Integrated approach & South Africa opportunity

RARE EARTHS, SPERARE EARTHS, SPE& STRATEGIC META& STRATEGIC METAINVESTMENT SUMMINVESTMENT SUMM

Integrated approach & South AGary Billingsley – Exec ChairGary Billingsley Exec ChairGreat Western Minerals Group

IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 13-14 MA

www.ObjectiveCapitalConferences.com

CIALITYCIALITYLSLSITIT

Africa opportunityrman,rman,p

ARCH 2012

Integrated Approach and South AGary Billingsley, Executive Chairmany g y,

Objective CapitalObjective CapitalRare Earths, Specialty & Strategic Metals Investment SummitInvestment Summit

14 March 2012, London14 March 2012, London15 March 2012, Edinburgh

TSX.V: GWG OTCQX: GWMGF infTSX.V: GWG OTCQX: GWMGF inf

Africa Opportunity

[email protected] [email protected] www.gwmg.ca

S f H bSafe HarbourCautionary Note On Forward-Looking • "Forward looking statements include but are not lim• Forward-looking statements include, but are not lim

capacity, output and revenue, GWMG’s continued processing operations and business plans. When u“ ” “ ” “ ” “ ” “ ”“estimate”, “forecast”, “believe”, “expect”, “may”be among the statements to identify forward-lookin

• Although GWMG believes that its expectations refle• Although GWMG believes that its expectations reflesuch statements involve risk and uncertainties and consistent with these forward-looking statements. RI f ti F il bl t d fInformation Form available at www.sedar.com for a

• GWMG shall not be liable or responsible for any claconsequential incurred by the user arising out of thconsequential, incurred by the user arising out of thinformation contained in this presentation.

Statementsmited to statements regarding projected processingmited to, statements regarding projected processing advancement of its mineral exploration, projects,

using this presentation, the words “potential”, “anticipate”, ” “ ” “ ””, “project”, “plan” and similar expressions are intended to g statements.“ected in these forward-looking statements are reasonableected in these forward-looking statements are reasonable, no assurance can be given that actual results will be

Readers are advised to refer to GWMG’s current Annual f ll d i ti f i k f ta full description of risk factors.

aim or damage, directly or indirectly, special or he interpretation reliance upon or other use of thehe interpretation, reliance upon or other use of the

3

GWMG HighlightsGWMG HighlightsGWMG is on track to become a leading fand processor outside of China, with a s

A fully integrated rare earth company:A fully integrated rare earth company:• Increasing importance of ex-China source• From production at Steenkampskraal to a• From production at Steenkampskraal to a• Ownership of value chain = higher expect

of supply for customersFlagship Steenkampskraal mine - a uniq• Main Zone historic estimates contained [R

grade of 11.6%(1)g• Favorable distribution of heavy rare earth• Historic mineralization (and mine workingHistoric mineralization (and mine workingGreat Western - a comprehensive strateg• Restart production build a mixed rare ear• Restart production, build a mixed rare ear

a separation plant near Steenkampskraal• Significantly expand alloy production capa

(1) Based on historical non-NI 43-101

ully integrated rare earth producer sustainable competitive advantage.

esalloy sales (LCM and GWTI)alloy sales (LCM and GWTI)ted profit margins for GWMG and security

que project with significant potential:REO] grades of 16.74%(1), total [REO]

hs of approximately 8%(1) of total REOgs) remains open along strike and at depthgs) remains open along strike and at depthgy:rth chloride plant at Steenkampskraal andrth chloride plant at Steenkampskraal, and lacity at LCM

331-compliant data. See Cautionary Note on Forward-Looking Statements.

Global Rare Earth DemGlobal Rare Earth DemKey elements of anticipated global demand for R

2010 D2010 Dema(Tonnes)

Permanent Magnets 26 000Permanent Magnets 26,000NiMH Batteries, Catalysts 22,000Phosphors 8,500Chinese Demand 70,000

By 2015 the most significant surpluses of REOsBy 2015, the most significant surpluses of REOsSupply exceeds demand by

Lanthanum 13%Cerium 26%Praseodymium 45%Samarium 144%Samarium 144%

By 2015, the most significant shortages of REOsDemand exceeds supply by

Europium 33%Terbium 42%Terbium 42%Dysprosium 48%Erbium 50%

mandmandRare Earth Oxides:

d 2015 D d Iand 2015 Demand Increase(Tonnes)

40 000 54%40,000 54%36,000 64%12,500 47%

120,000 71%

s will include:s will include: y:

s will include:y:

Sources: IMCOA

5

Gl b l R E th SGlobal Rare Earth SupKey locations of current REE Reserves a

ReserveReserveUnited States 13,000,Australia 1 600Australia 1,600,China 55,000,Global Total (Includes Others) 114 000Global Total (Includes Others) 114,000,

