Great Western Minerals Group Releases Positive PEA Results for Steenkampskraal Rare Earth Project in South Africa

PR Newswire

SASKATOON, March 18, 2013

“PEA Indicates $555 Million After-Tax NPV, 66% After-Tax IRR for
Steenkampskraal Project”

TSX Venture Symbol: GWG

OTCQX: GWMGF

CUSIP: 39141Y 10 3

SASKATOON, March 18, 2013 /PRNewswire/ – Great Western Minerals Group Ltd.
(“GWMG” or the “Company”, TSX:V – GWG) today announced positive results
from a Preliminary Economic Assessment (“PEA”) of the Company’s
Steenkampskraal rare earth element (“REE”) project that indicates
strong potential for GWMG’s integrated business model.

Project highlights (all amounts in this news release are in $ Cdn. unless otherwise
indicated):

• $555 Million after-tax net present value (“NPV”) applying a 10% discount
  rate and a 28% South African corporate tax rate

• 66% after-tax internal rate of return (“IRR”)
• 4.3 year estimated Project payback period, on an after-tax basis, from
  start of underground mining production.
• 11 year potential life of mine

GWMG President and Chief Executive Officer Marc LeVier said, “The PEA
conducted on the Steenkampskraal project confirms our internal
projections of a high grade and excellent distribution of the critical
rare earth elements. The impressive, high-grade nature of
Steenkampskraal translates into lower tonnages for processing, which in
turn, results in low capital cost requirements relative to other REE
projects. The work undertaken on the project to date and the
accelerated metallurgical testing program is intended to enable GWMG to
advance the project rapidly. This ‘early mover’ status, combined with
GWMG’s existing alloy manufacturing capacity, positions GWMG very
favourably.”

Financial and Operating Highlights