Gallery Resources Limited
TSX VENTURE : GYR

Gallery Resources Limited

August 26, 2005 13:12 ET

Gallery Resources Reports Positive Assay Results from Shabogamo Drilling

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 26, 2005) - Gallery Resources Limited (TSX VENTURE:GYR) ("Gallery") of Vancouver, B.C. is pleased to announce assay results from 88 core samples in 3 holes drilled late July 2005, on the Shabogamo Nickel-Copper-Cobalt (Ni-Cu-Co) project in Labrador, Canada. The Shabogamo Project is currently a 50/50 partnership between Gallery, the operator, and BHP Billiton, one of the world's largest resource companies.

The three (3) holes, E1W5, E1C and E1E, were drilled at 750 metre (2,460 ft) spacings along the 1,500 metre (4,920 ft) long, ELG001 W anomaly at Evening Lake. Holes E1E and E1W5 were respectively drilled at the eastern and western ends, and E1C midway along the anomaly. Highlights of the assay results from the 88 samples are reported below.

All 3 holes intersected the Evening Lake mineralized zone, discovered last fall, and these samples of the drill intersected mineralization show widespread Ni-Cu-Co enrichments. They demonstrate up to twice the Ni-Cu grades obtained during the fall 2004 drilling at Evening Lake (Ref Press Release November 26, 2004).

Hole E1W5 (drilled at a 65 metre step out, north of the 2004 drilling), which intersected an upper and lower zone of mineralization, shows both consistent enrichments and an increase in Ni and Cu grades with depth. This is noteworthy because it is similar to the predicted zoning in Voisey's Bay Type Ni-Cu-Co systems. All 32 samples taken from the lower zone, between 151.7 and 186.7 metres core depth, contained greater than 0.10% combined Ni-Cu-Co with several sections displaying good enrichments. At 157.55 metres there is a 5.7 metre (18.7 ft) section grading 0.20% Ni, 0.21% Cu and 0.023% Co for a combined grade of 0.43% Ni-Cu-Co with best intervals of:



Spl
Length Combined
Sample # From To (m) % Ni % Cu % Co %
---------------------------------------------------------------------
E1W5-07 157.55 158.05 0.50 0.19 0.35 0.02 0.56
E1W5-09 159.10 159.70 0.60 0.34 0.36 0.04 0.74
E1W5-30 160.80 161.30 0.50 0.22 0.17 0.03 0.42

Other intervals of stronger enrichments include:

Spl
Length Combined
Sample # From To (m) % Ni % Cu % Co %
---------------------------------------------------------------------
E1W5-06 151.70 152.30 0.60 0.19 0.20 0.02 0.41
E1W5-10 180.80 181.50 0.70 0.41 0.05 0.05 0.51
E1W5-52 184.50 185.00 0.50 0.22 0.11 0.03 0.36


The upper zone in E1W5, intersected between 76.95 and 92.10 metres, contains spotty enrichments with 10 of 21 samples yielding greater than 0.10% combined Ni-Cu-Co. There are two 1.7 metre sections showing enrichments, one at 82.4 metres grading 0.20% Ni, 0.17% Cu and 0.03% Co (0.40% combined) and one at 88.5 metres grading 0.20% Ni, 0.12% Cu and 0.03% Co (0.35% combined).

Hole E1C intersected the mineralization between 30.70 metres and 49.20 metres and shows the weakest mineralization, generally less than 5%, (this corresponds to the airborne results which show the strongest responses towards the east and west sections of the anomaly). 21 samples from this hole yielded assay results ranging between 0.032% and 0.17% combined Ni-Cu-Co. The best assay is from sample E1C-04, which yielded 0.087% Ni and 0.07% Cu over an interval of 0.45 metres.

Five (5) samples taken from Hole E1E drilled at a step out of 1,500 metres (4,920 ft) from last years discovery hole assayed:



Spl
Length Combined
Sample # From To (m) % Ni % Cu % Co %
---------------------------------------------------------------------
E1E-01 86.70 87.40 0.70 0.27 0.13 0.03 0.43
E1E-02 90.80 91.20 0.40 0.25 0.36 0.03 0.64
E1E-07 85.15 86.25 1.10 0.16 0.10 0.02 0.28
E1E-08 86.25 86.70 0.45 0.33 0.07 0.04 0.44
E1E-10 90.50 91.35 0.85 0.17 0.16 0.02 0.35


These results from E1E are noteworthy because they are from samples containing a low percentage total sulphide mineralization (less than 10%). This represents a high tenor of Ni and Cu mineralization and therefore, increasing the sulphide content to 100% (massive sulphides) should produce an increase in combined grades.

The joint venture partners are encouraged by these results. The intersection of deeper sulphide mineralization (ref. press release July 26, 2005), accompanied by improved Ni grades, and the success of E1E intersecting enriched sulphide mineralization almost 1 mile east of the discovery hole, further confirms the potential for discovering significant mineralization at Shabogamo.

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