The history of the Chinese export quotaThe history of the Chinese export quotaQuota (Tonnes) % Chang

2005 65,6092005 65,6092006 61,821 - 6%2007 60,074 - 3%2007 60,074 3%2008 56,939 - 5%2009 50,145 -12%,2010 30,258 -40%2011 30,184 -0.2%,2012 Same as 2011 ------

Sources: IMCOA

lpplyand Production include (in tonnes):es Productiones Production000 0000 0000 0000 130,000000 134 000000 134,000

as is as follows:as is as follows:ge Over Prior Year

6

GWMG Corporate StruG

GWMG Corporate StruGre

WestMineMineGro

Lt

100% 100%Various %

RarecoNorth

American(Planned)MarketingRarecoAmerican

ExplorationMarketing

Co.

Hoidas LakeDouglas River

74%

Tax EffectiveDouglas RiverRed WineBenjamin River

SKK(Steenkampskraal)

Tax Effective Location

( p )

B E EB.E.E.(26%)

ucturet

uctureeat tern

eralserals oup td.

100%75% 100%

LCM GWTIGQD Joint LCM GWTIJoint

Venture

Birkenhead, Troy,Steenkampskraal Birkenhead, U.K

Troy, Michigan

SteenkampskraalRegion

7

GWMG M t TGWMG Management TGary BillingsleyC.A., P.Eng., P.Geo.EXECUTIVE CHAIRMAN

J

PEXECUTIVE CHAIRMAN P

Russell GrantB.Sc. Tech.SENIOR V.P., BUSINESS DEVELOPMENT

VBVDBUSINESS DEVELOPMENT D

Jim Davidson RB. Comm., C.A. V.P. FINANCE, CHIEF FINANCIAL OFFICER

RM.SV.P

OFFICER

Brent JellicoeB.Sc., P. Geo.DIRECTOR INT’L

DPDDIRECTOR,INT L

EXPLORATIONDA

TTeamJim Engdahl

PRESIDENT & CEO

David KennedyP.Eng., MIMMMCEO RARECOPRESIDENT & CEO CEO, RARECO

Mik DVern KissB.A., LL.B.V.P., CORPORATEDEVELOPMENT

Mike DerB.Comm., LL.B.CORPORATECOUNSELDEVELOPMENT COUNSEL

John Pearson M S P GRichard Hogan M.Sc., P.Geo.V.P., EXPLORATION

Richard Hogan Sc. Eng.P., OPERATIONS

Dr. Baodong ZhaoM.Eng., Ph.D. , P.Eng.

Dr. Ian Higgins h. D., MIMMM

DIRECTOR METALS MANAGER, METALLURGY

DIRECTOR, METALSAND ALLOYS

8

GWMG’ F ll IGWMG’s Fully IntegraGWMG’s fully integrated model adds a

Exploration • Drilling Results &

Mining • Ore

Mixed Chloride Production •

Solvent Extraction Separation

Metal Making

Alloy P

g

Alloy P

IndInd

• Industrial

d M d lated Modela sustainable competitive advantage

Mine Development Plan

Concentrate and Mixed Rare Earth Chloride

• Individual Rare Earth Oxides

• High Purity Rare Earth Metals

Production

g y

• Magnet alloys, super-alloys & Production

dustry Product Manufacturing

other end-user metal alloys

dustry Product Manufacturing

l, Consumer & Military End Products

9

GWMG M i t i i CGWMG: Maintaining C• Mining:

• GWMG owns 74% of the SKK mini• GWMG owns 74% of the SKK mini• GWMG owns 100% of the SKK min

Mi d Chl id P d ti• Mixed Chloride Production:• GWMG owns 100% of chloride pro

• Solvent Extraction Separation: • GWMG owns 75% of separation pl

production through GWMG market• Marketing company has chloride seMarketing company has chloride se

tolling basis, retaining 100% GWM• Metal Making:• Metal Making:

• GWMG owns 100% of metal makinGWMG d d idGWMG produced oxides

• Alloy Production:• GWMG owns 100% of LCM and G

manufacture alloys from GWMG owy

C t lControl

ing operationing operationne output

oduction plant

ant, 100% of oxide ting companyeparated on aeparated on a G control

ng that buys

WTI that wned metal

10

E l tiExploration Mining

GWMG Exploration Priorities:

Steenkampskraal:•Complete National Instrument 43 101 techn•Complete National Instrument 43-101 techn•Confirm historical data and expand size of r

Hoidas Lake:•Update previously completed NI 43-101.•Continue to work on metallurgy to evaluate gyproduction potential.

