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Great Western Minerals Group Re-Classifies June 30, 2010 Financial Statement Cash Flow Items

SASKATOON, SASKATCHEWAN--(Marketwire - 09/29/10) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX-V:GWG - News) (Pinksheets:GWMGF - News) has filed amended and restated consolidated unaudited interim financial statements for the three and six months periods ended June 30, 2010. The financial statements have been restated to correct the previous classification of consolidated cash flows used in operating, investing and financing activities and amended to include a consolidated statement of comprehensive loss. The Company had previously recorded the changes in bank demand loans, common shares issued to repay a portion of a convertible debenture and stock based compensation issued related to additions to mineral properties as operating actives. These amounts have been reclassified to financing and investing activities.These amendments and restatement had no impact on the consolidated unaudited interim balance sheets, consolidated interim statements of loss and deficit, or net increase (decrease) in cash during the period in the consolidated statement of cash flows as previously reported for the three and six month periods ended June 30, 2010.This restatement of the financial results reflects the determination of the Company, in consultation with its auditors and in connection with the review by its auditors of the financial statements for the three and six month periods ended June 30, 2010.The following table provides a summary of the restatement effects:

 

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Three months ended Six months ended
June 30 June 30
2010 2009 2010 2009
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Cash flows from
operating
activities:
As previously
reported $ (793,813) $ (775,891) $ (1,875,195) $ (668,220)
As restated $ (1,188,785) $ 264,638 $ (3,437,608) $ 455,002
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Cash flows from
investing
activities:
As previously
reported $ (1,110,774) $ 850,949 $ (1,490,766) $ 773,317
As restated $ (1,023,774) $ 850,949 $ (1,403,766) $ 773,317
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Cash flows from
financing
activities:
As previously
reported $ (172,979) $ 344,900 $ 6,260,308 $ (381,714)
As restated $ 134,993 $ (1,385,429) $ 7,735,721 $ (1,474,936)
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Net increase
(decrease) in
Cash during period:
As previously
reported $ (2,077,566) $ (269,842) $ (2,894,347) $ (246,617)
As restated $ (2,077,566) $ (269,842) $ (2,894,347) $ (246,617)
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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.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 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.CUSIP: 39141Y 10 3Neither 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.