Galway announces expanded resource estimate for the Victorio molybdenum/tungsten project



    ELKO, NV, Oct. 25 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased
to announce for the Victorio molybdenum/tungsten project (located in Deming,
New Mexico) a significantly enhanced N.I. 43-101-compliant resource completed
by SRK Consulting (U.S.) Inc. The new resource estimate (derived from
175,000 feet of drilling) uses a $15.00 per pound molybdenum long term price
which is in line with industry consensus.
    "The new range of resource estimates has dramatically improved the scale
and viability of the project. As part of the ongoing Scoping Study, we are
evaluating suitability of the different lower cost underground bulk mining
methods and the implication on the project's economics. With more robust
numbers and potential, along with its' great infrastructure Victorio remains
our flagship property," cites Robert Hinchcliffe, CEO of Galway Resources.

    
    The highlights of the new resource estimate include:

    -   Potential for significantly larger mineable resource: The size range
        now lies between 30 million and 100 million tons, each scenario is
        enhanced by a 21 million ton high grade core. The deposit remains
        open in certain directions to add additional tonnage.
    -   Larger Resulting Tonnages: Previous resources were calculated using a
        $40 cut off, based on a US$14/lb molybdenum price. Using the same
        cutoff but a US$15/lb molybdenum price the tonnage for the new
        resource estimate has increased by over 33% increase and a 48%
        increase in tonnage for Inferred Category.
    -   Quality of resource (using a $40/ton cutoff) remains intact with 67%
        being in the Indicated Category, and the continuity of the
        mineralization remains intact.

    -   The current molybdenum price remains strong at $32 per pound.

    -------------------------------------------------------------------------
    Victorio: New Resource Estimate
    ($15/lb moly, $8/lb tungsten)                  Contained Metal in Pounds
    -------------------------------------------------------------------------
    Category     Cutoff (US$/Ton)   Tons (Millions)     % Mo Equivalent
    -------------------------------------------------------------------------
    Indicated          25                 67         0.15        203,000,000
    -------------------------------------------------------------------------
    Inferred           25                 42         0.14        114,000,000
    -------------------------------------------------------------------------
    Indicated          35                 40         0.19        153,000,000
    -------------------------------------------------------------------------
    Inferred           35                 22         0.17         75,000,000
    -------------------------------------------------------------------------
    Indicated          40                 32         0.21        130,000,000
    -------------------------------------------------------------------------
    Inferred           40                 16         0.19         60,000,000
    -------------------------------------------------------------------------
    Indicated          55                 15         0.26         79,000,000
    -------------------------------------------------------------------------
    Inferred           55                  6         0.24         30,000,000
    -------------------------------------------------------------------------
    

    "We are very excited about the potential of the Victorio Project as we
continue to examine various economic and mining parameters under the direction
of Galway's professional staff. Our current program utilizing angle,
directional, oriented core drilling, combined with our on-going metallurgical
and engineering studies, continues to give us a great deal of optimism of
moving the project along toward development. There is still potential to
expand the ore-body as is still open in some directions," cites Marshall
Himes, COO of Galway Resources.

    New Resource Estimate Boosts Tonnage

    Below we have provided a table that shows the new resource estimate using
a cut-off value of $40 per ton and also of $50 per ton. The percent increase
in tonnages and contained metal value reflect the impact of using a higher
longer term molybdenum price. The current numbers below are calculated using a
long-term molybdenum price of $15 per pound versus the prior number of $12 per
pound. The long-term price of $8 per pound for tungsten remains intact for
resource estimation, the current price is $12.50/lb.

    
    -------------------------------------------------------------------------
    New Resource Estimate Comparison with                 Contained Metal in
     Prior Estimates                                                  Pounds
    -------------------------------------------------------------------------
                                        Tons      Mo
               $ Cutoff      Tons      Increase  Equiv       Mo     Increase
    Category   value/ton  (Millions)      %        %        Equiv       %
    -------------------------------------------------------------------------
    Indicated      40         32          33      0.21   130,000,000    22
    -------------------------------------------------------------------------
    Inferred       40         16          48      0.19    60,000,000    33
    -------------------------------------------------------------------------
    Indicated      50         19          39      0.24    92,000,000    26
    -------------------------------------------------------------------------
    Inferred       50          8          57      0.22    37,000,000    42
    -------------------------------------------------------------------------

    The table below reflects the full sensitivity analysis of expanding the
range of our analysis of the impact on changing cut-off grades and the
resulting tonnages and grades. Moreover, the figures unlike the prior two
tables has the respective grades and contained metal value for tungsten for
the varying cut-offs.

