Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd.

December 14, 2007 12:00 ET

Great Western Minerals Private Placement Oversubscribed

SASKATOON, SASKATCHEWAN--(Marketwire - Dec. 14, 2007) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG) (PINK SHEETS:GWMGF) is pleased to report that the non-brokered private placement financing announced on 10 December 2007 has been oversubscribed. The initial placement was for up to 7,500,000 Common Flow-Through Shares at $0.40 per Common Share for gross proceeds of $3,000,000. The size of this placement has now been increased to 8,187,500 Common Shares for total gross proceeds of $3,275,000 subject to regulatory approval.

The proceeds of this placement will be used to fund the Company's recently announced drilling program at the Hoidas Lake Rare Earth Element (REE) Project in Northern Saskatchewan, and to begin construction of a pilot plant in 2008.

These Common Shares will be subject to a four month hold period, in accordance with applicable securities legislation. This placement is expected to close on December 18, or sooner at the discretion of the Company. A cash finder's fee of up to 5% 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.

Great Western Minerals Group 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 rare earth elements.

James Engdahl, President

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

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) 668-0701
    Great Western Minerals Group Ltd.
    226 Cardinal Crescent
    Saskatoon, SK
    S7L 6H8