Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

October 13, 2005 13:59 ET

Golden Valley Mines Ltd.: Private Placement with Quebec Based Investment Fund for Proceeds of CDN$200,000

VAL-D'OR, QUEBEC--(CCNMatthews - Oct. 13, 2005) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces that it has entered into a letter of engagement with a Quebec based investment fund (the "Fund") to complete a private placement offering of 666,667 Units at a price of $0.30 per Unit, resulting in gross proceeds of $200,000. Each Unit is comprised of one common share of the Corporation and one-half of one non-transferable share purchase warrant, entitling the holder thereof to acquire one additional common share of the Corporation at an exercise price of $0.35 per common share for a period of 12-months, and thereafter, at an exercise price of $0.40 per common share, expiring 24-months from the date of closing of the offering. An administration fee equal to 3% of the gross proceeds raised shall be paid by the Corporation to the Fund.

The closing of the offering is expected to occur on or before November 15th, 2005, or at such other date as may be agreed upon between the Corporation and the Fund. The offering is subject to the receipt of regulatory and board approvals. The securities issued at closing shall be subject to a hold period of four months and one day from the date of closing of the offering.

The Corporation intends to use the proceeds from the sale of the offered securities to fund its operations and exploration activities in respect of the Corporation's uranium properties located in the Otish and Mistassini basins of Quebec.

The Corporation is continuing with its prospecting program in James Bay, Quebec (on properties contiguous to the main Virginia Gold Eleonore property), and its ongoing program of drill-testing anomalous targets in the Abitibi Region of Quebec.

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

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