Great Western Minerals Dec09

8/8/2019 Great Western Minerals Dec09

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Proactive Investors One 2 One Investor Forum

Gary Billingsley, C.A.,P.Eng.,P.Geo. Executive Chairman

Jim Engdahl - President & CEO

December 8, 2009


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Safe Harbour Statement

Cautionary Note On Forward-Looking Statements

Forward-looking statements include, but are not limited to, GWMGs continued advancement of its mineral exploration anddevelopment programs. When using this presentation, the words potential, anticipate, estimate, forecast, believe, expect,may, project, plan and similar expressions are intended to be among the statements to identify forward-looking statements.

Although GWMG believes that its expectations reflected in these forward-looking statements are reasonable, such statements involverisk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

Disclaimer

GWMG shall not be liable or responsible for any claim or damage, directly or indirectly, special or consequential, incurredby the user arising out of the interpretation, reliance upon or other use of the information contained in this presentation.


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Our Vision:

We seek to become the first vertically integrated rare earth elements (REE) producer in NorthAmerica and a leader in the industry outside of China

Capitalization Overview:

Shares Outstanding / Fully Diluted (1)

Share Price (2)

52 week High / Low:

Market Cap (2)

Cash on hand:

Debt:

Insider Holdings / Fully Diluted (1)

201.0 mm / 218.1 mm

$0.29

$0.46 / $0.04

$58.3 mm

$2.5 mm

$1.8 mm

1.9% / 12.0%

Company Overview

Institutional Holdings: .

GWG 52 Week Price Volume History

(1) Includes 9,575,000 options with an average strike price of $0.19 and 7,557,299 warrants with an average strike price of $0.18(2) As at December 2, 2009


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Key Personnel

Holdings% basic (% fully diluted)

Gary Billingsley - Executive Chairman 0.6% (1.3%)

Professional engineer and geoscientist with more than 30 years experience in the mineralindustry

Has been directly involved with putting Saskatchewan's largest gold mine into production and,on three separate occasions, has played a major role in the discovery of diamond-bearing

kimberlite

James B. Engdahl - President, CEO and Director 0.1% (0.6%)

Has more than 30 years of experience in corporate finance at the executive level Was intimately involved in financing two producing gold mines in Saskatchewan

David Kennedy - Managing Director, Metals And Alloys 0.3% (0.5%)

Has worked with rare-earth containing materials since 1976 and has had published severalpapers on the technology and economics of rare earth alloy production

Audrey McMillan - Chief Financial Officer 0.0% (0.3%)

John G. Pearson - Vice-President, Exploration 0.4% (0.6%)

Richard O. Hogan - Vice-President, Operations 0.1% (0.4%)

Baodong Zhao - Manager, Metallurgy nil


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Industry Highlights

REEs are Critical toEmergingTechnologies

Strong ProjectedGrowth in Demandfor REEs

Total demand for REEs is expected to reach ~205,000 tonnes by 2014, representing a CAGR of 10% from 2008 driven bystrong demand for metal alloy and magnet applications

REEs are critical inputs for many emerging green technologies, high-tech applications and defense systems

REEs improve fuel consumption and emission control in the auto industry

Hybrid technology is totally dependent upon Neodymium, Praseodymium, Dysprosium and Terbium for the hybrid electricmotor and generator and Lanthanum, Neodymium and Cerium for the Hybrid NiMH battery

Europium, Terbium, and Yttrium are used for energy efficient light bulbs

China currently accounts for 97% of the world's total REE production

As a result of the increasing appetite from Chinese manufacturers for REEs, China continues to further restrict exports







REEs are Criticalto EmergingTechnologies

Strong ProjectedGrowth inDemand forREEs

Supply ConstraintsImposed by China

Surge in REEInvestment Activity

Major manufacturers have been making investments or entering into joint ventures across the globe in an attempt to securereliable REE reserves

Neo Material Technologies enters into a strategic partnership with Mitsubishi Corporation for the identification, developmentand commercialization of heavy REE (HREE) opportunities outside of China

Great Western Minerals Group Ltd. and Toyota Tsusho Corporation have signed a letter of intent (LOI) to cooperate onexploration of HREE in Canada

an ncrease expor ar s

-10% since 2004 to 43,600t in 2007 -13% to 38,000t in 2008

-16% to 31,888t in 2009

Raising export tariffs to 15-25%

Supply ConstraintsImposed by China

Surge in REE

InvestmentActivity

ConstraintsImposed byChina


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Company Highlights

Our manufacturing operations provides us with unparalleled REE metallurgy expertise outside of China

