Great Western Minerals Group Signs Letter of Intent to Supply Rare Earth Alloys to U.S. Based Electron Energy Corporation (ccnm)

SASKATOON, SASKATCHEWAN--(Marketwire - Jan. 31, 2011) - Great Western Minerals Group Ltd. ("GWMG" or the "Company") (TSX VENTURE:GWG) (OTCQX:GWMGF) announces that it has signed a non-binding Letter of Intent ("LOI") with Electron Energy Corporation ("EEC") of Landisville, Pennsylvania to supply samarium metal, gadolinium metal and samarium-cobalt alloys used by EEC to manufacture magnets and magnet systems.

EEC is a fully integrated U.S. designer and manufacturer of Rare Earth magnets and assemblies. Founded in 1970 and with approximately 120 employees today, EEC is positioned as a significant American rare earth magnet producer.

GWMG President and Chief Executive Officer Jim Engdahl said, "The ability of GWMG to enter into this LOI is based on our Company's plans to put the formerly producing Steenkampskraal mine back into production. The interest of EEC in entering into this agreement with our Company is a concrete example of the importance of certainty of supply in today's Rare Earths market."

Michael H. Walmer, President of Electron Energy Corporation, stated, "As a supplier to our own customers it is essential that we secure long term supplies of raw materials. As a customer of a company such as Great Western Minerals Group, it is equally important that we express our intent, as we have done through this LOI, so that GWMG can adequately plan its own capacity."

The Letter of Intent focuses primarily on samarium metal, gadolinium metal, samarium cobalt alloys produced by co-reduction and samarium cobalt alloys produced by vacuum induction melting.

Jim Engdahl, President and CEO