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Great Western Minerals Group LTD

Great Western Minerals Group – Announces the Conversion of Outstanding Debentures

by Sam Kiri

Timing couldn’t be more perfect for the Canadian Venture and OTC Bulletin Board listed Great Western Minerals Group Ltd. (TSX.V: GWG, OTCBB: GWMGF) to clean up the balance sheet with the sale of its existing secured convertible debentures. As the world economy comes out of recession boosting fundamentals for rare earth metals, a stronger balance sheet would further support the company’s investment case.

Originally issued on September 27, 2008 total outstanding debentures amounted to an aggregate principal of £2,500,000, plus an accrued and unpaid £300,000 completion fee plus accrued interest. The Company has also consented to the amendment to the terms of the Debentures to allow for the immediate conversion of the entire principal amount, accrued and unpaid completion fee and outstanding interest of the Debentures into 20,720,425 common shares in the capital of the Company.

The transaction sharply reduces the Company's debt obligations as it effectively wipes out some £2,800,000 of debt obligations from the balance sheet, the associated 10% interest cost and the security attached to it. The Company's debt obligations are now limited to a working capital line on its cash flow positive and growing processing business, Less Common Metals, and the recently issued C$816,667 convertible debentures. The conversion also removes the potential overhang from the floating conversion price of these Debentures as they approach maturity.

According to Jim Engdahl, President and CEO, the clean-up of the balance sheet, along with the recent triggering of the early maturity date on the outstanding warrants exercisable at C$0.15, the Company is in a much stronger financial position to further its projects. GWG is now better positioned to take advantage of the growing interest in the rare earth sector and to realize the benefits of the company’s mine to market business model, said Engdahl.

An advisory fee of C$346,653 was paid to Pope & Company Limited of Toronto, which amount was satisfied by the issuance of 1,216,325 Common Shares (the "Finder's Fee"). The securities issued in connection with the Finder's Fee are subject to a four month hold period under applicable Canadian securities legislation.

About Great Western Minerals Group Ltd (GWG)
GWG is engaged in the development and exploration of strategic metal resources in North America and South Africa. Pursuing 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 copper, nickel, cobalt and the rare earth elements.