CEO’s Letter to Shareholders 2007

2007 was an exceptional year for commodities, driven primarily by the demand in developing Asian Countries. This trend, which started in 2002, shows no sign of diminishing. I, together with Western Copper’s management team, believe that we are in the early stage of a long term bull market for base and precious metal prices.

The lack of global supply of both copper and molybdenum has now reached a point where it is hard to imagine a scenario in which demand does not far exceed supply in the foreseeable future. In the case of copper alone, at the current long-term global demand growth rate forecast of 4%, approximately 800,000 tonnes of new copper production will be required next year and each year thereafter. Global copper inventories are currently at a record low of approximately 150,000 tonnes, which represents approximately 3 days of consumption. Any disruptions could easily result in a short term supply shortage, unprecedented in the history of copper.

Large porphyry deposits containing copper, gold and molybdenum, previously marginally economic, will be developed to meet the increasing global demand. Current or higher copper, gold and molybdenum prices, together with low cost electricity and a favorable political and permitting regime, are the ideal combination to attract the significant capital required. British Columbia and the Yukon Territory represent one of the few areas of the world, where all of these conditions are met. This has driven us to focus our talents, expertise and resources in these regions.

We believe that Western Copper has one of the best NI 43-101 compliant short and long term resource deposit bases in the industry. The Carmacks copper deposit in the Yukon is in the final stages of permitting and basic engineering; the giant Casino copper, gold and molybdenum deposit in the Yukon is nearing completion of a pre-feasibility study; a plan to further advance resources is currently being developed for the Hushamu porphyry copper and molybdenum deposit in the north end of Vancouver Island, and the Redstone Copper Belt in the Northwest Territories is undergoing a research project with the University of British Columbia to enhance the enormous potential.

I am particularly pleased with the progress that we have made in this our first full year of existence as Western Copper Corporation, none of which would have been possible without the dedication of our extremely talented staff.

In closing, I wish to thank our shareholders for their continued support and I confirm our commitment in enhancing long term shareholder value by focusing on building a successful Canadian mining company.

I look forward to another exceptional year in 2008.

"Dale Corman"

F. Dale Corman
Co-Chairman & CEO
Western Copper Corporation