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Manufacturer of rare earth-based metal alloys positioned to develop high-grade rare earth resource to secure supply

SASKATOON, SK, May 1, 2013 /PRNewswire/ - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX.V: GWG / OTCQX: GWMGF), a leader in the manufacture and supply of rare earth-based alloys and high purity metals with a low cost, high-grade critical rare earth asset (the "Steenkampskraal project" or "SKK"), today announced that it has filed its preliminary economic analysis (the "PEA") for SKK in South Africa. The PEA results were previously reported March 18, 2013. GWMG's strategy is to expand its opportunity as a metals alloy producer by developing SKK as a secure source of rare earth elements for its manufacturing process.

Project highlights

• CDN$555 Million after-tax net present value applying a 10% discount rate and a 28% South African corporate tax rate.
  
  
• 66% after-tax internal rate of return.
  
  
• 2.5 year estimated project payback period, on an after-tax basis, from start of underground mining production.
  
  
• 11 year potential life of mine.

The PEA is preliminary in nature and includes an economic assessment of Indicated Mineral Resources and Inferred Mineral Resources (terms which have the meanings ascribed thereto in the CIM Definition Standards for Mineral Resources and Mineral Reserves as published by the Canadian Institute of Mining, Metallurgy and Petroleum).

The Inferred Mineral Resources are quantified based on the potential viability of the resource estimate of the Steenkampskraal project and are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves (as defined in CIM Definition Standards of Mineral Resources and Mineral Reserves).

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability and there is no certainty that the results of the PEA will be realized.

Marc LeVier, President and CEO, commented, "We have directed our resources where we believe we can get the greatest return and add substantive value to the project to include a focus on finalizing the feasibility study which will provide greater clarity about project costs thereby reducing the risk for development. Given the impact global economies have had on the mining industry and limiting access to capital, we have stopped geo-development drilling and deferred other site development activities."

Mr. LeVier added, "We are actively in discussions with parties that have indicated interest in off take agreements for metal alloy products we produce. Any off take agreements combined with a potential tolling agreement for the separation plant will help to reduce the capital required to bring SKK to production."

Capital Expenditure Highlights
Note: PEA estimates are accurate to +/- 40%

The PEA can be found under the Company's profile on SEDAR at www.sedar.com or on its website at www.gwmg.ca.

Qualified Persons

The technical information in this news release relating to the PEA was prepared under the supervision of Mr. Bill McKechnie, BSc. (Hons), Pr.Sci.Nat, MSAIMM, MGSSA, the General Manager, Africa Region of Snowden Mining Industry Consultants (Pty) Ltd.

About GWMG

Great Western Minerals Group Ltd. is engaged in becoming an integrated rare earth producer. 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 Ellesmere, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain transition metals including nickel, cobalt, iron 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 controls the Steenkampskraal monazite 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 company routinely posts news and other information on its website at www.gwmg.ca.

Neither the 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.

Cautionary Statement

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 assumptions and estimates in the preliminary economic assessment of the Steenkampskraal project proving to be accurate over time; the construction, commissioning and operation of the proposed monazite processing facility and separation facility within estimated parameters; mine refurbishment activities; reliance on third parties to meet projected timelines and commencement of production at Steenkampskraal; risks related to the receipt of all required approvals including those relating to the commencement of production at the Steenkampskraal mine, delays in obtaining permits, licenses and operating authorities in Canada, South Africa and China, environmental matters, water and land use risks; 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, including those estimated in the preliminary economic assessment of the Steenkampskraal project; risks associated with the uncertainty of resource estimates; health and safety risks; uncertainty of estimates and projections of production, costs and expenses; risks that future Steenkampskraal and region exploration results may not meet exploration or corporate objectives; the adequacy of the Company's financial resources and the availability of additional cash from operations or from financing on reasonable terms or at all; political risks inherent in South Africa and China; risks associated with the relationship between GWMG and/or its subsidiaries and communities and governments in Canada and South Africa, radioactivity and related issues, dependence on one mineral project; loss of, and the inability to attract, key personnel; the factors discussed in the Company's public disclosure record; and other factors that could cause actions, events or results not to be as anticipated. 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. Except as required by law, GWMG does not assume any obligation to update forward looking statements as set out in this news release. 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 Annual Information Form available at www.sedar.com.

Cautionary Note For US Investors Concerning Estimates of Indicated and Inferred Resources

The PEA uses the terms "Indicated" and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred" mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred mineral resources may not form the basis of feasibility or other economic studies except in limited circumstances and with specific notification to the reader. United States investors are cautioned not to assume that all or any part of any mineral resources will ever be converted into mineral Reserves (as defined under NI 43-101). United States investors are also cautioned not to assume that all or any part of an Inferred mineral resource exists, or is economically or legally mineable.