Golden Valley Mines Ltd.: Drilling at West Shoot Out Extends Alpha Nickel-Copper-PGE Zone by 150 Metres.

VAL-D'OR, Quebec -- Golden Valley Mines Ltd. (TSX-V symbol:GZZ) and its option/joint venture partner Little Mountain Resources Ltd. (TSX-V symbol:LIT) announce final assay results from diamond drilling conducted at the West Shoot Out ("WSO") Project located in the Raglan South Trend area of Nunavik (Ungava), Quebec. Highlights from these results include the extension of the "Alpha Zone" by 150 meters with well-mineralized results from drill holes WSO-04-16 and 17. Drilling at Alpha "Deeps" (WSO-04-16) returned 1.61% nickel over 5.70 meters.

Exploration Overview

Following construction of a 16 person camp in the Kenty Lake area in July 2004, field work commenced with gridding (31 km), ground geophysical surveys consisting of magnetic (28 km), HLEM surveys (28 km), moving loop TDEM (16.6 km) together with additional field mapping and prospecting (68 grab samples). Two areas were subsequently tested by diamond drilling: the Alpha Zone with 705 meters of drilling and the India Zone with 1,784 meters of drilling.

Alpha Zone Results

On August 31, 2004, Golden Valley Mines announced that diamond drilling had intersected massive and disseminated nickel-copper sulphide mineralization extending over a core length of 12.25 meters (40.2 feet) in drill hole WSO-04-15 at the WSO-1 grid area (the "Alpha Zone"). This interval from 42.75 meters to 55 meters returned a length weighted average of 1.10% nickel, 0.74% copper, 0.79 g/t platinum and 2.54 g/t palladium, (3.33 g/t PGE) over the 12.25 meters. Within this broader interval, sections of massive, or predominately massive sulphide returned higher-grade Ni-Cu-PGE values including 0.36 meters from 51.19 meters to 51.55 meters assaying 3.45% Ni, 2.25% Cu, 0.28 g/t Pt, 9.54 g/t Pd (9.82 g/t PGE) and 0.9 meters from 53.3 meters to 54.2 meters assaying 4.33% Ni, .495% Cu, 0.07 g/t Pt, 1.98 g/t Pd (2.05 g/t PGE).

Historical work in this area in 1976 (#A-76-23) returned values up to 3.1% nickel, and 2.3% copper over 1.6 meters (PGE analyses were not determined), and resulted in follow-up programs largely concentrated to the west of the outcrop exposure.

On surface, the Alpha Zone is approximately 15 meters wide and has been traced east-west for 165 meters. The pyroxenite host is well mineralized with disseminated pyrrhotite and chalcopyrite forming a prominent gossan. Two grids were established with an original 10 kilometer grid (WSO-1) augmented with a second 11-kilometer grid (WSO-5) designed to cover the eastward extension of the host ultramafic rocks. Based on the mapping and geophysical results it was interpreted that the Alpha Zone mineralization is associated with an easterly plunging fold structure, and remains open to the east.

Six drill holes (WSO-04-12 through 17) totaling 705 meters were completed on the Alpha Zone to test the easterly plunge indicated in the geophysical surveys and mapping. The holes were planned along the longitudinal section rather than a cross-sectional pattern as completed historically (1976). All six-drill holes intersected the plunge structure, defining mineralization for approximately 150 meters in the down-plunge direction (see sketch). All six drill holes encountered disseminated sulphides, extending over widths of up to the 12.25 meters (40.2 feet) in #WSO-04-15 reported previously. Three of the five newly reported drill holes (WSO-04-12, 16 & 17) intersected local narrow massive sulphide mineralization with visible chalcopyrite, pyrrhotite, and pentlandite. Core widths of approximately 1 meter of massive sulphide were also encountered in drill holes #WSO-04-15 and 16, indicating a potential strike length of greater than 100 meters extending easterly from the intersection in historic diamond drill hole #A-76-23. Drill hole WSO-04-16 also intersected a new deeper, possibly down faulted interval of sulphides, now termed "Alpha Deeps". The new mineralized interval (two intervals of 0.5 and 0.6 meters of massive sulphide) does not appear to have been detected in the 2003 AeroTEM survey.

