GREAT WESTERN MINERALS GROUP LTD.

(Not for Distribution to the United States Newswire Services or for Dissemination in the United States)

TSX Venture Exchange Symbol: GWG

Pink Sheets: GWMGF

GREAT WESTERN MINERALS GROUP ANNOUNCES CLOSING OF $8 MILLION OFFERING INCLUDING A FULL EXERCISE OF THE OVER-ALLOTMENT OPTION

January 25, 2010 – Saskatoon, Saskatchewan – Great Western Minerals Group Ltd. ("GWMG" or the "Company") is pleased to announce that it has closed its previously announced short form prospectus offering, raising gross proceeds of $8,050,000 for the Company. Pope & Company Limited of Toronto ("Pope & Company") acted as exclusive agent for the Company with respect to the sale of 28,750,000 units ("Units") of GWMG at a price of $0.28 per Unit (the "Unit Offering"). In connection with the Unit Offering, the Company granted Pope & Company an over-allotment option to require GWMG to issue up to an additional 15% of the Units actually sold at the closing of the Unit Offering, which Pope & Company exercised in order to increase the number of Units sold from 25,000,000 to 28,750,000.

Each Unit consists of one common share (a "Common Share") of GWMG and one-half of one Common Share purchase warrant (each whole warrant a "Unit Warrant"). Each whole Unit Warrant entitles the holder thereof to purchase one Common Share for a price of $0.50 per Common Share until 4:00 p.m. (Saskatoon time) on January 25, 2015, subject to acceleration of the exercise period in certain circumstances. If following the closing of the Unit Offering, the Company's daily volume weighted average share price is $1.00 or more per common share for ten consecutive trading days on the TSX Venture Exchange (the "TSXV"), or an equivalent stock exchange (the "Accelerating Event"), the exercise period of the Unit Warrants shall be reduced to the date that is sixty days following the Accelerating Event without any further action on the part of the Company or the holder of the Unit Warrants. In the event that the Unit Warrants are not exercised within such period, the Unit Warrants so amended shall be deemed to be expired.

Pope & Company was paid a cash commission of $563,500 in connection with the Unit Offering and received an aggregate of 2,012,500 broker warrants to acquire up to 2,012,500 Common Shares at a price of $0.28 per Common Share until January 25, 2012.

GWMG is also pleased to announce that as a result of the filing of the Company’s short form prospectus, the outstanding special warrants of the Company (the "Special Warrants") will be deemed to be exercised on January 28, 2010. Certificates representing the Common Shares and warrants issuable upon the deemed exercise of the Special Warrants will be sent to the former holders of the Special Warrants in accordance with the terms of the special warrant indenture dated November 6, 2009.

About Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd. is a Canadian-based company with six rare earth exploration and development properties in North America with an option on a sizable additional property in South Africa. In addition, as part of the Company's strategy to pursue a vertically-integrated business model, the Company's wholly-owned subsidiaries of Less Common Metals Limited located in Birkenhead UK, and Great Western Technologies Inc., located in Troy, Michigan, produce a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing copper, nickel, cobalt and the rare earth elements.

For further information, please contact Ron Malashewski, Manager of Investor Relations at (306) 659-4500. Email inquiries should be made to [email protected] and the company website is located at www.gwmg.ca. Inquiries by direct mail should be addressed to Great Western Minerals Group Ltd., 226 Cardinal Crescent, Saskatoon, SK S7L 6H8.