West High Yield Announces Results of Preliminary Economic Assessment

CALGARY, ALBERTA — (Marketwired) — 06/04/13 — West High Yield (W.H.Y.) Resources Ltd. (“West High Yield” or the “Company”) (TSX VENTURE:WHY) announces the release of the results of a Preliminary Economic Assessment (“PEA”) on its 100% owned Record Ridge Project (the “Record Ridge Property” or the “Project”). The Record Ridge Property is an intermediate-advanced exploration-stage magnesium (“Mg”) project located in southern British Columbia (BC), Canada. The PEA was prepared by SRK Consulting (U.S.), Inc. (“SRK”) of Lakewood, Colorado and has been filed on the Company’s SEDAR profile at www.sedar.com and is also available on the Company’s website www.whyresources.com.

The PEA presumes a conventional open pit mine, a novel hydrometallurgical processing plant, a calcined magnesia intermediate product plant along with a fused magnesia production plant with pre-tax Net Present Value (“NPV”) using a 5% discount rate of US$1.339 billion and Internal Rate of Return (“IRR”) of 21%, and a post-tax NPV of US$830 million using a 5% discount and post-tax IRR of 17%.

Highlights

Highlights of the PEA include the following:

--  Pre-tax NPV 5% of US$1.339 billion and IRR (pre-tax) of 21% (100%
    equity). 
--  Post-tax NPV 5% of US$830 million and IRR (post-tax) of 17% (100%
    equity). 
--  Initial capital cost estimation of US$608 million. 
--  Payback - Estimated before tax at end of fifth year of production. 
--  An estimated mine life of 42 years. 
--  Measured and Indicated Mineral Resources of approximately 43 million
    tonnes averaging 24.6% Mg, using a 21.9% cut-off. Approximately 10.6
    million tonnes of contained Mg. 
--  Throughput - 3,000 tonnes per day. 
--  Market price - US$1,100/tonne Fused Magnesium Oxide ("MgO") and by-
    product credit of US$75/tonne for Sodium Sulfate. 
--  An initial assumed overall average process recovery rate of 80% Mg based
    on laboratory scale metallurgical test work producing an intermediate
    calcined MgO product. This will be subject to additional test work to
    confirm the recovery into a fused MgO product, which has not been
    demonstrated to date. 
--  Low variation in grade throughout the deposit suggests that the need for
    detailed grade control and selective mining methods will be limited.