June 15, 2009

GREAT WESTERN MINERALS GROUP AND MOLYCORP MINERALS, LLC TERMINATE
DISCUSSIONS OF PROPOSED TRANSACTION

Saskatoon Saskatchewan, June 15, 2009 -Great Western Minerals Group Ltd.
(“GWMG” or the “Company”) announced today that GWMG and Molycorp Minerals,
LLC (“Molycorp”) have terminated discussions with regard to the letter of
intent (the “Letter of Intent”) pursuant to which GWMG and Molycorp were
discussing the possible acquisition of a controlling interest in GMWG
pursuant to a share issuance, merger, amalgamation, or other form of
business combination (the “Proposed Transaction”) as disclosed in the
Company’s news release of April 20, 2009.

The structure of the Proposed Transaction, as disclosed on April 20, was to
include a mutually beneficial business combination that would substantially
maintain GWMG’s “mine-to-market” business model. Subsequent revisions to the
Proposed Transaction structure, as disclosed in May 4, would have focused on
the purchase GWMG’s manufacturing assets, including those of Great Western
Technologies Inc. and Less Common Metals Limited, and a joint-venture
participation in two of GWMG’s exploration projects.

Management of GWMG and the Special Committee consisting of independent
members of the board of directors of GWMG (the "Board") advised the Board
that GWMG and Molycorp could not reach agreeable terms with respect to the
revised focus of the Proposed Transaction. As negotiations progressed,
management and the Board determined that the structure proposed by Molycorp
would not accomplish the original goals of the Proposed Transaction.
Management and the Board continue to believe that shareholder value will be
best achieved by not selling GWMG's core assets and continuing to pursue
GWMG's mine to market strategy and management is continuing discussions with
third parties that have indicated an interest in strategic relationships
with GWMG.

As such, the Board determined that GWMG could not move forward with
negotiation of a definitive agreement relating to the Proposed Transaction
and both GWMG and Molycorp have allowed the Letter of Intent to expire in
accordance with its terms.

Jim Engdahl, President and CEO of Great Western Minerals Group said “After
careful consideration, we did not feel that the direction in which we were
heading with Molycorp was in the best interests of our shareholders or that
we would be able to come to arrangements that would preserve our unique
mine-to-market strategy. In light of the recent and sudden focus on the rare
earth sector by the investment markets and in view of the additional
interest we have received during the last several months, we will continue
to pursue discussions with other potential strategic partners who share our
vision as a vertically integrated developer of rare earth properties and
products”.

Mr. Jim Engdahl
President and Chief Executive Officer
Great Western Minerals Group Ltd.
Tel: (306) 659-4508