Consolidated Big Valley Resources Inc.

August 17, 2006 15:47 ET

Big Valley Signs Amended Gold Mill Agreement and Assumes Operations and Responsibility

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 17, 2006) - Consolidated Big Valley Resources Inc. (the "Company") (NEX BOARD:CBG.H) is pleased to announce that it has assumed the overall operations of the RSW-Beroma-Granada 250 tpd gold concentrating mill (the "Mill"). The Mill is located south of Rouyn-Noranda, Quebec and is located on the site of the recently acquired Granada Mine property.

The acquisition costs for 100% interest totals approx. $3,800,000, of which $500,000 is payable in cash and the remaining $3,300,000 to be paid in gold over 3 years (462.5 ounces per quarter-1850 ounces per year for a total 5,550 ounces). Upon completion of first payment (April 19/06-$25,000) and second payment (May 19/06-$75,000), RSW-Beroma was required to mobilize a crew to begin with the preparation of the Mill for start-up and within two months proceed through a dry run operation.

On June 21, 2006 the Company entered into an agreement with Rocmec Mining Inc. ("RMI") for Rocmec to earn a 50% interest in the Mill by paying $100,000 cash (June 19/06 payment to RSW-Beroma) and assuming 50% in the gold delivery payments.

On June 26, 2006 the Company and RSW-Beroma signed an Amended Agreement whereby the $300,000 final cash payment due September 1, 2006 has been broken down into three payments as follows: $50,000-July 1/06 (paid), $50,000-August 1/06 (paid) and $200,000-September 1/06.

On June 28, 2006 the Company inspected the Mill following the dry run and declared itself satisfied, and the Mill to be in proper working condition. The Company assumed responsibility and operations of the Mill and proceeded to obtain all necessary permitting to proceed with processing ore. A Certificate of Authorization has been obtained from the Ministry of Environment, Govt. of Quebec which allows the processing of on-site ore. In July 2006 the Company has begun processing its Granada Mine property ore which was stockpiled on surface from previous operators, and is expecting to announce its first gold pour later this month.

The above Agreements are subject to regulatory approvals.


Gary Musil, CFO, President/Director

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