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Great Western Minerals Group Releases 2010 Financial Results

SASKATOON, SASKATCHEWAN--(Marketwire - 03/31/11) - Great Western Minerals Group Ltd. ("GWMG" or the "Company"), (TSX-V:GWG - News) (Pinksheets:GWMGF - News) today announced its 2010 financial results.For the year ended December 31, 2010, GWMG's financial highlights include:


-- Manufacturing / processing revenues from GWMG's wholly owned
subsidiaries Less Common Metals and Great Western Technologies Inc. were
$15.1 million for 2010 representing a 26% revenue increase over 2009.
-- Gross margins on manufacturing / processing operations were $4.5 million
for 2010, representing a 48% increase over 2009.
-- Net consolidated loss for 2010 of $16.3 million ($.062/share) which
includes the write down of mineral properties in the amount of $8.1
million ($.030/share). This compares to a 2009 net loss of $7.0 million
-- The cash loss for 2010 was $5.1 million ($.02/share). This compares to a
cash loss of $5.3 ($.03/share) in 2009.

GWMG President and Chief Executive Officer Jim Engdahl said, "Great Western Minerals Group had a very strong financial and operating year in 2010. Our Company was able to increase revenues by 26% and margins by 48% for the year from our Rare Earths processing operations. This is of significance given our plans to be a fully integrated producer."Engdahl added, "GMWG also saw a significant improvement in the Company's cash position with $9.2 million as at December 31, 2010 compared to $1.2 million as at December 31, 2009. In addition, subsequent to year end, the Company has received and executed 17,492,828 warrants for common shares of the Company. This contribution of $8,215,781 to the cash position of GWMG is highly relevant to our ability to bring the Steenkampskraal property into mining production."Other financial and operating highlights of 2010 include:


-- EBITDA from GWMG's manufacturing / processing operations was $0.4
million in 2010 compared to ($0.1 million) in 2009.
-- The Deep Sands ($7.1 million) and True Blue ($1.0 million) mineral
property exploration costs were written off in 2010. For Deep Sands, the
Company has not relinquished its ownership or permit rights, allowing
the Company to potentially recover costs in the future, although those
potential recoveries can not be determined at this time.
-- Subsequent to year end, the offer to purchase Rare Earth Extraction Co
Limited ("Rareco") shares that was tendered during 2010 concluded on
February 28, 2011 with GWMG holding 92.6% of all outstanding Rareco
shares, giving GWMG indirect control of the formerly producing
Steenkampskraal mine in South Africa.

GWMG three month and twelve month financial results:


Three Three Twelve Twelve
Months Months Months Months
ended ended ended ended
Dec. 31/10 Dec. 31/09 Dec. 31/10 Dec. 31/09
Revenue $ 4,692,380 $ 3,209,827 $ 15,139,682 $ 11,994,734
Gross Margins $ 1,338,219 $ 743,905 $ 4,490,851 $ 3,035,247
Earnings (Loss) $(12,899,967) $(3,917,318) $(16,197,147) $ (6,954,975)
Earnings (Loss) per
share $ (0.049) $ (0.023) $ (0.062) $ (0.042)

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 holds 92.6% 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 six 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 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.