Great Western Minerals Group

May 5, 2014 6:55 AM

SASKATOON, SK--(Marketwired - May 5, 2014) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE: GWG) (OTCQX: GWMGF), a leader in the manufacture and supply of rare earth element-based metals and metal alloys and holder of a low cost, high-grade critical rare earth asset (the "Steenkampskraal Project" or "SKK"), announced that it has entered into an agreement to sell the redundant manufacturing assets of its subsidiary, Great Western Technologies Inc. ("GWTI"), effective May 2, 2014. The GWMG Board of Directors approved the GWTI closing and redundant asset liquidation on March 20, 2014.

The transaction is expected to close during the second quarter of 2014 and the proceeds from the asset sale will be used to offset a portion of GWTI's existing liabilities, which includes an estimated US$1.2 million facility restoration liability, as well as other lease and closing costs.

Marc LeVier, Company President and CEO, commented, "This agreement provides an efficient means to sell redundant assets and reduce liabilities associated with the GWTI closing process. This also allows us to expedite the closing, which, beyond saving some lease and other operating costs, eliminates the distraction of managing the facility cleanup process so we can focus on executing our mine to metal vision."

Pursuant to the GWTI lease agreement, the Company is required to restore the facility back to its original state. In exchange for payment, the purchaser will take on that liability, assume the GWTI lease obligations and provide employment opportunities to GWTI employees.

About GWMG

Great Western Minerals Group Ltd. is a leader in the manufacture and supply of rare earth element-based metals and metal alloys. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company's wholly-owned subsidiary,

Less Common Metals Limited in Ellesmere Port, U.K., these alloys contain transition metals, including nickel, cobalt, iron and other 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 controls the Steenkampskraal monazite mine in South Africa. The Company also holds interests in three rare earth exploration properties in North America that are not active.

The Company routinely posts news and other information on its website at www.gwmg.ca.

Email inquiries can also be made to info@gwmg.ca.

Neither the 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.

Cautionary Statement

Certain information set out in this News Release constitutes forward-looking information.