SOURCE: Great West Gold, Inc.

June 21, 2005 10:20 ET

Great West Gold, Inc. - Loan Holder

The Company Announces a New Loan Note Holder

NEW YORK, NY -- (MARKET WIRE) -- June 21, 2005 -- Great West Gold, Inc. (OTC BB: GWGO) has been funded to date by Sloane Holdings Limited ("Sloane"). To date, the Company is indebted to Sloane in the amount of circa US$1,550,000. The Company was today advised that Sloane has sold an amount of US$1,500,000 of the Company's debt to St James Capital Holdings, Inc. ("St James"). St James is quoted on the OTC Market.

St James is also the controlling shareholder of Hanover Capital Group plc ("Hanover"), a UK based investment Company. Hanover owns an amount of 958,437,540 shares of the Company's Common Stock, representing 9.72% of the Company's outstanding shares. St James has indicated to the Company that it will increase its holding in the Company over a period of time but that it is not seeking a controlling interest in the Company and regards its shareholding as an investment. The Company has not yet been advised as to St James's intentions in respect of its loan to the Company.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.

About Great West Gold, Inc.

Great West Gold, Inc. (www.greatwestgold.com) is a gold exploration company that has acquired certain rights to mine for minerals, primarily gold, in Arizona.

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the Company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission.

These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.

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