Great Western Minerals Group Ltd (C:GWG)
Shares Issued 242,730,204
Last Close 6/2/2010 $0.195
Thursday June 03 2010 - News Release

Mr. Jim Engdahl reports

STEENKAMPSKRAAL MINING PERMIT ISSUED BY SOUTH AFRICAN GOVERNMENT

The Department of Mineral Resources of South Africa has granted a new order mining right to a subsidiary of Rare Earth Extraction Co. Limited (Rareco) of Stellenbosch, South Africa, with respect to the Steenkampskraal monazite mine (a joint venture with Great Western Minerals Group Ltd.).

Trevor Blench, chairman of Rareco, stated, "Rareco is pleased to announce that the Department of Mineral Resources has granted a New Order Mining Right to Steenkampskraal Monazite Mine (Pty.) Ltd. (SMM), situated in the Western Cape Province of South Africa. Rareco and Great Western Minerals Group Ltd. of Saskatoon, Canada, plan to bring Steenkampskraal into production as one of the first new Rare Earth mines outside of China."

"We are exceptionally pleased with the New Order Mining Permit for Steenkampskraal," stated GWMG President and CEO Jim Engdahl. "This is a critical step in enabling GWMG and Rareco to bring the Steenkampskraal mine back into production as one of the first new Rare Earth mines outside of China. We project Steenkampskraal to be one of the highest grade Rare Earth mines in the world and therefore one of the world's lowest cost producers."

As well, Mohamed Madhi, Chairman of Areva South Africa and Advisory Board Member of GWMG stated, "The granting of this mining right represents a significant milestone for South Africa and GWMG. For South Africa it signals the establishment of Rare Earth mining activity and the development of related industries arising from the beneficiation of Rare Earth metals resulting in new skills and competencies. These will ultimately enhance South Africa's competitiveness in the Rare Earth industries global supply chain. For GWMG, Steenkampskraal is significant since it is a high grade resource and can be brought to production quickly. This allows GWMG to strengthen its ability to provide a stable high quality source of Rare Earth metals to market as well as to apply its beneficiation expertise locally."

With the issuance of the New Order Mining Right, GWMG and Rareco are moving forward to finalize the Supply Agreement in accordance with the terms of the Option Agreement signed in December 2008. The drafting of the Supply Agreement is well underway and, when finalized, will give GWMG the right to purchase 100% of the Rare Earth products recovered from the mining and processing of the Steenkampskraal ore.

"Strategically, this is of great importance to our company," continued Engdahl. "GWMG intends to purchase 100% of the Rare Earth concentrate from the mining operation for further separation and concentration. That means we would be able to use this supply source to serve current and future Rare Earths customers."

GWMG owns two Rare Earths processing facilities - Less Common Metals Limited in Birkenhead, United Kingdom and Great Western Technologies Inc. in Troy, Michigan. These plants are leaders in the manufacture and supply of Rare Earth based alloys, powders and high purity metals. GWMG intends to further separate and concentrate the individual Rare Earths for downstream use in its metals and alloys facilities.

Readers should refer to the news releases of January 13, 2009 "Great Western Minerals Signs Option Agreement to Recommission Rare Earth Mine in South Africa" and September 25, 2009 "Great Western Minerals Group Makes Second Option Payment on Steenkampskraal Project" and to GWMG's current annual information form at www.sedar.com for further details of the Option Agreement.

GWMG wishes to congratulate Trevor Blench and Rareco management for their dedication and perseverance in making the New Order Mining Right a reality.