The metallurgy of REE is extraordinary difficult, and separating and refining the REE requires significant expertise

Our Rareco project in South Africa, a past producing mine, in which we have rights to 100% of the REE mined is scheduled

to be in production by H2 2011 Management believes Rareco will be the first commercial grade REE producer outside of China

Metallurgy Expertise

Mine-to-Market Model

Speed to Market

We implement a unique "mine-to-market" business model

Exploration and development of REE

Owner of resource properties

Owner of production facilities

Supplier of rare earth metals and alloys


Speed to Market



Speed to Market



Speed to Market



Speed to Market



Speed to Market


Speed to Market



Speed to Market



Speed to Market



Speed to Market

MetallurgyExpertise

Mine-to-MarketModel

Speed to Market

Diversification

Supported by LargeIndustry Players

We have signed an LOI to cooperate on exploration of HREE in Canada with Toyota Tsusho

Management Team We have a proven management team and board of directors with significant mining experience

We are diversified both from a geographic standpoint with projects located in Canada, US and South Africa as well as the

composition of our REE projects Our REE composition varies across projects with a heavy concentration of Dysprosium at our Douglas River and Benjamin

River projects and Neodymium at our Hoidas Lake, Benjamin River and Rareco projects

Diversification


Diversification

Management Team


DiversificationDiversification


Diversification

Management Team

Supported byLarge IndustryPlayers

Diversification


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Global Rare Earth Projects

There are a limited number of Rare Earth deposits that have 2014 productionpotential

Thor Lake, Northwest Territories CanadaAvalon

Thor Lake, Northwest Territories CanadaAvalon

Hoidas Lake, Saskatchewan CanadaGreat Western Minerals

Hoidas Lake, Saskatchewan CanadaGreat Western Minerals

Mountain Pass, California USA - MolycorpMountain Pass, California USA - Molycorp

Bayan Obo ChinaBayan Obo China

Potential Production By 2014

Steenkampskraal, South AfricaGreat Western Minerals

Steenkampskraal, South AfricaGreat Western Minerals

Potential Production By 2012

Nolans - ARUNolans - ARU

Mount Weld - LYCMount Weld - LYC


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Global REE Production Schedule

2010 2011 2012 2013 2014 +2014

Rareco (GWG)

Hoidas Lake (GWG)

Deep Sands (GWG)

Benjamin River (GWG)

Douglas River (GWG)

Global REE Production Schedule(1)

Mt. Weld (LYC)(2)

Nolans Bore (ARU)

Mt. Pass (Molycorp)

Bokan-Dotson Ridge (UCU)

Thor Lake (AVL)

Strange Lake (QUC)

Bear Lodge (RES)

(1) Source: Company websites, management estimates and public filings(2) Currently undertaking a A$450 mm equity offering after Australias Foreign Investment Review Board rejected

China Non-Ferrous Mining Co.s proposed $400mm investment into Lynas Corporation on September 24


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Our Project Locations

Canada % Owned LREO HREO

Hoidas Lake, SK. 100% 96% 4%

Douglas River,SK. 100% 0% 100%

Benjamin River,NB. 100%(1) 70% 30%

South Africa % Owned LREO HREO

A Global REE Presence

USA % Owned LREO HREO

Deep Sands 25%(2) 85% 15%

(1) Entered into an option agreement with a third party to acquire a 100% working interest(2) Holds a 5% interest in REE contained in a heavy mineral sands project in Utah(3) Upon the updated feasibility study, GWG and Rareco will negotiate a supply agreement under which 100% of the rare earth ore mined and processed will be made available by Rareco, to

GWG for a 10 year period, after which a new supply agreement can be negotiated. Equity ownership is expected to be 30%-50%

Steenkampskraal 100%(3) 92% 8%


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Steenkampskraal, South Africa REE Project

Resource Estimate Tonnes REO%

Underground-in situ 117,500 16.74%

Underground-broken 47,000 5%

Surface 85,000 8.29%

Estimated Capital Expenditure (US$)

