Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

October 19, 2007 14:07 ET

Abitibi Grassroots Exploration Program Update Diamond Drill Program Underway - Munro Prospect and Flow-Through Private Placement Offeri-Through Private Placement Offering of up to $2,016,000

VAL-D'OR, QUEBEC--(Marketwire - Oct. 10, 2007) - October 19, 2007 - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) is pleased to report that drilling on the Munro Prospect has commenced.

Diamond Drill Program in Progress - Matheson, Ontario: Diamond drilling has started at the Munro Prospect (VMS target: map #58 - Kalahari Resources Ltd. Joint Venture property), located in Munro Township, approximately 15 km east of the town of Matheson. Two separate and distinct targets have been selected for drill testing:

- Potter Mine Southeast Extension: A series of five (5) drillholes targeting potential "stacked" mineralized volcanogenic massive sulphide zones have been selected for drill testing based on historical drilling results and re-interpretation of the historical property geophysical datasets. The Munro property is directly contiguous to the Potter Mine claims to the west where Millstream Mines Ltd. is aggressively exploring the property. The latest assay results reported from their on-going drill program include, 8.65 metres of 3.20% copper, 2.03% zinc, and 0.112% cobalt within a larger 38.6 metre interval of 1.88% copper, 1.17% zinc, 0.044% cobalt (Millstream Mines Ltd. - October 11, 2007 press release). This wide mineralized envelope at the Potter mine sequence is associated with a distinctive mafic fragmental (hyaloclastite) unit, hosting disseminated sulphides, commonly in the 1-5% range with massive sulphides occurring sporadically as metre-scale pods, consisting of layered pyrrhotite, pyrite, chalcopyrite and sphalerite. Previous limited diamond drilling (5 holes) on the present-day Munro prospect claims intersected mineralized mafic fragmental (hyaloclastite) in three separate holes. Downhole pulse electromagnetic (DHPEM) surveys are planned on a selective basis.

- MegaTEM Anomaly: Separately, two (2) drillholes are planned over the southwestern part of the property in an area previously untested by drilling. The first target to be tested may represent a parallel (or "staked") sulphide horizon located approximately 600 m south from the main interpreted Potter mine sequence. Previous ground surveys on the property defined an electromagnetic (E.M.) anomaly that was later verified by the Kidd-Munro, Blake River Area MegaTEM II survey flown by Fugro Airborne Surveys in May-June 2003 for the Geological Survey of Ontario Operation Treasure Hunt program. The second target will test an induced polarization anomaly, possible extending laterally for up to 600 metres, at about 200 metres southwest of the MegaTEM anomaly.

Previous Drill Program - Shiningtree, Ontario: Diamond drilling at the Claw Lake Prospect (gold target: map #64 - Kalahari Resources Ltd. Joint Venture property) has been completed (please refer to the September 21, 2007 press release for details). The three drillholes intersected broad zones of disseminated and massive pyrite hosted in andesitic brecciated volcanic rocks, interjected with numerous variously altered and mineralized quartz-feldspar porphyry dikes. Numerous zones of massive pyrite (ranging from 0.26 to 1.7 meters wide) associated with earlier quartz alteration, occurs primarily or at increasing frequencies downhole and proximal to a deformation zone. The core has been sampled and submitted for assaying.

New Opportunities - Property Acquisitions:

Golden Valley Mines Inc. has staked two separate claim blocks totalling sixty-four (64) units in the McFaulds Lake area, in response to Noront's recent Double Eagle Ni-Cu-PGE discovery announcement in the Webequie area of northern Ontario. The target selection process was based on the identification of similar geophysical responses within extensions of the favourable geological terrain associated with the Double Eagle discovery to the northeast along strike. Future exploration and/or joint venture plans will be announced once official claim certificates have been received for the Ontario Ministry of Mines and Development.

The 2007 Abitibi grassroots exploration program budget for the year is CAD$1,000,000.

For additional information, please refer to the Quebec and Ontario prospects location map at http://www.goldenvalleymines.com/abitibi.

Flow-Through Private Placement Offering of up to $2,016,000:

In other news, the Company announces that that it has entered into a letter of engagement with Desjardins Securities Inc. ("Desjardins") pursuant to which Desjardins shall act as agent in connection with a private placement offering (the "Offering") of up to 3,200,000 flow-through common shares of the Company at a price per flow-through common share of $0.63, resulting in gross proceeds of up to $2,016,000.

The Offering will be made in reliance upon applicable exemptions from registration and prospectus requirements and is anticipated to close on or before October 26, 2007, or such other date as may mutually be agreed to between the parties. The Offering is subject to the receipt by the Company of all the required regulatory approvals, including the approval of the TSX Venture Exchange and all of the securities issued thereunder shall be subject to a hold period of four (4) months and one (1) day from the closing date of the Offering.

Desjardins shall receive a cash commission equal to 6.5% of the gross proceeds raised pursuant to the Offering. Additionally, as part of the selling group, Beecher McMahon Capital Markets ("Beecher"), a limited market dealer will receive a special selling commission of 5% on a portion of the Offering which shall be paid directly by Desjardins to Beecher upon closing of same.

The funds raised pursuant to the Offering will be used by the Company to finance exploration and development activities in respect of its James Bay, Abitibi, and other grass roots properties located in the Province of Quebec.

About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest and then seeks partners to continue exploration funding. This allows the Company to continue its generative programs and systematic exploration efforts at other majority-owned grassroots projects. As of October 17, 2007, the Company holds majority property interests in 136 projects consisting of 4,291 mining titles (235,315 hectares) in Saskatchewan, Ontario and Quebec.

Michael P. Rosatelli, P. Geo. is a "Qualified Person" as such terms is defined in National Instrument 43-101 and is responsible for the technical information presented in this news release.

Forward Looking Statement: This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict and are not to be interpreted as guarantees for future performance. These forward looking could cause actual events or results to differ materially from those anticipated in such forward-looking statements. All forward looking statements speak only as of the date of this news release and the Company does not undertake any obligation to update or publicly release any revisions to such forward-looking statements to reflect events, circumstances, or changes in expectations after the date hereof. Accordingly, readers should not place undue reliance on such forward-looking statements.

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