Douglas River, Benjamin River, Red Wine•Continue early stage exploration focused o•Continue early stage exploration, focused orare earth elements.F l ti ti iti t t•Focus on exploration activities to generate

for future supply to GWMG alloy processing

Mixed Chloride Solvent Alloy Production Extraction

SeparationProduction

nical reportnical report.resource.

e:on heavyon heavy

th f d t krare earth feedstock operations.

11

Mi iExploration MiningSteenkampskraal Background:

•Former operating thorium mine. •Excellent infrastructure with pavedExcellent infrastructure with paved

and gravel roads.In close proximity to rail and sea port•In close proximity to rail and sea-port.

•474 hectare property permitted to current mining requirements.

•One of the highest grade RE deposits: 16.7(based on historical non-NI 43-101-compliant data supplied b

GWMG management).

•Exploration potential.•Nuclear License allows thorium processing,

and handling.

Mixed Chloride Solvent AlloyMixed Chloride Production

SolventExtraction Separation

Alloy Production

74% REO by Rareco and reviewed by

, extraction, storage

12

Mi iExploration MiningSteenkampskraal Project Steps Complete

•June: Launched mine site refurbishment.•June: Hired Extraction, Processing Plant ma•July: Acquired 100% of Rareco.•July: Heads of Terms with GQD for Separa•July: Contracted Processing plant design tJuly: Contracted Processing plant design t•August: Hired Monazite expert.•August: Appointed Director of International•August: Appointed Director of International •August: Mine site refurbishment on scheduS t b S l t d ill t t f l•September: Select drill contractor for explor

•November: Appointed Kennedy as Rareco C•November: Appointed Kabaah as Mine Man•December: Executed planned exploration p•December: Refurbished mine shaft and faci


Separation

yProduction

ed in 2011:

anagers.

ation plant.team.team.

ExplorationExploration.le.

tiration.CEO.nager.rogram.glities.

13

Mi iExploration MiningSteenkampskraal Current Project Steps 2

January:•Completed and signed Solvent Extraction SVenture.•Finalized first phase of drill program designedata and expand resourcedata and expand resource.February:•Complete design work for Mixed Chloride P•Complete design work for Mixed Chloride P•Launched second phase of Steenkampskra

t i f i li d i textension of mineralized vein system.•Refurbishment of mine shaft continues in ad•Site preparation work continues in advanced•Separation plant design and environmental p p gscheduled pace.


Separation

yProduction

2012:

Separation plant Joint

ed to confirm historical

Production plantProduction plant.aal drill program to test

dvanced stages.d stages.work progressing at p g g

14

MiningExploration Mining

Steenkampskraal decline entrance February 2011

Decline refurbishment materials arrive at site September 2011Decline refurbishment materials arrive at site September 2011



Entrance to decline August 2011

Top 45 feet of decline concrete work complete September 2011

15


Drilling activity at Steenkampskraal October 2011

Rails readied for shaft refurbishment November 2011



Drill core from Steenkampskraal exploration October 2011

Mine shaft being refurbished December 2011g

16


Site prep adjacent to mineralized rock dump January 2012

Final rails for shaft refurbishment January 2012Final rails for shaft refurbishment January 2012



Fleet of equipment at Steenkampskraal January 2012

Mine shaft refurbishment nearing completion February 2012Mine shaft refurbishment nearing completion February 2012

17

Mixed ChExploration Mining Mixed ChProduc

Plans for Mixed Chloride Production Plan

ProducPlans for Mixed Chloride Production Plan

•To be located at Steenkampskraal mine siteD i k i th h DRA Mi•Design work in process through DRA Miner

•Design upgraded to allow capacity of 12,000per annum of rare earth chloride solution.•Beneficiation:

• Produces a mineral concentrate• Crushing milling and concentration teCrushing, milling, and concentration te• To use gravity, magnetic, and flotation

•Removal of thorium in the processing stage•Removal of thorium in the processing stage•Leaching:

T d li id hl id• To produce a liquid chloride.• Using mineral concentrate, produces

nitrate, or chloride (RECl3) of mixed ra

hloride Alloy hloride ction

SolventExtractionSeparation

Production

nt:

ctionnt:

e.lrals.

0 tonnes

echnologyechnologyn techniques.ee

a liquid sulphate, are earths.

18

Mixed Chloride Exploration Mining Production

Plans for Separation Plant:

•Heads of Terms signed with Ganzhou QiandGroup (GQD) July 25 2011Group (GQD) July 25, 2011•Final Agreement for separation plant signedJanuary 10 2012 with highly experienced GQJanuary 10, 2012 with highly experienced GQ•New joint venture company, Great Western Materials Co. Ltd. (GWGQD) has been creat

• 75% GWMG ownership• 25% GQD ownership• GWMG Board control positionp

•GWGQD to be responsible for the design, mconstruction commissioning and operation oconstruction, commissioning and operation oseparation facility.

