Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

January 10, 2007 19:26 ET

Golden Valley Mines Ltd.: Closing of Private Placement with Robert McEwen

MONTREAL, QUEBEC--(CCNMatthews - Jan. 10, 2007) - Golden Valley Mines Ltd. (the "Company") (TSX VENTURE:GZZ) is pleased to announce the closing of a private placement financing with Robert R. McEwen for gross proceeds of $1,250,000, as announced on January 5, 2007. The Company issued 3,787,878 Units at a price of $0.33 per Unit. Each Unit is comprised of one common share and one Warrant of the Company, wherein each Warrant entitles Mr. McEwen to acquire one additional common share of the Company at a price of $0.50 per common share for a period of twenty four months. As of today's date, Mr. McEwen exercises control and direction over approximately 7.8% of the outstanding common shares of the Company, making him the second largest shareholder of the Company. Assuming the exercise of all Warrants by Mr. McEwen, he will exercise control or direction over approximately 14.6% of the outstanding common shares of the Company.

A finder's fee was paid to Blackmont Capital Inc. by the issuance of a number of Units (described above) equal to 5% of the proceeds raised. All securities of the Company issued pursuant to the offering shall be subject to a hold period of four (4) months and one (1) day. The funds raised pursuant to the private placement will be used by the Company to accelerate exploration, and for general corporate purposes.

About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest in its properties 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 grass-roots projects. As at the date hereof, the Company holds majority property interests in 131 projects consisting of 3,666 mining titles (203,805 hectares) in Ontario, Quebec, and Saskatchewan.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information