Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

July 15, 2005 16:45 ET

Golden Valley Mines: Option Grant

VAL-D'OR, QUEBEC--(CCNMatthews - July 15, 2005) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces that, subject to the receipt of regulatory approval, the Corporation has granted 320,000 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 exercisable at a price of $0.30 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 50,000 of the options, and a further 270,000 have been allocated to officers and 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. In accordance with the terms and conditions of Mr. Loeber's Consulting Agreement, as amended, 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.

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

Glenn J. Mullan, P. Geo. and President of Golden Valley Mines Ltd. is the designated Qualified Person responsible for the exploration programs on the properties and the person responsible for the preparation of this release.

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

Contact Information

  • Golden Valley Mines Ltd.
    Glenn J. Mullan
    (819) 824.1030
    Golden Valley Mines Ltd.
    R. Bruce Durham
    Vice-President, Exploration
    (514) 879-1688