Mine, concentrate, grind & leach $12,000,000

Equipment costs $1,500,000

Separation plant $15,000,000

Total $30,000,000

Infrastructure

Located close to roads and 80 miles to port

Currently we have 3 parties interested in buying the thorium byproduct; alternatively we have a license to store thoriumin the mine incased in cement

We have made an application to re-permit the mine under new mining laws

We expect to receive an indication of approval by November of 2009

Black Empowerment Group will own 26% and we already have approval to employ its members

Development Timeline:

Production and financing decision in Q1 2010

Production in H2 2011


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Hoidas Lake, Saskatchewan Rare Earth Project

Estimated Capital Expenditure (US$)

Mine, mill-grinding, flotation $25,000,000

Camp, ancillary $35,000,000

Saskatoon leach plant $25,000,000

Separation plant $30,000,000

Total $115,000,000

Resource Estimate(1) Tonnes REO%

Measured 963,808 2.568%

Indicated 1,597,027 2.349%

Inferred 286,596 2.139%

Infrastructure

Transportation study expected to be completed by Q1 2010

Environmental impact and baseline studies completed

Subject to a 1.8% NSR capped at $1,000,000


Metallurgy and transportation study completed by Q1 2010

Setup demonstration plant in Q2 2010

Pre-feasibility Q4 2010

Bankable feasibility study and production and financing decision by Q2 2011

Production in H1 2014

(1) NI 43-101 compliant estimate


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Deep Sands, Utah Rare Earth Project

Project Highlights

Mineral sands with significant REO to 0.8%Significant Y + HREE content 15%

High REO value per Kg US$14.19

Infrastructure

Tonnes REO%

Target Resource 500,000,000 0.25%

,

rail

Magnetite sands allow for cost effective mechanical consolidation to separate REE

GWG owns 25% of REEs with the right to acquire the remaining 75% from Titan Mining (private)

Phase I exploration drilling program completed with ~1,000 drill holes


Analyzing phase I exploration results and expect commencement of phase II exploration by Q2 2010


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Douglas River, SK & Benjamin River, New Brunswick

Benjamin RiverDouglas River

Located within 10 miles to road-near Cluff LakeUranium Mine, Shea Creek Uranium discovery

100% Y + HREE

GWG samples to 8.75% TREO / 1.15% Dy2O3

Unique in that it does not contain Thorium or Uranium


Exploration expected to commence by Q4 2009

Located close to roads, power to site and within 50 miles to port

Have an option agreement with a third party to acquire a 100%working interest

Likely to be phosphate mine with REE by-product, Fe by-product also likely

30% Y + HREE by proportion


Drilling underway


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Our Projects are Enriched in Higher Value REEs

Project Value REO US$/kg(1)

Douglas River 33.31

Benjamin River 20.55

Thor Lake (AVL) 19.03

Deep Sands 15.28

Hoidas Lake 13.42

Nolans Bore (ARU) 12.85

Mt. Weld (LYC) 10.66

Steenkampskraal 11.53

Baotou (Bao Steel) 10.27

Mt. Pass (Molycorp) 9.00

Bear Lodge (RES) 8.90

(1) Asian Metal as at November 30, 2009


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Our Project REO Compositions by Weight

Oxide Hoidas Deep Sands Steenkampskraal Benjamin River Douglas RiverSK, CA UT, US South Africa NB, CA SK, CA(%) (%) (%) (%) (%)

Cerium Oxide CeO2 46.62 41.73 46.67 31.81 0.05

Neodymium Oxide Nd2O3 20.57 14.28 16.67 17.62 0.07

Lanthanum Oxide La2O3 20.44 22.30 21.67 12.88 0.01

Praseodymium Oxide Pr6O11 5.97 4.34 5.00 4.40 0.00

Samarium Oxide Sm2O3 2.71 2.44 2.50 3.61 0.00

Gadolinium Oxide Gd2O3 1.24 2.06 1.67 3.99 0.00

Yttrium Oxide Y2O3 1.17 8.90 5.00 17.81 80.37

Europium Oxide Eu2O3 0.54 0.30 0.08 0.22 0.29

Dysprosium Oxide Dy2O3 0.35 1.41 0.67 3.22 11.83

Erbium Oxide Er2O3 0.24 0.76 0.08 1.68 3.64

Terbium Oxide Tb4O7 0.11 0.28 0.08 0.58 2.03

Ytterbium Oxide Yb2O3 0.05 0.72 0.07 1.18 1.57

Holmium Oxide Ho2O3 0.00 0.27 0.05 0.63 0.00

Thulium Oxide Tm2O3 0.00 0.11 0.07 0.22 0.00

100.00 100.00 100.00 100.00 100.00

TREO Contained Resources t(1) 95,000 1,250,000 29,066 Not av. Not av.

