Western Copper and Gold to sell royalty for US$32 million

Friday, Dec 21, 2012

VANCOUVER, Dec. 20, 2012 /PRNewswire/ - Western Copper and Gold Corporation ("Western" or the "Company") (TSX:WRN; NYSE MKT:WRN) announces that the Company and its wholly owned subsidiary, Casino Mining Corporation, have entered into a royalty sale agreement (the "Agreement") dated December 20, 2012 with 8248567 Canada Limited, an arm's length purchaser, (the "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 (the "Transaction").

This Transaction is subject to any required regulatory approvals and conditions usual for a Transaction of this nature and is expected to close on or about December 21, 2012.

"This Transaction is expected to provide us with sufficient capital to complete the permitting and detailed engineering of the Casino Project and have it ready for project financing and construction;" said Dale Corman, Chairman and CEO, "furthermore, it helps to affirm the tremendous value of the project."

CIBC World Markets Inc. acted as financial advisor to Western Copper & Gold in connection with this transaction.

ABOUT WESTERN COPPER AND GOLD CORPORATION

Western Copper and Gold Corporation is a Vancouver-based exploration and development company with significant copper, gold and molybdenum resources and reserves.  The Company has 100% ownership of the Casino Project located in the Yukon Territory. The Casino Project is one of the world's largest open-pit gold, copper, silver and molybdenum deposits. For more information, visit www.westerncopperandgold.com.

SOURCE Western Copper and Gold Corporation