Great Western Minerals Group LTD. : Great Western Minerals Group Announces Pricing Of US$80 Million Convertible Bond Financing ...more

GREAT WESTERN MINERALS GROUP ANNOUNCES PRICING OF US$80 MILLION CONVERTIBLE BOND FINANCING

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES March 16, 2012 - Saskatoon, Canada: Great Western Minerals Group Ltd. ("GWMG" or the "Company", TSX:V - GWG), today announced that GMP Securities L.P. and ISM Capital LLP, as co-lead agents, along with Byron Capital Markets Ltd. (collectively, the " Agents") have priced the offering ("Offering") of secured convertible bonds (the " Bonds"), as announced on March 14, 2012, in the amount of US$80 million. In addition, the Agents have been granted an option to increase the size of the Offering by up to an additional US$10 million at any time at least two days prior to closing and settlement of the Offering.

The Bonds will bear interest at the rate of 8%, will become due five years from the date of issuance and will be convertible into common shares of GWMG ("GWMG Shares") at a conversion rate of C$0.66 per share, representing a premium of 20% relative to the closing share price of C$0.55 per share on the TSX Venture Exchange on March 14,
2012. The closing and settlement of the Offering is anticipated to take place on or about April 5, 2012.
GWMG President and Chief Executive Officer Jim Engdahl said, "The successful pricing of this financing is an
important achievement for GWMG. It is particularly gratifying that the Offering has been so well received, conveying a high degree of confidence in the future of our Company. According to our Company's most recent estimates and in
the opinion of GMWG management, this financing enables GWMG to construct the mixed rare earth chloride and separation plants for Steenkampskraal and provide the National Instrument 43-101 technical report. This is a pivotal moment for GWMG."
Additionally, GWMG announced today that CEO and President Jim Engdahl has recommended to the Board of Directors (the "Board") of GWMG that a transition process be put in place to recruit and select a new Chief Executive Officer for the Company. The Board has accepted that recommendation and has authorized Mr. Engdahl to begin the recruitment and selection process.
Jim Engdahl stated, "I believe it is in the best interests of GWMG at this time to commence a process that sees an orderly transition to the appointment of a new CEO. GWMG is about to make the considerable leap to being what I believe will be one of the most fully integrated rare earth producers in the world. My stated objective was to position the Company for rapid growth with an integrated model and on a fully funded basis. This has now been achieved."
Gary Billingsley, Executive Chairman of GWMG added: "Jim has guided GWMG from being a junior rare earth exploration company, to its current status where it is poised to become one of the few integrated rare earth producers in the world. We have reluctantly accepted Jim's proposed transition."
Great Western Minerals Group Ltd. is an integrated Rare Earths processor. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company's wholly owned subsidiaries Less Common Metals
Limited in Birkenhead, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain aluminum, nickel, cobalt and Rare Earth Elements. As part of the Company's vertical integration strategy, GWMG also holds
100% equity ownership in Rare Earth Extraction Co. Limited, which owns a 74% equity interest in the Steenkampskraal Mine. In addition to an exploration program at Steenkampskraal, GWMG also holds interests in four active Rare Earth exploration and development properties in North America.
In addition, in connection with the Offering, the Company has agreed to use reasonable commercial efforts to consolidate its common shares on a 5 to 1 basis, or such other ratio as the Company may determine, subject to shareholder and regulatory approval.
For further information, please contact Dwight Percy, Manager of Investor Relations at [phone]. Email inquiries should be made to [e-mail] the company website is located at www.gwmg.ca. Inquiries by direct mail should be addressed to Great Western Minerals Group Ltd., 219 Robin Crescent, Saskatoon, SK S7L 6M8.
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.

The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 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 successful completion of the Offering, the construction, commissioning and

operation of the proposed monazite processing facility and separation facility, mine refurbishment activities, reliance on third parties to meet projected timelines, the results of the exploration program at Steenkampskraal, completion of a resource estimate and commencement of production at Steenkampskraal, satisfaction of the conditions precedent with respect to GWMG's offtake agreement, receipt of all required approvals (including those relating to the commencement of production at the Steenkampskraal mine, environmental matters, water and land use) 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 or resource 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 available wawtw.sedar.com.