Value REO (US$/Kg)(2) 13.42 15.28 11.53 20.55 33.31

Total In-situ Value (US$ 000s) 1,274,900 19,100,000 335,131 Not av. Not av.

(1) Non NI 43-101 compliant estimate except Hoidas shown at 0% REE cutoff(2) Asian Metal as at November 30, 2009


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Rare Earths Elements Global Supply and Demand

In the coming years, worldwide demand for rare earth elements, especially Terbium, Dysprosium and Neodymium,is expected to exceed supply unless major new sources are developed

100,000

150,000

200,000

250,000

Dem

and

tpa

-R

EO

We have a high concentration of Neodymium at our Hoidas Lake, Rareco and Benjamin Riverprojects and a high concentration of Dysprosium at our Douglas River project

Source: Dudley J Kingsnorth, IMCOA

0

,

2004

2005

2006

2007

2008

2009

f

2010

f

2011

f

2012

f

2013

f

2014

f

China Supply ROW Supply Global Demand China Demand


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Upcoming Milestones

2009 2010

Q4 Q1 Q2 Q3 Q4

Rareco

Finalization ofproduction and

financing

decision

Hoidas Lake

Completion ofmetallurgy andtransportation

study

Setupdemonstration

plant

Completion ofpre-feasibility

study

Commencement

Deep Sands

of phase II

explorationprogram

BenjaminRiver

Commencementof exploration

program

Douglas RiverCommencement

of explorationprogram


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Why Do We Own Manufacturing

Our manufacturing facilities provide us with a direct relationship with the end-users of REEs as well as withunparalleled REE metallurgy expertise outside of China. We have the value added knowledge.

Value-added capability means increased margins that protect the mining side from price fluctuations

Last year, LCM generated $12 mm in revenue and $1.6 mm in EBITDA and GWTI generated $0.6 mm in revenue

GWTI has recently been awarded a US$110,000 defense contract with the central research and development organization for theUS Department of Defense to develop a set of aluminum based high strength alloys


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Our 100% Owned Manufacturing Operations

Less Common Metals Great Western TechnologiesLocation: Birkenhead, UK Troy, Michigan

Description: Vacuum induction melting, co-reduction of metalsand alloys to ingot and powder

Vacuum induction melting and hydrogen processingof metals, alloys and powders

Raw MaterialsInputs:

Elements (amongst others): iron, cobalt, nickel,yttrium, lanthanum, cerium, praseodymium,

neodymium, samarium, gadolinium, terbium,dysprosium

Utilizes rare earths and aluminum, copper, cobalt,iron, nickel and titanium

ProductionCapacity

1,100 t alloy/year (capacity)430 t alloy/year (current)

2,500 t alloy/year (capacity)250 t alloy/year (current)

Revenue at FullCa acit

$110mm - $160mm

End Products Neodymium iron boron and samarium cobalt alloysfor the permanent magnet industry

Other rare earth alloys, including magneto-optic andmagnetostrictive materials, hydrogen storagesystems and master alloys

High purity rare earth metals Sputtering targets Ultra high purity indium

High purity custom made alloys Sputtering targets Precious metals Special high purity alloys foils, ingots and rods Special low oxygen powders Single crystal isotopes Rare earth special elements Brazing alloys Raney Ni alloys

Scrap metal recovery

End Consumers Automotive, aerospace, alternative and nuclear energy, and defense sectors


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Comparable Companies Analysis

Source: Bloomberg, Company Websites and Published Information(1) Adjusted for completion of the private placement of $ 15.5 million at $2.30 per share and $5 million at $2.65 per flow-through share completedSeptember 17

(2) Assumes completion of private placement totaling $7 million at $2.30 per share announced October 8(3) Adjusted for completion of the private placement of $ 6.7 million at $0.40 per share completed September 14 and overallotment of $0.5 millioncompleted September 29


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Conclusion

We could be the first producer of REE outside of China through our Rarecooption in South Africa, with Hoidas Lake to follow not far behind

We are the only fully integrated mine-to-market REE operator outside of China

We have unique blend of experience through all phases of the REE productioncycle from exploration to manufacturing super alloys and other materials

We have end users that are already our clients We were the first REE company in North America focusing strictly on REEs

and a Mine To Market business model


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Appendix An Overview of Rare Earth Elements


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What are Rare Earth Elements?

