Western Keltic Announces Robust Pre-Feasibility Results for the Kutcho Project

Annual Metal Productions Years 1 – 5: 75.5 million lbs Cu & 93.5 million lbs Zn

VANCOUVER, BRITISH COLUMBIA–(Sept. 5, 2007) – Western Keltic Mines Inc. (TSX VENTURE:WKM) announced today the results of a Pre-Feasibility study on its Kutcho Project, positioning Kutcho as Canada’s next major high grade copper and zinc producing mine. The study confirmed robust project economics, further supporting management’s decision to accelerate the completion of a Feasibility Study. Full commercial production of the mine is targeted for 2010.This Pre-feasibility study was prepared by Wardrop Engineering Inc. to identify and cost a preferred mine development plan, which will be optimized in the feasibility study.

BASE CASE MODEL HIGHLIGHTS:

– Combined open pit and underground production

– Conventional 6,000 tpd flotation concentrator

– Four payable metals in copper and zinc concentrates

– Forecast average annual Metal Production Years 1-5

– 75.5 million lbs copper

– 93.5 million lbs zinc

– 753,550 oz silver

– 7,813 oz gold

– Capital Cost estimate of $299 million(1)

– Pre-Tax Internal Rate of Return (IRR) of 23%

– Net Present Value (NPV) of $154 million using an 8% discount rate

– Initial mine life of 8 years with capital recovery in 2.6 years

– Forecast production in 2010 with 250 permanent jobs

(1) All figures are in Canadian dollars unless otherwise noted.

“This is a major milestone for Western Keltic and testifies to our ability to continue to maximize shareholder value,” said John McConnell, President and CEO of Western Keltic. “Over the last year, we have successfully met our objectives with respect to the environmental permitting process and partnership development with aboriginal communities. We are well positioned to maintain our project schedule and bring the mine to full production in 2010.”

Financial Analysis

The Pre-Feasibility Study identified the development of the Main deposit as an open pit, followed in Year 5 by supplemental high grade underground production from the Esso deposit, as the preferred mine development plan. Daily production of mill feed is estimated at 6,000 tonnes resulting in 17.1 million tonnes mined over eight years. The economic analysis does not consider any contribution from the 11-million tonne Sumac deposit, which is currently classified as an inferred mineral resource.

The Project Base Case assumes a three-year historical average metal price and a three-year historical average exchange rate. Additional sensitivity analyses were undertaken using a two-year historical average and current metal prices and exchange rates. Capital costs of $299 million and site operating costs of $46.2 per tonne milled were used in all three cases.

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