Investment Conferences


RARE EARTHS, SPECIALITY
& MINOR METALS
INVESTMENT SUMMIT
                 9.55 – 10.20
          ...
TSXV: GWG
                                           OTCQX: GWMGF




Objective Capital Investment Conferences
Rare Earths...
Safe Harbour Statement
•   Cautionary Note On Forward-Looking Statements

•   Forward-looking statements include, but are ...
Company Overview
•   About Great Western Minerals Group Ltd.

•   Great Western Minerals Group Ltd. is a Canadian-based co...
Company Overview
• Mission
• To become the first fully
  vertically integrated rare
                                 >> 13...
Capitalization Overview
TSXV: GWG
OTCQX: GWMGF


Shares Outstanding / Fully Diluted   240.0 mm / 266.3 mm
Share Price     ...
Key Personnel


Gary L. Billingsley                         James B. Engdahl                 David Kennedy
CA, P.Eng, P.Ge...
What are Rare Earth Elements?
        Periodic Table
        REE=Lanthanides




    [        LREE     ][   HREE   ]
Rare Earths      REO Price (USD/kg)*

    What are Rare                               Sc - Scandium           $1,750.00
  ...
What are Rare Earth Elements?
What are Rare Earth Elements?
What are Rare Earth Elements?
REEs Global Supply & Demand
Industry Highlights
REEs are Critical to     REEs are critical to GREEN TECHNOLOGY
Emerging                 Hybrid vehicle...
Company Highlights
Mine-to-Market Model   •Already a DOWNSTREAM MANUFACTURER of RARE EARTH PRODUCTS
                      ...
Company Highlights
Diversified          •Geographically
                     •Distribution of REE content
                ...
Global Rare Earth Projects
    Only a limited number of Rare Earth deposits that have 2014 production potential




Thor L...
Our Project Locations
      A Global REE Presence


                                                            Canada    ...
Steenkampskraal Mine
Western Cape, South Africa

Highlights
In situ grade 16.74% TREO*

30,000 tonnes TREO contained in re...
Hoidas Lake Project
Saskatchewan, Canada

Highlights
M&I resource: 2.6 million tonnes @ 2.43% TREO (1)

10km strike length...
Deep Sands Project
Utah, USA

Highlights

170+ sq km of magnetite/monazite-bearing sand

Significant RE in surface samplin...
Douglas River Project
Saskatchewan, Canada

Highlights

High grade RE mineralization: 8.75% TREO

100% HREE including assa...
Benjamin River
New Brunswick




                 Highlights

                 Close to all infrastructure near Bathurst, ...
Our Projects
 Balance Between LREE and HREE

 Project               Value REO US$/kg (1)             HREO%
 Douglas River ...
Upcoming Milestones
                                                                     2010
                            ...
Why do we own manufacturing?
•   Significant revenue multiplier in downstream operations
•   Direct Relationship with end ...
What do we manufacture?
• GWTI
    •    Permanent magnet alloys: heat treat NdFeB
    •    Aluminum alloys (RE containing ...
Market Cap Comparison
                Target Minerals                  Other Corporate Attributes                         ...
Investment Highlights
•   Potentially one of the first primary producers of
    REE outside of China through our REE optio...
THANK YOU




Phone 306.659.4500
www.gwmg.ca
info@gwmg.ca
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Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rare Earths: Building the Mine to Market Strategy - Gary Billingsley

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Objective Capital Rare Earths, Speciality and Minor Metals Investment Summit
Focus on Rare Earths: Building the Mine to
Market Strategy
18 March 2010
by Gary Billingsley, Great Western Minerals

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Objective Capital Rare Earth and Minor Metals Investment Summit: Focus on Rare Earths: Building the Mine to Market Strategy - Gary Billingsley