21

Sc

39

Y

57

La

REEs are a unique group of metallic elements with unique properties: chemical, catalytic, electrical, magnetic, metallurgic and optical

REEs used for high strength magnets, such as Neodymium, Dysprosium and Terbium, are highest in demand

Periodic Table of REEs

58

Ce59

Pr60

Nd61

Pm62

Sm63

Eu64

Gd65

Tb66

Dy67

Ho68

Er69

Tm70

Yb71

Lu

- Heavy Rare Earths

- Light Rare Earths- Other Rare Metals

Source: Asian Metal as at August 19, 2009


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Key Applications of Rare Earth Elements

REEs are critical and enabling for many emerging Green Energy technologies, High Tech applications and Defense Systems,such as hybrid cars, plug-in hybrid electric vehicles, wind power turbines, solar panels, missile guidance systems and cellphones

EnergyEnergyEfficiencyEfficiency

Application Elements

Compact fluorescent lights

Weight reduction in cars Higher oil refinery yields

Hybrid vehicles

Er, Tb, Y,Nd, Lu, La

D La Nd SmEnvironmentalEnvironmental

MiniaturizationMiniaturizationTechnologyTechnology

Auto catalytic converter

Diesel additives

Disk drives

Digital cameras

Flat panel displays

Tb, Pr, Ce, Yb

Dy, Gd, Lu,Eu


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Growth Forecast by Application2008 Demand by Application

Applications are Driving Strong Forecasted Demand

ApplicationGrowth rate

% p.a.2013 demand

tonnes

Catalysts 6-8% 32-36,000

Glass Additive 1% 14,000

Polishing Powder 6-8% 21-25,000

Metal Alloys 15-20% 50-55,000

Source: Dudley J Kingsnorth, IMCOA

agnets 10-13% 45-50,000

Phosphors & Pigments 7-9% 14-15,000

Ceramics 7-9% 10-11,000

Other 7-9% 13-14,000

Total 8-11% 205-215,000


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The Future Supply Picture Looks Bleak

China accounts for 97% of the worlds current REE production

Currently operating at capacity

No significant non-Chinese supply sources available todaySmall and limited production in Russia (3,000 - 4,000 tpa)

Beach sand processed by Indian Rare Earths, subsidiary of Atomic EnergyAgency (7% thorium banned elsewhere)

Most REE deposits have thorium content and hence are unextractable unless a

buyer of thorium is found

Development projects currently under study

Mainly at an early stage with long lead times to realisation

New Projects face economic and environmental hurdles


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Recent Developments in the REE MarketsAugust 18, 2009 - China further tightens rare earth production and exports and outlines

plans to impose a total ban on the export of some rare earths materials. These includeDysprosium, Terbium and Yttrium (australianrareearths.com)

Over the past year, Chinese and Japanese have been trying to secure reliable REEreserves globally

April 20, 2009 - $24 million equityinvestment agreement between ArafuraResources Limited and the Jiangsu

-

July 21, 2009 - Mitsubishi agrees to

participate in Neo Material Technologiesquest for rare earths outside of China(Press Release)

July 21, 2009 - Great Western MineralsGroup Ltd. and Toyota TsushoCorporation sign letter of intent to

September 24, 2009 - Australia rejected a

$400 million proposal for China Non-Ferrous Metal Mining to take a majoritystake in Lynas Corporation (Reuters)

September 10, 2008 - Chevron Mining agrees to sell Mountain Pass rare earth miningoperations (Molycorp Minerals, LLC) to company owned by Resource Capital Funds,

Pegasus Partners IV, LP, The Goldman Sachs Group, Inc., Traxys North America LLCand Carint Group LLC (Press Release)

-Investment Holding Company was sealed

today (Mineweb)

(Press Release)


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Phone: (306) 659-4500www.gwmg.ca [email protected]

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