GREAT WESTERN MINERALS GROUP LTD.
NEWS RELEASE
TSX Venture Symbol: GWG CUSIP: 39141Y 10 3
OTCQX: GWMGF
GREAT WESTERN MINERALS AND TRUE NORTH GEMS TO EXPLORE YUKON RARE EARTH ELEMENT DISCOVERY
March 31, 2010 - Saskatoon, Saskatchewan. Great Western Minerals Group Ltd. ("GWMG" or the "Company") and True North Gems Ltd. ("TGX") are pleased to announce that GWMG has entered into an option agreement (the "Agreement") whereby GWMG can acquire up to a 65% working interest in TGX's True Blue property in the Yukon.
The True Blue property is located 55 kilometers south of Ross River, Yukon and is accessible via an all-weather road to the Ketza River gold mine, followed by 10 kilometers of summer-only road to the property.
The property covers a batholith of Mississippian-age syenite, coeval felsic volcanic rocks and lower Paleozoic clastic and carbonate rocks of Silurian age. During a 2009 exploration program on the property, TGX discovered three new Rare Earth Element (REE) showings which returned assays of up 6.02% Total Rare Earth Oxides + Yttrium (TREO) and 2.52% Niobium Oxide (Nb2O5) with a high proportion of Neodymium and Heavy Rare Earth Elements (see True North Gems News Release dated Nov. 24, 2009).
Under the terms of the Agreement, GWMG can earn a 51% interest in the property (the "First Option") with an initial cash payment of C$50,000 on signing, followed by additional cash payments totaling C$350,000 on or before January 30, 2013. In addition, to exercise the First Option GWMG will be required to issue TGX 300,000 GWMG common shares on signing the Agreement, followed by an additional 900,000 GWMG common shares on or before January 30, 2012.
In addition, to exercise the First Option GWMG will be required to complete a total of C$5.0 million in exploration costs on or before December 31, 2013 with a commitment to incur C$1.0 million of such exploration costs during 2010. Once GWMG earns its 51% interest, GWMG may exercise a second option (the "Second Option") that will grant GWMG a further 14% interest (total 65%) by completing all expenditures in connection with the completion of a bankable feasibility study. GWMG will be the operator of the True Blue property during the term of the First and Second Option. GWMG will also have the right to market TGX's share of REE production with TGX having the option to renew such marketing agreement every three years.
The Agreement is subject to regulatory and TSX Venture Exchange approval. Upon receipt of the necessary permits, GWMG will begin its preliminary exploration activities on the True Blue Property, including an airborne magnetic and radiometric survey, geological mapping, prospecting, trenching and geochemical sampling and in order to define the extent of the known mineralization, identify new areas of mineralization and to define drill targets for the 2011 program.
Jim Engdahl, President and CEO of Great Western Minerals Group said, "This is another great opportunity for Great Western Minerals as well as for True North Gems. The preliminary data that we have reviewed is very encouraging with high Yttrium, Neodymium and Heavy Rare Earth Element content making this potentially high value mineralization. As well, the property is easily accessible with good road access. We have a goal of diversifying our mineral project portfolio geographically and balancing our rare earth mix. This project satisfies our immediate focus on high value, Heavy Rare Earth Element dominant mineralization, in areas of good infrastructure in order acquire a secure supply of raw materials for our processing plants in Michigan and England."
Nick Houghton, President of True North said "We are very pleased to have Great Western Minerals Group, experts in the evaluation and marketing of rare earth minerals, assume the responsibilities of advancing the True Blue property. This will allow our company to focus on our core gemstone exploration business model."
John Pearson (MSc., P.Geo), Vice President Exploration for Great Western Minerals Group is the Qualified Person responsible for reviewing the contents of this news release.
Jim Engdahl
President and CEO
Great Western Minerals Group Ltd. is a Canadian-based developer of Rare Earth Element assets, 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.
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's 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.
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.
Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of GWMG p as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to the satisfaction by GWMG of the conditions required to exercise the options, receipt of all required approvals and risks, uncertainties and other factors that are beyond the control of GWMG, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although GWMG believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of GWMG contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in GWMG's current annual information form.