WTLC Western Metals Corporation (CE)

Western Metals Corporation (Pink Sheets:WTLC) today announced that it has entered into a definitive purchase agreement with Loto Energy II, LLC to acquire the working interest and the net revenue interest in two natural gas wells located in the Lindsey Slough Field in Solano County, California. Under the terms of the purchase agreement, Western Metals shall acquire Loto's 100% working interest and its 78.0833% net revenue interest in the wells for a purchase price consisting of $2,000,000 in cash and 5,714,286 shares of its common stock. At a meeting held on May 16, 2007, the board of directors of Western Metals approved the acquisition and it is expected to be complete on or near September 30, 2007, subject to certain closing conditions, including the approval of Western Metals' shareholders. Western Metals expects to deliver proxy statements to its shareholders relating to the approval of the acquisition within the next thirty days. The board of directors had approved a plan of dissolution for Western Metals but subsequently was presented with the opportunity to acquire the two natural gas wells from Loto. In the event the acquisition of the natural gas wells from Loto is not approved by the shareholders, or the transaction fails to close for any other reason, the board intends to once again proceed with the dissolution and liquidation of Western Metals. Except for the historical information, other statements in this release are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially, including, but not limited to, industry conditions, economic conditions, competitive factors and pricing pressures, and shifts in market demand as well as other risks.