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Great Western Minerals Group in Advanced Discussions on Rare Earth Separation Plant

SASKATOON, SASKATCHEWAN--(Marketwire - 02/24/11) - Great Western Minerals Group Ltd. ("GWMG" or the "Company", (TSX-V: GWG) (Pinksheets:GWMGF - News) announces that it is holding advanced discussions with several companies with the intent of engaging a partner in the construction of a Rare Earths separation plant in South Africa.The separation plant, which would process the mixed rare earth chloride, that is planned to be produced at the Steenkampskraal site, into separated Rare Earth oxides, is a core component of GWMG's plans to be a fully integrated Rare Earths producer.GWMG is evaluating several alternatives. Under each alternative, the Company would also be acquiring separation expertise.One alternative is an off-take agreement under which the partner would have access to Rare Earths oxides that are in excess of those required for GWMG's wholly owned alloy processing facilities, Less Common Metals in Birkenhead, U.K. and Great Western Technologies Inc. in Troy, Michigan, U.S.A second alternative, which is not exclusive of the first, is the potential for equity investment in the separation plant by a project partner.The third alternative being considered by GWMG is the use of debt instruments for financing the separation plant.GWMG President and Chief Executive Officer Jim Engdahl said, "GWMG management remains confident about the long term pricing strength of the Rare Earths market. The management of GWMG is also of the opinion that being a fully integrated producer will magnify the value of each tonne of Rare Earths mined. With GWMG having its own planned mining and separation production, our Company can create the maximum degree of supply certainty to our valued customers in Asia, Europe and the United States."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 70.2% ownership in Rare Earth Extraction Co. Limited, 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. 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 feasibility study, 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.