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Western Copper and Gold Sells 5% Royalty in Casino Project for US$32 M

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Western Copper and Gold Corporation (WRN.TO) announced today that it and its wholly owned subsidiary, Casino Mining Corporation, have entered into a royalty sale agreement dated December 20, 2012 with 8248567 Canada Limited, an arm's length purchaser, whereby the Purchaser agrees to cancel its 5% net profits interest royalty in the Casino Project and pay US$32 million in exchange for a 2.75% net smelter returns royalty in the Casino Project.

In accordance with the terms of the Agreement, among other things:

a. The Purchaser will obtain a 2.75% net smelter returns royalty (the NSR Royalty) on the future sale of any metals and minerals derived from the Casino Project;

b. The Purchaser will agree to cancel the 5% net profits interest in the Casino Project that it already owns on certain claims held by Western; and

c. Western will receive a cash payment of US$32 million upon completion of the Transaction for Casino Project development expenditures and general working capital.

Western has the option to repurchase 0.75% of the NSR Royalty (resulting in a 2.00% remaining royalty) for the following amount:

a. US$39 million if the amount is paid on or prior to December 31, 2013; or

b. US$59 million if the amount is paid after January 1, 2014 but on or before December 31, 2017.

This Transaction is expected to close on or about December 21, 2012.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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