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Great Western Minerals Group Releases 1st Quarter 2012 Financial Results

SASKATOON, SASKATCHEWAN -- (Marketwire) -- 05/31/12 -- Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG)(OTCQX:GWMGF) (CUSIP: 39141Y 10 3) today announced its financial results for the 1st Quarter of 2012.

GWMG has reported its results under International Financial Reporting Standards. For the three months ended March 31, 2012, GWMG's financial summary and highlights are as follows:


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                                                Three months   Three months 
                                                       ended          ended 
                                                 March 31/12    March 31/11 
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Revenue                                        $   4,477,096  $   4,236,890 
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Gross Margins                                  $   1,790,936  $   1,295,378 
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Earnings (Loss)                                $  (3,057,778) $  (4,856,391)
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Earnings (Loss) per share                      $      (0.007) $      (0.014)
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--  Manufacturing revenues from GWMG's wholly owned subsidiaries Less Common
    Metals Limited ("LCM") and Great Western Technologies Inc. represent a
    5.7% increase over the first quarter of 2011. 
--  Gross margins on manufacturing operations represent a38.2% increase over
    the same period of 2011.

Less Common Metals Limited results for Q1 of 2012 include the following highlights:


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                                                  Three months  Three months
                                                         ended         ended
                                                   March 31/12   March 31/11
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Revenue                                           $  4,295,552  $  4,077,247
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Gross Margins                                     $  1,896,993  $  1,411,736
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EBITDA                                            $    871,926  $    616,198
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Earnings                                          $    500,725  $    382,539
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--  Gross margins for Q1 of 2012 increased 34.4% compared to the first
    quarter of 2011. 
--  EBITDA for Q1 of 2012 increased 41.5% compared to the first quarter of
    2011. 
--  Revenues for Q1 of 2012 were significantly over budget.

GWMG President and Chief Executive Officer Jim Engdahl said, "The financial performance of GWMG overall, and the performance of Less Common Metals in particular, has once again surpassed that of the same period of the prior year. Increased LCM revenues are indicative of its strong market position. The continual increase in LCM's Gross Margin, EBITDA and Earnings are indicative of a continual focus on productivity. These operating results position GWMG very well as the Company continues down the path of full integration."

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.

Inquiries by direct mail should be addressed to Great Western Minerals Group Ltd., 219 Robin Crescent, Saskatoon, SK S7L 6M8.

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 filing of the Resource Estimate and any variances from the April 10, 2012 disclosure thereof, 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, commencement of production at Steenkampskraal, risks related to the receipt of all required approvals including those relating to the commencement of production at the Steenkampskraal mine, delays in obtaining permits, licenses and operating authorities in South Africa and China, environmental matters, water and land use risks, 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, uncertainty of estimates and projections of production, costs and expenses, risks that future Steenkampskraal and region exploration results may not meet exploration or corporate objectives, the adequacy of the Company's financial resources and the availability of additional cash from operations or from financing on reasonable terms or at all, political risks inherent in South Africa and China, risks associated with the relationship between GWMG and/or its subsidiaries and communities and governments in South Africa, radioactivity and related issues, dependence on one mineral project, loss of key personnel, the factors discussed in the Company's public disclosure record, and other factors that could cause actions, events or results not to be as anticipated. 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. Except as required by law, GWMG does not assume any obligation to update forward looking statements as set out in this news release. 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 at www.sedar.com.

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.

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