GWR GROUP LIMITED — Management Reports 2009

Dec 8, 2009

9 December 2009

About the Company

Golden West Resources is an emerging Iron ore producer in the Midwest region of Western Australia.

To date the company has a combined Hematite Resource Estimate of 141Mt @ 59% Fe making it the second largest DSO resource in the Midwest Iron Ore province.

Golden West Resources also has gold and uranium projects in its portfolio.

Corporate Summary

ASX: GWR Issued Capital: 143 Mil Issued Options: 28 Mil

Board and Officers

David Sanders Non-Executive Chairman John Lester

Managing Director Mick Wilson Executive Director

Wang Jun Non-Executive Director

Anthony Begovich CFO/Company Secretary

Enquiries

John Lester Managing Director

Tel: +61 (0)8 9201 9202 Email: admin@goldenwestresources.com

Richard Taylor Riley Mathewson Public Relations

Tel: +61 (0)8 9381 2144 Mob: +61 (0)451 471 006

Gold production at Wiluna West

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Highlights

• Golden West Resources Limited (GWR) is investigating the viability of short term gold production at the Wiluna West Project in calendar year 2010 based on previously delineated resources.
• Nine gold deposits have been delineated at the Wiluna West Project with a global Mineral Resource estimate of 788,000 tonnes @ 3.5g/t Au (87,000 oz) in Indicated and Measured categories (see Table 1).
• The previously defined gold deposits are all situated within granted Mining Leases and represent low exploration risk.
• GWR has commenced a series of evaluation programs designed to confirm and extend known mineralisation. The programs include resource modelling, conceptual mining studies and drilling programs. This work will be focussed on deposits that occur near surface with average grades exceeding 3g/t Au, with the view to optimising one or several open-pits to initiate gold mining operations.
• The Wiluna West Project is located within economic trucking distance of three potential toll milling facilities.
• Selected significant Au intercepts from some of the deposits currently being evaluated are summarised in Table 2 and include:
• JRC121 6m @ 48.1g/t Au, from 6m including 1m at 258g/t Au
• JRC188 4m @ 8.5g/t Au, from 10m including 1m @ 26.6g/t Au
• WWRC020 14m @ 8.9g/t Au from 26m including 1m @ 69.1g/t Au

Short term production

GWR announced in July 2009 its strategic intention to seek shareholder approval for the demerger of the noniron ore assets. To ensure that shareholder value is maximised during this process, GWR is looking at a range of alternatives in relation to the gold resources, including moving toward production. .

The Wiluna West gold deposits are within granted Mining Leases and within economic trucking distance of three potential toll milling facilities.

Gold resource - background

In December 2004, GWR listed on the ASX as a gold explorer. However, in mid 2005 the excellent potential of the Wiluna West hematite deposits was recognised and since then exploration has focussed on the development of these iron assets.

As previously announced, the project area possesses a global gold Mineral Resource estimate of 788,000 tonnes @ 3.5g/t Au for a contained 87,000 ounces (Table 1). There is a significant opportunity to increase this as many of the targets identified in the GWR 2004 Prospectus remain untested. The Wiluna West project area contains two regional scale structures, the Joyners Shear Zone and Brilliant Shear Zone, both of which host gold mineralisation. Three types of gold deposits have been identified within these shear zones; namely quartz reef, quartz stockwork and BIF.

Previous geochemical soil sampling shows that an extensive gold in soil anomaly of 10km length and 500m width is semi coincident with the Joyners Shear Zone. The size of the anomaly supports the possibility that a number of additional mineralised structures are present.

Prospect	Resource type	Style	Tonnage	Au Grade (g/t)	Au Ounces
Iron Monarch	Indicated	BIF	140,000	3.0	13,500
Iron Duke	Indicated	BIF	143,000	2.6	12,000
Hawk	Indicated	BIF	42,000	2.5	3,400
Iron King	Indicated	BIF	163,000	3.3	17,300
Eagle East	Indicated	BIF	102,000	3.7	12,000
Goldfinch	Indicated	BIF	72,000	3.0	6,900
Bronzewing	Indicated	Qtz	30,000	5.5	5,300
Bottom Camp	Measured	Qtz	21,000	7.6	5,100
	Indicated	Qtz	16,000	5.5	2,800
Brilliant North	Indicated	Qtz	59,000	4.6	8,700
TOTAL			788,000	3.5	87,000

