GWR GROUP LIMITED — M&A Activity 2007

Nov 14, 2007

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15 November 2007

ASX ANNOUNCEMENT

Corporate SummaryASX Code:GWRIssued Capital:73 MilIssued Options:42 MilMarket Cap fully dilutedNov 07$A293 MilContact Details6/136 Main StreetOSBORNE PARKWestern Australia 6017Tel:+61 8 92019202Fax:+61 8 92019203admin@goldenwestresources.comwww.goldenwestresources.comEnquiries:Gary HutchinsonManaging DirectorMick WilsonExploration Manager / DirectorPeter ThompsonDirector General Manager, Operations		GOLDEN WEST REITERATES SHAREHOLDERSREJECTFAIRSTAR’S OFFERDear Shareholder,Golden West Resources Limited (Golden West) notes thatFairstar Resources Limited has lodged a SupplementaryBidder’s Statement for an all scrip takeover offer of YourCompany.After careful consideration of the Supplementary BiddersStatement, the Directors of Golden West repeat their adviceto shareholders from yesterday toREJECTthe offer.Golden West has received significant support from itsshareholders with written assurances from shareholdersrepresenting 22.6% of the Company’s shares endorsing thedecision toREJECTthe offer.As a consequence, scrip-for-scrip capital gains tax rolloverrelief will not be available to Golden West shareholders whoaccept the offer, because it cannot attain the minimum 80%acceptances required for such relief to apply.Many Golden West shareholders are therefore likely to facesignificant tax liabilities should they accept the offer fromFAS.Golden West is convinced the offer is inadequate andprovides no upside benefit to progress the development ofthe Wiluna West iron ore project.As Golden West has previously stated the offer from Fairstaris of uncertain value as there is no cash component andFairstar stock is highly volatile and illiquid. It will significantlydilute existing shareholders’ ownership of the Wiluna WestIron Ore Project and does not bring any synergies betweenthe companies’ assets or improve the Company’s assetbase.

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By accepting the offer, Golden West Shareholders would significantly dilute their exposure to Wiluna West, with former Golden West Shareholders owning only approximately 70% of the Project in exchange for Fairstar shares if the offer was to succeed.

Fairstar’s projects are all early stage exploration projects with significant risk and unproven potential.

While Golden West owns some similar early stage projects, the Company also owns the more advanced Wiluna West Iron Ore Project, which has a JORC compliant Inferred Mineral Resource of 86.3 Mt at 60.1% Fe and is moving towards the early stages of development.

Ends

Messrs Michael Wilson and Alan Rudd, Directors of Golden West Resources, have notified the Company of a material personal interest with respect to the takeover bid by Fairstar for Golden West and have not, and do not, participate in decisions by the Board with respect to the Fairstar bid, including this announcement.

For more information, please contact:

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

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