SASKATOON, SASKATCHEWAN, May 19, 2010 (Marketwire) -- Great Western Minerals Group Ltd. (TSX VENTURE:GWG) (OTCQX:GWMGF) (PINK SHEETS:GWMGF) ("GWMG") announces that it has signed a letter of intent with Cornerstone Capital Resources Inc. (TSXV-CGP) on the 200 claim Chaleur East property in northern New Brunswick.

GWMG will make an initial payment of 25,000 shares and guarantees minimum 2010 expenditures of $50,000, sufficient to maintain the property in good standing. Thereafter, GWMG may elect to make further payments of cash and shares totaling $100,000 and 200,000 respectively over the next three years and incur additional exploration expenditures totaling $950,000 in order to earn a 51% interest in the claims.

The Agreement also provides that GWMG and Cornerstone will enter into a formal joint venture agreement with respect to the interest that GWMG may earn with respect to the Chaleur East property.

GWMG will operate the exploration programs during the option period in conjunction with their ongoing Benjamin River REE project adjacent to the Chaleur East property. Exploration expenditures exceeding the minimum expenditure per period will be credited to the total expenditure commitment. The Agreement is subject to regulatory and TSXV approval.

Jim Engdahl, President and CEO of Great Western Minerals Group said, "The strategic plan of Great Western Minerals Group is enhanced through the signing of this letter of intent on a property that is in close proximity to the Benjamin River joint venture into which the company recently entered. GWMG continues to move toward being a fully integrated 'mines to markets' rare earths producer."

Jim Engdahl, President and CEO