  1. 1. Investment Conferences RARE EARTHS, SPECIALITY & MINOR METALS INVESTMENT SUMMIT 9.55 – 10.20 Focus on Rare Earths: Building the Mine to Market Strategy Gary Billingsley – Exec Chairman, Great Western Minerals THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 18 MARCH 2010 www.ObjectiveCapitalConferences.com 1
  2. 2. TSXV: GWG OTCQX: GWMGF Objective Capital Investment Conferences Rare Earths, Specialty & Minor Metals London, UK March 2010
  3. 3. Safe Harbour Statement • Cautionary Note On Forward-Looking Statements • Forward-looking statements include, but are not limited to, GWMG’s continued advancement of its mineral exploration and development 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 involve risk 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, incurred by the user arising out of the interpretation, reliance upon or other use of the information contained in this presentation.
  4. 4. Company Overview • About Great Western Minerals Group Ltd. • Great Western Minerals Group Ltd. is a Canadian-based company pursuing a value-added, vertically-integrated, business model in the rare earth industry. Through its wholly-owned subsidiaries Less Common Metals Limited, located in Birkenhead UK, and Great Western Technologies Inc., located in Troy, Michigan, the Company produces a variety of specialty alloys for use in the rechargeable battery, permanent magnet and aerospace industries. • On the mining side, the Company is actively developing several earth properties globally, including the former-producing Steenkampskraal Mine in South Africa, on which it holds an option to refurbish and bring back into production. With Steenkampskraal in production the Company will be able to source all the rare earth material required for its manufacturing operations internally.
  5. 5. Company Overview • Mission • To become the first fully vertically integrated rare >> 13 employees earth elements (“REE”) producer in North America and a leader in the industry outside of China >> 8 employees “GWTI” Troy, Michigan >> 25 employees Birkenhead, UK
  6. 6. Capitalization Overview TSXV: GWG OTCQX: GWMGF Shares Outstanding / Fully Diluted 240.0 mm / 266.3 mm Share Price $0.20 52 week High / Low $0.46 / $0.04 Market Cap $48 mm Cash on hand $ 8.0 mm Debt $ 1.8 mm Insider Holdings / Fully Diluted 1.9% / 12.0% Institutional Holdings 5.6% At March 15, 2010
  7. 7. Key Personnel Gary L. Billingsley James B. Engdahl David Kennedy CA, P.Eng, P.Geo President, CEO C.Eng, MIMMM, Managing Executive Chairman and Director Director, Metals And Alloys Audrey McMillan CA Richard O. Hogan MSc. Eng. Chief Financial Officer Vice-President, Operations John G. Pearson Dr. Baodong Zhao, PhD MSc. Geol., P.Geo Manager, Metallurgy Vice-President, Exploration
  8. 8. What are Rare Earth Elements? Periodic Table REE=Lanthanides [ LREE ][ HREE ]
  9. 9. Rare Earths REO Price (USD/kg)* What are Rare Sc - Scandium $1,750.00 Y - Yttrium 10.00 Earth Elements? La - Lanthanum Ce - Cerium 7.10 5.84 Pr - Praseodymium 27.50 • Unique group of metallic elements Nd - Neodymium 30.00 • Unique chemical, catalytic, electrical, Pm - Promethium Synthetic magnetic, metallurgic and optical Sm - Samarium 5.50 properties Eu - Europium 497.00 • Used for wide range of applications Gd - Gadolinuim 10.89 • Neodymium, Dysprosium and Tb - Terbium 460.18 Terbium, are highest in demand Dy - Dysprosium 160.00 Ho - Holmium 35.00 Er - Erbium35.00 Tm - Thulium 790.00 Yb - Ytterbium 132.00 Lu - Lutetium 238.00 *Asian Metal-February 24, 2010
  10. 10. What are Rare Earth Elements?
  11. 11. What are Rare Earth Elements?
  12. 12. What are Rare Earth Elements?
  13. 13. REEs Global Supply & Demand
