Gallery Resources Limited
TSX VENTURE : GYR

Gallery Resources Limited

August 12, 2005 14:38 ET

Gallery Signs Option Agreement with Consolidated Abaddon

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 12, 2005) - Gallery Resources Limited (TSX VENTURE:GYR) (the "Gallery") of Vancouver, B.C. is pleased to announce that, together with its partner global resources company BHP Billiton, they have signed an option agreement with Consolidated Abaddon Resources Inc. ("Abaddon") relating to the Sims Lake and Gabbro Lake properties, which are proximal to the Shabogamo project and are comprised of 25,000 acres northwest and west of Churchill Falls, Labrador.

The option agreement signed by Abaddon and the BHP Billiton/Gallery partnership pertains to all non-uranium metals found on the properties. Abbadon maintains a 100% interest in the rights to any uranium found on the properties.

Under the terms of the agreement, the BHP Billiton/Gallery partnership has secured an exclusive option to earn a 51% interest in the non-uranium rights on the properties, by paying for 25% of the airborne magnetic, electro-magnetic and radiometric survey recently completed over the properties.

To vest the 51%, Gallery and BHP Billiton need to spend $1.3 million over three years, of which $200,000 must be spent by December 31, 2005.

The geology on parts of the Sims Lake and Gabbro Lake properties is believed to be similar to that on the adjacent Shabogamo Ni/Cu/Co project. Further work will depend on the targets that results from the airborne geophysical survey.

Bruce Costerd, President & C.E.O.


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

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