To be located in proximity to Steenkam• To be located in proximity to Steenkam• Plans call for capacity expansion from

5,000 t.p.a. once operational.

Solvent Alloy SolventExtraction

Production

Extraction Separation

dong Rare Earth

d and announced QDQDGQD Rare Earth

ted:

manufacture, ofof

mpskraal mine sitempskraal mine site.m 2,700 t.p.a. to

19


Highlights of Less Common Metals:

• Trading globally: European Union 60%, Jg g y p ,Taiwan 30%, United States 10%

• Focused on permanent magnet industryFocused on permanent magnet industry• Significant supplier of NdFeB alloys• Supplies 20% of world’s Samarium Coba• Supplies 20% of world s Samarium Coba• 20 years of high quality production

O• Operates both co-reduction and specializtechniques for producing rare earth alloys

• Expanding existing facility and Installing nfor production of rare earth metalsp

Alloy ProductionSeparation Alloy Production

Japan, China, p , ,

alt Alloyalt Alloy

zed casting snew processes

20


LCM Expansion:

• 400% capacity expansion driven by full scustomers from Europe and Japan seeki

• New state of the art facility leased in samyplant.

• First special casting furnace now installeFirst special casting furnace now installecommissioned.Second furnace order in process• Second furnace order in process

• First phase of metal-making to be located• Objective is to process all GWMG output

Pr, Sm and Dy at LCM or GWTI• The fully integrated model, demonstrate

capacity and secure supply chain will furp y pp ystrong customer relationships.


support of major ing NdFeB alloy.

me locale as existing g

ed and beinged and being

d at LCMt of Nd,

ed increase in alloyrther solidify alreadyy y

21


GWTI Highlights:

• Located in Troy, Michigan, USAy g• Strategic asset for revitalization of the Ra

the United Statesthe United States• Has undertaken work related to U.S. stra

the rare earth sectorthe rare earth sector• Versatile production capacity including:

P t t ll• Permanent magnet alloys• NiMH alloy for rechargeable batteries• “Super Alloy” production for aerospace m• Hydriding capability for solid-state hydrogy g p y y g

both rare earth and transition metal types


are Earth industry in

ategic initiatives in

materialsgen-storage alloys, g g ys

22

P j t d O t t SProjected Outputs – S* Hypothetical model based on standard Monazite REO di

REO REO Production*(Tonnes)

Lanthanum 1,084.0Cerium 2 334 0Cerium 2,334.0Praseodymium 250.0Neodymium 834 0Neodymium 834.0Samarium 125.0D i 34 0Dysprosium 34.0Yttrium 250.0TOTAL OF ALL 15 ELEMENTS

(T )5,015.9

(Tonnes)

l t d El telected Elementsstribution, assumes approximately 5,000 t.p.a. available

To Off-TakesTo LCM(Tonnes)

To Off-Takes, Market

(Tonnes)( )77.0 1007.02 0 2332 02.0 2332.0

166.0 84.0834 0 0 0834.0 0.074.0 51.034 0 0 034.0 0.00.1 249.9

1,185.4 3830.5

23

GWMG Mil tGWMG MilestonesGWMG focuses on major milestones:

• Early 2012: Complete refurbishment of mine shaft and ancillary surface facilitiesmine shaft and ancillary surface facilities

• Early 2012: Operate at expanded furnacecapacity at LCMcapacity at LCM

• 1st Half 2012: Complete NI 43-101 at Steenkampskraal

• 2nd Half 2012: Launch mining operations Steenkampskraal

• December 2012: Complete Mixed ChloridpProduction Plant

• Early 2013: Complete Separation Plant• Early 2013: Complete Separation Plant• 1st Half 2013: Begin production with minin

chloride production and separationchloride production and separation.

e

at

de

ng, mixed

24

GWMG O iGWMG Overview

Shares Outstanding / Fully DilutedShares Outstanding / Fully Diluted (as at February 22, 2012)

Share Price (as at March 09, 2012)Share Price (as at March 09, 2012)

52 week High / Low (March 09, 2012)

Market Cap (as at March 09, 2012)

Cash on hand (as at September 30, 2011)

I id H ldi / F ll Dil t d ( t )Insider Holdings / Fully Diluted (est.)

Institutional Holdings (est.)Institutional Holdings (est.)

413 2 / 508 0413.2 mm / 508.0 mm

$0.57$0.57

$0.98 / $0.39

$217.4 Million

$5.3 Million

1 9% / 12 0%1.9% / 12.0%

36%36%

25

Economy & Finance

Integrated approach & South Africa opportunity