  14. 14. Industry Highlights REEs are Critical to REEs are critical to GREEN TECHNOLOGY Emerging Hybrid vehicles, wind power, pollution controlling catalysts, Technologies energy efficient lighting Strong Projected Demand: expected to increase 70% by 2014 Growth in Demand for CAGR: 15% from 2009 to 2014 REEs Strongest Sector: metal alloy and magnet applications Supply Constraints China currently accounts for 97% of the world’s total REE production. Imposed by China China is ACTIVELY CONTROLLING the MARKET with: Physical quotas on mining and exports, limits on the number of exporters, and tariffs of 15% to 25% on exports Surge in REE Manufacturers investing in REE sources to secure supply: Investment Activity by Mitsubishi, Sojitsu, JOGMEC, Mitsui, Toyota, etc. End-Users
  15. 15. Company Highlights Mine-to-Market Model •Already a DOWNSTREAM MANUFACTURER of RARE EARTH PRODUCTS •Already supply 20% of the world demand for SmCo permanent magnet alloy •Already supply significant quantities of NdFeB permanent magnet alloy •Activelydeveloping several REE MINERAL PROJECTS Speed to Market •The STEENKAMPSKRAAL MINE could be in production in 2012 •Potential to be one of the FIRST PRIMARY REE PRODUCERS outside China Metallurgy Expertise •Have IN-HOUSE METALLURGICAL EXPERTISE from mine-to-market
  16. 16. Company Highlights Diversified •Geographically •Distribution of REE content •Primary products and by-products Supported by Large •Under LOI with Toyota Tsusho on HREE properties Industry Players Management Team •Highly experienced management and board, from discovery to mining to manufacturing
  17. 17. Global Rare Earth Projects Only a limited number of Rare Earth deposits that have 2014 production potential Thor Lake TSX:AVL Kvanefjeld ASX:GGG Hoidas Lake TSXV:GWG Bayan Obo China Mountain Pass, CA Molycorp Dong Pao-Sojitsu/Toyota Vietnam Nolan’s Bore ASX:ARU Steenkampskraal TSXV:GWG Mount Weld ASX:LYC Dubbo ASX:ALK Potential Production by 2012 Potential Production by 2014
  18. 18. Our Project Locations A Global REE Presence Canada % owned LREO HREO Hoidas Lake, SK 100% 96% 4% Douglas River, SK 100% 0% 100% Benjamin River, NB 100% (1) 70% 30% USA % owned LREO HREO Deep Sands 25% (2) 85% 15% South Africa % owned LREO HREO Steenkampskraal 100% (3) 92% 8% (1) Entered into an option agreement with a third party to acquire a 100% working interest (2) Holds a 25% interest in REE contained in a heavy mineral sands project in Utah • Option on 100% of RE off take and ownership
  19. 19. Steenkampskraal Mine Western Cape, South Africa Highlights In situ grade 16.74% TREO* 30,000 tonnes TREO contained in resource* Full Mining License; licensed to store thorium New order mining right conversion in progress Will supply 100% of LCM/GWTI RE needs Exploration permit application made Access to local monazite sands may increase output GWMG has option on 100% of RE and ownership Estimated capital cost: US$30 million/2,500 tpa REO Production in 2012 is possible *Historic data
  20. 20. Hoidas Lake Project Saskatchewan, Canada Highlights M&I resource: 2.6 million tonnes @ 2.43% TREO (1) 10km strike length/30+ RE occurrences Less than 10% of the known zone drilled Environmental baseline work complete Metallurgical work based on QEMSCAN in progress Initial transportation study complete Target production date: 2014 Note (1) NI 43-101 compliant estimate
  21. 21. Deep Sands Project Utah, USA Highlights 170+ sq km of magnetite/monazite-bearing sand Significant RE in surface sampling: to 0.8% TREO Completed 900+ drill holes over entire property Assaying, compilation, interpretation in progress Target: 500 million tonnes @ 0.25% TREO Phase II: infill drilling and 43101 resource estimate GWMG owns 25% of RE; ROFO on 75% of RE
