GOLDEN VALLEY MINES LIMITED Golden Valley Mines Ltd ("GVM") is...

GOLDEN VALLEY MINES LIMITED

Golden Valley Mines Ltd ("GVM") is pleased to announce the following
results from its recent exploration efforts at Eastmans Bore in the
East Kimberley:

HIGHLIGHTS

* Recent exploration results at the Eastmans Bore project have
highlighted the potential for a large PGM resource that is
potentially amenable to open pit mining

* Soil sampling has outlined three parallel zones of strongly
anomalous platinum, palladium and gold that extend over a strike
length of 6km.

* Rock chip sampling over a 6km strike length has returned multiple
grades of 1.0 to 7.5 g/t PGMs hosted by chromitite (up to 7.5g/t)
and variably sheared ultramafic rocks (up to 2.1g/t).

* Detailed mapping, rock chip sampling and trench results from the
Louisa prospect (strike length of 700m) have outlined three parallel
zones of plus 1g/t PGM (up to 6.3g/t) mineralisation. These zones
are all open along strike, and trend into recently defined soil
anomalies of similar or greater magnitude than the Louisa prospect.

* Close-spaced trenching of the northern zone at the Louisa prospect
has established continuous mineralisation over a 540m strike length.
Nine trenches returned a best.interval of 5m grading 3.26g/t
PGM+gold, with the 540m zone averaging 2.5g/t PGM+gold over a width
2.5m. Significantly, eight of the nine trenches terminated in
mineralisation grading 1.0-4.5 g/t PGMs, suggesting that the
trenches did not expose the full width of PGM mineralisation.

* Drilling conducted, although very limited, has been successful and
indicates that surface enrichment is not an issue. The two effective
diamond holes at the Louisa prospect targeted two separate areas of
mineralisation within the southern zone, and was conducted prior to
detailed mapping and trenching. The first hole intersected 1.3m @
1.7g/t Pt+Pd, prior to being stoped out by a late intrusive 33m
below a surface trench grading 3.6m @ 0.9g/t PGM (including 0.9 @
1.2g/t PGM). The second hole intersected 0.5m @ 2.0g/t Pt+Pd, 17m
below an isolated rock chip sample grading 1.8g/t Pt+Pd+Au.

* PGM mineralisation is hosted by both massive chromitite and
variably sheared ultramafic rocks, often with no relationship with
contained chromium. The likely implications for any future mining,
based on results from trenching, are better continuity, wider ore
zones and PGM credits in any mine dilution. Some of the
ultramafic-hosted mineralisation is shear-related, an aspect that
can potentially "create" mineralisation as well as offset it.

* The western 4km of the intrusion remains untested.

For further details please see the attached project summary by Mr Tom
Sanders, Executive Director (Exploration)

Blair Sergeant
COMPANY SECRETARY

EASTMAN PROJECT SUMMARY (PGM)

INTRODUCTION/BACKGROUND

The Eastmans Bore project is 100%-owned by GVM through its wholly
owned subsidiary, Navigator Resources Limited. The current (227 km 2)
ground position consolidates the Eastmans Bore layered intrusion
into one holding for the first time in 27 years.

Platinum group metals at Eastmans Bore are hosted by the Eastmans
Bore layered intrusion, which has surface dimensions of 10kms x
1-2kms. The intrusion is unconformably overlain by younger
sedimentary rocks to the east and is truncated by granite to the
west. The western 4km of the intrusion, which has been traced under
thin black soil cover using ground magnetics and one costean, is
essentially unexplored.

Recent exploration results and developments give GVM Directors
confidence that a bulk tonnage, medium grade resource is realistic
based on the current data. In particular:-

(i)Soil, rock chip and trenching results point towards continuity of
mineralisation at grades potentially amenable to open pit mining;

(ii) Plus 1g/t PGM grades are now known to occur in ultramafic rocks,
in addition to chromitite, often with no relationship with contained
chromium. The likely implications for any future mining, based on
results from trenching, are better continuity, wider ore zones and
PGM credits in any mine dilution;

(iii) Some of the ultramafic-hosted mineralisation is shear-related,
an aspect that can potentially "create" mineralisation as well as
offset it; and

(iv)Diamond drill results indicate that surface enrichment is not an
issue.

PREVIOUS WORK

PGM exploration at Eastmans Bore has been dormant for 12 years. Prior
to that, several explorers located high grade (1.0 to 7.5 g/t) PGMs
hosted by several seams of chromitite in the exposed 6km part of the
intrusion. Follow-up investigations however were variously limited by
a fragmented ground position; a perception that PGMs were restricted
to thin and discontinuous seams of chromite; or by presumed
discontinuity arising from structural complexity.

Previous soil sampling generated PGM anomalies that mirrored the
irregular shape of the tenement coverage at the time.

The only attempt to establish the continuity of PGM mineralisation
was made in a 700m x 500m, 1:1,000 scale mapped area termed the
Louisa prospect, located in the central part of the intrusion.
Close-spaced trenching of a northern zone of mineralisation
successfully established continuity over a 540m strike length,
however.results were not followed up. Two additional zones of
sheared, chromite-bearing ultramafic were mapped to the immediate
south, but were truncated by a tenement boundary at the time.

Nine, short (2 to 6m-long) trenches on the northern zone of
mineralisation returned a best interval of 5m grading 3.26g/t
PGM+gold, including 1m grading 6.2g/t. Each of the nine trenches
encountered PGMs above 1g/t with the 540m zone averaging 2.5g/t
PGM+gold over a width 2.45m. Significantly eight of the nine trenches
terminated in mineralisation grading 1.0-4.5 g/t PGMs, suggesting
that the trenches did not expose the full width of PGM. Trench
results produced elevated PGM values in massive chromitite and
variably sheared ultramafic host rocks, with only slightly higher
values in the chromitite.

Drilling of the intrusion is limited to four effective drill holes
and a fence of six shallow holes targeting base metal mineralisation
at the eastern extremity of the intrusion. This drilling indicates
that surface enrichment of PGMs is not an issue.

The two effective diamond holes at the Louisa prospect targeted two
separate zones of mineralisation within the southern zone, and was
conducted prior to the detailed mapping and trenching. The first hole
intersected 1.3m @ 1.7g/t Pt+Pd, 33m below a reconnaissance trench
grading 3.6m @ 0.9g/t PGM (including 0.9 @ 1.2g/t PGM), prior to
being stoped out by a late intrusive. The second hole intersected
0.5m @ 2.0g/t Pt+Pd, 17m below an isolated rock chip sample grading
1.8g/t Pt+Pd+Au. All other holes intersected anomalous PGMs wherever
ultramafic rocks were encountered.

RECENT WORK AND RESULTS

Following digital capture and analysis of all previous exploration
results, follow-up activity was directed specifically at assessing
the continuity of PGM mineralisation.

SOIL SAMPLING

Minus 80 mesh soil sampling was conducted to provide full coverage of
the outcropping basal portion of the Eastmans Bore intrusion, and to
establish whether fragmented PGM anomalies from previous surveys join
up. A 331 sample survey was done on a 20m sample spacing with a line
spacing of 200m or 400m. The western 4km part of the intrusion,
covered by thin transported black soil, was not surveyed.

.... more to follow . . .