Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

December 08, 2006 15:04 ET

Golden Valley Mines Ltd.: Announces Flow-Through Private Placements of Up to $1,500,000

MONTREAL, QUEBEC--(CCNMatthews - Dec. 8, 2006) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces a flow-through private placement of up to 3,658,536 flow-through common shares of the Company at a price per flow-through common share of $0.41, resulting in gross proceeds of up to $1,500,000.

The offering will be made in reliance upon applicable exemptions from registration and prospectus requirements to purchasers residing in the provinces of Ontario and Quebec and shall include MineralFields Group ($500,000) and Blackmont Capital Inc. ($500,000) as placees. Other subscribers under the offering may include officers and directors of the Company. The closing of the offering shall occur on or before December 29, 2006 and is subject to the receipt by the Company of all the required regulatory approvals, including the approval of the TSX Venture Exchange. All the securities issued pursuant to the offering shall be subject to a hold period of four (4) months and one (1) day from the closing date of the offering.

Each of MineralFields' Agent and Blackmont Capital shall receive a 6% administration fee in respect of their proportionate subscription under the offering, which may be payable in cash or securities of the Company.

The funds raised pursuant to the private placement will be used by the Company to finance exploration and development activities in respect of its James Bay, Abitibi, and other grass roots properties located in Ontario and Quebec.

About MineralFields Group: MineralFields Group (a division of Pathway Asset Management) is a Toronto-based fund with significant assets under its administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar limited partnerships to investors throughout the world. Additional information about MineralFields is available at www.mineralfields.com.

About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest in its properties and then seeks partners to continue exploration funding. This allows the Company to continue its generative programs and systematic exploration efforts at other majority owned grass-roots projects. As at the date hereof, the Company holds majority property interests in 131 projects consisting of 3,666 mining titles (203,865 hectares) in Ontario, Quebec, and Saskatchewan.

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

Contact Information