News Release

August 15, 2007

Great Western Minerals Group Ltd. Closes Private Placement

Great Western Minerals Group Ltd. ("GWMG" or the "Company") is pleased to announce that it has closed the previously announced brokered private placement financing of 24,437,500 units (the "Units") at a price of $0.40 per Unit, for total gross proceeds of $9,775,000 (the "Private Placement"). Each Unit consists of one common share of the Company (each a "Common Share") and one Common Share purchase warrant (each a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.55 for a period of 24 months after the issuance of the Units.

The offering was led by PowerOne Capital Markets Limited ("PowerOne") (collectively, the "Agents"). The Agents received a cash commission of 7% of the gross proceeds of the Private Placement and non-transferable broker warrants in an amount equal to 8% of the number of Units sold pursuant to the Private Placement (the "Broker Warrants"). Each Broker Warrant entitles the holder to purchase a unit of the Company (the "Broker Units") at a price of $0.40 for a period of 24 months after the issuance of the Broker Warrants, with each Broker Unit consisting of one Common Share and one non-transferable broker unit warrant (each a "Broker Unit Warrant"). Each Broker Unit Warrant entitles the holder to purchase one Common Share at a price of $0.55 for a period of 24 months after the issuance of the Broker Warrants.

The Common Shares, the Warrants and the Broker Warrants are subject to a four month hold period, in accordance with applicable securities legislation.

"GWMG has now completed its first brokered major financing that will allow the Company to move forward in achieving our goal of becoming a fully integrated "Mines to Market" Rare Earth Elements company. This capital gives us the financial resources to move forward and achieve proper shareholder value for all our assets, including our Copper Hill and Chuckwalla properties in the U.S. and, at the same time, allows us to stay focused on our Rare Earth Projects in Canada and in the U.S." says Jim Engdahl, President and CEO.

The Company is a Canadian-based company exploring for, and developing, strategic metal resources in North America. Pursuing a vertically-integrated business model, the Company's wholly-owned subsidiary Great Western Technologies Inc., located in Troy, Michigan, produces a variety of specialty alloys for use in the battery, magnet and aerospace industries. These "designer" alloys include those containing copper, nickel, cobalt and rare earth elements.

Jim Engdahl
President

For further information please contact Ron Malashewski, Manager of Investor Relations at (807) 467-8847. All email inquiries should be made to info@gwmg.ca and the company website is located at www.gwmg.ca. Inquiries by direct mail should be addressed to 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 this release)