Golden Valley Mines Acquires Dominant Land Position In Virginia Gold Mines; Eleonore Gold Discovery Play.

VAL-D'OR, Quebec -- Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces a significant expansion to its "Cheechoo" property holdings in the immediate vicinity of Virginia Gold Mines' Eleonore gold discovery, and further announces that it has commenced exploration activities in the region. Golden Valley Mines has acquired eleven additional properties, covering 338 km2 in the "James Bay" project area, from Canadian Royalties Inc. (TSX: CZZ) in a transfer and royalty agreement detailed below.

Golden Valley Mines has become one of the principal claim holders in the Eleonore gold discovery area, now holding mineral interests covering 500 km2 (124,000 acres) on its James Bay project, which is almost the same size as that held by Virginia Gold Mines (521 km2) in the same area. Golden Valley Mines holds contiguous claim blocks on both the east and west sides of Virginia's Eleonore property that hosts the Roberto discoveries. Refer to the project map on the Golden Valley Mines website, www.goldenvalleymines.com/cheechoo.

The Eleonore gold discovery highlights the geological potential of Quebec's "Mid-North" area near James Bay. Virginia Gold Mines (TSX: VIA) has reported a multitude of high-grade drill intersections of greater than 10 g/t gold over significant widths (3.3 to 16 metres true width) across more than 1.2 kilometres of strike length and to a depth of up to 400 metres (source: www.virginia.qc.ca). Virginia has also reported that the zones appear open in multiple dimensions, and that they will continue to explore the mineralized zones with an aggressive drilling program.

Golden Valley Mines is now the holder of one of the most significant property portfolios in the region based both on size and proximity to the Virginia discoveries. Since the beginning of the year, airborne geophysical surveys have been completed on both the Sharks and Cheechoo properties. Golden Valley Mines has received the final report for the Cheechoo property, with final data from the Sharks property expected shortly. In-house interpretative work has identified a number of favourable geological-geophysical targets warranting ground follow-up located both east and west of the main Virginia property.

Planning of a summer 2005 field program is underway. It is anticipated that a preliminary diamond drill program will be initiated later this year following initial ground based field work. The scope and timing of the pending drill program will be determined following a detailed review of airborne data and the assessment of initial field results. With extensive hydroelectric development in the region, the project will take advantage of local infrastructure that offers year around road access, as well as electricity, accommodations and air access.

Project Overview

The east block of Cheechoo and the Sharks property covers approximately 40 kilometres of strike length in a west-southwest east-northeast magnetic trend, and includes portions of several broad geochemical indicator anomalies derived from lake bottom sediments collected by the Ministere des Ressources Naturelles, Faune et Parcs du Quebec (MRNFPQ). Historic regional airborne geophysical signatures and geological mapping appear to indicate that the groups are located along the flanks of felsic intrusive features and underlain by the same favourable metasediments described as the host rocks at the Virginia Gold Mines Roberto discoveries. The west block covers a separate geochemical anomaly and several other northwest to southeast striking linear geophysical features. Other than the reconnaissance geochemical sampling work performed by the MRNFPQ, and the historical regional airborne geophysical surveys, there is no previous work reported as being undertaken on either the Cheechoo or Sharks properties.

The Sharks Property Acquisition

Golden Valley Mines has entered into an agreement (the "Acquisition Agreement") with Canadian Royalties Inc. whereby Canadian Royalties shall transfer and convey to Golden Valley all of its entitlements and obligations in and to the mining option agreement (the "Sharks Agreement") between Sirios Resources Inc. ("Sirios") and Canadian Royalties. This transaction gives Golden Valley the right to acquire up to an 85% interest in the 271-claim (14,100-hectare) "Sharks" property upon satisfaction of the terms in the Sharks Agreement, which are to: i) incur $1,000,000 in exploration expenditures incrementally over four (4) years (to earn 60%); ii) to deliver a bankable feasibility study on the Sharks property (to earn an additional 20%); and iii) if Sirios elects, to arrange project funding (to earn the final 5% interest, resulting in an aggregate 85% interest).

The Acquisition Agreement further provides that Golden Valley will acquire a 100% interest in and to the 374 mineral claims (19,700-Ha) that are held solely by Canadian Royalties (the "CZZ Properties"), located in the James Bay area of Quebec, subject to the reservation in favour of Canadian Royalties of a 1.5% net smelter return royalty.

The consideration payable by Golden Valley to Canadian Royalties for the acquisition of the James Bay property interests referred to above include: i) the transfer of 1,500,000 common shares of Sirios, that are currently held by Golden Valley, to Canadian Royalties; ii) the issuance to Canadian Royalties of 1,500,000 purchase warrants of Golden Valley, entitling Canadian Royalties to acquire up to 1,500,000 common shares of Golden Valley at a price of $0.35 per share for a period of two years; and iii) reserving in favour of Canadian Royalties, a 1.5% net smelter royalty return on the CZZ Properties.

The Acquisition Agreement further provides for the reimbursement in full by Golden Valley to Canadian Royalties for: i) all funds previously paid by same representing staking fees pursuant to the Sharks Agreement and in respect of the CZZ Properties; and ii) of all the exploration expenditures to date incurred by Canadian Royalties pursuant to the Sharks Agreement.

The Acquisition Agreement has been approved by the independent directors of Golden Valley, but remain subject to any and all necessary approvals and acceptances as required by the policies of the TSX Venture Exchange and all other securities regulatory authorities having jurisdiction over the Corporation's securities.

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Golden Valley is continuing its exploration drill programs in the Abitibi Greenstone Belt and is now mobilizing a diamond drill rig near Duparquet, Quebec.

Golden Valley Mines will conduct a web cast and teleconference in conjunction with today's release, beginning at 3:00 pm EST today, Wednesday, May 18, 2005. Members of the news media, investors and the general public are invited to access the live web cast of the conference call via Golden Valley Mines' website at http://www.goldenvalleymines.com or through http://www.vcall.com/cepage.asp?id=92151. The phone number for the conference call is [phone] (toll free) or [phone] (international). The event will be archived and available for replay via our website at www.goldenvalleymines.com.

GOLDEN VALLEY MINES LTD.
152, Chemin de la Mine Ecole
Val-d'Or, Quebec J9P 7B6
819.824.1030 (main)
819.824.1003 (fax)
[e-mail]

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

GOLDEN VALLEY MINES LTD. (TSX VENTURE:GZZ)