Great Western Minerals Group Ltd.: Corporate Update

SASKATOON, SASKATCHEWAN -- (Marketwire) -- 11/03/10 -- Great Western Minerals Group Ltd. (TSX VENTURE: GWG) (OTCQX: GWMGF)

Great Western Minerals Group Ltd. ('GWMG') Corporate Holdings:


--  1 Rare Earths former producer: Steenkampskraal mine in South Africa.
    GWMG holds an indirect interest in the project through its 20.8%
    shareholding of Rare Earth Extraction Co. Ltd. ('Rareco').
--  2 Rare Earths processing plants: Less Common Metals Limited ('LCM') in
    Birkenhead, U.K. and Great Western Technologies Inc. ('GWTI') in Troy,
    Michigan.
--  7 Rare Earths exploration projects in North America: Hoidas Lake
    (Saskatchewan), Douglas River (Saskatchewan), Deep Sands (Utah),
    Benjamin River (New Brunswick), True Blue J/V with True North Gems
    (Yukon), Red Wine J/V with Search Minerals (Labrador), Chaleur J/V with
    Cornerstone Resources (New Brunswick).

GWMG Corporate Focus:

GWMG continues to execute its strategic plan to become a leading, fully integrated, 'mines to markets' Rare Earths producer supplying its own Rare Earth inputs into its production and processing cycle.

(Note: All media releases referenced in this document can be found at www.gwmg.ca)

Corporate Strategy: Funding for Rareco project, A seat on the Rareco Board, Strengthening GWMG's Advisory Board

--  GWMG closed its short form prospectus offering raising gross proceeds of
    approximately $35 Million. GWMG plans to use the net proceeds for
    repayment of the short term debentures issued on September 6 and
    September 14, 2010 ('Short Term Debentures'), for the advancement of the
    Rareco project in South Africa, and for working capital and general
    corporate purposes. (Source: GWMG media releases, September 21, October
    6, and October 19, 2010).

--  Mohamed Madhi was nominated by GWMG as its representative to the Board
    of Directors of Rareco. Mr. Madhi, also a member of the GWMG Advisory
    Board and part of the GWMG's international team of Rare Earths experts,
    has been Chairman of Areva South Africa and Chief Executive of Safika
    Resources. He has also worked with the Council for Scientific and
    Industrial Research, Eskom and Harmony Gold. (Source: GWMG media
    release, October 27, 2010)

--  Kaz Machida was appointed to GWMG's Advisory Board. Mr. Machida has
    extensive Rare Earths trading experience with Itochu Corporation, Lynas
    Corporation and his own company that is involved in the trading of Rare
    Earth oxides. (Source: GWMG media release, October 28, 2010)

--  Jim Hedrick was appointed to GWMG's Advisory Board. Mr. Hedrick recently
    retired from the U.S. Geological Survey where his responsibilities
    included the preparation of the U.S. Government's Rare Earth reviews,
    writing articles for the minerals industry and chairing sessions on Rare
    Earths and strategic and critical minerals in the United States and
    Europe. (Source: GWMG media release, November 1, 2010)


Rare Earths Processing: Expanded Rare Earths processing capacity,
Strengthened management team

--  GWMG's wholly owned subsidiary Less Common Metals Limited ordered a new
    Rare Earths processing furnace that will increase LCM's processing
    capacity by approximately 50%. The decision to proceed with the
    significant capacity expansion was driven by requests from LCM's
    international customer base. (Source: GWMG media release, October 26,
    2010)

--  GWMG appointed Kerry LaPierre as General Manager of Great Western
    Technologies Inc. effective January 2011. For the past two years, GWMG
    Director David Kennedy has maintained responsibility GWTI in addition to
    LCM. The appointment of a General Manager for GWTI enables Mr. Kennedy
    to closely supervise the upcoming expansion of the LCM plant. (Source:
    GWMG media release, October 25, 2010)


Mining: Moving toward Steenkampskraal production

--  Recent Actions:
    --  GWMG entered into an agreement with Rareco whereby GWMG can purchase
        100% of the Rare Earth production of Rareco and its subsidiaries
        from ore mined at the Steenkampskraal Mine, subject to the
        satisfaction of certain conditions precedent. (Source: GWMG media
        release, August 10, 2010)
    --  GWMG closed a private placement of $3,000,000 (Cdn.) of Short Term
        Debentures to purchase approximately 20.8% of the shares of Rareco.
        (Source: GWMG media release, September 7, 2010)
    --  GWMG closed an additional private placement of $2,000,000 (Cdn.) of
        Short Term Debentures for the continuation of the Steenkampskraal
        feasibility study ('Feasibility Study') and general corporate
        purposes. (Source: GWMG media release, September 15, 2010)

--  As announced previously:
    --  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, or before, 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.


Exploration: Drill programs, Continued focus on Heavy Rare Earths
GWMG reported the following exploration updates:

--  Red Wine Project (Labrador):
    --  Through its joint venture with Search Minerals Inc., GWMG announced
        drill results that included six eudialyte-bearing REE showings the
        Red Wine Property that ranged from 200m to 1300m long and 5 to 60m
        thick. (Source: GWMG media release, September 8, 2010)
    --  Eudialyte bearing mineralization was intersected at depth in all
        four diamond drill holes completed, confirming surface
        mineralization continues to depth, is open below 217 meters and to
        the northwest and east. (Source: GWMG media release, September 29,
        2010)

--  Benjamin River Project (New Brunswick): GWMG carried out an 11-hole,
    2,382-meter drilling program to evaluate Rare Earth Element
    (REE)/phosphate mineral showings. While this component of the
    exploration program did not intersect significant REE/phosphate
    mineralization there are other targets with similar magnetic signature
    and strong stream sediment geochem anomalies that are currently being
    evaluated. (Source: GWMG media release, September 10, 2010)

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, data provided to GWMG by Rareco and GWMG'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 to satisfaction of the conditions precedent relating to the Offtake Agreement, 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 at www.sedar.com.

Contacts:

Great Western Minerals Group Ltd.

Dwight Percy

Manager of Investor Relations

(306) 659-4500


Great Western Minerals Group Ltd.,

219 Robin Crescent, Saskatoon, SK

S7L 6M8
info@gwmg.ca
www.gwmg.ca