Mr. Robert Hinchcliffe reports

GALWAY INTERSECTS 138 G/T AU OVER 1.1M, 44.7 G/T AU AND 1,120 G/T AG OVER 1.2M, 26.8 G/T AU OVER 1.9M, AND 7.5 G/T AU OVER 7.6 M AT VETAS

Galway Resources Ltd. has released assay results from an additional three diamond drill holes and the completion of results from two others at its Vetas gold project, host of the El Volcan gold mine, located eight kilometres southeast of the company's California gold project in northeastern Colombia. The multiple veins targeted in the current drill program have, in just six holes, returned 26 gold assays of five grams per tonne or more, 16 assays of 10 grams per tonne or more, 10 assays of 25 grams per tonne or more and five assays of 50 grams per tonne or more. The focus of Galway's initial exploration efforts at Vetas is to test for a continuation of mineralization below the existing 500-metre-by-300-metre El Volcan mine, which has been operating for over 400 years and is the largest gold mine in the California-Vetas-Surata gold districts.

"The early drill program at Vetas has been far more successful than originally contemplated. When Galway first looked at the resource potential of the deposit, the company expected the first six holes to yield 12 separate intersections of over five grams per tonne gold. Instead, the drill program has returned 19 such intersections, with several intersections containing more than one sample of over five grams per tonne or more. The company also believed that it would identify new veins, which is exactly what happened in the first six holes drilled. Also important is that the Vetas drill program has now intersected mineralization 200 metres vertically below the lowest level of the El Volcan mine, nearly double the 105-metre depth previously identified," cites Robert Hinchcliffe, president and chief executive officer of Galway Resources.

On June 22, 2011, Galway released the first-ever drill results from its Vetas project in Colombia. Included were results from the first three holes, but a complete set of drill results were available only for GWY-V001; portions of GWY-V002 and GWY-V003 were pending. As such, below is a complete set of result highlights from the first six holes drilled at Vetas. Of note are the strong results received for GWY-V006 and GWY-V003, although all holes host at least one assay in excess of 10 grams per tonne, and all holes contain multiple mineralized intersects.

• GWY-V001:
  • 13.4 grams per tonne gold and 28.2 grams per tonne silver over one metre;
  • 6.1 grams per tonne gold and 6.6 grams per tonne silver over 4.9 metres;
  • 4.7 grams per tonne gold and 51.6 grams per tonne silver over 1.5 metres;
  • Four grams per tonne gold and 11.6 grams per tonne silver over 1.5 metres;
• GWY-V002:
  • 9.7 grams per tonne gold and 37.4 grams per tonne silver over 9.4 metres, including 15.5 grams per tonne gold and 25.6 grams per tonne silver over 4.6 metres;
  • 9.2 grams per tonne gold and 31.1 grams per tonne silver over 2.6 metres, including 49.8 grams per tonne gold and 113.0 grams per tonne silver over 0.3 metre;
  • 8.6 grams per tonne gold and 13.5 grams per tonne silver over 2.3 metres;
  • 12.5 grams per tonne gold and 17.1 grams per tonne silver over 0.6 metre;
  • 4.7 grams per tonne gold and 28.0 grams per tonne silver over 2.1 metres, including 6.6 grams per tonne gold and 43.7 grams per tonne silver over 1.2 metres;
• GWY-V003:
  • 82.5 grams per tonne gold and 39.1 grams per tonne silver over 2.7 metres, including 202.0 grams per tonne gold and 53.5 grams per tonne silver over 1.1 metres;
  • 21.9 grams per tonne gold and 63.0 grams per tonne silver over 6.7 metres, including 69.1 grams per tonne gold and 81.6 grams per tonne silver over 1.5 metres;
  • 7.5 grams per tonne gold and 4.8 grams per tonne silver over 7.6 metres, including 25.1 grams per tonne gold over 1.5 metres;
  • 9.7 grams per tonne gold and 12.9 grams per tonne silver over 1.2 metres;
  • 5.3 grams per tonne gold and 23.3 grams per tonne silver over 1.5 metres;
• GWY-V004:
  • 30.7 grams per tonne gold and 17.1 grams per tonne silver over 0.7 metre;
  • 8.6 grams per tonne gold and 36.9 grams per tonne silver over 1.3 metres;
• GWY-V005 (one 0.7-metre interval is pending):
  • 26.8 grams per tonne gold and 132.8 grams per tonne silver over 1.9 metres, including 50.3 grams per tonne gold and 251.0 grams per tonne silver over one metre;
  • 6.3 grams per tonne gold over 1.3 metres;
• GWY-V006 (additional assays for GWY-V006 are pending):
  • 138.0 grams per tonne gold and 21.3 grams per tonne silver over 1.1 metres;
  • 44.7 grams per tonne gold and 1,120.0 grams per tonne silver over 1.2 metres;
  • 64.4 grams per tonne gold and 110.0 grams per tonne silver over 0.7 metre;
  • 12.7 grams per tonne gold and 16.1 grams per tonne silver over 1.1 metres.

