In 1999, under the direction of new management, the Company redefined its resource exploration objectives to actively expand its project portfolio to include strategic metals as well as diamonds. This resulted in the Company optioning the Hoidas Lake rare earth property; increasing its interest in, and taking over operational control of, the Candle Lake diamond-bearing kimberlite properties; and acquiring property in the US with the potential to host high-grade copper and gold mineralization.

In implementing this aggressive exploration strategy, the Company was successful in making a major rare earth discovery at Hoidas Lake, in northern Saskatchewan; greatly expanding the target area of the existing kimberlites at Candle Lake, in central Saskatchewan; and demonstrating the potential for a large tonnage, high-grade base/precious metal deposit in the US. The Company has identified over 30 rare earth showings at Hoidas Lake situated along a major fault structure 6 miles in length. In 2001, the JAK Zone was drill-tested with 16 holes collared along a 475 metre strike-length. Each hole intersected high-grade rare earth mineralization verified at the Saskatchewan Research Council laboratory where samples from the split core were assayed. Initial metallurgical work was completed on a composite sample of the JAK Zone mineralization at Lakefield Research in Ontario under the supervision of Melis Engineering Ltd. The Phase I metallurgical work showed that up to 98.6% of the rare earths present in the JAK Zone could be recovered by simple acid leaching. Final metallurgical testwork will evaluate the various options available and design a pilot plant based on that evaluation. In 2004, the Company blasted several hundred tonnes of material from the JAK Zone for the pilot plant and traced the rare earth mineralization on surface

for 6 miles down strike from the JAK Zone. The location of this discovery is considered to be of strategic significance to the western world and specifically to North America. The Company's immediate goal is to proceed to production at Hoidas Lake in as short a time frame as possible. The next phase of exploration and development work is designed to prove up sufficient ore reserves to commence a full feasibility study and to construct a pilot plant on or near the site to fine tune the milling and separating process. Great Western holds a 100% working interest in the property.

While the priority has been on rare earths, the Company nevertheless has continued to advance its diamond interests at Candle Lake and its copper/gold interests in the US. Great Western now retains an 100% interest in the Candle Lake project which has an estimated reserve of 65 to 70 million tonnes of diamond-bearing kimberlite, with individual drill holes giving projected grades of up to 27 carats per 100 tonnes and individual intersections with projected grades up to 150 carats per 100 tonnes. The Chuckwalla copper/gold project in California was targeted by Santa Fe Pacific Gold Corp. to host 26 million tons of 3.7% copper with significant gold credits. Sampling by GWG in August returned assays as high as 10.3% copper, 40.2 ounces per ton silver and 0.27 ounces per ton gold.

Corporate Office:

Great Western Minerals Group Ltd.
226 Cardinal Crescent
Saskatoon, SK Canada S7L 6H8
Tel: (306) 668-0701
Tel: (905) 544-8502
Fax: (306) 668-0289
email: info@greatwesterngold.com

For more information, please visit website www.gwmg.ca.