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Great Western Minerals Group Delivers Offer Circular to Rareco Shareholders

SASKATOON, SASKATCHEWAN--(Marketwire - 12/21/10) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX-V:GWG - News) (Pinksheets:GWMGF - News) today confirmed that GWMG and Rare Earth Extraction Co. Limited ("Rareco") have officially delivered the formal offer document (the "Offer Circular") to the Rareco shareholders.As previously announced (see GWMG Media Release of December 15, 2010: "Great Western Minerals Group Delivers Offer To Purchase All Rareco Shares; Rareco Board Recommends Acceptance"), the Rareco Board of Directors has recommended acceptance of GWMG's all-cash offer (the "Offer") for the remaining 37,764,700 issued ordinary shares in Rareco (the "Rareco Shares") that GWMG does not already own. The Offer will remain open until February 28, 2011.GWMG reports that, to date, Rareco shareholders have tendered for sale a total of 4,614,977 Rareco Shares in addition to the 10 million Rareco Shares already held by GWMG.GWMG purchased 10 million Rareco Shares on September 7, 2010 and thereby became Rareco's largest single shareholder, holding 20.8% of all outstanding Rareco Shares. Pursuant to the Offer Circular, GWMG has offered R3.00 (three Rand) per Rareco Share in cash to purchase all of the remaining Rareco Shares.Jim Engdahl, President and CEOGreat 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 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.CUSIP: 39141Y 10 3