Note: True widths are 76 per cent to 92 per cent of down-hole widths, except for GWY-V006, which is 61 per cent.

Of note in the results provided above is that, in the first six holes ever drilled at Vetas, Galway has received a large number of high-grade assays, as follows:

• Five grams per tonne gold or more, 26 times;
• 25 grams per tonne gold or more, 10 times;
• 10 grams per tonne gold or more, 16 times;
• 50 grams per tonne gold or more, five times.

Note: Provided in the bullets are the number of samples in which assays equalled or exceeded the specified grade. Several intersects contain multiple samples above that grade.

Also of note in the results provided above is that one of the main structures in the El Volcan mine, the Corteros vein, was not targeted by the first rig that drilled the first six holes. This occurred because the rig is collared in front of this structure. As such, the Corteros vein, as well as many other structures, is being targeted by the second drill rig that began with GWY-V007. Thus, drill results to date exclude any information from the Corteros vein.

A review of figures on the company's website, which contains a plan view and cross sections of the drill holes and veins they intersected below the El Volcan mine, reveals good continuity of vein structures both down dip and along strike. For example, the intersections of 21.9 grams per tonne gold and 63.0 grams per tonne silver over 6.7 metres in hole GWY-V003 appear to align well with 6.1 grams per tonne gold and 6.6 grams per tonne silver over 4.9 metres in hole GWY-V001 along the Manzanilla vein at 28 metres apart (diagonally down dip and along strike). Intersections of 9.7 grams per tonne gold and 37.4 grams per tonne silver over 9.4 metres in hole GWY-V002, 13.4 grams per tonne gold and 28.2 grams per tonne silver over one metre in hole GWY-V001, and 8.6 grams per tonne gold and 36.9 grams per tonne silver over 1.3 metres in GWY-V004 are all along the Tajo Abierto vein, covering 45 metres of strike. Similarly, the intersections of 138.0 grams per tonne gold and 21.3 grams per tonne silver over 1.1 metres in GWY-V006, 26.8 grams per tonne gold and 132.8 grams per tonne silver over 1.9 metres (including 50.3 grams per tonne gold and 251.0 grams per tonne silver over one metre) in GWY-V005, 3.34 grams per tonne gold and 131.0 grams per tonne silver over 0.9 metre in GWY-V001, 12.5 grams per tonne gold and 17.1 grams per tonne silver over 0.6 metre in GWY-V002, and 30.7 grams per tonne gold and 17.1 grams per tonne silver over 0.7 metre in GWY-V004 are all along the Loscas vein, covering 20 metres of strike. The El Burro vein has been extended southwest by 37 metres with hole GWY-V003 returning 82.5 grams per tonne gold and 39.1 grams per tonne silver over 2.7 metres (including 202.0 grams per tonne gold and 53.5 grams per tonne silver over 1.1 metres) in hole GWY-V003 from 4.7 grams per tonne gold and 51.5 grams per tonne silver over 1.5 metres in GWY-V001.

