Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

June 11, 2012 11:09 ET

Abitibi ("AGB") Grassroots Exploration Project Update: Golden Valley Identifies 29 "Drill Ready" Prospects

VAL-D'OR, QUÉBEC--(Marketwire - June 11, 2012) - Golden Valley Mines Ltd. ("Golden Valley" or the "Company")(TSX VENTURE:GZZ) provides the following update with respect to its property holdings in the Abitibi Greenstone Belt ("AGB"), located in Québec and Ontario.

Golden Valley's exploration activities over the past several years have been mainly focused on preliminary fieldwork conducted over the company's 100%-owned properties, with the objective of upgrading and advancing each property to the group of "drill-ready" prospects for the Company's AGB Project.

The preliminary fieldwork consisted of "boot and hammer" prospecting and sampling and where warranted, the establishment of mini grids over high priority target areas (i.e. surface showings and airborne geophysical anomalies) to facilitate the completion of ground geophysical surveys. The Company's AGB Grassroots exploration project is principally directed towards identifying prospective targets for both precious (Au-Ag, PGE) and base-metals (Cu-Zn, Co, Ni-Cu).

Presently, Golden Valley has identified drill targets on twenty-one (21) individual prospects, that in total include fifty-five (55) "higher priority targets" for an aggregate amount of approximately 7,445 metres of proposed diamond drilling. Table I includes both 100%-owned and recently optioned properties (to each of Monarch Energy Limited ("Monarch") and Golden Cariboo Resources Ltd. ("GCC") and in respect of which Golden Valley is the program operator.

A summary of the proposed drilling is as follows:

Table I

Property Region Ore Deposit Model DDH Target Information
Lac Barry Urban-Barry Quartz-Carbonate-Gold Vein, Shear-zone related (Au) 10 DDH's, 1,075m
Threshold-85 Chapais Chapais-type Cu-Au Sulphide-rich Vein 6 DDH's, 800m
Dionne
(GCC Option)
Val-d'Or Quartz-Carbonate-Gold Vein, shear-zone related (BIF-hosted) 6 DDH's, 690m
Jonsmith Shining Tree Silver-Arsenide Veins
(Co-Ni-As-Ag-Bi)
Magmatic Ni-Cu-PGE
2 DDH's, 250m 3 DDH's, 340m
Claw Lake
(GCC Option)
Shining Tree Quartz-Carbonate-Gold Vein, Shear-zone related (intrusion-hosted porphyry Au±Cu±Mo) 4 DDH's, 555m
Perestroika West Val-d'Or Quartz-Carbonate-Gold Vein, Shear-zone related 3 DDH's, 475m
Bench Depth
(South)
Matachewan Quartz-Carbonate-Gold Vein, Shear-zone related 3 DDH's, 430m
Kharlamov Chapais VMS (Au-Cu-rich) 2 DDH's, 400m
Oregon Val-d'Or Quartz-Carbonate-Gold Vein, Shear-zone related 2 DDH's, 300m
Barraute Val-d'Or VMS (Au-Cu-rich) 2 DDH's, 240m
Centermaque
(MNL Option)
Val-d'Or Quartz-Carbonate-Gold Vein, Shear-zone related 2 DDH's, 180m
Petite Lac Noir Sud Val-d'Or VMS (Au-Cu-rich) 1 DDH, 200m
Petite Lac Noir Nord Val-d'Or VMS (Au-Cu-rich) 1 DDH, 200m
Lac Guéguen Val-d'Or VMS (Au-Cu-rich) 1 DDH, 200m
Township Line Val-d'Or Magmatic Ni-Cu-PGE
and/or
Quartz-Carbonate-Gold Vein, Shear-zone related
1 DDH, 150m
Shamrock Kirkland Lake Quartz-Carbonate-Gold Vein, Shear-zone related 1 DDH, 150m
Odie-Cleghorn Val-d'Or VMS (Au-Cu-rich) 1 DDH, 150m
Lac Ducros Val-d'Or Magmatic Ni-Cu-PGE
and/or
Quartz-Carbonate-Gold Vein,
Shear-zone related
1 DDH, 120m
U-Turn Val-d'Or Magmatic Ni-Cu-PGE
and/or
Quartz-Carbonate-Au Vein, Shear-zone related
1 DDH, 120m
Double Trouble Duparquet Quartz-Carbonate-Gold Vein, Shear-zone related 1 DDH, 100m
Calamity Duparquet VMS (Au-Cu-rich) 1 DDH, 100m
Note: GCC = Golden Cariboo Resources Ltd.
MNL = Monarch Energy Limited

In addition to the prospects listed in Table I above, a further sixty-three (63) follow-up drillholes with an aggregate amount of approximately 9,838 metres of diamond drilling is proposed on eight (8) separate properties, following the initial diamond drill programs operated by Golden Valley. Table II includes both 100%-owned and recently optioned properties (to each of GCC and Big North Graphite (formerly Big North Capital Inc. and in respect of which the Company is the program operator).

