Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

January 29, 2007 11:50 ET

Golden Valley Mines Ltd.: Two New High-Grade Gold Showings Discovered

Cheechoo Gold Project, James Bay, Quebec

VAL-D'OR, QUEBEC--(CCNMatthews - Jan. 29, 2007) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) reports the discovery of two high-grade gold occurrences on the Cheechoo Gold Project, on property holdings adjacent to and in the immediate vicinity of "Les Mines OPINACA" Eleonore deposit. Based on the discovery of high-grade showings and the identification of prospective gold mineralized corridors in conjunction with the presence of unexplained geophysical and geochemical targets, Golden Valley is currently planning an expanded 2007 exploration program on the James Bay properties, currently budgeted to be a minimum
$1 million.

- "Letang" Showing: The showing is located in the southwest section of the Cheechoo A claim block. One rock sample assayed an impressive 209.24 g/t gold. The sample was collected from a quartz-fractured dioritic stock outcrop. Other rock and boulder samples from the area returned anomalous gold values.

- "Marchand" Showing: This showing is located near the property boundary between the Cheechoo B and Sharks properties. Grab sample results along this newly defined "Marchand" mineralized corridor (Cheechoo-Sharks) assayed from trace to as high as 11.96 g/t gold. Gold mineralization is associated with a foliated, silicified and garnetiferous paragneiss rock unit hosting up to 5% fine sulphides. The host structure was further identified approximately 122 metres to the northeast and is interpreted to extend a further 260 metres northeast where anomalous results were also reported in 2005. A sample located approximately 1.2 km to the southwest along a possible parallel structure to the south, contained strongly anomalous gold (0.42 g/t Au) in similarly altered and mineralized outcrops and in an area where a lake sediment gold anomaly has been identified. These samples occur along the northern flank of a regional AEM (airborne electromagnetic) geophysical anomaly previously identified by the Company as one of the priority target areas for follow-up in the 2006 program. In total, nineteen rock grab samples were collected over this area with values ranging from 0.02 g/t gold to 11.96 g/t gold. (See location maps on the Company's website: www.goldenvalleymines.com).

- "Garrioch" Showing: A strongly anomalous gold assay of 0.39 g/t gold was obtained along trend to the northeast with Everton Resources "Claude-Manuel Corridor" on the Cheechoo B block claims, referred to previously (see news release dated November 9, 2006) as the "Cheechoo East corridor". The rock sample was collected from a rusty and garnetiferous paragneiss outcrop

Priority geophysical surveying, detailed rock and soil sampling, trenching and channel sampling are planned to cover these newly delineated target areas in 2007. No follow-up field work has yet been completed on these new prospective mineralized corridors since receipt of the 2006 assay results.

Cheechoo A Block: Three new mineralized boulder fields were delineated during the Phase II program, bringing the total now to five (See news release dated December 5, 2005). Systematic shoreline boulder sampling has defined five separate and discreet boulder fields comprised of variable rock type compositions and dominated by strongly altered and well-developed mineralization. The better gold-bearing anomalous samples are hosted by paragneiss, amphibolite or diorite which exhibit distinctive gold-copper, or gold-only metal zonation patterns, suggestive of potentially multiple bedrock sources. Highlights of the sampling in this area included 2.14 g/t gold; 24.2 g/t silver and 2.743% copper and 1.65 g/t gold. The boulder fields are located down-ice and down slope from mineralized outcrop ("Letang Showing" Extension) and/or similar mineralized and altered rock along a 2.3 kilometre northwest-trending corridor along the property's northeast boundary. Detailed grid mapping has identified a well-developed and mineralized shear, associated with a series of airborne electromagnetic, magnetic and induced polarization anomalies, hosted in similar altered and mineralized "Roberto-style" sediments. Grid work, ground geophysical surveys, and detailed prospecting have been conducted over the Cheechoo A property (SW of Eleonore), and the property is now considered ready for testing by diamond drilling.

In addition to the sample results reported above, a number of anomalous mineralized areas were outlined either through rock and/or channel sampling that warrant ground follow-up elsewhere on the company's property position. Individual sample results included above background values for gold, and/or copper, zinc and arsenic over areas deemed as priority targets in the airborne geophysical data and/or anomalous rock samples outlined during the 2005 programs, including the Cheechoo B Southwest and Sharks Northwest corridors.

A total of 530 rock and channel samples were collected during the 2006 combined Phase I and II programs (refer to the November 9, 2006 press release).

The 2006 exploration results from the Cheechoo Gold Project have further enhanced the property's potential for the discovery of "Roberto-style" gold mineralization (consists of finely disseminated sulphides and is associated with strong potassic and brown tourmaline alteration of the sediments) or prospective geological settings (structure, alteration, style of mineralization) considered similar based on exploration work completed to date. In 2001, several gold-copper-silver showings hosted by the Ell Lake diorite were discovered that ultimately lead to the discovery of the Roberto Zone by Virginia Gold Mines Ltd. in 2004. Goldcorp, under "Les Mines OPINACA", acquired the Eleonore gold project at the end of March 2006 for approximately $600 million and is currently completing advanced exploration work including environmental and scoping studies.

Exploration and logistical planning for an expanded 2007 exploration program on the Cheechoo Project and for other 100% owned properties held by the Company is underway with bidding initiated for follow-up ground surveys in the areas proximate to the new Letang, Marchand, and Garrioch gold occurrences. The 2007 program at Cheechoo will commence with winter-based, ground geophysical surveys over selected target areas on Cheechoo "B" and Sharks Prospects, particularly in the areas described above. This work will be followed in the spring by a property-scale field program consisting of geochemical sampling, prospecting, mapping, geophysical surveys, trenching, channel sampling, and diamond drilling. Additional details will be provided when field work is initiated. The scope of the planned diamond drill program will be further detailed as work progresses and additional drill targets are resolved.

The Cheechoo "A", "B", and "C" Prospect and Sharks Prospect are both option - joint ventures with Sirios Resources (SOI) pursuant to which the Company, in each case, will earn an initial 60% interest by funding $1,000,000 in exploration over 4-years. Following initial vesting, the Company may then earn an additional 20% interest by completing a bankable feasibility study within 6 years of vesting. Should SOI then elect to allow GZZ to provide the production financing, GZZ would then acquire a final additional 5% interest.

Golden Valley Mines now holds a 100% interest, or is earning an interest through the above option - Joint Ventures, in a total of 1,017 claims covering 53,377 ha (534- km2) in the James Bay - Opinaca region. The Company is earning an interest in contiguous claim blocks on both the west and east sides of Les Mines OPINACA's Eleonore property, which hosts the Roberto Zone gold discoveries. For a map of the project area, refer to www.goldenvalleymines.com/cheechoo.

Abitibi Grassroots Diamond Drill Program Update: 2007 Program

The Abitibi Greenstone Belt diamond drill program is expected to resume in the next 2 weeks beginning in Ontario. The grassroots drill program will commence in the Matchewan-Kirkland Lake area. It is expected that a minimum of 12 mutually exclusive grassroots gold, or gold and base metals, properties will be drill tested in this component of the program over 2007.

Beartooth Island Uranium Prospect, Athabasca Basin Saskatchewan: 2007 Project Update

Bid tenders have been receive from ground geophysical contractors for detailed grid follow-up of the MEGATEM® II airborne survey completed in December 2006, and permitting applications initiated. Additional details of Phase II of the field program will be provided once the contractor has been selected.

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 January 29, 2007, the company holds majority property interests in 131 projects consisting of 3,666 mining titles (203,865 hectares) in Saskatchewan, Ontario and Quebec.

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

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

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