Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

January 20, 2010 06:00 ET

Great Western Minerals Group Grants Toyota Tsusho Corporation Extension on Letter of Intent

SASKATOON, SASKATCHEWAN--(Marketwire - Jan. 20, 2010) - Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) announced today that, at the request of Toyota Tsusho Corporation (Tokyo Stock Exchange - "8015T"; Nagoya Stock Exchange - "8015NG"), it has extended the expiry date of the non-binding letter of intent (the "Letter of Intent") between Great Western Minerals Group Ltd ("GWMG" or the "Company") and Toyota Tsusho Corporation ("TTC"), originally announced in the Company's news release of July 21, 2009.

The expiration date of the Letter of Intent has been extended to March 31, 2010 to allow TTC additional time to compile assay results and to complete metallurgical testing of the samples collected by TTC from the Company's Douglas River and Benjamin River exploration projects. The exclusivity provision in the original Letter of Intent will remain in effect during the period of the extension.

Under the terms of the original Letter of Intent, TTC and GWMG will discuss possibilities for the joint exploration and development of the Douglas River and Benjamin River exploration projects.

These two projects could be important to end users of specific rare earth products in that initial testwork carried out by GWMG indicates they are significantly enriched in the "heavy" rare earth elements ("HREE"). The HREE are high value products that are critical to the manufacture of high-temperature magnets used in electric motors for a wide range of applications including hybrid vehicles and for phosphors used in LCD and plasma flat panel displays.

Jim Engdahl, President and CEO of Great Western Minerals Group said, "We understand the delays that TTC has encountered in completing its assessment of the potential for these two properties and are pleased to grant an extension to allow TTC the time to complete this work. In the meantime, we will continue with our exploration programs on these properties."

The completion of any transaction as contemplated by the Letter of Intent is subject to several conditions, including the completion of all necessary legal, financial and technical due diligence reviews, the entering into a definitive agreement between the parties and receipt of all necessary consents and approvals, including board and regulatory approvals. There is no assurance that a transaction as contemplated by the Letter of Intent will be completed as proposed, or at all.

The TSX Venture Exchange has in no way passed upon the merits of any transaction as contemplated by the Letter of Intent and has neither approved nor disapproved the contents of this press release.

Jim Engdahl, President and CEO

Great Western Minerals Group Ltd. is a Canadian-based company with four active rare earth exploration and development properties in North America with an option on a former-producing property in South Africa. In addition, as part of the Company's strategy to pursue a vertically-integrated business model, the Company's wholly-owned subsidiaries of Less Common Metals Limited located in Birkenhead UK, and Great Western Technologies Inc., located in Troy, Michigan, produce a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing aluminum, nickel, cobalt and the rare earth elements.

Cautionary Statement on Forward-Looking Information: The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

CUSIP: 39141Y 10 3

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.

Contact Information

  • Great Western Minerals Group Ltd.
    Ron Malashewski
    Manager of Investor Relations
    (306) 659-4500
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK
    S7L 6H8