  22. 22. Douglas River Project Saskatchewan, Canada Highlights High grade RE mineralization: 8.75% TREO 100% HREE including assays >1% Dy2O3 99% of RE in Xenotime; known recovery process Very low radioactivity Related to high grade U deposits? Near Cluff Lake and Shea Creek Under LOI with Toyota Tsusho Corp
  23. 23. Benjamin River New Brunswick Highlights Close to all infrastructure near Bathurst, NB Phosphate based-30% HREE by proportion Initial drill program complete: analysis in progress Under LOI with Toyota Tsusho Corporation
  24. 24. Our Projects Balance Between LREE and HREE Project Value REO US$/kg (1) HREO% Douglas River 41.81 99 Benjamin River 25.05 30 Thor Lake (AVL) 26.15 20 Deep Sands 18.19 15 Hoidas Lake 16.23 4 Nolans Bore (ARU) 15.65 2 Bear Lodge (RES) 14.62 2 Mt. Weld (LYC) 14.42 2 Steenkampskraal 13.96 8 Baotou (Bao Steel) 12.26 1 Mt. Pass (Molycorp) 10.54 0 Note (1) Pricing from Asian Metal as at February 24, 2010, distributions from publicly available data
  25. 25. Upcoming Milestones 2010 Q1 Q2 Q3 Q4 Receipt of Toyota Receipt, Compilation and Douglas River sampling results and Phase I Exploration Interpretation Phase I Phase II Exploration participation decision work Receipt, Compilation and Determine Phase II Benjamin River Interpretation Phase I exploration program from Phase II Exploration results Phase I results Completion of metallurgy Completion of Hoidas Lake and transportation study pre-feasibility study Determine Phase II Deep Sands exploration program (if Phase II Exploration any) from Phase I results Receipt of converted New Finalize off-take Steenkampskraal Order Mining Permit? arrangement; Mine Construction arrange mine finance; construction schedule
  26. 26. Why do we own manufacturing? • Significant revenue multiplier in downstream operations • Direct Relationship with end users • Unparalleled metallurgical and marketing expertise outside of China • Increased margins that protect the mining side from price fluctuations • LCM established and significant producer of • GWTI sees potential in recently completed Permanent Magnet Alloys contract for the US Department of Defense to • Revenue in 2009 $12 million/$1.6 million develop a set of aluminum based high strength EBITDA alloys • Now operating close to profitability
  27. 27. What do we manufacture? • GWTI • Permanent magnet alloys: heat treat NdFeB • Aluminum alloys (RE containing for aerospace industry) • Alnico alloys for alnico permanent magnets • NiMH battery alloys • Hydrogen storage alloys • NiMH battery electrodes • Sputtering targets • LCM •Sm-Co permanent magnet alloy (supply 20% of world demand) •NdFeB permanent magnet alloys •Other magnet alloys •Specialty metal products
  28. 28. Market Cap Comparison Target Minerals Other Corporate Attributes Market Data Other Value-added Prod. Facilities, HREE LREE Rare Minerals Production Revenue, Global Customer Shares (1) Price as of Market Cap Ratio of Mkt Metals Base, Accelerated Mining Potential, outstanding Mar 4 in C$ Cap to GWG LOI with End-users AVL 78,504,448 $2.54 $199,401,298 3.78 QUC 40,000,000 $2.82 $112,800,000 2.14 RES 26,339,736 $3.63 $95,613,242 1.81 GWG 240,000,000 $0.22 $52,800,000 1.00 CCE 129,917,140 $0.37 $48,069,342 0.91 UCU 86,475,198 $0.35 $30,266,320 0.57 Note (1) Shares Outstanding is based on company’s website data
  29. 29. Investment Highlights • Potentially one of the first primary producers of REE outside of China through our REE option in South Africa. • The only fully integrated mine-to-market REE operator outside of China • Unique blend of experience through all phases of the REE production cycle from exploration through manufacturing • Already have a client base of global industrial companies
  30. 30. THANK YOU Phone 306.659.4500 www.gwmg.ca info@gwmg.ca

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