Mr. Glenn Mullan reports

GOLDEN VALLEY MINES EXPLORATION UPDATE

Golden Valley Mines Ltd. has received from Bonterra Resources Inc. the results of a diamond drill program on the Lac Barry prospect. A new gold and silver bearing horizon (Temica gold zone) was discovered. The disclosed drill intersections described herein are located on the Lac Barry property claims. The information that follows has been prepared by program operator Bonterra Resources Inc. and has not been independently verified by Golden Valley.

Key highlights:

• Hole CL-17-14 discovery of new mineralized zone (Temica gold zone) with an intersection of 4.7 grams per tonne gold and 44.6 g/t silver over 2.7 metres at 250 metres below surface. This drill hole is located over four kilometres to the southwest of the Gladiator deposit
  • . Drill hole 17-14 returned 44.6 g/t Ag with the presence of galena as additional sulphide mineralization.
• Hole CL-17-06 intersects new mineralized zone (Temica gold zone) with an intersection of 13.0 g/t Au over one metre at 200 metres below surface, and located over five kilometres to the southwest of the Gladiator gold deposit.
• Hole CL-17-01 also intersected the Temica zone near surface with close proximity to drill hole CL-17-14, but was located too close to the zone and resulted in a partial intersection.
• Three drill holes now exist in the Temica zone over a one-kilometre length as described above.
• The previously completed till sampling and induced polarization surveys led to the drilling and discovery of the Temica zone. Further drilling will be conducted on additional targets and identified trends as well as on the Temica zone.
• Both CL-17-06 and CL-17-14 intersected shear zone hosted mineralized quartz-carbonate veining with pyrite and sphalerite.

 Hole       From (m)   To (m)    Length*(m)        Grade             Zone/area
                                               (g/t Au)  (g/t Ag)

CL-17-14       394.5   397.2           2.7          4.7     44.6        Temica
CL-17-06       351.0   352.0           1.0         13.0                 Temica
CL-17-01        64.0    65.0           1.0          4.8                 Temica

 *Stated lengths are core width as drilled, true widths vary and average 
between 60 per cent and 80 per cent of drilled widths. Core axis angles of the 
intersection contacts and surrounding rock units average 55 to 70 degrees.

The Lac Barry prospect is located to the southwest along the projected strike extension of mineralization on the West Arena property of Bonterra's 100-per-cent-owned Gladiator gold project, which is currently being drilled on by Bonterra. In addition, the Lac Barry prospect is adjacent to and immediately southwest of Bonterra's Coliseum property.

Bonterra option agreement terms

Golden Valley granted an option to Bonterra to acquire an 85-per-cent interest in the Lac Barry prospect, located in the Abitibi greenstone belt of northwestern Quebec. The option agreement specifies, among other things: (i) Bonterra issued to Golden Valley such number of common shares in the capital of Bonterra, having an aggregate value of $200,000 based on the closing price of Bonterra's shares on the TSX Venture Exchange the day prior to the date that the TSX Venture Exchange issued its written acceptance of the option agreement and the transaction contemplated thereby; (ii) Bonterra must incur expenditures in an aggregate amount of $2-million over a three-year period on the Lac Barry prospect.

Upon the exercise of the option, Golden Valley shall retain a 15-per-cent free carried interest in the Lac Barry prospect and a three-per-cent net smelter royalty (NSR), with 1 per cent of the NSR being subject to a buyback in favour of Bonterra for $1-million, payable by Bonterra to Golden Valley.

Cheechoo gold project update

The company also wishes to provide an update on its royalty at the Cheechoo gold prospect.

As previously announced, Golden Valley holds a 4-per-cent net smelter royalty from all mineral products mined or removed from Cheechoo. Notwithstanding the foregoing, the royalty relevant to gold mineral products mined or removed from Cheechoo may be reduced as follows depending on the market price of gold at the time of the payment of the gold portion:

• If the price of gold is less than $3,000 per ounce and higher than $2,400 per ounce, a 3.5-per-cent royalty on the gold portion shall be payable to Golden Valley;
• If the price of gold is less than $2,400 per ounce and higher than $1,200 per ounce, a 3-per-cent royalty on the gold portion shall be payable to Golden Valley;
• If the price of gold is less than $1,200 per ounce, a 2.5-per-cent royalty on the gold portion shall be payable to Golden Valley.

The operator of the Cheechoo gold project, Sirios Resources Inc., has recently provided two exploration updates on the project. See Sirios's press releases dated Sept. 7, 2017, and Sept. 14, 2017, for further information.

Centremaque gold project update

The project operator, Alexandria Minerals Ltd., has reported that the following work has been completed on the property per the first year work commitment. As of August, 2017, Alexandria has compiled all of the drill holes from 1940 to 1994 in preparation for a winter 2018 drill program.

Based on this compilation work, the mineralization intersected on the property is similar to that at zone No. 4, on the Orenada deposits. Mineralization consists of traces to 7 per cent arsenopyrite and 1 per cent to 5 per cent pyrite with local traces of pyrrhotite and chalcopyrite. The arsenopyrite and pyrite are localized in the wallrock of the veins and veinlets, composed of smoky quartz, carbonate and tourmaline. The veins and veinlets are hosted in intermediate and felsic tuffs, sediments of the Malartic group and talc-chlorite schists of the Piche group.

The next step in advance of drilling will be to try and locate the drill holes from 1987, 1988 and 1994 to verify their locations between the historical work reports verses the government geological database (SIGEOM).

Alexandria may earn an 80-per-cent interest in the Centremaque gold project by issuing treasury shares of Alexandria to Golden Valley over a four-year period from date of signing with a total value of $250,000, and by conducting exploration activities totaling $4-million over the same four-year period, of which $250,000 is to be spent in the first year of the option agreement. The price of the shares, and therefore the number of shares to be issued, is determined by reference to the market price at the time each tranche is due.

Bogside gold project: letter of intent with Abitibi Royalties

A phase two prospecting and sampling program was completed over the property as part of the agreement with Abitibi Royalties Ltd. to finance the claim renewal fees in exchange for a 2-per-cent net smelter return royalty on the property. Dependent on these results, a follow-up program will be planned, including diamond drilling along an untested induced polarization anomaly over an area of no outcrop.

Island 27 cobalt project

A ground follow-up prospecting, mapping and sampling program is planned in advance of a winter 2018 drill program. In addition, selective historical drill holes will be reviewed and resampled if warranted. Golden Valley is the project operator under a management committee.

As previously announced, the company entered into an option agreement with Battery Mineral Resources Limited, whereby Battery can earn an 80-per-cent interest in the Island 27 prospect. Under the terms of the option agreement, Battery shall pay to Golden Valley an aggregate of $500,000, of which $100,000 has been paid, $150,000 will be paid on June 1, 2018, and $250,000 will be paid on June 1, 2019. In addition, Battery is required to incur expenditures on the property in the amount of $5-million over a period of four years ending on June 1, 2021, of which $500,000 is to be spent by June 1, 2018.

About Golden Valley Mines Ltd.

Golden Valley typically tests initial grassroots targets while owning a 100-per-cent interest therein and then seeks partners to continue exploration financing. 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 property interests in projects in Canada (Saskatchewan, Ontario and Quebec).

We seek Safe Harbor.