Golden Valley Mines Ltd. Closes Private Placement Financing in Sirios Resources Inc.

VAL D'OR, Quebec -- - Airborne Survey to Begin Next Week

- First-Year Program Expanded

Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces that it has closed a non-brokered private placement in Sirios Resources Inc. in the amount of C$157,500, pursuant to the terms of a letter agreement made December 3, 2004 between Golden Valley Mines and Sirios. At closing, Sirios Resources issued to Golden Valley Mines 1,500,000 units of Sirios Resources at a price of $0.105 per unit. Each unit consists of one common share of Sirios Resources and one full warrant, entitling Golden Valley Mines to acquire one additional common share of Sirios Resources at a price of $0.13 per share for a period of twelve (12) months after closing, and thereafter, at a price of $0.15 per share, expiring twenty four (24) months after closing.

The closing of the private placement was made in conjunction with the option and joint venture transaction announced by Golden Valley Mines on December 3, 2004. Pursuant to this transaction, Sirios Resources granted Golden Valley Mines an option to earn up to an 80% interest in three properties (Blocks A, B, and C) comprised of 306 mining claims (the "Cheechoo" prospect) covering approximately 16,000 hectares (40,000 acres) in the James Bay area of Quebec. In accordance with the transaction, Golden Valley Mines agreed to complete the private placement, incur $1,000,000 in exploration expenditures over four (4) years (to earn 60%) and deliver a bankable feasibility study in order to acquire the full 80% interest.

Interest in the area was precipitated by a series of drill hole results reported by Virginia Gold Mines Inc. in press releases since September 15, 2004. Virginia Gold Mines has reported multiple high-grade drill intersections greater than 10 g/t gold over widths ranging from 3.3 to 16 metres true width across more than 250 metres of strike length and to a depth exceeding 225 metres. Virginia has reported that the zones appear open in multiple dimensions. Thirty-five (35) of the claims comprising Cheechoo are located approximately 15 kilometres south west of Virginia Gold's new discovery in the area (the Roberto zone (NTS 33C09)) The remaining 271 claims are located approximately 10 kilometres east of, and contiguous to, Virginia Gold Mines main Eleonore property (NTS 33B12).

The east block of Cheechoo covers approximately 40 kilometres of strike length in a west-southwest east-northeast magnetic trend, and includes portions of several broad arsenic geochemical anomalies derived from lake bottom sediments collected by the Ministere des Ressources Naturelles, Faune et Parcs du Quebec (MRNFPQ). Airborne geophysical signatures and regional 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 new Virginia Gold Mines "Roberto and Roberto East" discoveries. The west block covers a separate arsenic anomaly and several other linear geophysical features. Other than the reconnaissance geochemical sampling work performed by the MRNFPQ and the regional airborne geophysical surveys there is no previous work reported as being undertaken on the Property.

Contracts for an airborne survey have now been signed. Air Wemindji has pre-positioned fuel at caches established in the survey area. Other logistical preparations have been completed with the survey expected to begin next week. An aggressive prospecting program is planned for all three (3) properties (Blocks A, B, & C) in 2005, and planning of a follow-up ground program will commence upon receipt of the airborne survey results. The program is expected to exceed the first-year commitment envisaged in the option/joint venture agreement.

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.

Golden Valley Mines Ltd. (TSX VENTURE:GZZ)