Release: Weda Bay: Indonesian forestry issue resolved

(Wednesday, March 17, 2004)Weda Bay Minerals Inc. (WDA) is pleased to announce that the Government of Indonesia has made a major advancement to resolve the issue of mining in protected forests. The initial problem arose with the passing of Law 41 of 1999 that banned mining in protected forest despite many companies holding granted Contracts of Work.

The law had no direct impact on Weda Bay Minerals ability to operate but if not resolved would have restricted the areas in which the Company could mine.

On 11 March 2004 the Government of Indonesia issued a Perpu (a Government Regulation substituting a law) which in principle introduces a "transition clause" to Law 41 of 1999. The new Article 83A reads as follows (translated from Indonesian): "All permits and contracts in mining in forest area which were issued before the promulgation of Law 41 of 1999 on forestry is declared to remain valid until expiration date of the respective permit or contract."

Weda Bay Minerals is one of 13 companies to which this new regulation will apply. These companies have economically viable identified resources. The final step, expected within days, is for the President of Indonesia to sign a Presidential Decree.

Mr. John Lynch, President & CEO of Weda Bay stated that "This is a very significant development that will have a positive impact on the legal certainty of the Contract of Work system of agreements between the Government of Indonesia and mining companies. It demonstrates the Government is very supportive of our Halmahera nickel and cobalt project and gives us confidence to move the project forward to a Bankable Feasibility Study".

WEDA BAY MINERALS INC.

JOHN E. LYNCH, PRESIDENT AND CHIEF EXECUTIVE OFFICER