GWR GROUP LIMITED — M&A Activity 2007

Dec 11, 2007

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11 December 2007

ASX ANNOUNCEMENT

Corporate Summary ASX Code: GWR Issued Capital: 77.5 Mil Issued Options: 37.6 Mil Market Cap fully diluted Dec 07 $A247.6 Mil Contact Details 6/136 Main Street OSBORNE PARK Western Australia 6017 Tel: +61 8 92019202 Fax: +61 8 92019203 admin@goldenwestresources.com www.goldenwestresources.com Enquiries: Gary Hutchinson Managing Director Mick Wilson Exploration Manager / Director Peter Thompson Director General Manager, Operations		REJECT REVISED FAIRSTAR OFFER ================================= Golden West Resources Limited notes that Fairstar Resources Limited has revised its unsolicited all-scrip takeover offer to seven (7) Fairstar shares for each share in Golden West. The revised offer containsNOcash component and continues to offer only FAS shares in return for Golden West shares. The Revised offer fails to address any of Golden West’s initial concerns. We repeat that shareholders shouldREJECTthe offer from Fairstar Resources. In the opinion of the Independent Directors, the revised offer from Fairstar fails in the following areas: �NO cash component; �the offer may trigger capital gains tax; �the offer will excessively dilute Golden West shareholders’ interest in the Wiluna West Iron Ore Project; and �Fairstar still does not offer any substantial assets, cost synergies or increased capability to develop the Project. Golden West’s exploration and development program at Wiluna West is now fully funded for the next 12-18 months following its $26.78 million placement.

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Golden West warns that as the offer has now been declared unconditional, shareholders who accept will also lose their right to participate in the rights issue. The rights issue will entitle shareholders to purchase one new Golden West share at the discounted price of $1.85 per share for every 15 shares they currently hold.

Shareholders who accept the offer will also lose any right to withdraw their acceptances in future.

To REJECT the Fairstar offer, shareholders need to TAKE NO ACTION and IGNORE all correspondence you may receive from Fairstar Resources.

ENDS

For more information, please contact:

Michael Minosora Azure Capital (08) 6263 0888	Paul Downie Porter Novelli (08) 9386 1233 0414 947 129