Golden Valley Mines Ltd.: Diamond Drilling Update at West Shoot Out Prospect-Nunavik -Ungava-, Drilling Underway at Alpha Showing.

VAL-D'OR, Quebec -- Golden Valley Mines Ltd. (TSX-V: GZZ) announces that diamond drilling is continuing on the West Shoot Out Prospect located in the Raglan area of Ungava, Quebec.

The diamond drill has now moved to the WSO-1 area (West Shoot Out, Alpha Zone, SO1 Grid Anglaumaque Explorations Inc.). Historical work in the area (1970's) returned values from diamond drilling including 3.1% nickel (Ni) and 2.3% copper (Cu) over 1.6 meters. The 1998-1999 grid area was relocated and sampled with 14 grab samples in 2003. The Alpha showing outcrops on surface, where it is approximately 15 meters wide and mineralized with disseminated chalcopyrite and pyrrhotite. The zone was traced for approximately 165 meters in an east-west direction. The highest assays returned from grab samples was 1.48% Ni, 0.78% Cu and 2.48 g/t combined Platinum, Palladium and Gold (PGE). Seven of the 14 grab samples returned anomalous PGE values ranging between 0.43 g/t PGE to 2.48 g/t PGE. Five grab samples returned anomalous nickel values ranging between 0.33% and 1.48%, and three samples returned anomalous copper values ranging between 0.32% and 0.93%. The AeroTEM airborne survey completed in 2003 identified an EM anomaly coincident with the ultramafic geology and surface mineralization. The airborne anomaly is identified on two flight lines (150 meters) and is proximate to a DeepEM anomaly from a survey completed in 1998. Approximately 1000 meters of diamond drilling is planned for this grid area.

A map of West Shoot Out Prospect is available on CCNMatthews' web site at the following address http://www2.ccnmatthews.com/database/fax/2000/GOLD0817.pdf

Geophysical surveys conducted this summer, including ground magnetic, HLEM and Moving Loop TDEM, helped to determine the plunge of the mineralized zone to the east and led to the interpretation that the most prospective area extending east of the outcrop may not have been tested previously.

Work completed over the past few weeks has consisted of diamond drilling (approximately 1600-meters) at the India Showing (WSO-2 grid area). Field work to date has tested an area extending approximately 185 meters east-west on surface, and where it is believed no previous drilling had been conducted.

Geological mapping, geophysical surveys (magnetic, Max-Min and Moving Loop TDEM), and prospecting are continuing at these and other grid areas within the West Shoot Out Prospect. The program objectives include evaluation of both virgin targets delineated from recent work conducted and on going by the Company, and certain geophysical and geological targets proximate to historical work areas.

Exploration work at the West Shoot Out Prospect is being financed through a joint venture with Little Mountain Resources Ltd. (TSX.V - LIT) who may earn a 50% interest by incurring expenditures of $2,000,000 over three years, issuing 500,000 shares of LIT (issued), and making cash payments of $100,000 ($70,000 paid). Golden Valley Mines Ltd. is operator of the program.

Final preparations including drill target selection are underway for an adjacent property, the East Shoot Out Prospect. It is anticipated that this program will immediately follow conclusion of the program at West Shoot Out Prospect. The East Shoot Out Prospect is an option/joint venture with Resolve Ventures Inc. (TSX.V - RVN) who may earn a 50% interest by incurring expenditures of $2,000,000 over three years, issuing 500,000 shares of RVN (issued), and making cash payments of $100,000 ($70,000 paid). Golden Valley Mines Ltd. is operator of the program.

For additional detail on the Shoot Out Prospects see news releases dated June 3, 2003; September 5, 2003; January 9, 2004; March 4, 2004; May 11, 2004, July 29, 2004; August 5, 2004.

Golden Valley plans to test, by diamond drilling, approximately two groups per month in the Abitibi Greenstone Belt while also conducting work on its additional property interests in the Nunavik (Ungava) and Labrador regions of Northern Quebec. The Corporation is adequately funded for the continuance of its current programs. Further updates will be forthcoming as drilling progresses, and upon receipt of assay and geophysical survey results.

Glenn J. Mullan, P. Geo. and President of Golden Valley Mines Ltd. is the designated Qualified Person responsible for the exploration programs on the properties and the person responsible for the preparation of this release.

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