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Great Western Minerals Group Delivers Notice of Intent to Offer to Purchase Remaining Rareco Shares

SASKATOON, SASKATCHEWAN--(Marketwire - 11/22/10) - Great Western Minerals Group Ltd. ("GWMG" or the "Company"), (TSX-V:GWG - News)(Pinksheets:GWMGF - News) announces that it has delivered a notice (the "Notice") to the board of directors of Rare Earth Extraction Co. Ltd. ("Rareco") confirming its intention to make an all-cash offer (the "Offer") to the registered shareholders of Rareco to purchase up to all of the 37,764,700 Rareco shares not already held by GWMG at a price of 3 South African Rand per Rareco share.Pursuant to the laws of South Africa, delivery of the Notice requires GWMG to deliver a formal offer document to the Rareco shareholders in the prescribed form within 30 days (the "Offer Circular"). The closing of the transactions contemplated by the Offer will be subject to customary terms and conditions including:

 

-- Receipt by GWMG of all applicable approvals related to securities,
corporate, tax, and competition/antitrust issues and all other
regulatory approvals; and
-- Receipt by GWMG of final acceptance of the TSX Venture Exchange.

The foregoing is a summary of the proposed terms of the Offer and is subject in its entirety to the terms and conditions to be set forth in the Offer Circular. Readers are cautioned to refer to the Offer Circular for the full terms and conditions of the Offer, which will be made available on SEDAR at www.sedar.com when the Offer Circular is mailed to the Rareco shareholders."The offer to purchase the remaining outstanding Rareco shares is an extremely important event in the execution of our Company's strategy," said GWMG President and Chief Executive Officer Jim Engdahl. "Increasing our ownership position in Rareco significantly strengthens our plan to become a fully integrated rare earth producer."Jim Engdahl, PresidentAbout 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 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 currently 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.Inquiries by direct mail should be addressed to Great Western Minerals Group Ltd., 219 Robin Crescent, Saskatoon, SK S7L 6M8.Certain 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 making of the Offer on the proposed terms, the delivery of the Offer Circular and the satisfaction of the conditions precedent set forth therein, the number of Rareco shares tendered to the Offer and accepted by GWMG, 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.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.