Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

November 16, 2006 17:37 ET

Golden Valley Mines Announces Private Placement

VAL-D'OR, QUEBEC--(CCNMatthews - Nov. 16, 2006) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces that it has entered into a letter of engagement with Desjardins Securities Inc. ("Desjardins"), pursuant to which Desjardins will act as financial advisor to Golden Valley in connection with the issuance of up to 3,100,000 common shares of Golden Valley on a "flow-through" basis (the "Flow Through Shares") at a price of $0.33 per Flow Through Share for gross proceeds of up to $1,023,000.

Desjardins will receive a commission of 6% of the gross proceeds of the offering. Golden Valley plans to use the proceeds raised from this offering to continue exploration and development on Golden Valley's James Bay, Abitibi and other grass-roots properties in Quebec.

The private placement is subject to the receipt of all the required regulatory and board approvals. All the securities issued pursuant to the offering will be subject to a hold period of four months and one day from the date of closing.

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

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