Great Western Minerals Group Provides Corporate Update

SASKATOON, SASKATCHEWAN -- (Marketwire) -- 07/29/10 -- Great Western Minerals Group Ltd. ('GWMG') (TSX VENTURE: GWG) (OTCQX: GWMGF) (PINK SHEETS: GWMGF) today provided an update on recent Rare Earth Elements ('REE') market developments as well as GWMG corporate strategies and projects.

Rare Earth Element (REE) Market Update:

--  Export reduction by China: GWMG President and CEO Jim Engdahl stated,
    'This export scale-back from China is simply the latest in a continuous
    reduction in their export quotas. The 'shrinking supply scenario' is
    precisely what we projected when we developed our business model that
    includes GWMG's Rare Earths processing capacity, our planned mining
    inputs from Steenkampskraal and our exploration properties in North
    America. We foresaw reductions in exports from China and exponentially
    increasing demand globally. And that is precisely what is happening.'
    (Source: GWMG media release July 19, 2010, www.gwmg.ca)

--  Unified pricing from China: 'China's central government plans to publish
    monthly prices for rare earth metals to avoid producers engaging in cut-
    throat competition, China Daily reported on Thursday. In the long run,
    steps will be taken to heighten the influence of domestic miners on the
    price of the minerals in the global market, China Daily quoted an
    unnamed source as saying.' (Source: Mining Weekly, July 8, 2010,
    www.miningweekly.com)

--  Higher pricing expected: 'All signs are pointing towards squeezed supply
    and higher prices to come for Chinese rare earth products. Market
    sources expect to see a significant rise in prices of rare earths in the
    coming weeks, due to the sharp reduction in export quotas and steadily
    rising prices in the domestic market.' (Source: Metal Pages, July 9,
    2010, www.metal-pages.com)

GWMG Update:

Corporate Strategy: As part of GWMG's vertical integration strategy, it holds Rare Earths processing capacity, already in place with Less Common Metals (LCM) and Great Western Technologies Inc. (GWTI), an option to negotiate an offtake agreement with respect to the former producing Steenkampskraal mine in South Africa, and seven Rare Earth exploration and development properties in North America. With GWMG's plans to bring the Steenkampskraal Mine into production with Rare Earth Extracting Co. Limited (Rareco), GWMG will complete its fully integrated 'mines to markets' supply chain strategy. GWMG will then be positioned to supply its own Rare Earth inputs into the production cycle with the potential to expand beyond its own processing requirements.

Rare Earths Processing:

--  Less Common Metals, located in Birkenhead, U.K. has an 18 year history
    of profitable Rare Earths processing. It is proceeding with an expansion
    through the addition of two additional strip cast furnaces. Production
    from the first furnace is scheduled for June 2011 and the second furnace
    in June 2012. This will double the capacity of LCM. Major customers in
    Europe and Japan have been strongly supportive of this initiative,
    indicating they could consume all of the expanded production from these
    strip cast furnaces.


Exploration:
GWMG reports the following exploration updates:

--  True Blue Project (Yukon): In its joint venture with True North Gems,
    GWMG has staked additional claims, undertaken chip sampling and soil
    sampling, and embarked on an aeromagnetic and spectrometric survey.
    (Source: GWMG media release, July 20, 2010, www.gwmg.ca)

--  Douglas River (Athabasca Basin, Saskatchewan): The focus of the
    exploration program is to expand the known showings which were
    originally discovered during the course of uranium exploration. Because
    of the discovery of high grade yttrium and dysprosium, geological
    mapping, radiometric prospecting and further sampling of existing
    trenches was undertaken. (Source: GWGM media release, July 22, 2010,
    www.gwmg.ca)


Steenkampskraal, South Africa:

--  Actions to date:
    --  December 2008: GWMG entered into an option agreement with Rareco of
        Stellenbosch, South Africa to refurbish, re-commission, and operate
        the underground Steenkampskraal Monazite Mine in the Western Cape,
        South Africa and negotiate an offtake agreement.
    --  May 2009: Rareco applied for a conversion of the Old Order Mining
        Right to a New Order Mining Right.
    --  March 2010: GWMG and Rareco entered into an exclusivity agreement
        that allows both parties to move forward with plans to bring the
        former operating Steenkampskraal Monazite Mine back into production.
    --  June 2010: The Department of Mineral Resources of South Africa
        granted a New Order Mining Right to a subsidiary of Rareco with
        respect to the Steenkampskraal Monazite Mine.
    --  June 2010: GWMG opened an office in South Africa to assist Rareco in
        moving Steenkampskraal to production at the earliest possible time
        frame.
    --  June 2010: GWMG launched Phase 1 of the Bankable Feasibility Study
        process for the Steenkampskraal Monazite Mine.

--  Next steps / planned actions:
    --  GWMG is working toward an Offtake Agreement with Rareco intended to
        provide GWMG with access to all mining outputs from the
        Steenkampskraal Monazite Mine.
    --  GWMG is assessing all options regarding an equity interest in
        Rareco.
    --  It is GWMG's goal, subject to the fulfillment of financing and
        regulatory requirements, all of which are subject to unforeseen
        modifications and the Feasibility Study, to work toward
        Steenkampskraal being readied for production by the second half of
        2013.
    --  GWMG will evaluate an exploration program at the Steenkampskraal
        site to determine the potential to expand production beyond the
        currently planned 2,700 tonnes per year.

Cautionary Statement on Quantity, Grade or Metal or Mineral Content of a Deposit:

John Pearson, MSc, PGeo, Vice-President Exploration for GWMG, is the qualified person responsible for reviewing the contents of this Corporate Update. The disclosure relating to any potential quantity or grade of minerals is conceptual in nature, there has been insufficient exploration to define a 'mineral resource' (as that term is defined in National Instrument 43-101 - Standard of Disclosure for Mineral Projects) and it is uncertain if further exploration will result in any such target being delineated as a 'mineral resource'. All disclosure relating to potential quantity and grade has been determined by publicly available data and the Company's exploration and sampling activities, as applicable. No independent verification of such publicly available summary information has been undertaken by GWMG or the 'Qualified Persons' referred to in this Corporate Update.

Cautionary Statement on Corporate Update:

Certain information set out in this Corporate Update constitutes forward-looking information. 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 GWMG 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 uncertainties and other factors that are beyond the control of the GWMG, 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 GWMG believes that the expectations reflected in the forward-looking statements set out in this Corporate Update 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 GWMG contained in this Corporate Update, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors set forth in GWMG's most recent Annual Information Form available on SEDAR.

CUSIP: 39141Y 10 3

Contacts:

Great Western Minerals Group Ltd.

Dwight Percy

Manager of Investor Relations

(306) 659-4500
info@gwmg.ca
www.gwmg.ca


Great Western Minerals Group Ltd.

226 Cardinal Crescent

Saskatoon, SK S7L 6H8