Halmahera Nickel Cobalt Project in Indonesia. Halmahera is one of the world's largest undeveloped nickel mining sites.

Weda Bay President and CEO, Patrick Evans said: "We're delighted that quality investors such as Millennium and Capital Guardian have recognized the value of our asset at Halmahera. The Company is now in a position to fund the Definitive Feasibility Study scheduled for commissioning early next year. We believe that Weda Bay is beginning to live up to its considerable potential."

Note: Certain information contained in this press release is forward looking and is subject to unknown risks or uncertainties. The actual results, performance or achievement of the Company may differ materially from the anticipated results, performance or achievements of the Company or results implied by such forward-looking information.

The securities placed have not nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Weda Bay Minerals Inc. (WDA) is an exploration and development company that controls the Halmahera Nickel Cobalt Project at Weda Bay, Halmahera in Eastern Indonesia. Halmahera is one of the largest undeveloped nickel projects globally. The project resources are: 16 million tonnes grading 1.27% Ni and 0.18% Co of measured resources; 139 million tonnes grading 1.47% Ni and 0.08% Co of indicated resources; and 123 million tonnes grading 1.53% Ni and 0.08% Co of inferred resource. Resource estimates are at a cutoff grade of 1.0% Ni. The Company has completed an independent Pre Feasibility Study which is currently being updated. The aforementioned mineral resources are contained in a NI 43-101 compliant technical report entitled: "Mineral Resource Estimate Increase for the Weda Bay Nickel Cobalt Project, Halmahera Island, Indonesia dated October 13, 2004 prepared by John Lynch and filed on www.sedar.com

Shares Issued and Outstanding: 70,948,535

Weda Bay Minerals Inc. (TSX:WDA)