1 April 2016 ASX: WSA

NOT FOR RELEASE IN THE UNITED STATES

News Release

SUCCESSFUL COMPLETION OF WESTERN AREAS PLACEMENT

The Board of Western Areas Ltd (ASX:WSA, "Western Areas" or "the Company") is pleased to announce the successful completion of the fully underwritten ordinary share Placement ("Placement") announced on 31 March 2016 raising A$60 million.

The issue price under the Placement was A$2.00 per share ("Placement Price"), a premium to the underwritten floor price of $1.95 per share and a discount of 7.4% to the Company's closing share price on 30 March 2016 (being the last trading day prior to announcement of the Placement).

Western Areas Managing Director, Mr Dan Lougher, said that the Placement was supported by both existing and new investors domestically and internationally and closed substantially over-subscribed at the Placement Price. The strong demand for the Placement demonstrates the market's ongoing commitment to Western Areas and its capital management strategy.

"I believe this outcome signals investor support for Western Areas' operations, responsible growth strategy and our ability to navigate the current cyclically low nickel prices with our low cost operations. We are delighted to welcome some new shareholders onto our register and greatly appreciate the support that our existing shareholders have shown", Mr Lougher said.

Macquarie Capital (Australia) Limited and Morgan Stanley Australia Securities Limited, acted as Joint Lead Managers, Underwriters and Bookrunners to the Placement.

Settlement of the Placement is expected to occur on 5 April 2016, with the new shares expected to be allotted through the ASX and commence trading on 6 April 2016. The new shares will rank equally with existing shares.

As previously announced, Western Areas will also conduct a share purchase plan ("SPP") to raise up to A$10 million. Under the SPP eligible Western Areas shareholders will be invited to invest up to a maximum of A$15,000 per shareholder. Western Areas reserves the right to scale-back the maximum participation amount per shareholder.

The issue price under the SPP will be equal to the Placement Price of A$2.00 per share.

Further details on the SPP will be released on the ASX and distributed to eligible Western Areas shareholders shortly.

Western Areas has requested that the current trading halt be lifted prior to the commencement of trading this morning.

-ENDS-

THIS NEWS RELEASE IS NOT FOR RELEASE TO U.S. NEWSWIRE SERVICES

For further details, please contact:

Dan Lougher David Southam

Managing Director - Western Areas Ltd Executive Director - Western Areas Ltd Telephone +61 8 9334 7777 Telephone +61 8 9334 7777

Email: [email protected] Email: [email protected]

Shane Murphy FTI Consulting

Telephone +61 8 9485 8888 / 0420 945 291

Email: [email protected] Or visit: www.westernareas.com.au

IMPORTANT NOTICES

This release has been prepared for publication in Australia and may not be released in the United States. This release does n ot constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this release have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws.