Western Goldfields Announces Mesquite Mine is Fully Funded

���� Agreement for US$105 million Term Loan Facility and recent equity

���� offering complete financing requirements for development of the Mesquite

���� Mine

���� TORONTO, April 2 /CNW/ - Western Goldfields, Inc. (TSX:WGI,

OTC BB:WGDF.OB), a gold producer focused on developing the Mesquite Mine in

Imperial County, California, today announced that, through its wholly-owned

subsidiary, Western Mesquite Mines, Inc., (the Borrower), it has entered into

a new term loan facility with Investec Bank (UK) Limited. Under the facility,

Western Goldfields will be able to borrow up to $105 million in connection

with its development of the Mesquite Mine. The agreement and the Company's

recent equity offering complete the financing requirements for the Mine. All

currency amounts are in U.S. dollars.

���� "This is an exciting day for Western Goldfields," said Randall Oliphant,

Chairman. "The signing of this term loan facility completes the financing

program that we undertook late last year to fund the development of the

Mesquite Mine. Together with our recently completed equity offering that

raised net proceeds of $59 million, we now have all of the funding in place to

bring the Mesquite Mine into production."

���� The $105 million facility comprises multiple-draw term loans maturing

December 31, 2014, of which $85 million will be available to be drawn as

required for the development of the Mesquite Mine, and the remainder will be

available for up to 12 months after completion for other corporate purposes.

Western Goldfields previously announced estimated annual production of 165,000

ounces of gold per year beginning in April 2008.

���� Achieving completion will require the satisfaction of financial and

technical criteria and is expected to occur in the second half of 2008. Until

completion, the facility will be guaranteed by the Company. The facility is

secured by a pledge of all of the shares of the Borrower and all of the

Borrower's assets. Repayment of the facility will be on a semi-annual basis,

commencing approximately six months from completion with mandatory prepayments

being made from excess cash flow. Interest on each advance will be charged at

U.S. LIBOR plus 2.20 percent pre-completion and 1.75 percent post-completion.

The company believes that the representations, warranties, covenants, and

events of default under the term loan facility are usual and customary for

project debt financing facilities of this type.

�� ��Terms of the financing agreement are consistent with those that the

Company announced on November 30, 2006, when it disclosed that it had signed a

mandate letter with Investec Bank (UK) Limited for project debt financing. The

availability of the funds is subject to certain conditions, including the

Borrower entering into an acceptable gold hedging program for approximately

450,000 ounces with certain lenders under the term loan facility, the

resolution of certain ancillary agreements and the delivery of usual and

customary closing documents, opinions and certificates.

���� "The first deliveries of the $67 million mine fleet have arrived at the

Mesquite Mine site," said Raymond Threlkeld, President and Chief Executive

Officer, "and we are moving full speed ahead with our plans to develop the

mine and to expand its reserves and resources."

���� Western Goldfields, Inc.

���� ------------------------

���� Under a new, highly experienced, and dynamic management team, Western

Goldfields is a gold producer focused on completing the expansion of its

Mesquite Mine, located in Imperial County, California, and returning the mine

to full production. Western Goldfields recently announced an increase in the

Mesquite Mine's Proven and Probable reserves to an estimated 2.77 million

ounces of gold, with Measured and Indicated resources exclusive of reserves

estimated at 1.1 million ounces. The Company is estimating average annual

production of 165,000 ounces of gold from the mine at total cost of sales of

approximately $335 per ounce commencing in April 2008.

���� Western Goldfields, Inc. is listed on the Toronto Stock Exchange and

trades under the symbol WGI, and is quoted on the OTCBB under the symbol

WGDF.OB. For further details regarding the Company, please visit

www.westerngoldfields.com.

���� Forward-Looking Information

���� ---------------------------

���� Certain statements contained in this news release may contain

forward-looking information within the meaning of the United States Private

Securities Litigation Reform Act of 1995 and similar Canadian legislation.

Such forward-looking statements are identified by words such as "intends",

"anticipates", "believes", "expects", and "hopes" and include, without

limitation, statements regarding the Company's plan of business operations,

financing options and the consequences thereof, potential contractual

arrangements, receipt of working capital, anticipated revenues, and related

expenditures. There can be no assurance that such statements will prove to be

accurate; actual results and future events could differ materially from such

statements. Factors that could cause actual results to differ materially

include, among others, those set forth in the Company's Annual Report on Form

10-KSB for the year ended December 31, 2006 filed with the U.S. Securities and

Exchange Commission, under the caption, "Risk Factors". Most of these factors

are outside the control of the Company. The availability of funds under the

term loan facility is subject to certain conditions, including the Borrower

entering into an acceptable gold hedging program and the delivery of usual and

customary closing documents, opinions and certificates. Investors are

cautioned not to put undue reliance on forward-looking statements. Except as

otherwise required by applicable securities statutes or regulation, the

Company disclaims any intent or obligation to update publicly these

forward-looking statements, whether as a result of new information, future

events or otherwise.

���� %SEDAR: 00021587E

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For further information: please visit www.westerngoldfields.com, or contact:

Brian Penny, Chief Financial Officer, (416) 324-6002,

bpenny@westerngoldfields.com; Julie Taylor Pantziris, Director, Regulatory

Affairs and Investor Relations, (416) 324-6015,

jtaylor@westerngoldfields.com; Richard Wertheim, Investor and Media

Relations, Wertheim + Company Inc., (416) 594-1600, wertheim@wertheim.ca