New veins have been identified in the first six holes drilled. Among the new results received, new veins have been identified in all holes GWY-V003 through GWY-V006, highlights of which are as follows:

• 7.5 grams per tonne gold and 4.8 grams per tonne silver over 7.6 metres (including 25.1 grams per tonne gold over 1.5 metres) in GWY-V003;
• 9.7 grams per tonne gold and 12.9 grams per tonne silver over 1.2 metres in hole GWY-V003;
• 30.7 grams per tonne gold and 17.1 grams per tonne silver over 0.7 metre in GWY-V004;
• 6.3 grams per tonne gold and 6.2 grams per tonne silver over 1.3 metres in hole GWY-V005;
• 44.7 grams per tonne gold and 1,120.0 grams per tonne silver over 1.2 metres in GWY-V006;
• 64.4 grams per tonne gold and 110.0 grams per tonne silver over 0.7 metre in GWY-V006;
• 6.9 grams per tonne gold and 12.3 grams per tonne silver over 2.2 metres (including 12.7 grams per tonne gold and 16.1 grams per tonne silver over 1.1 metres) in GWY-V006.

Visible gold has been seen in five of the first six holes drilled, and from four of the six main veins intersected to date, plus in one new vein that returned 7.5 grams per tonne gold over 7.6 metres, including 25.1 grams per tonne gold over 1.5 metres in GWY-V003. Pictures of visible gold from Galway's Vetas and California projects can be viewed in the photo gallery. A map, cross-sections and a detailed table of assay results can be viewed on the company website. A preliminary National Instrument 43-101 technical report on Galway's Vetas property, which was prepared by Roscoe Postle Associates, will be filed on SEDAR on Aug. 24, 2011.

With results provided herein, 2,193 metres of drilling have been reported on the first phase of Galway's 10,000-metre or 25-hole drill program that began in April, 2011. Drilling is continuing with two diamond drill rigs. The next phase of exploration will continue to delineate a resource and will test for lateral extensions beyond the current limits of the existing mine.

On April 8, 2011, Galway announced results from a comprehensive exploration campaign at Vetas. The campaign entailed extensive underground and surface sampling and mapping, mobile metal ion soil surveys, and induced polarization and ground magnetic geophysical surveys, with the geophysical surveys conducted by KTTM Geophysics of Medellin, Colombia. Refer to the press release issued on that date for details.

Mineralization

Ore at the El Volcan mine contains favourable steeply dipping quartz veins in competent host rocks that could be successfully mined using modern bulk-tonnage longhole mining methods. The known vein system comprises nine different epithermal veins and numerous subordinate splay veins trending north-northeast and dipping subvertically to the northwest. The main quartz veins, together with splay veins, are spatially associated with shear zones hosted in porphyry and metamorphic gneiss, much like the California gold district. Visible gold in the sampling almost invariably indicates higher gold and silver assay grades. Galway's geologists are impressed and surprised by the widths of mineralization attained in the first tier of drill holes relative to the narrower veining seen in the mine workings above, and by the classic low sulphidation vein textures seen. Grey chalcedonic quartz, colloform banded texture, vuggs and drussy quartz, with fine pyrite crystals are typical. The mineralization has been intersected up to 200 metres below the bottom level. True widths are 76 per cent to 92 per cent of downhole widths, except for GWY-V006, which is 61 per cent.

Rapid development of resources is possible using channel sampling from the 2,000 metres of accessible underground workings, and from drill results. Existing multiple vein structures that are in close proximity to one another and open in all directions provide an excellent opportunity to build a robust gold resource. A total of 7,345 metres of drifts were mapped and 3,769 chip and channel samples were taken from vein, wall rock and stockwork mineralization between vein sets. To date, Galway has received results from 2,193 metres of drilling at Vetas. The mine covers an area of 500 metres by 300 metres with a vertical extent of 300 metres.

The El Volcan mine has been the site of gold mining since the 1590s and is the largest mine in the California-Vetas-Surata gold mining districts. The focus of Galway's exploration efforts at Vetas is within, below, and extensions both along strike and laterally from the El Volcan mine. This mine is contained within the Reina de Oro concession, which is not subject to development restrictions associated with Paramo legislation.

Granting of incentive stock options

Galway also reports that it has awarded 550,000 incentive stock options exercisable at $1.45 per common share to officers, directors, employees and consultants of the company and expiring on Aug. 22, 2016. This grant of options is in compliance with the terms of the company's stock option plan and remains subject to acceptance by the TSX Venture Exchange.

The Vetas project is under the supervision of project manager Alex Cruz, of Quito, Ecuador. In compliance with National Instrument 43-101, Mike Sutton, PGeo, and Dale Schultz, PGeo (Manitoba and Saskatchewan), of Buscore Consulting Ltd., are the qualified persons responsible for the accuracy of this news release.

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