Weda Bay Minerals Inc. Announces Update On Exploration Progress.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 2, 1998--Weda Bay Minerals (ASE:WDA) announces:

The Corporation's Quarterly Report to Shareholders has been released for the quarter ending Sept. 30, 1998, and includes the following highlights which have been finalised subsequent to Sept. 30, 1998.

-- A test pit in a newly located large area of laterite north and

east of Lipe River (Santa Monica) returned encouraging high grade

nickel and cobalt values of 5 metres at 1.52% Ni and 0.14% Co.

-- Resource drilling at Lipe River confirmed a significant medium

grade laterite deposit within the Weda Bay coastal laterite

province.

-- Additional reconnaissance drilling at Casuarina identified

further high grade laterite.

-- Tests utilising ground penetrating radar were successful in

identifying the basement profile in several areas.

-- Density determinations of different laterite types have indicated

wide variations which will be integrated with existing density

results and used to calculate an updated resource tonnage.

Santa Monica

A test pit was excavated to a depth of 6 metres in the southern region of the recently discovered Santa Monica deposit, which lies approximately 5 km due north of Cape Ulie. Results from this pit were most encouraging, with 5.0m @ 1.52% Ni and 0.14% Co between 1 to 6 metres. Ongoing ground mapping has delineated further laterite development over a north-south extent of 3.5 km, with mineralisation open to the west and east. It is planned that further test pits will be excavated in the area following the completion of mapping.

Lipe River

A total of 75 holes were completed in this prospect area by the end of October. Combined with the five original reconnaissance holes, the weighted averages of the drill hole intercepts indicate the following:

-- 58 of the 80 holes drilled intersected nickel mineralisation

above a 1.0% Ni cutoff grade with an average thickness of 5.59m

at 1.34% Ni and 0.08% Co.

-- 45 of the 80 holes also intersected significant cobalt

mineralisation below the 1.0% Ni cutoff grade but above a 0.1% Co

cutoff with an average thickness of 2.55m at 0.80% Ni and 0.17%

Co.

-- The majority of the holes that intersected significant Nickel

and/or Cobalt mineralization are located in the southern portion

of the Lipe River deposit.

Casuarina

Seven new reconnaissance holes were drilled to further test the Casuarina prospect area. Five of these seven holes intersected nickel mineralisation above a 1.0% Ni cutoff. The weighted average assays from these holes were 6.08m at 1.70% Ni and 0.06% Co. In addition, three of the seven holes intersected significant cobalt mineralisations (in material less than the 1.0% Ni cutoff) which had a weighted average of 3.67m @ 0.76% Ni and 0.22% Co.

All samples were submitted to Intertek Testing Services (ITS) in Jakarta. After drying at 105 degrees C for 24 hours a portion of the sample is subject to a four-acid digest then assayed for Nickel and Cobalt by Atomic Absorption Spectrometry (AAS) using nitrous oxide/acetylene flame.

Ground Penetrating Radar Reconnaissance 

A preliminary program of a ground penetrating radar was initiated in October. Prospect areas tested were Area 2, Jira River, Lipe River, Sake River and Uniuni Hill. The tests, undertaken by Klohn-Crippen of Canada, were successful in identifying the basement profile in most areas. The limonite-saprolite interface and areas of corestone concentrations were also recognised in some of the profiles. Further evaluation and tests will be conducted but it is anticipated that by using this technique in association with a carefully planned drilling program, the amount of drilling required to move the resource into a mineable reserve category could be significantly reduced.

Density Measurements for Ore Resource Calculation Update

PT Soilens, an independent geotechnical firm, completed an extensive sampling program of different laterite types to measure wet and dry densities. Dry densities have been shown to be extremely variable, ranging from below 0.6g/cc for some high iron transition laterite material to 1.8 g/cc for corestones. The average dry density of each laterite deposit will depend on the ratio of the different laterite types present. Resource tonnages and compositions are currently being recalculated by applying a specified density to each sample material. This work is very detailed and time consuming. The revised figures will be released when the work is completed.

Ongoing Work Program

Weda Bay's ongoing work program includes mapping the extent of the newly discovered Santa Monica deposit, geological mapping within the known laterite deposits to determine any outcropping basement pinnacles and to establish if the lower grade basal saprolite material can be upgraded by screening out the basement fragments. The extensive density information reported by PT Soilens in November is being reviewed to establish the dry densities of each of the different lateritic ore types. Once the various dry densities have been determined these will be incorporated with existing density information into an updated resource calculation.

Future Work Programme

Field activities will be reduced over the Ramadhan and Christmas periods. Work planned for the new year will include test pitting and hand auger drill holes into the Santa Monica deposit where vehicle access is not presently possible.

Close spaced diamond drilling will be undertaken in proposed early mining areas to establish deposit variability. This information along with the Klohn-Crippen ground penetrating radar data will be used to optimise drill spacings in determining reserve definition drilling. Additional drilling remains to be carried out at Jira River, Big Kahuna and Sake River West where further drill holes have been pegged.

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

By Order of the Board

WEDA BAY MINERALS INC 

JOHN E LYNCH

VICE PRESIDENT EXPLORATION