SASKATOON, SK--(Marketwired - May 7, 2015) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE: GWG) (OTCQX: GWMGF) announces that the sale and investor solicitation process (the "SISP") has been initiated with respect to GWMG.

Pursuant to the previously announced support agreement (the "Support Agreement") dated April 29, 2015 between the Company and certain holders (the "Supporting Bondholders") of the Company's US$90 million 8.00 percent Secured Convertible Bonds due 2017 (the "Convertible Bonds"), a notice (the "Notice") of the SISP was published in the Northern Miner and on www.mining.com. The full text of the Notice is set out below.

"Business Assets for Sale / Investors sought

PricewaterhouseCoopers Inc. ("PwC"), in its capacity as court appointed Monitor in the Companies' Creditors Arrangement Act ("CCAA") proceedings of:

Great Western Minerals Group Ltd. ("GWMG" or the "Company")

is supervising a sales and investor solicitation process ("SISP") seeking one or more purchasers, investors or financiers in or for the Company or any of the Company's businesses, properties, assets and undertakings. GWMG is a vertically integrated leader in the manufacturing and supply of rare earth based alloys and high purity metals. GWMG possesses a low cost, high grade critical rare earth asset located in South Africa along with a manufacturing and processing facility located in the UK. For further information regarding the CCAA restructuring and GWMG, please refer to www.pwc.com/car-greatwesternmineralsgroup. The deadline for submission of offers is 12:00 p.m. (Eastern Time) on June 16, 2015.

To obtain detailed information on GWMG and its business and assets, interested parties will be required to sign a confidentiality agreement. For additional information concerning GWMG and the SISP, please contact either Michael Huber (416-687-8750) or Stephen Mullowney (416-687-8511) of the Monitor."

GWMG has received an order (the "Initial Order") for protection pursuant to the Companies' Creditors Arrangement Act ("CCAA") from the Ontario Superior Court of Justice Commercial List (the "Court"), which included, but was not limited to, the appointment of PricewaterhouseCoopers Inc. as monitor of GWMG ("PwC" or the "Monitor") in the CCAA proceedings.

The Initial Order permitted GWMG, among other things, to continue to carry on business in a manner consistent with the preservation of its business and property and to continue to fund the working capital requirements of its direct and indirect subsidiaries.

The Initial Order, also, among other things:

1. authorized GWMG to take all steps and actions in respect of and to comply with all of its obligations pursuant to the Support Agreement;
2. approved the SISP attached as Schedule A to the Initial Order;
3. granted a stay of proceedings until May 29, 2015, or such later date as the court may order;
4. granted certain priority charges on the property of GWMG;
5. approved the key employee retention payments offered by GWMG to its remaining employees and executive officer.

A copy of the Initial Order is posted on the Monitor's website at www.pwc.com/car-greatwesternmineralsgroup.

The timing and procedures governing the SISP, the terms of participation by prospective purchasers, investors or financiers, and the criteria for the submission, evaluation and selection of bids are set out in the Support Agreement and were approved by the Initial Order. For further information, please refer to the Monitor's website at www.pwc.com/car-greatwesternmineralsgroup.

About GWMG

Great Western Minerals Group Ltd. is a manufacturer and supplier of rare earth element-based metal alloys. The Company routinely posts news and other information on its website at www.gwmg.ca.