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Great Western Minerals Group Announces Intent to Complete Joint Venture Agreement With Search Minerals at Red Wine REE Property

SASKATOON, SASKATCHEWAN--(Marketwire - 06/28/11) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX-V:GWG - News)(OTCQX: GWMGF) is pleased to announce its intention to accelerate the exercise of its option to earn-in to 50% of the Red Wine Property controlled by Search Minerals Inc. ("Search") in order to create the Joint Venture as detailed in the Option Agreement ("the Agreement") signed on July 23, 2010.Under the terms of the Agreement, GWMG has undertaken all of its commitments including share and cash payments for the first two periods (550,000 shares and $125,000) and have funded expenditures of $1.45 million for the work commitment. Additionally GWMG has carried out a metallurgical program of approximately $50,000 and has therefore met all of the Work Commitment obligations under the terms of the Option Agreement. In order to complete its obligations and earn a 50% interest in the property, GWGM will issue to Search an additional 500,000 shares and make a $100,000 cash payment.Once this has been completed, and under the terms of the Agreement, a 50-50 Joint Venture will have been formed between Search and GWMG and will proceed under the terms detailed in the Agreement.Jim Engdahl, President and Chief Executive Officer of GWMG stated: "The 2010 exploration program discovered a number of new Rare Earth showings with a high percentage of Heavy Rare Earth Elements. That, plus the encouraging drill results from the Cabernet drilling program (see: GWMG News Release of March 7, 2011), has encouraged GWMG to move ahead with the formation of the Joint Venture."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 aluminium, 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 to be produced at the former producing Steenkampskraal Mine in South Africa and holds 93.1% equity ownership in Rare Earth Extraction Co. Limited, the owner of the Steenkampskraal Mine. In addition to a planned exploration program at Steenkampskraal, GWMG also holds interests in five Rare Earth exploration and development properties in North America.Email inquiries should be made to info@gwmg.ca and the company website is located at www.gwmg.ca. Inquiries by direct mail should be addressed to Great Western Minerals Group Ltd., 219 Robin Crescent, Saskatoon, SK S7L 6M8.CUSIP: 39141Y 10 3Certain information set out in this News Release 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, the results of the exploration program, a resource estimate and commencement of production at Steenkampskraal, satisfaction of the conditions precedent with respect to GWMG's offtake agreement, receipt of all required approvals (including those relating to the commencement of production at the Steenkampskraal mine) and risks, uncertainties and other factors that are beyond the control of 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 or resource 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 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 GWMG contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in GWMG's current annual information form available at www.sedar.com.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.