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Press Release

Great Western Minerals Group Announces Filing of Preliminary Prospectus

ASKATOON, SASKATCHEWAN--(Marketwire - Sept. 21, 2010) -
(NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES)
Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (OTCQX:GWMGF) ("GWMG" or the "Company") is pleased to announce that it has filed a preliminary short form prospectus with respect to the distribution of up to $35,000,000 of units of the Corporation ("Units"). Byron Securities Limited has been engaged to act as lead agent with Salman Partners Inc. (the "Agents") in respect to the offering of the Units (the "Offering").
The pricing of the Units will be determined by the Company and the Agents in the context of the market prior to filing the final prospectus in connection with the Offering. Each Unit will consist of one common share of the Corporation (a "Common Share") and one-half of one Common Share purchase warrant (each a "Unit Warrant"). Each whole Unit Warrant shall entitle the holder thereof to purchase one Common Share (each a "Unit Warrant Share") at a price per Unit Warrant Share to be determined at the time of pricing of the Units. The Unit Warrants will have a term expiring at 4:00 p.m. (Saskatoon time) on the date which is 18 months from the completion of the Offering.
GWMG plans to use the net proceeds for repayment of the short term debentures issued on September 6 and September 14, 2010, advancement of the Rareco project in South Africa, and for working capital and general corporate purposes.
A preliminary prospectus containing important information relating to the Offering has been filed with the securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from the Corporate Secretary of Great Western Minerals Group Ltd., at 219 Robin Crescent, Saskatoon, Saskatchewan S7L 6M8 (telephone number: (306) 659-4500) and are also available electronically at www.sedar.com.
About Great Western Minerals Group Ltd.
Great Western Minerals Group Ltd. is an integrated Rare Earths processor. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company's wholly owned subsidiaries Less Common Metals Limited in Birkenhead, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain aluminum, nickel, cobalt and Rare Earth Elements. As part of the Company's vertical integration strategy, GWMG has signed an Off-take Agreement for 100% of the Rare Earth Elements produced at the former producing Steenkampskraal mine in South Africa and holds 20.8% ownership in Rare Earth Extraction Co. Ltd, the owner of the Steenkampskraal mine. GWMG also holds interests in seven Rare Earth exploration and development properties in North America.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in any jurisdiction. The securities to be issued pursuant to the Offering by the Company have not and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.
Certain information set out in this News Release constitutes forward-looking information, which may include information relating to estimates of sales and revenue of GWMG. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of the Company as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to the ability of the Company to obtain a receipt for the prospectus, risks, uncertainties and other factors that are beyond the control of the Company, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although the Company believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of the Company contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.<
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