Golden Valley Mines : 2014 Exploration Update more...

152, chemin de la Mine École

Val-d'Or, Québec J9P 7B6

819.824.2808 (main)

819.824.3379 (fax)

info@goldenvalleymines.com

Val-d'Or, Québec - July 18, 2014 - Golden Valley Mines Ltd. ("Golden Valley" or the "Company"), (TSX-V: GZZ) is pleased to provide the following update on the Company and option-joint venture exploration programs and corporate activities.

Field exploration will resume in the 3rd quarter of 2014 on the Company's 100%-owned prospects located in the Abitibi Greenstone Belt region. During the course of the year in response to market conditions, the Company curtailed the majority of its field expenditures on its self- funded exploration activities and instead directed activity primarily on in-house project generation activities, property compilations and assessment report filing.
Exploration work will be focussed on preliminary fieldwork consisting of conventional "boot and hammer" prospecting and sampling over selective geophysical anomalies identified in the
2013 exploration program, where a total of four (4) grids were established (total of 81 line kilometres) and geophysical surveys (ground magnetic: 81 line kilometres and induced polarization: 63.5 line kilometres) completed on three (3) 100%-owned AGB properties (Arbade, Baden and Victoria Creek #1, #2 & #3 prospects), in addition to the Recession Larder Prospect (Integra Gold Corp AGB Joint Venture). The objective of this work is to identify priority targets for detailed follow-up geological-structural mapping, selective surface stripping, channel sampling, and if warranted, diamond drilling.
The Company's AGB Grassroots exploration project is principally directed towards identifying prospective targets for both precious (Au-Ag, PGE) and base-metals (Cu-Zn, Ni-Cu & Co), with the current focus on gold mineralization within the major mining camps of Kirkland Lake-Larder Lake, Matachewan and Val-d'Or.

Fieldwork for the first year exploration program is set to get underway as part of the initial work commitment of $250,000 of the option agreement. The property portfolio consists of a group of
12 properties located in Québec and Ontario (please refer to the Company's January 18, 2012 news release for details of the agreement and property descriptions).
Phase I of the 2014 first-year field program is budgeted at $125,000 and will be primarily focussed on preliminary fieldwork consisting of the establishment of grids over priority target areas (prospective geological and ore deposit model attributes and/or previously untested geophysical anomalies) to facilitate the completion of detailed ground geophysical surveys. The

1

objective of this work will be directed to upgrading and advancing each of the properties to a
"drill-ready" status.
Properties in this exploration program:

2.05 g/t Au over 0.49 metres and 15.85 g/t Au over 0.26 metres.

00072).

James Bay, Mid-North Québec

Pursuant to an amended and restated binding term sheet dated October 23, 2013, Sirios has provided the Company with notice (the "Option Notice") of its intent to acquire the remaining
55% interest in the Sharks and Cheechoo prospects (the "S&C Properties"), located in the James Bay area of northern Québec, from Golden Valley Mines. In accordance with the agreement Sirios has issued 2,898,374 common shares to Golden Valley Mines (the "Payment Shares"). In addition, within 3 years of the Option Notice Sirios will have to: (i) further complete approximately $4,000,000 in exploration expenditures; and (ii) pay $500,000 in cash or in shares

2

to the Company. The Company retains a royalty equal to 4% of the net returns from all mineral products mined or removed from the S&C Properties. Notwithstanding the foregoing, the royalty relevant to gold mineral products mined or removed from the S&C Properties (the "Gold Portion") may vary between 2.5% and 3.5% depending on the market price of gold at the time of the payment of the Gold Portion.
Sirios is the operator and the exploration expenditures incurred on the S&C Properties shall include an amount representing 10% of same in lieu of the payment of operator's fees in cash by the Company. Sirios must keep the S&C Properties in good standing during the Option period and for a period of at least one year from the lapse or termination of the Option.
On November 5, 2013, Sirios advised the Company of its intent to terminate the option on the
Sharks Prospect; the Company now retains a 100% interest in the property.
Sirios, as operator of the program on the Cheechoo Prospect, announced the start-up of a diamond drilling campaign via a news release dated June 4, 2014 and subsequently the drill results from two drill holes dated June 9, 2014 (for additional details with respect to the exploration and field work completed to date or to be completed on the project, as well as for the details on the expenditures made to date by Sirios on the property, please refer to Sirios' continuous disclosure documents available for viewing by the public through the internet at the SEDAR website (www.sedar.com) by accessing Sirios' issuer profile).
Mr. Glenn J. Mullan is the Qualified Person (as that term is defined in National Instrument 43-
101 - Standards of Disclosure for Mineral Projects) who has reviewed this news release and is responsible for the technical information reported herein.

Golden Valley has issued 33,019 common shares at a deemed per share price of $0.18 to SIDEX Limited Partnership in settlement of $5,983.56 of accrued interest to June 20, 2014, in accordance with the terms of the unsecured convertible debenture of the Company in the principal amount of $100,000, which was issued to SIDEX by Golden Valley as announced by prior news release dated December 20, 2013. The shares issued to SIDEX are subject to a hold period until November 17, 2014, in accordance with applicable securities legislation.

About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest therein and then seeks partners to continue exploration funding. This allows the Company to carry on its generative programs and systematic exploration efforts at other majority-owned grassroots projects. The Company (together with its various subsidiaries) holds multiple property interests in gold, base-metal and energy mineral projects in Canada (Québec, Ontario and Saskatchewan).

For additional information please contact: Glenn J. Mullan

Chairman, President, and CEO

Golden Valley Mines Ltd.

152, chemin de la Mine École
Val-d'Or, Québec J9P 7B6
Telephone: 819.824.2808 ext. 204
Email: glenn.mullan@goldenvalleymines.com

3

This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

4

distributed by