Gallery Resources Limited

Gallery Resources Limited

July 05, 2005 14:35 ET

Gallery Resources Commences Drilling of Top Priority Targets at Shabogamo

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 5, 2005) - Gallery Resources Limited (TSX VENTURE:GYR) of Vancouver, B.C. and its partner, global resources company, BHP Billiton are pleased to announce drilling has commenced on the Shabogamo Nickel-Copper-Cobalt (Ni-Cu-Co) Project in western Labrador. The 1,089 metre drilling program will test five (5) priority targets along a 35 kilometre section of the Shabogamo Gabbro, host to the Ni-Cu-Co mineralization discovered last fall.

All 5 targets, 3 at Evening Lake and 2 at SnowWay, 35 kilometres east, are zones of highly conductive, Electromagnetic (EM) responses similar to the EM responses recorded over the Ni-Cu-Co mineralized zone intersected 40 - 60 metres below surface at priority target ELG001 W last November. One (1) deep hole will also test ELG001 W for deeper mineralization to a depth of 300 metres (1,000 feet). The Shabogamo Gabbro consists of multiple sills, or sheets, which overly each other and therefore there is potential for intersecting a deeper mineralized sill lying below the shallow, near surface, mineralization. (The model for this type of Ni-Cu-Co orthomagmatic, net textured mineralization at ELG001 W shows that deposits can be stacked at different levels).

Two (2) of the targets being drilled at Evening Lake are respectively located 1,500 metres (4,920 feet) and 7,000 metres (4.35 miles) east of ELG001 W and along the strike of the mineralized zone indicated by the EM responses recorded during 2 separate airborne surveys in 2002 and 2004. The surface mapping and EM responses indicate the gabbro sills stretch up to several 10's of kilometres, trending east-west through the 100 kilometre long Shabogamo Property.

Gallery Resources, operator of this important exploration project, is looking forward to a successful drilling season and to the identification of new drill targets. Further indication of the potential for this emerging Ni-Cu-Co exploration district are the preliminary results of the recently completed airborne EM survey which indicates new targets of active EM responses (Ref Press Release June 17, 2005). Interpretations of the survey results being completed by the contractor, Aeroquest Limited, are expected to be finalized and delivered to the partners around mid July. The company advises the summer drilling program includes contingencies to drill any new, high priority targets identified during the latest airborne surveying.

The technical information contained in this news release was collected and compiled by Victor A. French, P.Geo. who is a qualified person specified by the TSX Venture Policy.

Bruce E. Costerd, President & CEO

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

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