Table II

Property Region Ore Deposit Target Model DDH Target Information
Perestroika
(GCC Option)
Val-d'Or Quartz-Carbonate-Gold vein, shear-zone related 30 DDH's, 4,000m
Blue Mountain Kirkland Lake Quartz-Carbonate-Gold vein, shear-zone related 8 DDH's, 1,200m
Winnie Lake Kirkland Lake VMS (Au-Cu-rich) 5 DDH's, 1,000m
Amikougami Kirkland Lake Quartz-Carbonate-Gold vein, shear-zone related 5 DDH's, 1,000m
Richore Matachewan Quartz-Carbonate-Gold vein, shear-zone related 5 DDH's, 700m
Munro Matheson VMS (Cu-Zn-Co-Ag) 5 DDH's, 700m
Salve Lake
(GCC Option)
Matheson Quartz-Carbonate-Gold vein, shear-zone related 3 DDH's 1,000m
Luciana
(NRT Option)
Lebel-sur-Quévillion Quartz-Carbonate-Gold vein, shear-zone related 2 DDH's, 238m
Note: GCC = Golden Cariboo Resources Ltd.
NRT = Big North Graphite Corp.

Golden Valley also has a portfolio of thirteen (13) properties that warrant further exploration work based on encouraging results obtained by the Company in its initial drilling campaigns.

A summary of the prospects warranting additional exploration work is outlined as follows:

Table III

Property Region Ore Deposit Target Model
Bearmac Chibougamau Chibougamau-type Cu-Au sulphide-rich vein
Bejopipa Chibougamau VMS (Au-Cu-rich)
Cadillac High Cadillac-Malartic Quartz-Carbonate-Gold Vein, Shear-zone related
Dubuisson Val-d'Or -Malartic Quartz-Carbonate-Gold Vein, Shear-zone related
Golden Jet Duparquet Quartz-Carbonate-Gold Vein, Shear-zone related
Lock-Out Cadillac Quartz-Carbonate-Gold Vein, Shear-zone related
Lac Laverdiere Val-d'Or Quartz-Carbonate-Gold Vein, Shear-zone related
Mindoka Kirkland Lake Cu-Au sulphide-rich Vein?
Mona Lisa Duparquet Quartz-Carbonate-Gold Vein, Shear-zone related
Pascalis Cu-Zn Val-d'Or VMS (Au-Cu-rich)
Pascalis West Val-d'Or VMS (Au-Cu-rich)
Rivière Heva Cadillac-Malartic Quartz-Carbonate-Gold Vein, Shear-zone related
Rivière Lois Duparquet VMS (Au-Cu-rich)

Additionally, and in reference to the Company's news release of May 10, 2012 in which Golden Valley provided an update in respect of Calone Mining Company (S.L.) Ltd. ("Calone SL"), the Company advises that it has been agreed to between Calone Mining Ltd. ("Calone Canada"), Golden Valley's wholly owned subsidiary, and K&K Investment GMBH ("K&K"), that the closing of the transactions contemplated by the share purchase agreement, as it has been amended and restated, and pursuant to which K&K is to acquire all of Calone Canada's shareholdings in its Sierra Leonean subsidiary Calone SL, shall take place on or before July 2, 2012, or on such later date as may be determined between Calone Canada and K&K ("Closing").

Mr. Glenn J. Mullan, P. Geo., (OGQ) and (APGO (Temporary)), is the Qualified Person (as that term is defined in National Instrument 43-101) who has reviewed this news release and is responsible for the technical information reported herein.

About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest therein and then seeks partners to continue exploration funding. This allows the Company to carry on its generative programs and systematic exploration efforts at other majority-owned grassroots projects. The Company (together with its various subsidiaries) holds majority property interests in projects in Canada (Saskatchewan, Ontario and Québec) and until Closing, in the Republic of Sierra Leone.

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 statements 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, except as required by law. Accordingly, readers should not place undue reliance on such forward-looking statements.

A figure is available at the following link: http://media3.marketwire.com/docs/GZZ_2012-06-11_Exploration_Update_AGB_Figure.pdf.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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