Western Copper Announces Positive Results of Pre-Feasibility Study on Casino Copper-Gold-Molybdenum Project

Market Wire, June, 2008

SUMMARY

Western Copper Corporation ("Western Copper" or the "Company") (TSX: WRN) announces that its wholly-owned Casino copper-gold-molybdenum deposit in central Yukon Territory can be developed economically as an open pit mine. The independent pre-feasibility study, prepared by M3 Engineering & Technology Corporation of Tucson, Arizona ("M3"), estimates an initial capital cost of $2.1 billion. The project will produce 3.6 billion pounds of copper, 320 million pounds of molybdenum and 5.1 million ounces of gold over a 30 year mine life.

The financial highlights are shown in Table 1 and are based on London Metal Exchange ("LME") three-year historical rolling average metal prices. (All amounts are in Canadian dollars unless otherwise stated).

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Table 1 - FINANCIAL HIGHLIGHTS
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Payback period                   3.8 years
Initial Capital Investment       $2.1 billion

IRR pre-tax (100% equity)        20.4%
NPV pre-tax (0% discount)        $7.5 billion
NPV pre-tax (8% discount)        $1.8 billion

Mine life                        30 years
Total ore processed              991 million tonnes
Mill throughput (sulphide ore)   90,000 tonnes per day

Copper Price                     US$2.95 / pound
Molybdenum Price                 US$30.97 / pound
Gold Price                       US$647.40 / ounce

Foreign Exchange                 US$1 equals CAN$1
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"We are extremely pleased and satisfied with the results of M3's pre-feasibility study on the Casino deposit and we believe this will be a great project for the Yukon," says Western Copper's chairman and CEO, Dale Corman.

"We have engaged Gartner Lee, who is a well regarded international environmental consulting firm, to assist us in the permitting of Casino. Over the last two years Western Copper has worked closely with the Yukon Environmental and Socio-economic Assessment Board and Yukon Energy, Mines and Resources in permitting our Carmacks project and have found them to be fair and professional. We look forward to working with them again on the Casino Project."

FINANCIAL EVALUATION

The independent pre-feasibility study reports that development of the Casino deposit will produce a pre-tax Internal Rate of Return ("IRR") of 20.4% and an undiscounted Net Present Value ("NPV") of $7.5 billion, based on 100% equity. After-tax figures indicate an IRR of 14.9% and an undiscounted NPV of $4.5 billion.

This base case financial evaluation uses LME three-year historical rolling average prices as of the end of May 2008. This approach is considered to be an industry standard and consistent with the guidance of the United States Securities and Exchange Commission.

The payback of initial capital investment is achieved in 3.8 years due to the significant cash flow generated by higher ore grades and plant throughput during the early years of production.

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Table 2 - KEY FINANCIAL DATA
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                                BASE CASE   SPOT PRICE
                                   PRICES   May 31, 08
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Copper (US$/lb)                      2.95         3.67
Molybdenum (US$/lb)                 30.97        33.70
Gold (US$/oz)                      647.40       885.75

IRR pre-tax (100% equity)           20.4%        28.7%
NPV pre-tax (0% discount)        $  7.5 B     $ 11.7 B
NPV pre-tax (8% discount)        $  1.8 B     $  3.3 B

IRR after-tax (100% equity)         14.9%        21.4%
NPV after-tax (0% discount)      $  4.5 B     $  7.1 B
NPV after-tax (8% discount)      $  0.9 B     $  1.8 B

Payback period (years)                3.8          2.8
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Further sensitivity analyses may be found in the pre-feasibility study executive summary.

CAPITAL and OPERATING COSTS

Total initial capital investment in the project is estimated to be $2.1 billion, which represents the total direct and indirect cost for the complete development of the project. Of this figure $1.56 billion represents mine direct and indirect costs and costs for the full development of transportation and port infrastructure. The remaining $550 million represents the cost of a complete mine site power plant as estimated by Kerr Wood Leidal Associates Ltd.

The life-of-mine sustaining capital for the processing plant is estimated at $420 million and for the mine is estimated at $440 million.

Operating costs are estimated to be $9.72 per tonne of sulphide ore over the life of mine.

These operating costs are based on an estimated power rate of $0.095 per kWh as concluded in the power plant study.