Precious Metals Production Project

GREAT WESTERN MINING CORPORATION PLC

("Great Western", "GWM" or the "Company")

PRECIOUS METALS PRODUCTION PROJECT

Great Western Mining Corporation PLC is pleased to announce the formation of Western Milling LLC ("Western Milling"), a limited liability company owned in equal shares by Great Western Mining Corporation, a 100%-owned subsidiary of Great Western incorporated in the US state of Nevada ("GWMC") and Muletown Enterprizes LLC, an affiliate of Tipton Trucking Company of Mina, Nevada ("Muletown").

HIGHLIGHTS

·    Western Milling LLC created for recovery of precious metals from pre-mined materials

·    50-50 joint venture agreement signed with Muletown Enterprizes LLC

·    First stage gravity separation project prioritised for early revenues

Great Western Chairman Brian Hall commented:  "I am very pleased to share some of the details of our processing project which we have been working hard to deliver for some time.  The immediate priority is to secure approval to operate the plant for gravity processing which will enable us to generate revenues and the agreement we have signed today gives us an experienced local partner who will be critical to the venture's success.  We have worked closely with the owners of Muletown for over ten years, most recently on the construction of a 14 km access road to Mineral Jackpot earlier this year.  Adding a production facility to our considerable exploration potential, for both precious metals and copper, allows us to move forward with confidence."

PROJECT SUMMARY

Western Milling will produce precious metals from tailings, spoil heaps, stockpiles of pre-mined material and shallow ore. At a second stage, Western Milling will acquire material for processing from third parties, as no similar facility exists at present in the area.

The Mill will be constructed on approximately 20 acres (8.1 hectares) of private land to the south of Mina, Nevada, leased by Western Milling from Muletown at a nominal rent. This location is readily accessible to vehicles, beside a major highway and roughly equidistant from Great Western's claims at Mineral Jackpot and the Olympic Gold Project.  It will be on the site of an existing but abandoned mill, with a lay down area for raw material adjacent to the highway and a gentle slope descending vertically 15 metres on which the mill will be constructed, allowing gravity to facilitate processing.  Double-lined holding and tailings ponds will be constructed at the foot of this slope and light construction industrial buildings erected for processing the material.

Permitting and processing will be in three phases: (1) a simple gravity separation plant for early results (2) a flotation process and (3) a vat-contained leaching process for ultimate recoveries.  Engineering design is virtually complete and being worked on by an independent reporting engineer who will certify the plans in support of the permit applications to the state authorities.  Because the mill is to be on private land, the primary permitting authority will be the Nevada Department of Environmental Protection rather than a federal agency.  It is anticipated that approvals for gravity processing and flotation will be received earlier than permission for the proposed vat-leaching process, which will be subject to closer environmental scrutiny.

Under the terms of the agreement, Muletown will provide not only the land for the mill but also virtually all the equipment required for processing mined material.  GWMC will finance upgrading the milling equipment to operational status, purchasing any additional equipment required and the third-party costs of constructing the mill, ponds, portable buildings and necessary infrastructure.  A capital expenditure budget of up to $600,000 will be phased over the three stages of construction and implemented following receipt of permits for each of the stages.  Timing of receipt of permits is beyond the Company's control but it is unlikely that major expenditure will be incurred during the remainder of this year.

The mill will process both Great Western's material and material from claims owned by Muletown.  Processing will be in separate batches, charged to the owner of the material by the joint venture at rates to be agreed, with the precious metals produced from each batch belonging to the original owners of the material and not to Western Milling.  Western Milling also aims to process material acquired from third parties, anticipating that there will be strong demand for the mill in the area, where no comparable facility exists at present.

For further information:

Notes to Editors

The Company has a large tract of acreage in Mineral County, Nevada. The area consists of rugged, mountainous terrain, which means that large parts of it remain under-explored. Mineral potential is hosted by the regional Walker Lane Structural Belt, the largest structural and metallogenic belt in Nevada, yet one of the least explored in recent times, with gold, silver and copper currently produced in Mineral County.  Great Western has seven distinct concession areas which offer the potential for exploiting (1) short term gold and silver deposits and (2) long-term, world-class copper deposits. 

Six of the Company's properties are in the west of Mineral County and are 100% owned and operated.  The Company has an option to acquire a seventh property, the Olympic Gold Project, in the east of the county.  Great Western's small exploration team is supported by locally based consultants and contractors. 

The state of Nevada is generally considered to be one of the world's most mining friendly jurisdictions.  While tightly regulated and environmentally conscious, Nevada welcomes the mining industry.  Great Western takes care to ensure that its claims are maintained in good standing and all regulations observed. 

There are numerous gold and silver prospects on the Company's acreage, including extensive historic mine workings which offer the opportunity for secondary recovery. The Company is party to a 50-50 joint venture known as Western Milling LLC which is constructing a mill to process pre-mined material for secondary recovery of gold and silver.

Through extensive drilling over a five-year period, GWM has established a Mineral Resource on its first target area known as M2, of 4.3 million tonnes at 0.45% copper, for 19,000 tonnes of contained copper metal. This resource has been independently reported in accordance with JORC guidelines.