News Releases

Search Minerals and Great Western Minerals Group Commence Drilling on Red Wine Ree Property, Labrador

September 8th, 2010

VANCOUVER, BRITISH COLUMBIA—(Sept. 8, 2010) - Search Minerals Inc. (“SMY” or the “Company”) (TSX VENTURE:SMY) and Great Western Minerals Group Ltd. (“GWMG”) (TSX VENTURE:GWG)(OTCQX:GWMGF) of Saskatchewan, have commenced a 2000m drilling program on its Red Wine property, located approximately 110km north-east of Churchill Falls, Labrador. Eudialyte-bearing REE mineralization has been located in 6 main showings to date - two of these, Pinot Rosé and Cabernet, will be evaluated in the current drilling program.

Highlights: (See Table 1 for details)

  • Six eudialyte-bearing REE showings outlined on the Red Wine Property;
  • Showings range from 200m to 1300m long and 5 to 60m thick;
  • Eudialyte (REE, Y, Zr) varies from 1 - 50% in showings; mostly 3 - 15%;
  • 17 channels, totaling 118.2m, produced 245 channel assay samples from the Pinot Rosé and Cabernet Showings;
  • 2000m NQ drilling program to evaluate the Pinot Rosé and Cabernet Showings at depth, and;
  • GWMG increases funding level of program from $ 750,000 to $1,000,000 to accommodate extra drilling.

TABLE 1 – RED WINE REE SHOWINGS (EUDIALYTE MINERALIZATION)

SHOWING LENGTH THICKNESS # PITS CHANNEL DATA   COMMENTS
        NUMBER LENGTH # SAMPLES    
Pinot Rosé 750m (min.) 15 - 20m 4 9 73.4m 141   May extend to 1350m: drill program
Cabernet 1300m 40 - 60m 3 8 44.8m 104   open along strike; drill program
Malbec 550m 20 - 30m 4 0 0.0 0   open along strike
Zinfandel 300m 12 - 15m 0 0 0.0 0   open along strike
Shiraz 400m 30 - 50m 0 0 0.0 0   open along strike
Merlot 200m 3m (min.) 0 0 0.0 0   open along strike

The six REE (eudialyte-bearing) showings, outlined to date, occur in banded sequences of peralkaline leuco-syenite, mela-syenite, pyroxenite and amphibole-pyroxenite. All units contain either arfvedsonite amphibole (Na-bearing amphibole) and/or aegirine pyroxene (Na-bearing pyroxene), eudialyte (<1 - 50%; mostly 3 - 15%; Na-Ca-Zr-REE silicate) and variable amounts of nepheline (0 - 30%; Na-K-Al silicate); this assemblage indicates that these rocks are silica undersaturated and peralkaline in nature. These banded sequences are metamorphosed and folded and some or all of the showings may occur in the same, very long, folded unit. The banding defines a consistent stratigraphy, with measurable true thicknesses, within each showing.

Springdale Forest Resources Inc. (Diamond Drilling Division) has been contracted to carry out the 2000m diamond drilling program targeting both the Pinot Rosé and Cabernet showings. Holes will be spotted to trace and sample mapped and channel-sampled eudialyte-bearing REE zones.

The Pinot Rosé and Cabernet showings are the focus of an on-going detailed mapping and channel sampling program. Currently, 17 channels, totaling 118.2m, have been completed on these showings, with a total of 245 assay samples collected and shipped for assay. The Company is awaiting the results of the assay samples. Channel sampling and detailed mapping programs are planned for the other four known showings. Property wide mapping and prospecting is continuing in the search for additional REE showings and to extend the known showings.

Channel samples, 10cm deep and 8cm wide, are cut by gas-powered diamond saw from cleaned outcrops to provide samples for assay and logging/reference. Each channel is cut into two vertical sections, similar to drill core, with a 6 cm thick section (weathering removed) being sent out for assay to Activation Laboratories Ltd. (see SMY News Release July 27, 2010 for details of analytical methods). A 2 cm thick section is stored in channel boxes for reference and to provide due diligence/verification samples. The channels are cut perpendicular to strike, pieced together, logged and photographed to produce geological and geochemical sections. These channel samples, or horizontal drill holes, produce the same data as vertical diamond drill holes, except the data is from horizontal geological sections and the collected sample is 6 to 8 times bigger than NQ drill core. Additional 8 cm wide cuts from a channel interval make excellent preliminary metallurgical samples (1m of channel yields about 30kg of sample).

Jim Engdahl, President and CEO of Great Western Minerals Group said, “The Red Wine drill program, as one of seven North American exploration projects in which our company is involved, is one of the longer term components of our strategy to become a fully integrated Rare Earths processor. Currently, GWMG owns Rare Earths processing capacity through its plants in Troy, Michigan and Birkenhead, U.K. As well, our Company holds an Off-Take Agreement for 100% of the Rare Earth Elements produced at the former producing Steenkampskraal mine in South Africa and, as of September 7, 2010, also holds 20.8% ownership in Rare Earth Extraction Co. Limited, the owner of the Steenkampskraal mine.”

Jim Clucas, President and CEO of Search Minerals said, “We are very pleased to have launched our 2010 Red Wine Complex drill program. Prospecting, mapping and channel sampling carried out over the summer have significantly increased the size potential of this project. As a result, GWMG, our earn-in partner, has raised the funding level of the program to $1 million to accommodate extra drilling.”

Search Minerals Inc. is the operator of the Red Wine Property and Dr. Randy Miller, Ph.D, P.Geo, Vice President Exploration, is the Qualified Person responsible for the technical content of this press release.

About Search Minerals Inc.

Search Minerals Inc (TSX VENTURE:SMY) has a strong and dedicated management team with outstanding capabilities in separate but related mining activities, any of which has the potential to generate significant shareholder value. Search’s mineral exploration team is led by Vice President Exploration Dr. Randy Miller. Dr. Miller is responsible for directing the current exploration programs on Search’s large land position in Labrador. Search also has a technology arm headed up by Dr. David Dreisinger, Chair of Hydrometallurgy at the University of British Columbia in Vancouver, Canada, and a consultant to several major international mining companies. Search’s business strategy is to fund ideas or concepts in the mineral exploration or metallurgical fields that have low initial costs.

About Great West Minerals Group

Great Western Minerals Group Ltd. is an integrated Rare Earths processor. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company’s wholly-owned subsidiaries Less Common Metals Limited in Birkenhead, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain aluminium, nickel, cobalt and Rare Earth Elements. As part of the Company’s vertical integration strategy, GWMG has signed an Off-take Agreement for 100% of the Rare Earth Elements produced at the former producing Steenkampskraal mine in South Africa and holds 20.8% ownership in Rare Earth Extraction Co. Limited, the owner of the Steenkampskraal mine. GWMG also holds interests in seven Rare Earth exploration and development properties in North America.

Cautionary Statement:

This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward- looking statements. Factors that could cause actual results to differ materially from these forward- looking statements include those risks set out in Search’s public documents filed on SEDAR at www.sedar.com. Although Search believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by law, Search disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility of the adequacy or accuracy of this release.

Contact Information

Search Minerals Inc.
Jim Clucas
President and CEO
604-688-6180
604-682-7317 (FAX)
jimclucas@searchminerals.ca
www.searchminerals.ca

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