GWR GROUP LIMITED — Capital/Financing Update 2012

Jan 29, 2012

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ASX ANNOUNCEMENT/MEDIA RELEASE

Wiluna West Gold Drilling Results

In November 2011 Golden West Resources (“GWR”) (“the Company”) drilled a total of 29 RC holes for an aggregate of 1288m at the Bottom Camp, Golden Monarch and Iron King prospects. The drilling was undertaken to test for near surface continuity of mineralisation, confirm the reliability of previous drilling results, obtain density data and collect metallurgical samples. Table 1 summarises the significant intercepts achieved by this drilling.

The Wiluna Gold Project contains a total Resource Estimate of 3,478,000 tonnes @ 2.3g/t for a contained 258,000 oz at a 1g/t cut off (Indicated Resource 46,000 tonnes @ 3.53g/t and Inferred Resource 3,432,000 tonnes @ 2.29g/t).

The Company intends to commence gold production by custom milling ore at a nearby processing facility and negotiations are well under way. Recent work highlighted the Golden Monarch, Iron King and Bottom Camp prospects as the most attractive start up pits.

The Company now plans to incorporate the recent RC drilling results and undertake the following;

• Resource modelling

• Pit design & optimisation studies

• Metallurgical testwork

For and on behalf of the Board

Craig Ferrier Executive General Manager 30 January 2012

• ENDS -

Please direct enquiries to:

Golden West Resources

Richard Taylor Riley Mathewson Public Relations Tel: +61 (0)8 9381 2144 Mob: +61 (0)451 471 006

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Table 1

Significant Drill Hole Intercepts

HOLE#	PROSPECT	**Type **	NORTH	EAST	AZI	DIP	FROM	TO	INTERVAL	AU(g/t)
WGRC0001	Iron King	Infill	7032455	793390	90	-60	5	6	1	1.05
WGRC0002A	Iron King	Twin	7032455	793363	90	-60	33	34	1	2.11
							37	38	1	68.3
WGRC0003	Iron King	Infill	7032298	793381	90	-60	27	30	3	1.59
WGRC0004	Iron King	Infill	7032220	793396	90	-60	4	6	2	1.72
WGRC0005	Iron King	Twin	7032220	793391	90	-60	12	13	1	1.11
WGRC0006	Iron King	Twin	7032143	793372	90	-60	26	29	3	1.43
							33	36	3	2.9
WGRC0007	Iron King	Infill	7032160	793388	90	-60	27	28	1	2.7
WGRC0010	Iron King	Infill	7032100	793408	270	-60	29	38	9	5.06
WGRC0012	Bottom Camp	Infill	7042392 795212 90 -60 INCLUDING				13	18	5	6.5
							17	18	1	26.3
WGRC0015	Golden Monarch	Infill	7033564 793468 90 -60 INCLUDING				31	34	3	9.5
							32	33	1	22.6
WGRC0016	Golden Monarch	Infill	7033543	793465	90	-60	26	27	1	1.46
							30	31	1	1.24
WGRC0020	Golden Monarch	Infill	7033402	793458	90	-60	2	3	1	1.49
							5	6	1	1.22
WGRC0022	Iron King	Infill	7032121	793412	270	-60	25	26	1	2.71
							33	34	1	4.85
							40	49	9	3.85
WGRC0023	Iron King	Infill	7032123	793359	90	-60	51	52	1	1.39
							56	58	2	2.47
							66	68	2	1.25
WGRC0024	Golden Monarch	Pit	7033591	793490	0	-90	1	11	10	1.41
							18	27	9	2.08
WGRC0025	Golden Monarch	Pit	7033577	793485	0	-90	18	19	1	1.61
WGRC0026	Golden Monarch	Pit	7033532 793479 0 -90 INCLUDING				4	19	15	5.96
							9	10	1	49.4
WGRC0027	Golden Monarch	Pit	7033542	793481	0	-90	2	3	1	1.92
			INCLUDING				5	13	8	5.19
							11	12	1	18.4
							16	23	7	2.81
							33	34	1	1.54
WGRC0028	Golden Monarch	Pit	7033552	793483	0	-90	4	12	8	2.95
							14	15	1	1.67
							19	27	8	2.95
							22	23	1	16

Notes:

• 1) Intercepts based upon 1g/t cut off with maximum of 2m of internal dilution

• 2) The metre intervals in the table are down hole lengths and are not true widths. This is especially so for the holes drilled with an azimuth of 270[0] or dip of 90[0]

		Table 2	Table 2	Table 2
		Wiluna West Project
	Summary of	Gold Resources Reported above a 1.0g/t Au cut off
Prospect	Category	Shear	Tonnes	**Aug/t **	Ounces
Bottom Camp	Inferred	BSZ	329,000	2.00	21,100
Bower Bird	Inferred	JSZ	169,000	3.12	17,000
Brilliant	Inferred	BSZ	342,000	2.53	27,900
Bronzewing	Inferred	JSZ	104,000	2.40	8,000
ComedyKing	Inferred	JSZ	183,000	1.84	10,800
Eagle	Inferred	JSZ	489,000	2.40	37,800
Emu	Inferred	JSZ	371,000	2.41	28,700
Gold Finch	Inferred	JSZ	80,000	1.39	3,600
Golden Monarch	Indicated	JSZ	46,000	3.54	5,200
Golden Monarch	Inferred	JSZ	685,000	2.31	50,900
Iron Hawk	Inferred	JSZ	138,000	1.53	6,800
Iron King	Inferred	JSZ	481,000	2.30	35,600
Wren	Inferred	JSZ	61,000	2.48	4,800
Total			3,478,000	2.31	258,200

Competent Person’s Statement

The information in this report which relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Brian Varndell, who is a Fellow of the Australasian Institute of Mining & Metallurgy (“AusIMM”) and independent consultant to the Company. Mr Varndell is a consultant of Al Maynard & Associates Pty Ltd and has 40 years of experience in exploration and mining in a variety of mineral deposit styles. Mr Varndell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Varndell consents to inclusion in the report of the matters based on his information in the form and context in which it appears.

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