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Great Western Minerals Group Delivers Offer to Purchase All Rareco Shares; Rareco Board Recommends Acceptance

SASKATOON, SASKATCHEWAN--(Marketwire - 12/15/10) - Great Western Minerals Group Ltd. ("GWMG" or the "Company"), (TSX-V:GWG - News) (Pinksheets:GWMGF - News) announces that Rare Earth Extraction Co. Limited ("Rareco") has acknowledged receipt of GWMG's notice of intention to make an offer (the "Offer") to purchase all of the 37,764,700 issued ordinary shares in Rareco (the "Rareco Shares") that GWMG does not already own.The board of directors of Rareco has recommended that Rareco shareholders accept the Offer.Having considered the opinion of its independent external advisor, the terms of the Offer and all other relevant information, the Rareco board of directors has advised its shareholders that it has concluded that the terms and conditions of the Offer are fair and reasonable to the shareholders of Rareco.GWMG's legal representative in South Africa, Edward Nathan Sonnenbergs ("ENS"), has confirmed to Rareco and to the Securities Regulation Panel in South Africa that it holds, on behalf of GWMG, sufficient funds to pay for all of the Rareco Shares tendered for sale.Pursuant to the laws of South Africa, GWMG intends to deliver a formal offer document (the "Offer Circular") to the Rareco shareholders in the prescribed form by December 21, 2010. GWMG anticipates that the Offer will remain open from December 22, 2010 to February 28, 2011. Currently, GWMG has received all required South African regulatory approvals and the preliminary acceptance of the TSXV to make the Offer. The closing of the transactions contemplated by the Offer Circular will be subject to the terms and conditions set out in the Offer Circular.GWMG purchased 10 million shares on September 7, 2010 and thereby became Rareco's largest single shareholder, holding 20.8% of all outstanding shares. Pursuant to the Offer Circular, GWMG intends to offer R3.00 (three Rand) per 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.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 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.