Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

August 18, 2009 09:37 ET

Golden Valley Mines Ltd.: Mineral Applications Recommended for Approval, Gold and Diamond Prospects in the Republic of Sierra Leone

VAL-D'OR, QUEBEC--(Marketwire - Aug. 18, 2009) - Golden Valley Mines Ltd. ("Golden Valley Mines" or the "Company")(TSX VENTURE:GZZ) is pleased to announce that it has been informed by the Ministry of Mineral Resources of the Mines Division of Sierra Leone that the first of its Exclusive Prospecting Licenses ("EPL") have been recommended for approval. These two properties, encompassing approximately 710 sq-km are located in two geographic areas referred to respectively as the Sula Mountains and the Sewa & Bafi River Area, Kono District.

Sula Mountains Property (Gold Prospect): This property consists of two EPL's, collectively covering approximately 450-sq/km. The property extends along over 50-km of favourable stratigraphy, encompassing portions of a Pre-Cambrian greenstone belt and well-documented from historic work and mapping by government agencies. At least five gold showings are indicated as falling within the "EPL" boundaries. The properties are road accessible and are located approximately 30-km east of Makeni, or 20-km east of Magburaka.

Sewa & Bafi River Area Property - Kono District (Diamond Prospect): This property consists of a single EPL, of approximately 260-sq/km, located immediately west of the Nimini Hills. It is directly accessible by roads, located approximately midway between the villages of Tungie and Sefadu, within the Chiefdoms of Nimiyama, Gorama Kono and Nimikoro in the Kono District and the Gorama Mende Chiefdom in the Kenema District. Multiple occurrences of diamonds are documented throughout the area; with at least two reported within the EPL boundaries. There are also indications of two nickel occurrences adjacent to the Nimini Greenstone belt. Diamond mining continues to be the principal economic activity in this area.

Initial work on the properties will consist of a detailed compilation of historical work including a preliminary assessment of the reported known mineral occurrences (gold, diamond, nickel, iron, titanium). Airborne geophysical (magnetic, electromagnetic and radiometric) surveys will also be tendered as part of a first phase exploration program. Follow-up work is expected to consist of "boot & hammer" prospecting to assess the reported occurrences and areas identified by the geophysical surveys.

Title of the properties will be held by the Company's subsidiary Calone Mining Company (S.L.) Ltd. ("Calone"). The objective behind the formation of Calone is to pursue mineral and other business opportunities in Sierra Leone.

Next Steps: The Company is waiting for confirmation of several additional EPL's and will continue to monitor progress of these applications. The Company is now in the process of seeking bid tenders for airborne geophysical surveys and expects to initiate "boot & hammer" prospecting on the EPL's to verify numerous historic reported occurrences of gold, nickel and diamonds. Compilation reports are also being prepared for each of the properties to assess historic exploration activity and the multiple reported mineral occurrences, as well as to confirm the geological setting for which the properties were staked.

E3-Plus/Corporate Social Responsibility: Calone and the parent public Corporation, Golden Valley Mines, each embrace the spirit of the principals of "E3-PLUS", a framework for responsible exploration" as prepared by the Prospectors and Developers Association of Canada (PDAC). Dr. Porter, recently elected to the Board of Golden Valley Mines has been named Chair of the Company's E3/Corporate Social Responsibility Committee ("E3/CSR"), assisted by Messrs. Joe Groia, Glenn Mullan and Dr. Jens Zinke. The E3/CSR Committee is mandated to implement and ensure compliance with general policies regarding exploration and development activities, community engagement and environmental practices.

The Corporation commits to responsible development, ensuring all of its exploration, development and corporate operations and activities are conducted in a manner to minimize the environmental impact and conducted according to industry "best practices". The E3-Plus and corporate social responsibility policies and procedures will apply to on-site exploration and development activities and has been broadened from applying exclusively to the Company's personnel (employees, management, and the Board of Directors) but also to service providers, contractors and consultants engaged by the Company. These policies include the following themes:

- adopt responsible governance and management;

- apply ethical business practices;

- respect human rights;

- commit to project due diligence and risk assessment;

- engage host communities and other affected and interested parties;

- contribute to community development and social well-being

- protect and respect the environment; and

- safeguard the health and safety of workers and the local population.

About the Geological Potential in the Republic of Sierra Leone: Sierra Leone is a coastal country located in West Africa bordered to the north by Guinea and south by Liberia. Its land mass is approximately the same size as the Canadian province of New Brunswick. The population currently totals some 6,100,000. The country has been gradually rebuilding following civil strife spanning 1991-2002 and has enjoyed strong international support and participation in health assistance and infrastructure rebuilding. The mining industry has previously contributed more than 70% of the country's foreign exchange earnings and generated historically 15-20% of its GDP. The mining industry employed over 250,000 Sierra Leoneans at its peak prior to the 1990's. As the mining industry participates in the rebuilding, these participations may increase with consequent production increases related to improving infrastructure.

Sierra Leone is located in the central portion of the Archean, West African Craton, disrupted by the opening of the Atlantic Ocean, whose Western counterpart forms the Guyana Shield along the northern coastline of South America (extending from Columbia, and Venezuela to Brazil). Several Pre-Cambrian greenstone belts are well documented from previous work within Sierra Leone. Exploration dedicated to "lode" precious metals (Au-Ag) targets is modest by North American or Western European standards, although numerous indications have been located by the Sierra Leone Geological Survey and its successors. Additionally, alluvial mining has recovered more than 340,000 oz from streams cross-cutting the prospective greenstone belts.

Sierra Leone is perhaps best known for its diamond mining history and potential. One of the three largest diamonds ever recovered (the Star of Sierra Leone, at 969.8 carats) was discovered in a prolific area located in the eastern portion of the country. Multiple large gem quality diamonds exceeding 100-carats have been reported. Diamond production was disrupted, and exploration investment significantly reduced, as a consequence of the civil disruption (1991-2002) and is only now returning to pre-conflict levels.

About the Sierra Leonean Exploration Opportunity: The Company representatives visited the Republic of Sierra Leone in April and July, 2009 at the invitation of Mr. Vincent Kanu, and proceeded to complete property and geological reconnaissance, including visits to the two EPL's referred to above.

It should be noted that this new initiative is complementary to existing Canadian exploration efforts which will continue as disclosed, and according to the Company's original business plan. It is also the Company's intention to pursue its core CSR values in Sierra Leone.

About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest 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 grassroots projects. As of August 18th, 2009, the Company holds majority property interests in 141 projects consisting of 4,228 mining titles (246,640 hectares) in Quebec, Ontario, and Saskatchewan in Canada, and approximately 710 sq-km in the Republic of Sierra Leone.

Forward-Looking Statement: This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict and are not to be interpreted as guarantees for future performance. These forward-looking statements could cause actual events or results to differ materially from those anticipated in such forward-looking statements. All forward-looking statements speak only as of the date of this news release and the Company does not undertake any obligation to update or publicly release any revisions to such forward-looking statements to reflect events, circumstances, or changes in expectations after the date hereof, except as required by law. Accordingly, readers should not place undue reliance on such forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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