Table 3 - 2004 DDH Assay Intervals


WSO   Grid  From   To  Width  Ni   Cu   Co   Au   Pt   Pd   PGE
DDH          (m)   (m)  (m)   %    %    %    g/t  g/t  g/t  g/t
---------------------------------------------------------------
04-12 Alpha  6.0   23.0 17.0 0.50 0.38 0.02 0.03 0.22 0.83 1.08
incl. Alpha  15.0  23.0  8.0 0.64 0.51 0.02 0.04 0.29 1.00 1.33
incl. Alpha  15.0  19.0  4.0 0.86 0.54 0.03 0.04 0.41 1.55 2.00
04-13 Alpha  7.0   20.0 13.0 0.47 0.34 0.02 0.05 0.23 0.88 1.16
04-14 Alpha  40.0  50.0 10.0 0.56 0.43 0.02 0.06 0.18 0.86 1.10
incl. Alpha  40.0  47.0  7.0 0.62 0.44 0.02 0.07 0.23 0.99 1.29
04-15 Alpha 42.75 47.00 4.25 0.85 0.43 0.03 0.07 0.41 1.45 1.93
04-15 Alpha 47.00 51.19 4.19 0.88 0.44 0.03 0.04 1.67 4.07 5.78
04-15 Alpha 51.19 51.55 0.36 3.50 2.22 0.13 0.03 0.28 9.54 9.85
04-15 Alpha 51.55 55.00 3.45 1.58 0.56 0.07 0.08 0.23 1.53 1.83
04-16 Alpha 138.0 143.7  5.7 1.61 0.37 0.05 0.22 0.70 3.07 3.99
04-17 Alpha  53.0  64.0 11.0 0.64 0.44 0.03 0.03 0.18 0.80 1.01
incl. Alpha  61.9  64.0  2.1 1.16 0.51 0.07 0.03 0.20 1.03 1.26

Notes:

1.More information on these intervals, including hole collar locations, dip angles, and a plan map showing holes, can be found at www.goldenvalleymines.com/en/properties/raglansouth_shootout.asp;

2. WSO-04-15 assays previously reported on September 30, 2004;

3. PGE equals Pt + Pd + Au;

4. Nearly all assay intervals are interpreted to reflect at least 75% of the true width of the mineralized zone.

A geological sketch of the interpretive model can be found at the following address: http://www2.ccnmatthews.com/database/fax/2000/gz21208.jpg

India Zone Summary of Results

The India Zone (WSO-2 grid area) is situated approximately 3.2 km west of the Alpha Zone along what is interpreted to be a common ultramafic intrusive. The pyroxenite host measures 150 meters along its east-west axis and averages 10 meters wide on surface. Mineralization, ranging from trace to net-textured, consists of 2-25% pyrrhotite and chalcopyrite forming a prominent gossan. 2004 exploration at the India grid included diamond drilling (1,784-meters) on 3 sections along the strike of the showing. The first three sections intersected a steeply dipping ultramafic unit but did not intersect significant Ni-Cu sulphide mineralization. A final set-up behind the showing area intersected Ni-Cu sulphides with both of the final drill holes (#WSO-04-10 & 11). It now appears from surface mapping and diamond drilling conducted that the sulphides occur in a small embayment along the north contact of a larger ultramafic feature. Significant results (reported October 26, 2004) include 9.9-meters that assayed 1.09% Ni, 0.40% Cu (including 5.9-meters @ 1.47% Ni, 0.42% Cu).

The West Shoot Out Project and Goldbrook Ventures Inc. "Belanger" properties are contiguous, with the distance between the Alpha Zone and "Getty Zone" discovery (assays reported September 27, 2004 by Goldbrook Ventures Inc.) being approximately 20 km. At this early stage of exploration, it is difficult to establish the relationship, if any, between the mineralization reported from West Shoot Out Alpha and India Zones with the Belanger "Getty" and "Sylvia" occurrences, although regional magnetics suggest some link between the ultramafic host rocks at each discovery. See enhanced total field magnetic map at the following address: http://www2.ccnmatthews.com/database/fax/2000/gz11208.jpg

Joint Venture Updates

The 2005 program objectives include evaluation of new targets delineated from recent work conducted by the Company, and certain geophysical and geological targets proximate to historical work areas including the India and Alpha Zones. Significant diamond drilling is now planned for the Alpha, Alpha Deeps, India and other grid areas that remain untested. A supply of diesel and Jet B fuel is on-site in preparation for the 2005 program, and additional fuel preparations have been undertaken to ensure adequate supply for an expanded drill program.

Exploration work at the West Shoot Out Project 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 3 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.

Diamond drilling has now also been completed at the East Shoot Out Project. Prospecting, mapping, and geophysical surveys have been completed at eight grid areas. The East Shoot Out Project 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 3-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. A more complete report will follow upon completion of drill core and grab sample assaying, and review of geophysical surveys and prospecting 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. All assaying was completed by ALS  Chemex with sample preparation completed in Val d'Or, QC and analyses completed at ALS Chemex in Vancouver, BC. Base metal determined by sodium peroxide fusion with ICP-AES analysis. Platinum, palladium and gold values are determined by 30-gram fire assay with ICP AES finish. QA/QC program is administered and supervised by Canadian Royalties Inc. for the Company.

Corporate Mandate: Golden Valley plans to test, by diamond drilling, between one and two properties per month in the Abitibi Greenstone Belt while also conducting work on its additional property interests in Nunavik (Ungava and Labrador) regions of Northern Quebec, James Bay ("Cheechoo Project"), and recently acquired uranium properties in the Otish and Mistassini Basins of Quebec, and northern Saskatchewan.

Golden Valley is adequately funded for the continuance of its current programs.

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)