GWR GROUP LIMITED — Management Reports 2008

Apr 15, 2008

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16 April 2008

ASX ANNOUNCEMENT

Corporate SummaryASX Code:GWRIssued Capital:110.1 MilIssued Options:23 MilMarket Cap fully dilutedApr-08$A193.2MilContact Details6/136 Main StreetOSBORNE PARKWestern Australia 6017Tel:+61 8 92019202Fax:+61 8 92019203admin@goldenwestresources.comwww.goldenwestresources.comEnquiries:Con MarkopoulosChairmanMarlene KellyExploration Manager		CHAIRMAN’S LETTER==============================================Dear ShareholderCompany UpdateIt has only been a short time since I last wrote to you but I feel it isvery important to keep you fully informed of our progress at theWiluna West Iron Ore Project and the Company’s plans, given thatwe have been through, and are hopefully exiting, a rather tumultuousperiod in the Company’s history.Wiluna West ProjectWhen I last wrote to you, I indicated that the Company was fullycommitted to progressing the Wiluna West Project as fast as possiblein 2008.That remains our absolute focus.We have in front of us an exciting drilling program and also expect tocommence pre-feasibility studies for the Wiluna West Project onceresource definition has progressed to the point at which such studiescan be properly structured so as to make best use of the Company’sfunds.Since I last wrote to you, we have commenced the first phase of our2008 drilling program and we now have two reverse circulation rigsand one diamond drill rig operating on site.

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These rigs are currently progressing a program of drilling on the identified deposits at, C3 and C4, Joyners Find and Bowerbird, in addition to investigating two new targets identified through previous drilling and rockchip sampling, designated South-2 and South-3. Drilling on this program will be primarily targeted towards increasing the defined resource at Wiluna West through infill and extensional drilling of identified deposits and initial tests of the two newly identified deposits. Drilling has continued to intersect zones of ore mineralisation outside of the existing resource model, assays are expected to be received within the next 6 weeks. Drilling operations are proceeding smoothly, albeit somewhat slowly due to delays associated with gaining Program of Works (POW) approvals from the Department of Industry and Resources (DOIR). We have currently completed approximately 10,600 m of drilling in this campaign and we expect this first phase of the 2008 program will be completed in May.

The results from this program will be integrated with past drilling and assay results and existing geological data to produce an upgraded resource estimate. We anticipate that this new resource estimate will be complete in June.

Applications for further POW covering up to 29,440 m have been submitted with the Department of Industry and Resources and we eagerly await their approval to ensure that we can progress to Phase 2 of the 2008 drilling program seamlessly.

The inferred resource at Wiluna West currently stands at 86.3 Million tonnes of hematite grading 60.1% Fe. Our 2008 program continues to extend our coverage of the ore body, as well as provide greater definition around existing deposits. We remain confident that 2008 will see a significant increase in this figure.

In 2006 the company made an unsuccessful offer to purchase 2 mining tenements positioned within the company’s Wiluna West tenements. We are pleased to announce that the company has again entered into negotiations to purchase these tenements which the Board believes are central to the successful mining of a strategic area of high grade ore.

Board and Management

The Company is focusing significantly on building its management capabilities and strengthening its operating processes. Integral to this is the search for a replacement Managing Director and we have a number of quality candidates proposed for this role. We believe that the Company’s exciting prospects and strong funding position will prove to be significant strengths in attracting suitably qualified and recognised iron ore executives.

The Board is committed to ensuring the Company’s operations are carried out in a professional and efficient manner in order to make the best use of the Company’s funds and ensure optimum progress towards our goal of bringing the Wiluna West Project into development.

These initiatives include establishing a detailed internal budgeting process to optimise the use of Company funds, implementing best practice corporate governance procedures, improving internal reporting and responsibility guidelines, and redefining the Company’s relationships with external advisers to reduce costs and maximise the benefits for shareholders.

Corporate

Portman Mining Limited (PMM) has recently become a substantial shareholder of the Company through the purchase of shares on market. PMM’s most recent substantial shareholder notice discloses an interest of

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approximately 13.8% in the Company.

We have recently met with the management of PMM. The meeting was professional, friendly and amicable. PMM is the third largest exporter of iron ore in Australia and we view their investment in our company as a substantial vote of confidence in the prospects of the Wiluna West Project.

The Company continues to attract interest from outside parties wanting to know more about the Company and the Wiluna West Project, emphasising the growing potential strategic value of the Company as a future supplier of high grade iron ore.

The Board is extremely concerned by the sharp deterioration in market sentiment over the past few weeks and believes that this is unlikely to significantly improve in the foreseeable future. Consequently the company is actively pursuing opportunities to lock in significant funding including a placement of shares at a premium to the current market price.

Fairstar Resources Limited has extended its takeover bid to 11 May 2008. Fairstar has also announced that 10 million of its shares in the Company were pledged to ANZ Nominees as security for funding from Opes Prime. It would appear from the Company’s share register that these shares have now been transferred by ANZ Nominees.

It remains an extremely exciting time in the history of your Company. The prospects for iron ore development remain robust and I firmly believe we are implementing a sound platform from which the Company can grow rapidly. I would welcome the opportunity to discuss with you any queries you may have in relation to the Company and invite you to contact me by telephone or in writing at the Company’s offices.

Competent Person’s Statement

The information in this report that relates to exploration results and mineral resources is based on, and accurately reflects, the information compiled by Ms Marlene Kelly, Exploration Manager for Golden West Resources Limited, who is a member of the Australian Institute of Geoscientists. Ms Kelly has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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”: Ms Kelly consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Yours sincerely,

Con Markopoulos

For more information, please contact:

Michael MinosoraAzure Capital(08) 6263 0888	Paul DowniePorter Novelli(08) 9386 12330414 947 129

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