Great Western Minerals Group Ltd. - Letter of Intent signed


    TSX Venture Symbol: GWG
    USA Symbol: GWMGF
    CUSIP: 39141Y 10 3

    SASKATOON, Aug. 13 /CNW/ - Great Western Minerals Group Ltd. ("GWMG" or
the "Company") is pleased to announce that it has entered into a non-binding
Letter of Intent ("LOI") with a private third party to purchase an interest in
a rare earth-bearing property in the southwestern United States.
    Subject to completion of due diligence, an initial sampling and analysis
program and negotiation of a definitive purchase agreement, the LOI
contemplates that GWMG will have the right to acquire a 25% interest in the
rare earth minerals contained in the claims that are the subject of the LOI
(the "Property"). The vendor would hold the remaining 75% interest in the rare
earth minerals contained in the Property, and exclusive rights to deal with
100% of the non-rare earth-bearing minerals. The terms contemplated by the LOI
would give GWMG the exclusive right to explore for rare earth elements on the
property and an exclusive right to negotiate a participation agreement
allowing GWMG to recover 100% of the rare earth elements.
    "If the property proves out like we think it has the potential to do, it
would perfectly complement our Hoidas Lake project", says Jim Engdahl,

    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 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
the rare earth elements. In the southwestern United States, GWMG also operates
the Chuckwalla copper/gold/silver project in California, and the Copper Hill
copper/gold/molybdenum project in Nevada. As announced on April 20, 2007, the
Company has also recently acquired the Crescent property in northern
California, which is an advanced-stage nickel-cobalt property drilled in the
1960s and 1970s.

    Jim Engdahl.

    Cautions Regarding Forward-Looking Statements

    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. 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 the entering into of
a definitive and binding agreement with respect to the terms contemplated by
the LOI, 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. Assumptions relating to certain
forward-looking information contained in this press release are set out
herein. 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

    (The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release)

    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.

For further information:

For further information: please contact Ron Malasheski, Manager of
Investor Relations at (306) 668-0701. Email inquiries should be made to and the company website is located at Inquiries by
direct mail should be addressed to Great Western Minerals Group Ltd., 226
Cardinal Crescent, Saskatoon, SK S7L 6H8.

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Great Western Minerals Group Ltd.

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