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Last updated on April 23, 2014 at 1:22 EDT

Great Western Minerals Group Investigates Former Project Director and Contractor

February 21, 2013

TSX Venture Symbol: GWG
OTCQX: GWMGF

SASKATOON, Feb. 21, 2013 /PRNewswire/ – Great Western Minerals Group Ltd.
(“GWMG” or the “Company”), (TSXV: GWG) today announced that as a result
of an internal investigation into the activities of Vincent Mora, who
had previously provided services to the Company as Project Director and
was terminated for cause, suspicions were raised about invoicing,
purchasing and contracting activities. Because irregularities were
found during the Company’s review, GWMG filed a complaint and
cooperated with the South African police to investigate the possibility
of criminal activity. As a result of this investigation, police have
arrested Vincent Mora on suspicion of fraud and money laundering.

GWMG, through its South African legal counsel, has been actively engaged
in assisting the South African police with the criminal proceedings and
is completing the Company’s full assessment of the nature of the
activity that took place. The Company is also conducting a review of
compliance with its internal controls.

Investigation into the activities of East Rand Engineering Services
(“ERES”), the contractor that was awarded the earthworks and mine
refurbishment contract, led GWMG to terminate its contract with that
company (see GWMG news release November 26, 2012). The Company has paid ERES approximately C$10.62 million to date out
of an invoiced amount totaling approximately C$13.32 million (exclusive
of VAT).  The Company’s quantity surveyors and engineers are assessing
the completed and partially completed works and GWMG is pursuing all
available options, including the commencement of civil claims, to
recover any damages which may have occurred.

GWMG President and Chief Executive Officer Marc LeVier said, “GWMG will
pursue every legal avenue available to recoup any losses that may have
arisen through this situation. We will continue to assist the police in
their investigation of the criminal acts that have violated the trust
of the Company.”

Mr. LeVier went on to say, “Steenkampskraal remains a great project with
one of the few real opportunities to be a leader in the rare earth
sector.  Our plans to become a vertically integrated mine-to-market
company, with unique market access, continue to guide our efforts.  We
have great employees, with high levels of integrity and values, with
whom we will continue to build a team of excellence and the actions of
a few persons should not reflect upon the rest of our team.  GWMG has
the ability to deliver the Steenkampskraal project and we will do so as
we build a relationship of trust with our investors.”

Because this matter involves an ongoing criminal investigation and civil
matter, the Company and its spokespersons will not be able to provide
additional information at this time.

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 Port, 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 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, risks associated with the uncertainties inherent in litigation and
civil proceedings, including uncertainties regarding the ability to
prove any claims, the estimation of potential damages and any possible
recovery thereof; uncertainty of resource estimates, in particular
those relating to Inferred resources;  risks relating to estimating
grades, in particular where interpolation is used to estimate grades;
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 and mine refurbishment activities; 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; 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; the
successful and timely completion of its preliminary economic assessment
at Hoidas Lake; 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; 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; 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