Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

June 09, 2008 14:11 ET

Option/Joint Venture at McFauld's Lake, Ontario

- $350,000 Cash/Shares at Approval - $5,000,000 Work Commitment funded by WSR Gold and Noront - Golden Valley Mines carried to production (30%)

VAL-D'OR, QUEBEC--(Marketwire - June 9, 2008) - Golden Valley Mines Ltd. ("Golden Valley Mines" or the "Company") (TSX VENTURE:GZZ) is pleased to provide an update on the Luc Bourdon Prospect, located in the McFauld's Lake "Ring of Fire" area in northern Ontario, Canada. The Company has come to terms with WSR Gold Inc. (TSX-V: symbol WSR) and Noront Resources Ltd. (TSX-V: symbol NOT) for an option/joint venture on two of Company's five (100% owned) properties in the area.

Terms: Golden Valley Mines has granted an option to WSR Gold Inc. and Noront Resources Ltd. to acquire an aggregate 70% legal and beneficial interest (the "Option") in the Golden Valley Mines "Luc Bourdon Prospect" located in the James Bay lowland region, Ontario (the "Property").

Cash/Shares: In order to acquire its two 35% interests in the Property (70% total), WSR will be required to make cash/share payments to Golden Valley Mines totalling $175,000, or $350,000 in the aggregate with the payments from Noront, payable in cash and/or by the issuance of common shares of WSR and Noront, upon the later of the execution of a definitive option agreement, or the receipt of approval from the TSX Venture Exchange. The number of shares, if any, to be issued by WSR and Noront as consideration for the Option will be equal to the dollar amount of the total consideration that Golden Valley elects to receive in shares divided by the ten day volume weighted average price of such shares for the ten trading day period immediately preceding the date on which a press release is issued announcing a definitive option agreement amongst WSR, Noront and Golden Valley Mines.

Exploration Commitment: In addition to these payments, WSR and Noront will also be required to incur aggregate exploration expenditures on the Property of at least $5,000,000 over a three year period (of which $1,000,000 is a firm commitment and must be expended in the first year). It is anticipated that budget allocation will permit diamond drilling to begin in the latter part of the fall, following completion of airborne geophysical surveys. The airborne surveys are planned to commence over the next few weeks.

30% Carried Interest: Upon WSR and Noront earning their collective 70% interest in the Property, WSR, Noront and Golden Valley shall enter into a joint venture agreement ("JVA"). The JVA will require WSR and Noront to fund all project costs up to the start of commercial production from the Property, leaving Golden Valley Mines with a 30% carried interest.

Following the commencement of commercial production, any cash flow after payment of operating expenses and third party financing costs will be distributed to WSR and Noront until such time as the aggregate of their project capital costs (Capex), including interest, up to the commencement of commercial production have been repaid, following which such cash flow shall be distributed to the three parties (WSR Gold, Noront, Golden Valley Mines) on a pro rata basis.

The transaction remains subject to the approval of the TSX Venture Exchange and execution of the definitive option agreement.

The Properties: Golden Valley Mines has staked a total of 85 claims (1,231 claim units) covering 19,632 hectares or approximately 196 km2, in the area of Noront Resources Double Eagle nickel-copper-platinum group elements (Ni-Cu-PGE) discoveries in the McFauld's Lake area, James Bay Lowlands, Ontario more commonly referred to as the "Ring of Fire". The target selection process by Golden Valley Mines was based on the identification of similar geophysical responses within extensions of the favourable geological terrain associated with the Double Eagle discovery area, along strike to the northwest. The "Luc Bourdon Prospect" consists of two claim groups ("Luc Bourdon" and "Bourdon West") which surround the recently announced drill intersection of Volcanic Derived Sulphides (VDS) to the north, east and south of the property (see WSR Gold press release dated June 4, 2008).

The 100% owned "Henley Prospect" claim block is located along the same favourable geological and geophysical trend to the west-northwest of the "Luc Bourdon Prospect". A detailed airborne electromagnetic-magnetic survey (AEM) flown over the property (refer to the March 14, 2008 press release for details) outlined four (4) main electromagnetic conductor trends for immediate ground follow-up, including an association with positive magnetic features at places.

Two separate, 100% owned claim blocks ("OTB#1" and "OTB#2") were also acquired over strong positive magnetic anomalies similar in character and along a sub-parallel geophysical trend located approximately 24 and 34 kilometres northeast of the main McFauld's Lake "Ring of Fire" corridor.

Refer to the attached property maps attached to this press release.

Corporate Update: Shareholders, analysts, and investors are invited to attend the Annual General Meeting (AGM) of the Company, to be held in Val-d'Or, Quebec on June 26th, 2008 at 14:00. The meeting will be held at la Cite de l'Or, site of the former Lamaque Mine. RSVP to Christina Lalli at 514 879-1688 or shareholders meeting will be followed by a Corporate Presentation and will include and update of the Company's recent exploration activities in Saskatchewan, Ontario and Quebec.

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 June 9, 2008, Golden Valley Mines holds majority property interests in 136 projects consisting of 4,362 mining titles (255,577 hectares) in Saskatchewan, Ontario and Quebec.

Michael P. Rosatelli, P. Geo. is a "Qualified Person" as defined in National Instrument 43-101 and is responsible for the technical information presented in this news release.

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. Accordingly, readers should not place undue reliance on such forward-looking statements.

The maps are available at the following address:

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