News Release

TSX Venture Exchange Symbol: GWG
Pink Sheets: GWMGF

August 26, 2008

GREAT WESTERN MINERALS ANNOUNCES FLOW-THROUGH FINANCING

Saskatoon, Saskatchewan – Great Western Minerals Group Ltd. ("GWMG" or the "Company") is pleased to announce that it has entered into an engagement letter with Research Capital Corporation ("Research Capital" or the "Agent").  Research Capital, as lead agent and book runner, and Dundee Securities Corporation have agreed, on a best-efforts agency basis, to act with respect to a private placement offering (the "Offering") by the Company of up to an aggregate of $2,000,000 of common shares in the capital of the Company ("Common Shares") at price of $0.25 per Common Share.  The Offering will be conducted by way of private placement in reliance upon available exemptions pursuant to applicable securities law and the Common Shares will be subject to a four month hold period.  

The Common Shares will be issued on a flow-through basis pursuant to the Income Tax Act (Canada) and the proceeds of the Offering will be used to incur certain types of CEE as defined in the Income Tax Act (Canada).

In connection with the offering, the Company will grant the Agent an over-allotment option to increase the size of the Offering by up to an additional $1,000,000 of Common Shares at any time prior to the closing date. The Offering is subject to regulatory approval and is scheduled to close on or about September 5, 2008.  

Pursuant to the terms of an engagement letter dated August 26, 2008, the Research Capital agreed to act as lead agent of a syndicate of agents with respect to the Offering.  Dundee Securities Corporation will participate as a member of the syndicate.  In connection with the Offering the Agent and syndicate will receive an aggregate cash commission equal to 7% of the proceeds of the Offering and that number of warrants to purchase Common Shares that is equal to 7% of the number of Common Shares sold pursuant to the Offering ("Broker Warrants").  Each whole Broker Warrant will entitle the holder to purchase one Common Share on a non flow-through basis at a price equal to the price of the Common Shares sold pursuant to the Offering for a period of 24 months from the date of issuance of the Broker Warrants.

Jim Engdahl.
President

About Great Western Minerals Group Ltd.

Great Western Minerals Group Ltd. 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 subsidiaries of Less Common Metals Ltd. located in Birkenhead UK, and 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 the rare earth elements.

For further information, please contact Ron Malashewski, Manager of Investor Relations at (306) 659-4500. 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 news release.

Certain information set out in this News Release constitutes forward-looking information, including information relating to the Offering and the anticipated closing date of the Offering.  Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of the Company as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to, obtaining regulatory approval, risks, uncertainties and other factors that are beyond the control of the Company, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although the Company believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of the Company contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in any jurisdiction.  The securities to be issued pursuant to the Offering by the Company have not and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.