Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

September 11, 2008 08:00 ET

WSR Gold Inc. and Noront Resources Ltd. Announce Definitive Options From Golden Valley Mines Ltd. to Each Acquire Up to 35% Interest...

...in the Golden Valley "Luc Bourdon" Property Located in the Lowland Region of James Bay, Ontario

VAL-D'OR, QUEBEC--(Marketwire - Sept. 11, 2008) - Golden Valley Mines Ltd. ("Golden Valley Mines" or the "Company") (TSX VENTURE:GZZ) is pleased to announce the signing of a definitive agreement among WSR Gold Inc., Noront Resources Ltd. ("Noront") and the Company, providing WSR and Noront the option to acquire, from Golden Valley, an aggregate 70% legal and beneficial interest (the "Option") in the Golden Valley property located in the lowlands region (McFauld's Lake Area) of James Bay, Ontario (the "Property").

In order for WSR to acquire its 35% interest in the Property, WSR will be required to make payments to Golden Valley totaling $175,000 (or $350,000 in the aggregate with the payments from Noront), to be satisfied by the payment by each of WSR and Noront of $25,000 in cash, and by the issuance of 340,909 common shares of WSR, and 56,174 common shares of Noront. 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 must be expended in the first year).

Upon WSR and Noront earning their collective 70% interest in the Property, WSR, Noront and Golden Valley shall enter into a joint venture agreement. The Joint Venture Agreement will require WSR and Noront to fund all project costs up to the start of commercial production from the Property. Following the commencement of commercial production, any cash flow after payment of operating expenses and third party financing costs will be distributed to Noront and WSR until such time as the aggregate of their project costs, including interest, up to the commencement of commercial production have been repaid, following which such cash flow shall be distributed to the parties on a pro rata basis.

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

Board of Directors: Given Mr. Pierre Corbeil's new contract appointment to a Quebec governmental entity, Mr. Corbeil has resigned as a director of the Company. The Company takes this opportunity to thank Mr. Corbeil for his dedication and contributions as both a member of the board as well as a member of the Company's Audit and E3 (Environmental Excellence in Exploration) committees, since his appointment in June 2007. The Company wishes him continued success in his future endeavours.

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 September 11 2008, the Company holds majority property interests in 139 projects consisting of 4,537 mining titles (261,678 hectares) in Quebec, Ontario and Saskatchewan.

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, except as required by law. Accordingly, readers should not place undue reliance on such forward-looking statements.

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

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