Golden Valley Mines Provides Update on Its 56%-Owned Subsidiary Abitibi Royalties Inc.

VAL-D'OR, QUÉBEC--(Marketwired - Feb. 23, 2015) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Golden Valley Mines Ltd. ("Golden Valley" or the "Company"), (TSX VENTURE:GZZ) is pleased to announce that its majority owned subsidiary, Abitibi Royalties Inc. ("Abitibi Royalties"), has entered into a binding letter of intent dated February 23, 2015 (the "LOI") with Canadian Malartic GP, Yamana Gold Inc. (TSX:YRI)(NYSE:AUY) ("Yamana") and Agnico Eagle Mines Limited (TSX:AEM)(NYSE:AEM) ("Agnico Eagle") with regards to the Malartic CHL project (the "Project"). The LOI provides that Abitibi Royalties will sell its 30% free carried interest in the Project in exchange for shares of Yamana and Agnico Eagle and a 3% royalty from net smelter returns on the Project.

The transaction is subject to approval by a majority of Abitibi Royalties' shareholders by written consent in accordance with the policies of the TSX Venture Exchange and other customary conditions. The TSX Venture Exchange has advised that Golden Valley can satisfy this requirement by providing its consent, which it has done, and accordingly no further shareholder approval is required for this transaction.

Further details of the transaction are included in a news release dated February 23, 2015 issued by Abitibi Royalties which is available for viewing on SEDAR under its issuer profile at www.sedar.com.

Golden Valley's Board of Directors continues to assess various opportunities consistent with its Strategic Plan, all with a view to optimizing shareholder value.

"When we first staked the Malartic CHL Project in 2006, as part of our Abitibi Greenstone Belt exploration program, I knew this would be a very important local strategic asset for Golden Valley and its shareholders. The transaction that Abitibi Royalties announced today, provides us with an opportunity to explore new projects and opportunities at Golden Valley and over the next several weeks, management and the Board will be looking carefully at how we can maximize value for all of our shareholders," stated Glenn J. Mullan, President.

Forward Looking Statements:

This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither the 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 news release.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.