Weda Bay Minerals increases nickel resource

Vancouver, B.C. (August 16, 2000) -- Weda Bay Minerals (TSE:WDA) announced today that it has increased the resource estimate at its Halmahera, Indonesia nickel project by 85.3 million tonnes (a 73% increase). This resource update is a result of the completion of the inferred drilling at the Santa Monica (SM) deposit and updated resource calculations at the Big Kahuna (BK) deposit. This update is effective August 15, 2000. The current total aggregate resource is estimated to be 202.3 million dry tonnes of 1.37% nickel and 0.12% cobalt. These resource encompass 11 target areas (Area 2, Uni-Uni Hill, Tarzan Hill, Sake River, Sake River West, Lipe River, Jira River, Casuarina, Orchid, Santa Monica and Big Kahuna)

"The growth in the project's resource estimate confirms its status as one if the world's leading nickel and cobalt deposits," said Lou Clinton, President and CEO of Weda Bay Minerals. "We continue to be on schedule to implement our off-take agreement."

SANTA MONICA (SM) INFERRED RESOURCE CALCULATED

An inferred resource of 75.8 million dry tonnes containing 1.38% nickel and 0.12% cobalt has been estimated for the SM deposit. The upper limonitic portion of the SM inferred resource contains 47.5 million dry tonnes of 1.22% nickel and 0.17% cobalt with a MgO content of 4.8%. This resource estimate is based on an additional 733 meters of drilling in 52 diamond holes on a 400 x 400 meter grid, making a total of 63 holes drilled to date on this deposit. Eleven widely spaced holes were drilled and reported in June and August 1999. The previous results are available at the Weda Bay Minerals website. A map showing Santa Monica drill hole locations is located at: http://www.wedabay.com/i/maps/wda-aug152000-santamonica.gif

A continuous northeast-southwest zone of thicker limonite has been identified within this resource including an inferred resource of 32.8 million dry tonnes containing 1.29% nickel and 0.18% cobalt with a MgO content of 4.6%. This zone is currently being drilled on a 200 meter by 100 meter spacing to convert it to an indicated resource.

The SM deposit commences 8 kilometers from the proposed plant site at Cape Ulie and is at an elevation of 660 meters. This elevation difference may greatly assist in the transportation of ore to the plant site.

BIG KAHUNA (BK) RESOURCE UPDATED

A revised estimation of the inferred resource for the BK deposit has also been prepared following a detailed surveying program. The BK inferred resource is now estimated to be 40.4 million dry tonnes of 1.32% Ni and 0.17% Co.

METALLURGY

Samples from eight drill holes taken from 2 areas in the SM deposit are currently undergoing metallurgical testing at Hydrometallurgy Research Laboratories in Brisbane, Australia.

Metallurgical samples are currently being drilled at Area 2 and Uni-Uni Hill, which form part of the coastal deposits. Samples will be dispatched and test work is planned to establish if the higher-grade coastal deposits, previously reported in February 1998, can be blended with the limonitic resources at the SM deposit. The coastal deposits contain up to 1.7% nickel and 0.08% cobalt with a MgO content of approximately 14% and are located in close proximity to the proposed plant site.

QUALIFICATIONS

Mr. John Lynch, as a "qualified person", has been responsible for preparing the resource and geological information contained within this report and is the Vice-President, Exploration for Weda Bay Minerals Inc. and is a Director of the Corporation. Mr. Lynch is a geologist with over 32 years experience and is a Fellow of the Australian Institute of Mining and Metallurgy. These resource calculations have been prepared in accordance with the Australiasian ore reserve code.

ASSAYING

All results used in the resource calculation have been analysed by Intertek Laboratories (an accredited laboratory) in Jakarta. The technique used for the Ni/Co analyses consists of a four acid digest followed by AAS.

ABOUT WEDA BAY

Weda Bay Minerals Inc. is a Canadian base metals exploration and development company focused on its nickel/cobalt laterite project in Halmahera, Indonesia. The project is held under a Contract of Work between the Government of Indonesia and PT Weda Bay Nickel (90% owned by WDA's wholly owned Singapore subsidiary and 10% owned by PT Aneka Tambang Tbk., (a public listed mining company majority owned by the Government of Indonesia). The company is conducting a feasibility study in support of project financing.

J.E.Lynch, Vice President Exploration

Investor Relations Contacts:

Doug Fosbrooke, Telephone: (604) 687 6223 or (1-888) 933 2646, Facsimile: (604) 608 6163

Ian Shaw, Telephone: (416) 260-2771, Facsimilie: (416) 352-5534

Vancouver Office: 1000-355 Burrard Street, Vancouver, British Columbia, Canada V6C 2G8, Telephone: (604) 687 6223 Facsimile: (604) 608 6163 (--news release from Weda Bay Mineral--)