Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

December 27, 2006 15:48 ET

Closing of a $ 1,547,109 Flow-Through Private Placement

MONTREAL, QUEBEC--(CCNMatthews - Dec. 27, 2006) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces the closing of a non-brokered private placement offering of 3,773,438 flow-through common shares of the Company at a price of $0.41 per flow-through common share, resulting in gross proceeds of $1,547,109.

The offering was concluded with purchasers residing in the provinces of British Columbia, Quebec, and Ontario, including officers and directors of the Company, all in reliance upon applicable exemptions from registration and prospectus requirements. Other placees under the offering included, MineralFields Group, Societe en commandite CGE Resources, and Northern Precious Metals 2006 Limited Partnership.

Where applicable, an administration fee or finder's fee equal to 6% of the proportionate proceeds raised under the offering was paid in cash by the Company to arms' length third parties. Separately, CGE's Agent received an administrative fee equal to 3% of its proportionate subscription under the offering in addition to a fixed fee of $2,000. All the securities issued pursuant to the offering are subject to a hold period of four (4) months and one (1) day from the closing date of the offering.

The proceeds raised pursuant to the private placement will be used by the Company to finance exploration and development activities in respect of its James Bay, Abitibi, and other grass roots properties located in Ontario and Quebec.

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 (203,865 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.

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