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Update on Steenkampskraal Rare Earth Chloride Plant, LCM Alloy Production, GWTI Project, CEO Search and PEA

November 26, 2012

Corporate Update - As at November 26, 2012

SASKATOON, Nov. 26, 2012 /PRNewswire/ -

Steenkampskraal:

Great Western Minerals Group’s (“GWMG”) wholly-owned South African
subsidiary, Rare Earth Extraction Co. Limited (“Rareco”) has contracted
with DRA Mineral Projects (Pty) Ltd. (“DRA”) of South Africa to review
and complete the remaining work relating to the decline shaft
refurbishment and hoisting equipment commissioning. Rareco has
terminated its contract with East Rand Engineering Services for these
services due to a commercial disagreement. DRA is part of a highly
qualified and experienced South African based mining and engineering
group with a global customer base of mining and processing companies.
DRA is also continuing with the design and engineering work as the main
contractor for the mixed rare earth chloride facility at
Steenkampskraal.

Less Common Metals:

Less Common Metals (“LCM”) of Birkenhead, United Kingdom, has been
actively working with its customers to deliver rare earth alloys using
the new strip cast furnace. A series of trials designed to optimize
melt conditions that produce various grades of product have been
conducted enabling LCM to thoroughly investigate the full range of
furnace process parameters. Through that rigorous process, LCM has
established best practices and has achieved reproducible, standardized
melts on a routine basis. These melts have been submitted to one of
LCM’s key customers for evaluation. Programs have also been established
to supply all other LCM customers with evaluation materials.

The second strip cast furnace ordered from the same Chinese supplier is
now completely fabricated and LCM personnel were at the manufacturer’s
plant in November for inspection and commissioning trials. The second
furnace for LCM’s Hooton Park location is scheduled to arrive in the
latter part of the 1(st) Quarter 2013 with the plan that it will be fully operational early in
the 2(nd) Quarter 2013.

The general markets for rare earth alloys have remained relatively
healthy, albeit exhibiting a limited degree of impact from low rates of
global economic growth. LCM notes that there has been a concentrated
and potentially successful effort on the part of customers and
researchers to reduce the use of Dysprosium, an element that remains in
short supply globally, in many of these alloys. This has, in turn, led
to renewed confidence on the part of customers in respect to the
sustainability of the rare earth supply chain, notably for Neodymium,
which remains the material of choice for the high performance permanent
magnet market.

The recent softening of rare earth prices has also restored confidence
levels on the part of LCM customers who have continued to express
strong support for GWMG’s corporate vision to provide rare earth
materials via a supply chain that is reliable, sustainable and free
from political restriction.

The Company will conduct a tour of the LCM facilities for analysts and
newsletter writers on Thursday, November 29, 2012.

Great Western Technologies Inc.:

As announced on October 1, 2012, GWMG’s wholly owned subsidiary, Great
Western Technologies Inc. (“GWTI”) of Troy, Michigan, was selected by
the United States Department of Defense to conduct a supply chain
assessment of military use of high-purity Yttrium oxide and a study of
material optimization and recycling methods. The study is now underway
with a team comprised of GWTI personnel and external resources. GWMG
expects the project can position the Company as a valued participant in
the United States rare earth industry.

CEO Search:

The CEO recruitment process continues to progress toward the appointment
of a new Chief Executive Officer. The Search Committee, consisting of
Interim CEO Robert Quinn, and independent Directors George Ireland and
Ian McNaughton, are working through the selection process with the
assistance of the highly experienced executive recruitment agency
Korn/Ferry International.

Preliminary Economic Assessment (“PEA”):

GWMG reports excellent progress on the part of Snowden Mining Industry
Consultants Inc. (“Snowden”), the independent contractor working on the
up-date of the resource calculation and completion of the PEA within
the previously stated time target of the 4(th) Quarter of 2012. The Company looks forward to the release of the PEA as
an opportunity to communicate confirmation of its capital expenditure
projections for the Steenkampskraal operation, financial projections
for its fully integrated “Mines-to-Metals” business model and key
elements of the Company’s operations going forward.

Great Western Minerals Group Summary:

Great Western Minerals Group Ltd. intends to be an integrated rare earth
producer. The Company currently produces specialty alloys which 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 South Africa. In
addition to an exploration program at Steenkampskraal, GWMG also holds
interests in four active rare earth exploration and development
properties in North America.

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.

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 and timely completion of its preliminary economic
assessment at Hoidas Lake; the successful and timely completion and the
results of its preliminary economic assessment of the Steenkampskraal
project, 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 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; 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 Hoidas Lake or
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
Professional Securities Market listing particulars available at www.sedar.com.

SOURCE Great Western Minerals Group Ltd.


Source: PR Newswire