Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

March 11, 2008 20:47 ET

Great Western Minerals Group Ltd. Adopts Shareholder Rights Plan

SASKATOON, SASKATCHEWAN--(Marketwire - March 11, 2008) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) is pleased to announce the adoption by the Board of Directors of the Company of a Shareholder Rights Plan to protect the Company's shareholders from unfair, abusive or coercive take-over strategies, including the acquisition of control of the Company through a take-over bid that may not treat all shareholders equally or fairly. In making the announcement, the Company said it is not aware of any specific take-over bid for the Company that has been made or is contemplated.

To implement the Plan, the Board of Directors of the Company authorized the issue of one Right in respect of each common share of the Company outstanding to holders of record on March 11, 2008, as well as one Right in respect of each common share issued after the record date. Initially, the Rights will attach to and trade with the common shares and be represented by certificates representing common shares.

The Plan is similar to shareholder rights plans adopted by a number of other Canadian companies. The Plan is not intended to block take-over bids. The Plan includes "Permitted Bid" provisions which do not invoke the dilutive effects of the Plan if a take-over bid is made by way of a take-over bid circular to all shareholders that remains open for a minimum of 60 days and is accepted by not less than 50 percent of the common shares held by independent shareholders. The Plan will be invoked by an acquisition, other than pursuant to a Permitted Bid, of 20% or more of the outstanding common shares of the Company or the commencement of a take-over bid that is not a Permitted Bid, in which case the Rights separate from the common shares and will entitle holders (other than the acquiring person or group persons) to acquire shares of the Company at a 50% discount to the prevailing market price of the shares.

Although the Rights Plan is effective immediately, the Company intends to submit the Plan to the shareholders of the Company for confirmation at the Company's next annual general meeting of shareholders expected to be held in June of 2008. If confirmed by the shareholders at this meeting, the Plan will be effective until the annual general meeting of shareholders to be held in 2011 and, if reconfirmed by shareholders at that meeting, will continue in effect until the annual general meeting of shareholders in 2014.

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 subsidiary, 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

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