Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

October 20, 2005 12:05 ET

Golden Valley Mines: Additional Private Placement for Aggregate Gross Proceeds of CDN$150,000

VAL D'OR, QUEBEC--(CCNMatthews - Oct. 20, 2005) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces that it has entered into an additional letter of engagement with another Quebec based investment fund (the "Fund") to complete a private placement offering of 500,000 Units at a price of $0.30 per Unit, resulting in gross proceeds of $150,000. Each Unit is comprised of one common share of the Corporation and one-half of one non-transferable share purchase warrant entitling the holder thereof to acquire one additional common share of the Corporation at an exercise price of $0.35 for a period of 12-months from the date of closing, and thereafter, at an exercise price of $0.40, expiring 24-months from the date of closing. An aggregate administration fee equal to two percent (2%) of the gross proceeds raised pursuant to the offering shall be paid by the Corporation to the Fund.

The closing of the offering is expected to occur on or before nov. 15th, 2005, or at such other date as may be agreed upon between the Corporation and the Fund. The offering is subject to the receipt of all the required regulatory approvals.

The Corporation anticipates using the proceeds from the sale of the offered securities to maximize the value of its operations and exploration activities on its James Bay area property holdings, particularly in respect of the Cheechoo Gold project.

Further, the Company has agreed to issue 80,000 common shares to an arms length party as a finder's fee in connection with the introduction and completion of various property option and joint venture transactions. The issuance of the 80,000 common shares shall be completed in accordance with the policies of the TSX Venture Exchange, and shall be subject to the receipt of all regulatory approvals.

All the securities issued pursuant to the offering and the common shares that may be acquired upon the exercise of the warrants, as well as the securities issuable pursuant to the finder's fee, when issued, shall be subject to a hold period of four (4) months and one day from the date of issuance.

Golden Valley Mines is currently carrying out its exploration program on the Cheechoo Gold project in the James Bay ("Mid-North") area of northern Quebec and continuing exploration activity in the Abitibi Greenstone Belt (Quebec and Ontario). Updates will be forthcoming.

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

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