ValGold Resources Ltd.
TSX VENTURE : VAL

ValGold Resources Ltd.

September 14, 2010 09:00 ET

ValGold Update on the Garrison Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2010) - ValGold Resources Ltd. ("ValGold" or the "Company") (TSX VENTURE:VAL) is pleased to advise that Northern Gold Mining Inc. (TSX-V: NGM) ("Northern Gold") has fulfilled its first year obligations under its Option Agreement on ValGold's 100%-owned Garrison Gold Property. In accordance with the Option Agreement Northern Gold delivered a report to the Company on September 1, 2010 documenting completion of its first year exploration commitment with expenditure in excess of the $500,000 minimum obligation. Northern Gold also made the cash payment of $200,000 required on the first anniversary of the signing of the Option Agreement. The Northern Gold report summarized details of the exploration work as at July 31, 2010 and of its expenditures of $1,092,816 (unaudited) as at June 30, 2010.

The Option Agreement

Under the terms of the Option Agreement, Northern Gold may acquire an initial 50 percent undivided interest in the Garrison Gold Property by making cash payments to ValGold of $1,000,000 over four years, with all or part of the payments being made in Northern Gold stock at Northern Gold's option, using a 20-day value weighted average price subject to regulatory approval. Northern Gold must also complete work on the property in the amount of $4,000,000 over four years, with $500,000 being spent on the property in the first year of the agreement and not less than $750,000 to be expended in each of the subsequent years. 

After earning the initial 50 percent interest, Northern Gold may increase its interest to 80 percent by making additional cash payments to ValGold of $1,000,000 over four years with all or part of the payments being made in Northern Gold stock equivalent, priced using a 20-day value weighted average price. Northern Gold must also complete additional work on the property in the amount of $4,000,000 over four years.

To date, ValGold has received the first two of the five option payments. The first $200,000 payment was made through the issuance of 2.2 million Northern Gold shares and the second payment was paid in cash. As reported on above, Northern Gold has expended approximately $1.1 million of the $4.0 million required to earn its initial 50% interest.

Garrison Project Outlook

The Garrison Gold Property is located along Highway 101 in Ontario, some 30 km west of the Quebec border and contains three gold mineralized areas that have been drilled by previous operators, including ValGold. The Garrcon Project and the Jonpol Project are both advanced stage exploration projects and the third is known as the 903 area.

In its September 13th news release Northern Gold reported that it has focused on diamond drilling on the Garrcon Project. In addition, A.C.A. Howe International Limited has been retained to complete a NI 43-101 Technical Report on the Garrcon Project. This report is planned to contain a compliant resource calculation based on the drill holes completed by ValGold and other previous operators plus the 11 drill holes completed by Northern Gold. This report is expected in September 2010.

Northern Gold further reported that subject to finance the 2010 total expenditures on the Garrison gold Property would be $3 million.

For more information on ValGold and its portfolio of international projects, visit our website at www.valgold.com.

Stephen J. Wilkinson, President & Chief Executive Officer

SEC 12g3-2(b) exemption 82-3339

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied in the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic condition or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned to not place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

No regulatory authority has approved or disapproved the information contained in this news release.

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