News Release
TSX Venture Symbol: GWG
USA OTC Symbol: GWMGF
CUSIP: 39141Y 10 3
November 7, 2006
Financing Arranged
Jim Engdahl, President, is pleased to report that D&D Securities Company has been engaged to act as exclusive agents, on a best efforts basis, in a brokered private placement. The financing will raise a maximum of $10 million by way of Subscription Agreement pursuant to exemptions from prospectus requirements in the Offering Jurisdictions, and will be structured as follows:
| Issuer: | Great Western Minerals Group Ltd. |
| Gross Proceeds: | Up to CDN$10,000,000 of which up to CDN$6,000,000 will be flow-through funds eligible for federal and provincial income tax deductions and credits, where applicable. |
| Offering: | Up to 10,900,000 flow-through units ("FT Units") and up to 9,300,000 non-flow-through units ("NFT Units"). Each FT Unit shall consist of one flow-through common share and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional non-flow-through common share at a price of CDN $0.70 per common share for a period of 24 months. Each NFT Unit shall consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share at a price of CDN $0.60 per common share for a period of 24 months. |
| Offering Price: | CDN$0.50 per Flow-through Unit. CDN$0.43 per Non-flow-through Unit. |
| Offering Jurisdictions: | British Columbia, Alberta, Saskatchewan and Ontario and any other jurisdictions on which the parties agree. |
| Closing: | November 30, 2006 or such earlier or later date agreed to by the parties. |
Proceeds of the financing will be used to advance the Company's 100%-owned Hoidas Lake rare earth project through to a bankable feasibility study and for general working capital.
James Engdahl
President and CEO
For further information contact Gord Dent at (306) 668-0701. All email inquiries should be made to info@gwmg.ca info@gwmg.ca (website: www.gwmg.ca ) Direct mail: Great Western Minerals Group Ltd., 226 Cardinal Crescent , Saskatoon , SK S7L 6H8
(The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the foregoing contents)