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

The pre-feasibility study recommends development of the Casino deposit as a conventional, electrified truck-shovel open pit mine. The initial development will focus on the deposit's oxide cap as a heap leach operation to recover gold in dore form. The main sulphide deposit will be processed using a conventional concentrator to produce copper-gold and molybdenum concentrates.

The mill will have a nominal production rate of 90,000 tonnes of sulphide ore per day (averaged over the life of mine). The heap leach will nominally process up to 30,000 tonnes per day for 7 years.

Including low grade and stockpile ore, the average annual stripping ratio is estimated at 1:1 over the life of mine and 0.7:1 for years 1 - 6.

Over a projected mine life of 30 years, the mill will produce 3.6 billion pounds of copper, 320 million pounds of molybdenum and 4.59 million ounces of gold contained in concentrates. The heap leach will add a further 540 thousand ounces of gold produced as dore.

Initial permits to support commencement of construction are assumed to be obtained in 2012. Based on this assumption, production of gold dore from the heap leach is anticipated in mid 2013 and production of concentrate from the sulphide mill is estimated in late 2015.

RESOURCE & RESERVE ESTIMATE

The February 2004 resource estimate was re-classified for the purpose of the pre-feasibility study. A small portion of the measured resources were re-classified into indicated resources. The combined measured and indicated resource remains unchanged.

The pre-feasibility study estimates an NI 43-101 compliant proven and probable mill ore reserve of 914 million tonnes grading 0.21% copper, 0.024% molybdenum and 0.24 g/t gold. The compliant proven and probable heap leach ore reserve is estimated at 78 million tonnes grading 0.43 g/t gold.

Table 4 details the mineral reserve estimate for the project.

OPPORTUNITIES

M3 notes that the economics in the pre-feasibility study do not take into account opportunities for improvement based on:

- Inclusion of revenue from the recovery of silver

- Conversion of inferred resource into measured and indicated

- Increasing the overall resource

- Sharing of infrastructure development costs with other parties

- Refined engineering during feasibility study

- Investigation of local sources of lime

NEXT STEPS

Gartner Lee Limited has been retained to prepare the permitting documentation and has commenced collection of baseline monitoring data. As part of this process Western Copper and Gartner Lee intend to commence a program of community consultation in support of the development and permitting of the project.