Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

March 21, 2005 16:15 ET

Golden Valley Mines Ltd. Grants Incentive Stock Options




MARCH 21, 2005 - 16:15 ET

Golden Valley Mines Ltd. Grants Incentive Stock Options

VAL D'OR, QUEBEC--(CCNMatthews - March 21, 2005) - Golden Valley Mines
Ltd. (TSX-VENTURE:GZZ) announces that, subject to the receipt of
regulatory approval, it has granted 200,000 incentive stock options to a
consultant providing investor relations and to directors of the
Corporation. The options, which vest equally over the ensuing 18
months, are exerciseable at a price of $0.35 per share for a period of
five years from the date of grant. The common shares issuable upon
exercise of the incentive stock options will be subject to a 4-month
hold period from the date of grant.

Mr. Vance Loeber of North Vancouver B.C., who has been carrying out
investor relations services for and on behalf of the Corporation
(pursuant to a Consulting Agreement dated January 9th, 2004, as
amended), is entitled to 100,000 of the options, and a further 100,000
have been allocated to directors of the Corporation.

As a private investor relations consultant, Mr. Loeber has extensive
experience with respect to investor relations services specifically in
the mining sector, having worked with a number of junior mining
companies. He is an independent contractor to Golden Valley Mines Ltd.,
and there is no relationship of employment, partnership or joint venture
with the Corporation, other than as a consultant responsible for outside
investor relations activities. Mr. Loeber will continue provide general
investor relations services, and will be particularly instrumental in
increasing the Corporation's visibility in the European and Canadian
markets. Further to the terms and conditions of the Consulting Agreement
with Mr. Loeber, the Corporation may, at its discretion, terminate Mr.
Loeber's arrangement upon giving written notice. A per diem may be
payable as required during the term of the Agreement, which has recently
been extended for an additional 12 months.

The Corporation advises that trading volume and price parameters are not
intended to be affected by the foregoing incentive stock option grant.

Golden Valley Mines plans to test, by diamond drilling, approximately
two Abitibi properties per month while also conducting work on its
additional property interests in the Nunavik (Ungava and Labrador),
Otish and Mistassini regions of Northern Quebec, Northeastern Ontario
(Kirkland Lake-Matachewan-Timmins) and the Athabaska Basin,
Saskatchewan. The Company is adequately funded for the continuance of
it current programs. Further updates will be forthcoming as drilling
progresses, and upon receipt of assay and geophysical survey results.


Contact Information

    Golden Valley Mines Ltd.
    Glenn J. Mullan
    Chairman, President and CEO
    (866) 219-4678, ext. 222
    Golden Valley Mines Ltd.
    Jennifer L. Boy
    Executive Vice President
    (514) 879-1688, ext. 250
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.