Great Western Minerals Group Ltd.
TSX VENTURE : GWG
PINK SHEETS : GWMGF

Great Western Minerals Group Ltd.

October 20, 2008 06:00 ET

Great Western Minerals Group Announces Private Placement

SASKATOON, SASKATCHEWAN--(Marketwire - Oct. 20, 2008) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE DISTRIBUTION SERVICES

Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG)(PINK SHEETS:GWMGF) announces a non-brokered private placement financing of up to 15,000,000 at a price of $0.10 per unit, for total proceeds of up to C$1,500,000 subject to regulatory approval.

Each Unit consists of either:

One Flow-Through Common Share of the Company

OR

One Non-Flow-Through common share of the company plus one-half share purchase warrant. Each full share purchase warrant will be exercisable into one non-Flow-Through common share of the company, at a price of 0.20 per share.

The shares issued under this private placement will be subject to a four month hold period under applicable Canadian securities legislation. The Company plans to use the proceeds for exploration and development of the Company's properties and for general corporate expenses. The Flow-Through expenses will constitute Canadian Exploration Expenses (as defined in the Income Tax Act) and such expenses will be renounced for the 2008 taxation year.

This placement is expected to close on October 31, 2008, or sooner at the discretion of the Company. A cash finder's fee of 6% will be paid to accredited agents.

It is anticipated that certain officers, directors, or insiders of the company may subscribe for a portion of the private placement. That portion of the private placement that is sold to insiders may be classified as a related-party transaction, as defined in TSX Venture Exchange Policy 5.9. The Company anticipates that it will be able to rely upon exemptions to the shareholder approval and valuation requirements imposed by TSX Venture Exchange Policies in respect of related party transactions.

Jim Engdahl, President and CEO of Great Western Minerals Group said "These are, no doubt, challenging times for the global economies and for the junior resource markets. However, we are determined to move forward our flagship assets such as Hoidas Lake, our Deep Sands project in Utah, and our value added facilities as we implement our "mine-to-market" strategy. This financing will provide some of those additional funds needed to get us through these uncertain financial times until the markets stabilize." Engdahl adds "We have several important initiatives underway and we would like to maintain our momentum for advancing these projects. Any project expenditures that will not move us forward in a cost-effective and fiscally prudent manner will be suspended until better financial times."

About Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd. is a Canadian-based company exploring for, and developing, strategic metal resources in North America. Pursuing 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, produces a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing copper, nickel, cobalt and the rare earth elements.

For further information, please contact Ron Malashewski, Manager of Investor Relations at (306) 659-4500. Email inquiries should be made to info@gwmg.ca and the company website is located at www.gwmg.ca. Inquiries by direct mail should be addressed to Great Western Minerals Group Ltd., 226 Cardinal Crescent, Saskatoon, SK S7L 6H8.

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.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

CUSIP: 39141Y 10 3

The TSX Venture Exchange does not accept 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
    or
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8
    Email: info@gwmg.ca
    Website: www.gwmg.ca