ValGold Resources Ltd.

ValGold Resources Ltd.

November 01, 2007 08:00 ET

ValGold Announces $3.5 Million Non-Brokered Private Placement and Updates Drill Program on Mochila Gold Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2007) - ValGold Resources Ltd. (TSX VENTURE:VAL)(FRANKFURT:VR2) ("ValGold" or the "Company") is pleased to announce that, subject to regulatory approval, it will carry out a non-brokered private placement of up to 10 million units (the "Units") at a price of $0.35 per Unit, for gross proceeds of up to $3,500,000. Each Unit is comprised of one common share of ValGold and one-half of one non-transferable share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one additional common share of ValGold for a period of 24 months following the issue date of the warrant at an exercise price of $0.60 per share.

ValGold may issue finders' fees comprising 7% cash and non-transferable options (the "Finder's Options") equal to 10% of the total number of Units sold in the offering to subscribers arranged by eligible finders. Each Finder's Option shall be exercisable to acquire a Unit of the Company (the "Finder's Units") at a price of $0.35 per Finder's Unit for a period of 24 months from the date of issuance, subject to adjustment. Each Finder's Unit will be comprised of one common share of the Company (a "Finder's Unit Share") and one-half of one common share purchase warrant of the Company (a "Finder's Warrant"). Each whole Finder's Warrant will entitle the finder, upon exercise, to purchase one additional common share of the Company (a "Finder's Warrant Share") for a period of 24 months from the issuance of the Finder's Option at a price of $0.60 per Finder's Warrant Share.

All shares, warrants and any shares issued upon exercise of warrants and Finder's Options with respect to the above private placements are subject to a hold period and may not be traded for four months plus one day from the date of issuance.

Proceeds from the non-brokered private placement will be used to advance the exploration programs of the optioned mineral properties in Guyana and Venezuela, and for general working capital.

Update on ValGold's Mochila Drill Program

ValGold also reports as an update that the Mochila drill program is progressing well and is currently on the fourth diamond drill hole. Samples from the first three drill holes are enroute to the assay laboratory and the results may be received in the next few weeks. To-date, 1,101 metres ("m") have been drilled with another 4,000 m planned for the initial round.

The fourth hole is being drilled under a water-filled artisanal pit where visible gold was recently discovered in quartz vein dump rock. The dump rock is present alongside the edge of the pit and was discarded by the small scale miners because it was most likely too hard to process. In addition to the quartz vein material, boulders of diorite porphyry which may be the host to the veins are common. The area being drilled is referred to as El Clarito, the location of which is shown on the map below. No previous drilling has taken place in this area. Photographs of the visible gold in the vein quartz together with the pit area recently visited by Tom Pollock, ValGold's Vice President, Exploration, are being posted on ValGold's website,

The El Clarito gold area and the other artisanal workings in the Mochila project area are underlain by layered intrusive mafic to ultramafic rocks of the Mochila Layered Intrusion which has in turn been intruded by a variety of felsic to intermediate porphyritic rocks. Drilling during the program will focus along a shear zone cutting the layered intrusion referred to as the Mochila Lineament and on specific gabbro contacts.

The Mochila gold occurrence is located within the Chicanan West concessions approximately 40 kms northwest of the Kilometre 88 area in Bolivar state of Venezuela.

Mr. Tom Pollock, P.Geo., ValGold's Vice-President, Exploration, is the Qualified Person for the project, and is responsible for all of the technical reporting in compliance with NI 43-101. Mr. Pollock has instituted and is responsible for ValGold's program of Quality Control and Assurance ("QC/QA"), using assay control samples and duplicates.

For more information on ValGold and its portfolio of international projects, visit our website at

Stephen J. Wilkinson, President & Chief Executive Officer

SEC 12g3-2(b): 82-3339

No regulatory authority has approved or disapproved the information contained in this news release.

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