Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

December 15, 2006 15:49 ET

Golden Valley Mines Ltd.: Flow-Through Private Placement Financings Increased to $1,550,000

MONTREAL, QUEBEC--(CCNMatthews - Dec. 15, 2006) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces that the flow-through private placement offering initially announced on December 8, 2006 will be increased to up to 1,550,000$. Pursuant to the offering, the Company shall now issue up to 3,780,487 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 $1,550,000.

The offering is non-brokered and will now be made in reliance upon applicable exemptions from registration and prospectus requirements to purchasers residing in the provinces of British Columbia, Quebec, and Ontario, which may include officers and directors of the Company. Placees under the revised offering will include, among others, MineralFields Group., Societe en commandite CGE Resources, and an investment fund. 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.

Where applicable, an administration fee or finders fee equal to 6% of the proportionate proceeds raised shall be payable to arms' length parties in cash. Separately, CGE's Agent shall receive an administrative fee equal to 3% of its proportionate subscription under the offering plus a fixed fee of $2000 (plus applicable taxes).

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 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.

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