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Western Financial Group Increases Ownership Position in Falkins Insurance

High River, Alberta – August 3, 2010 (TSX – WES, WES.PR.A, WES.PR.B, WES.PR.C, WES.PR.D, WES.DB) - Western Financial Group (“Western”) announced today that it has increased its ownership position in Falkins Insurance Group from 20% to 40%. Falkins is south central British Columbia’s largest brokerage with locations in Cranbrook (2), Creston, Elkford, Fernie, Fruitvale, Golden, Kaslo, Kimberley, Salmo and Sparwood, B.C. In addition to doubling the current Western ownership position, all parties have agreed upon a pathway to provide Western with the ability to acquire full ownership of Falkins by December 31, 2013.

Western’s President & CEO Scott Tannas commented that “Prior to beginning our formal association with the Falkins Insurance Group back in May of 2005, we were keenly aware of their reputation for service excellence and financial performance. Our five year partnership has only served to deepen our respect and admiration for the executives and staff at Falkins. We are delighted to be able to increase our ownership position today, and are confident that the employees and customers of Falkins will be comfortable with the long term plan to join Western Financial Group. In the meantime, we will continue to watch and learn from Bob McGill and his team at Falkins.”

Western Financial Group is a leader in providing insurance, financial services and banking services in over 90 communities, to more than 500,000 individuals and businesses in Western Canada through its Network locations, its affiliated insurance brokers, Western Life Assurance Company, Bank West and Western Financial Insurance Company.

The Common Shares of Western Financial Group are traded on the Toronto Stock Exchange under the symbol “WES”.

This press release is not for distribution to any United States news service or otherwise in the United States.

For further information, please contact:

Arlene Beggs, Assistant to the President

Western Financial Group

Phone: 403-652-2663

Email: info@westernfg.ca

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