Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

March 06, 2007 15:20 ET

Golden Valley Mines Ltd.: Private Placement with BearBeech Capital Partners Corp.

MONTREAL, QUEBEC--(CCNMatthews - March 6, 2007) - Golden Valley Mines Ltd. (the "Company") (TSX VENTURE:GZZ) announces that it has entered into a letter of engagement with BearBeech Capital Partners Corp. as Agent in respect of a private placement offering of up to 3,636,363 Units at a price of $0.55 per Unit, resulting in gross proceeds of $2,000,000. Each Unit shall be comprised of one common share of the Company and one-half of a purchase warrant, whereby each full warrant shall entitle the holder to acquire one additional common share of the Company at a price of $0.70 for two years.

The offering will be made to purchasers residing in the Provinces of British Columbia, Alberta, Ontario, and Quebec, in reliance upon applicable exemptions from registration and prospectus requirements. The closing of the private placement is expected to occur on or before March 21, 2007, and is subject to the receipt 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 months from the date of closing.

The Agent will be paid a commission equal to 8% of the gross proceeds raised, in addition to receiving an option to acquire a number of Units equal to 10% of the total number of Units sold, exercisable upon the same terms and conditions described above.

The funds raised pursuant to the private placement will be used by the Company to accelerate exploration, and for general corporate purposes.

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 (203,805 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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