Mr. Marc LeVier reports

GREAT WESTERN MINERALS BROADENS TOLL OPTIONS FOR REE SEPARATION SERVICES

Great Western Minerals Group Ltd. has allowed its non-binding memorandum of understanding with a provider of rare earth element separation services to expire. The company announced the MOU on April 8, 2014.

With expiration of the MOU, the company is relieved of the exclusivity requirement contained in the MOU, which enables Great Western to engage in discussions with other operators for contract separation services while continuing conversations with the original separation service provider. The feasibility study for the SKK project was premised upon the company being subject to an economically reasonable tolling arrangement for the separation of the mixed rare earth carbonate concentrate that will be produced at SKK.

Marc LeVier, company president and chief executive officer, commented: "Expanding our options regarding separation services enables us to advance our efforts more effectively. Toll processing reduces certain upfront capital costs, removes a substantial amount of risk in the start-up of a separation plant and, importantly, shortens the timeline to achieve separated REE production."

The company announced the results of the feasibility study for the SKK project on May 8, 2014, which can be found at the company's company or under the company's profile on SEDAR. SKK has a high concentration of critical rare earth elements, such as neodymium, praseodymium, samarium, dysprosium, terbium and gadolinium. These elements are critical in the development of advanced technologies in the automotive, electronic, defence, medical and clean energy industries.

Mr. LeVier added: "The strength of the SKK project is highlighted by its low initial capital cost, high-grade nature, ideal mix of elements present and an expected 50-per-cent after-tax internal rate of return. The project is focused on what the company believes are the most marketable rare earth elements, which will provide the greatest return on investment and eliminates low or no value elements."

The company continues discussions with its bondholders regarding the potential restructuring of its debt.

We seek Safe Harbor.