Great Western Minerals Group in Advanced Discussions on Rare Earth Separation Plant (ccnm)

SASKATOON, SASKATCHEWAN--(Marketwire - Feb. 24, 2011) - Great Western Minerals Group Ltd. ("GWMG" or the "Company", (TSX VENTURE:GWG) (OTCQX:GWMGF) announces that it is holding advanced discussions with several companies with the intent of engaging a partner in the construction of a Rare Earths separation plant in South Africa.

The separation plant, which would process the mixed rare earth chloride, that is planned to be produced at the Steenkampskraal site, into separated Rare Earth oxides, is a core component of GWMG's plans to be a fully integrated Rare Earths producer.

GWMG is evaluating several alternatives. Under each alternative, the Company would also be acquiring separation expertise.

One alternative is an off-take agreement under which the partner would have access to Rare Earths oxides that are in excess of those required for GWMG's wholly owned alloy processing facilities, Less Common Metals in Birkenhead, U.K. and Great Western Technologies Inc. in Troy, Michigan, U.S.

A second alternative, which is not exclusive of the first, is the potential for equity investment in the separation plant by a project partner.

The third alternative being considered by GWMG is the use of debt instruments for financing the separation plant.

GWMG President and Chief Executive Officer Jim Engdahl said, "GWMG management remains confident about the long term pricing strength of the Rare Earths market. The management of GWMG is also of the opinion that being a fully integrated producer will magnify the value of each tonne of Rare Earths mined. With GWMG having its own planned mining and separation production, our Company can create the maximum degree of supply certainty to our valued customers in Asia, Europe and the United States."

Jim Engdahl, President and CEO