Release: Encouraging metallurgical testwork results on Weda Bay ore

(TORONTO, ONTARIO Apr 14, 2004) - Weda Bay Minerals Inc. (WDA) previously announced the resumption of metallurgical testwork focusing on atmospheric leaching of the project's extensive lower saprolite resources. First results have been received and are highly encouraging. The aim of this testwork is to further develop a combined Pressure Acid Leach (PAL), Atmospheric Leach (ATL) and Saprolite Neutralization (SN) process flowsheet. This flowsheet (PAL/ATL/SN) will enable Weda Bay to treat the entire laterite profile of limonite and saprolite. It will also increase the process feed grade and reduce the capital cost per pound of nickel produced.

The Company, in January, commissioned Lakefield Oretest Pty Limited in Perth to conduct the current testwork program. Results to date confirm the PAL/ATL/SN circuit can provide a lower capital cost than the Pre Feasibility Study PAL/SN circuit.

Testwork on various parameters of the flowsheet indicated:

(i) Feed thickening tests show that high solids density can be achieved into the PAL circuit with potential for further improvement.

(ii) Recovery in the PAL stage (limonite feed) readily achieved in excess of 95% nickel and cobalt extraction within fifty minutes of leaching.

(iii) ATL stage (saprolite feed) recoveries of over 96% nickel extraction were readily achieved in two hours leaching.

(iv) SN stage (saprolite feed) recoveries in excess of 80% were achieved after four hours of reaction.

(v) The Counter Current Decantation circuit for the combined leach product performed very well with excellent solid underflow densities achieved.

The President and CEO of Weda Bay Minerals Inc., John Lynch, states "We are very encouraged by these results and are confident that a combined process flowsheet can lower the capital cost below the previously announced US$902 million and further enhance the economics of our project."

Testwork is continuing to optimize the process prior to commencing a Bankable Feasibility Study.

Weda Bay Minerals Inc (WDA) is an exploration and development company focused on the world-class nickel and cobalt laterite project on the island of Halmahera in Indonesia. The project resources are currently 133 million tonnes grading 1.37% Ni and 0.11% Co of measured and indicated resources plus 82 million tonnes grading 1.33% Ni and 0.12% Co of inferred resource. All resource estimates are at cutoff grades of 1.0% Ni and 0.1% Co.

The Company has completed an independent Pre Feasibility Study, which concludes that the Halmahera project is highly viable. The Company is now working towards the commencement of a Bankable Feasibility Study. (end of release)