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Western Financial Group Announces Closing of First Prefered Share, Series 4 Offering

Western Financial Group Inc. ("Western Financial Group" or the "Company") is pleased to announce that it has closed the maximum amount of its
offering (being 200,000) of first preferred shares, series four (the "Preferred Shares") for gross proceeds of $20,000,000. Net proceeds from the offering will be used to fund the Company's ongoing broker acquisition program, repay indebtedness and for general corporate purposes.

The Preferred Shares were priced at $100 per share and will pay a dividend of 6.75% per annum, payable semi-annually if, as and when declared by the Board of Directors. The Preferred Shares will be convertible into the Company's common shares at any time at the holder's option at a price of $6.90 per common share (the "Conversion Price"). The Preferred Shares will be redeemable by the Company at its option only on or after January 1, 2011.
Redemption from January 1, 2011 and prior to January 1, 2013 will be at a redemption price equal to $100 per share plus all accrued or declared and unpaid dividends, provided that the volume weighted average trading price of the Company's common shares for at least 20 trading days in any consecutive 30 day period ending not more than five trading days prior to the date on which a notice of redemption is given exceeds 135% of the Conversion Price. After January 1, 2013, the Preferred Shares will be redeemable at the option of the Company at any time at a redemption price equal to $100 per share plus all accrued or declared and unpaid dividends. If not redeemed, commencing June 1, 2013, the Preferred Shares will pay semi-annually a cumulative dividend if, as and when declared by the Board of Directors, at a rate per annum calculated as at June 1, 2013 and reset on each anniversary of such date (the "Anniversary Date") in an amount equal to 3.5% above the five year Government of Canada bond rate as quoted 10 days before the Anniversary Date.

CIBC World Markets Inc., Desjardins Securities Inc., TD Securities Inc., Jennings Capital Inc. and Acumen Capital Finance Partners Limited acted as the Company's agents in connection with the offering.

Western Financial Group is a leader in providing insurance, financial services and banking services in over 80 communities, to more than 400,000 individuals and businesses in Western Canada through its WFG Agency Network locations, its affiliated insurance brokers, Western Life Assurance Company and Bank West.

The Preferred Shares are traded on the Toronto Stock Exchange under the symbol "WES.PR.B" and the common shares of the Company are traded on the Toronto Stock Exchange under the symbol "WES".

Arlene Beggs, Assistant to the President
Western Financial Group
(403) 652-2663

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