Table 1 SUMMARY OF GOLD RESOURCES - WILUNA WEST PROJECT

Table 2 SELECTED PREVIOUS SIGNIFICANT GOLD INTERCEPTS IRON KING TO EAGLE PROSPECTS

HOLE#	PROSPECT	MGA Zone 50			FROM	TO	INTERCEPT	Au
		NORTH	EAST	AZI/DIP	(M)	(M)	(M)	(G/T)
JRC188	IRON MONARCH	7033605	793486	090/-60	10	14	4	8.52
			INCL		12	13	1	26.6
JRC121	IRON MONARCH	7033550	793479	090/-60	6	12	6	48.1
			INCL		11	12	1	258.3
JRC153	IRON MONARCH	7033542	793459	090/-60	38	41	3	20.8
		INCL			38	39	1	54.3
JRC182	IRON MONARCH	7033536	793473	090/-60	13	17	4	10.7
			INCL		15	16	1	27.5
JRC135	IRON MONARCH	7033476	793470	090/-60	3	5	2	15.3
			INCL		3	4	1	29.4
JF082	IRON DUKE	7034351	793573	092/-60	4	6	2	12.8
JF053	IRON DUKE	7034332	793564	092/-60	17	22	5	8.9
			INCL		19	20	1	20.5
JF103	IRON DUKE	7034314	793538	092/-60	51	53	2	7.7
			INCL		52	53	1	14.4
JF239	IRON KING	7032643	793376	092/-60	30	32	2	5.6
			INCL		30	31	1	10.4
JF243	IRON KING	7032564	793366	092/-60	36	38	2	13.6
			INCL		37	38	1	17.3
JF232	IRON KING	7032407	793371	092/-60	34	36	2	6.6
			INCL		35	36	1	11.0
JF168	IRON KING	7032321	793422	090/-60	10	11	1	17.7
WWRC0020	EAGLE	7037506	793988	090/-60	26	40	14	8.9
			INCL		33	34	1	69.1
WWRC0076	EAGLE	7037482	793986	090/-60	29	33	4	10.5
			INCL		29	30	1	24.3
WWRC0068	EAGLE	7037400	794011	270/-60	29	35	6	10.6
			INCL		31	32	1	20.6
			INCL		33	34	1	24.9
WWRC0069	EAGLE	7037361	794000	090/-60	15	20	5	10.9
			INCL		18	19	1	38.9
JF031	EAGLE	7037302	793908	092/-60	21	24	3	16.0
			INCL		22	23	1	32.4

Note: 1g/t Au lower cut and no upper cut applied, with a maximum of 2m of internal dilution

Status and planned work program

The previously defined gold deposits represent low exploration risk and are situated within granted Mining Leases. Detailed flora and fauna surveys have already been undertaken as part of the Wiluna West Iron project as well as considerable aboriginal heritage investigations.

The present work programs are focussed on deposits that occur near surface with average grades exceeding 3g/t Au. Each deposit will be critically reviewed to select the deposits for further evaluation with the aim of optimising one or several open-pits to commence gold mining operations. Geological consultants CSA Global have recently been engaged to undertake resource modelling and pit optimisation studies of the Iron Monarch deposit. Validation and re-interpretation of the other deposits is in progress.

Regionally, the entire prospective corridor has recently been soil sampled on a 200m by 50m spacing and Datum Surveys has been engaged to convert all historical gold grids to the MGA Zone 50 grid system currently used by Golden West Resources.

Toll milling facilities

The Wiluna West Project is located within trucking distance of three potential toll milling facilities and preliminary discussions with two of these facilities have recently been initiated. Once the work program described above has been completed it is planned to engage in further discussions with these potential milling facilities. Previous metallurgical studies undertaken suggest that the ore is free milling and represents no significant challenges.

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 Allen Maynard, who is a Member of the Australian Institute of Geosciences ("AIG"), a Corporate Member of the Australasian Institute of Mining & Metallurgy ("AusIMM") and independent consultant to the Company. Mr Maynard is the principal of Al Maynard & Associates Pty Ltd and has over 30 years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard 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 Maynard consents to inclusion in the report of the matters based on his information in the form and context in which it appears.