Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

November 16, 2005 13:04 ET

Golden Valley Mines Ltd.: James Bay Field Program Update and Closing of James Bay Property Transaction

MONTREAL, QUEBEC--(CCNMatthews - Nov. 16, 2005) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces that it has been active in the James Bay region over the past several weeks, and has now completed the second phase of the 2005 field program on the Cheechoo Gold project. Field work consisted primarily of prospecting and geological mapping in proximity to Virginia Gold's Eleonore property. Priority electromagnetic (EM) anomalies, identified in the March 2005 Fugro DIGHEM airborne survey, were "ground truthed", and a number of mineralized outcrops were discovered near target anomalies and sampled. A total of 418 rock samples were collected over the 34 day field program, with assay results expected within the next month. The results of the 440 lake-sediment samples collected earlier in the summer field season are expected imminently.

Discovery of Mineralized Outcrops

Traditional "boot and hammer" prospecting and geological mapping was completed along north-south traverses generally at one-half to one kilometre intervals or across the trend of electromagnetic anomaly traces. Several areas of mineralized outcrop and/or boulders were discovered and found to be associated with, or located down-ice of, EM conductors respectively throughout the Cheechoo Block A and B, and Sharks properties. Field work activities outlined at least three potentially favourable gold mineralized corridors associated with sulphide mineralization, principally located along sheared and altered zones hosted by amphibolized basalt or metasediments proximal to intrusive diorite contacts.

Some initial prospecting was also completed over the Cheechoo C Block and Sharks East Extension claims. These areas will be the subject of further field exploration work in the summer of 2006.

Further details including maps of sample locations and EM-conductors, and additional geological information will be released and posted to www.goldenvalleymines.com/cheechoo over the next several weeks.

Description of the Cheechoo Gold Project Area

Golden Valley Mines further announces that all matters pertaining to the acquisition of an interest in eleven additional properties in the James Bay region previously announced on May 18, 2005 have been completed.

As consideration for the acquisition of the additional eleven properties covering 338 km2, Golden Valley paid to Canadian Royalties Inc. (TSX: CZZ): (i) 1,500,000 common shares of Sirios Resources Inc. (TSX-V: SOI); (ii) 1,500,000 warrants of Golden Valley exerciseable at a price of $0.35 for two years; (iii) reimbursement funds covering all costs incurred; and (iv) the reservation of a 1.5% NSR on 374 claims that were acquired directly by staking. The warrants are subject to a hold period of four months.

Golden Valley Mines is now one of the principal claim holders in the new discovery area of James Bay, now holding 1,017 claims covering 132,259 acres (535 km2) in the region. The Company holds contiguous claim blocks on both the west and east sides of Virginia's Eleonore property that hosts the Roberto Zone gold discoveries. For a map of the project area, refer to www.goldenvalleymines.com/cheechoo.

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

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