Galway announces second infill drilling program at the Victorio molybdenum/tungsten project



    ELKO, NV, Oct. 9 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased to
announce that it has commenced its second infill drilling program at the
Victorio molybdenum/tungsten project located near Deming, New Mexico. The
program is currently contemplated to drill 20 holes for a total estimated
footage of 40,000 feet. In addition to continuing to upgrade the resource, the
purpose of the current drilling program is to gain more geotechnical
information which is a critical component for determining applicable mining
methods. Core samples will also be used for continuing metallurgical test work
and waste characterization studies.
    "As part of advancing the project, this next drilling program will play
an important role. The results of the Scoping Study will be released later
this year. We have engaged SRK Consulting to also update our resource estimate
using market relevant molybdenum price assumptions and to conduct a more
extensive analysis on varying cut off grades, with resulting tonnages and
applicable mining methods. The results of the new resource estimates are
expected to be out later this month. The size of the resource, and implied
metal value, and favorable infrastructure make the Victorio Project the
flagship property in our portfolio," cites Marshall Himes, COO of Galway
Resources.

    The first resource estimate released earlier this year (January 29,
2007), was based on the 165,000 feet of drilling conducted by Gulf Minerals in
the early 1980s. On August 15, 2007, the Company announced an updated resource
estimate that incorporated the results of Galway's first 10,000 foot infill
drilling program, the highlights included:

    
    -  Resource upgrade: Indicated resources now represent 68% of the
       resource, compared with 65% of the resource with the prior estimate.
    -  Increase in tonnage: The total tonnage in the Indicated category was
       increased by 10% to 23.7 million tons.
    -  Molybdenum and Tungsten Prices Remain Firm: Prices for molybdenum
       remain firm trading at above $30 per pound, and tungsten prices remain
       at $13.00 per pound.

    New N.I. 43-101 Resource Estimate - Victorio (August 2007)
    -------------------------------------------------------------------------
    Resource     Total      Average Grade     Contained Metal In Pounds(*)
    -------------------------------------------------------------------------
    Category     Tons      Mo(%)    WO3(%)   Molybdenum     Tungsten (WO(3))
               (millions)
    -------------------------------------------------------------------------
    Indicated    23.7      0.148    0.145    70,000,000      68,000,000
    -------------------------------------------------------------------------
    Inferred     10.9      0.141    0.126    31,000,000      27,000,000
    -------------------------------------------------------------------------


    Prior N.I. 43-101 Resource Estimate - Victorio (January 2007)
    -------------------------------------------------------------------------
    Resource     Total      Average Grade     Contained Metal In Pounds(*)
    -------------------------------------------------------------------------
    Category     Tons      Mo(%)    WO3(%)   Molybdenum     Tungsten (WO(3))
               (millions)
    -------------------------------------------------------------------------
    Indicated    21.5      0.150    0.132    65,000,000      57,000,000
    -------------------------------------------------------------------------
    Inferred     11.7      0.133    0.140    31,000,000      33,000,000
    -------------------------------------------------------------------------

    (*)The cut-off used to arrive at the numbers provided in the prior two
    tables is US$40.00 per ton. For both independent resource estimates a
    conservative price assumption of US$12.00 per pound molybdenum and
    US$8.00 per pound tungsten was used to derive the combined molybdenum
    and tungsten cutoff value of US$40.00 per ton.
    

    For both 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 estimation 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

    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, prices
for molybdenum have traded around US$25.00 per pound, and within the past
months prices have moved to above US$30.00 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, and more recently have moved to above
US$13.00 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

    The company is well capitalized with over $13 million in the treasury.
Management 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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Galway Resources Ltd.

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