    -------------------------------------------------------------------------
    Victorio 2007 Resource Model Run with $15 Mo and $8 WO(3)
    -------------------------------------------------------------------------
    Geologic Resource                              Contained Metal in Pounds
    -------------------------------------------------------------------------
                   $
    Category     Cutoff  Tons(M)  Mo %  WO(3) %  Molybdenum  Tungsten (WO(3))
    -------------------------------------------------------------------------
    Indicated      25      67    0.099   0.101  132,000,000    134,000,000
    -------------------------------------------------------------------------
    Inferred       25      42    0.088   0.091   74,000,000     76,000,000
    -------------------------------------------------------------------------
    Indicated      30      52    0.110   0.111  115,000,000    116,000,000
    -------------------------------------------------------------------------
    Inferred       30      31    0.101   0.098   62,000,000     60,000,000
    -------------------------------------------------------------------------
    Indicated      35      41    0.123   0.120  100,000,000     98,000,000
    -------------------------------------------------------------------------
    Inferred       35      22    0.115   0.105   51,000,000     46,000,000
    -------------------------------------------------------------------------
    Indicated      40      32    0.136   0.130   86,000,000     82,000,000
    -------------------------------------------------------------------------
    Inferred       40      16    0.129   0.110   42,000,000     35,000,000
    -------------------------------------------------------------------------
    Indicated      45      24    0.150   0.138   73,000,000     67,000,000
    -------------------------------------------------------------------------
    Inferred       45      12    0.143   0.117   33,000,000     27,000,000
    -------------------------------------------------------------------------
    Indicated      50      19    0.164   0.145   63,000,000     55,000,000
    -------------------------------------------------------------------------
    Inferred       50       8    0.158   0.124   26,000,000     21,000,000
    -------------------------------------------------------------------------
    Indicated      55      15    0.178   0.152   54,000,000     46,000,000
    -------------------------------------------------------------------------
    Inferred       55       6    0.171   0.131   22,000,000     17,000,000
    -------------------------------------------------------------------------
    

    Geological Modeling Discussion

    The new resource estimates incorporated the results from the Company's
first 10,000 foot (6 core holes) drilling campaign which was completed in the
Spring of 2007. The prior estimate that was announced earlier this year
(January 29, 2007) was derived using just the data from the 165,000 feet of
drilling conducted by Gulf Minerals in the early eighties.
    For all the resources estimates, the resource model was constructed
utilizing Vulcan software, and using an inverse distance weighting to the
third power grade estimation technique. The model required a minimum of 3 and
maximum of 8 composites from at least two drill holes to assign grade to each
30' by 30' by 15' block for the Indicated resource classification. The
molybdenum and tungsten grade estimations were limited by individual hard
boundary grade shells using only composite data from within the grade shells,
by rock type.
    SRK has completed independent resource estimations according to CIM
resource categories in compliance with NI 43-101 guidelines for the Victorio
project. The resource modeling parameters used are minor modifications to the
parameters used in the January 2007 initial resource estimate, which is
provided in Galway's NI 43-101 technical report dated February 28, 2007. Bart
Stryhas and Allan V. Moran of SRK Consulting (U.S.), are "Qualified Persons"
as defined by NI 43-101, are the Qualified Persons responsible for the
resource estimations contained in this news release, and have reviewed the
content of this press release.

    Current Molybdenum and Tungsten Pricing Remain Strong

    After remaining below US$10.00 per pound for the past 25 years,
molybdenum prices began to rise in January 2004. Over the past 2 years or so,
prices for molybdenum have traded around US$25.00 per pound, and within the
past months prices have moved to US$32.00 per pound. Higher levels of global
molybdenum demand are cited by experts as the primary reasons that molybdenum
prices have performed so well as of late.
    A similar story holds true for tungsten, with pricing remaining between
US$2.50 per pound and US$5.00 per pound for over 20 years. Tungsten pricing
surged in January 2005 to just over US$15.00 per pound and has remained
resilient ever since. Over the past sixteen months tungsten prices have
remained around US$12.50 per pound. Continued steady global tungsten demand
coupled with lower exports from China are cited as two primary drivers for
sustained strong tungsten pricing.

    About the Company

    Management is well capitalized with over US$12 million in the treasury
and is focused on developing three U.S. based exploration projects that are
favorably located and have over 300,000 feet of historical drilling. We have
established a solid technical team that is compiling all the historical data
and are now advancing these projects in an aggressive but cost effective
manner. Management believes that its strategic portfolio of properties offers
investors an interesting exposure to a unique blend of commodities.

    The TSX Venture Exchange has in no way passed upon the merits of the
    proposed transaction and has neither approved nor disapproved the
    contents of this news release.

    Forward Looking Statements:

    Some statements in this news release contain forward-looking information.
These statements include, but are not limited to, statements with respect to
the completion of transactions, the timing and amount of payments and share
issuances, the completion of financings, the use of proceeds, future
exploration, development and production activities and future expenditures.
These statements address future events and conditions and, as such, involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied by the
statements. Such factors include, among others, the ability to complete
contemplated transactions, payments, share issuances and financings, the use
of proceeds, the time and success of future exploration, development and
production activities and the timing and amount of expenditures.





For further information:

For further information: Galway Resources Ltd., Robert Hinchcliffe,
President and Director, 1-800-475-2412

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