Release: Weda Bay meets conditions for mining in forest areas

(Wed May 19, 2004) On Wednesday March 17, 2004, the Company announced the issue of a Perpu (a Government Regulation Substituting a Law). The Perpu was signed by the President and cleared the way for mining companies holding contracts issued before the promulgation of Law 41 of 1999 on Forestry, to proceed with mining activities within protection forest.

Implementation of the Perpu required the issue of a Presidential Decree listing companies which have met the criteria to allow them to proceed, and stating the procedure for licensing.

On May 12, 2004 the Presidential Decree was issued and named 13 companies which have met the criteria. PT Weda Bay Nickel, the Company's subsidiary holding its Contract of Work is one of those named.

John Lynch, President and CEO of Weda Bay Minerals commented: "This is further confirmation of the Government of Indonesia's commitment to the country's mining industry. It is particularly satisfying that Weda Bay has been named in the first group of companies to be approved under the new Decree. Given the Government's support of the project, we are optimistic that additional investment incentives for the project can be negotiated as we move forward with its development".

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 relase)

WEDA BAY MINERALS INC.

JOHN E. LYNCH,PRESIDENT AND CHIEF EXECUTIVE OFFICER

Contacts: John E. Lynch

Level 2 - 120 Wickham St.

Fortitude Valley, Queensland, Australia 4006

Ph. 61 7 3250 2200 Fax 61 7 3250 2277

E-mail jlynch@wedabay.com.au

R. Michael Garvey or Ian Shaw

12th Floor, 20 Toronto Street

Toronto, ON, Canada M5C 2B8

Ph. 416 603 0591 Fax 416 367 3638

E-mail info@wedabay.com