Great Western Minerals Group Announces Proposed Secured Convertible Bond Financing

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SASKATOON, SASKATCHEWAN -- (Marketwire - March 14, 2012) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE: GWG) is pleased to announce that it has engaged GMP Securities L.P. and ISM Capital LLP, as co-lead agents, along with Byron Capital Markets Ltd. (collectively, the "Agents") to act as its exclusive Agents in connection with its intention to offer (the "Offering") secured convertible bonds (the "Bonds").

The Bonds will become due five years from issuance and will be convertible into common shares of GWMG ("GWMG Shares") at a conversion rate yet to be determined. The most recent closing price of the GWMG Shares was $0.55.

The net proceeds of the proposed Offering are intended to be used by the Company as follows: (i) to complete a technical report on the Company's Steenkampskraal property in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects; (ii) to advance the development of the Company's Steenkampskraal operation; (iii) for the construction of the Company's monazite processing facility; (iv) for the construction of the Company's separation facility; (v) for equipment purchases and expansion of Less Common Metals Limited; and (vi) for general working capital purposes.

GWMG President and Chief Executive Officer Jim Engdahl said, "The proposed secured convertible bond financing is a transformational event for the Company and is key to the completion of the next steps of the Company's development. Execution of the Company's strategic business plan involves the Company becoming a first mover in the rare earth industry and completing its fully integrated business model. This strategy has been central to the Company's focus and we are extremely pleased to be working with GMP, ISM and Byron on this offering."

Concurrently, GWMG is pleased to announce the appointment of Robert Gilmore and George Ireland to the Company's Board of Directors, subject to regulatory approval.

Mr. Robert Gilmore has been chairman of Eldorado Gold Corporation since 2009, having served on the board as an independent director since 2003 and as chairman of the audit committee since 2004. He also serves on the board of Fortuna Silver Mines. Mr. Gilmore, a Certified Public Accountant and financial consultant, is a graduate of the University of Denver with a Bachelor of Science degree in Business Administration, Accounting. He has been the chief financial officer of Dakota Mining Corporation and Teamshare Inc. Mr. Gilmore, a member of the Colorado Society of Certified Public Accountants and the American Institute of CPAs, has more than 30 years of experience working with resource companies.

Mr. George Ireland serves as chief investment officer and managing member of Geologic Resource Partners LLC as well as portfolio manager of Geologic Resource Funds. Mr. Ireland has 30 years of experience in all aspects of the resource sector, ranging from field geology through to banking and corporate finance. In addition to having worked in the most senior positions with several firms in the resource sector he has served as a director with companies that include Blue Wolf Mongolia Holdings Corp., Peru Copper Inc., Geoinformatics Exploration Inc., Kiska Metals Corporation and Uranium Resources Inc. Mr. Ireland graduated from Philips Academy and the University of Michigan with degrees in Resource Economics and Geology. He also attended the Graduate School of Business Administration of New York University.

GWMG Executive Chairman Gary Billingsley said, "GWMG is very pleased to be able to attract such highly qualified Board members to our company. The significant resource sector backgrounds of Robert Gilmore and George Ireland will further strengthen our team at GWMG. We are very confident that the addition of these independent directors will serve our shareholders' interests exceptionally well."

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 aluminum, nickel, cobalt and Rare Earth Elements. As part of the Company's vertical integration strategy, GWMG also holds 100% equity ownership in Rare Earth Extraction Co. Limited, which owns a 74% equity interest in the Steenkampskraal Mine. In addition to an exploration program at Steenkampskraal, GWMG also holds interests in four active Rare Earth exploration and development properties in North America.


The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 successful completion of the Offering, the construction, commissioning and operation of the proposed monazite processing facility and separation facility, mine refurbishment activities, reliance on third parties to meet projected timelines, the results of the exploration program at Steenkampskraal, completion of a resource estimate and commencement of production 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, environmental matters, water and land use) 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 3

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Contact Information

Great Western Minerals Group Ltd.
Dwight Percy
Manager of Investor Relations
(306) 659-4516
info@gwmg.ca
www.gwmg.ca

Great Western Minerals Group Ltd.
219 Robin Crescent
Saskatoon, SK S7L 6M8