Galway re-negotiates Victorio agreement



    TORONTO, April 29 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased
to announce today that it has successfully re-negotiated the contract terms
for its flagship Victorio molybdenum-tungsten project located in southwestern
New Mexico. The Company has engaged John Tumazos of Very Independent Research
to help commercialize the Victorio Project. Mr. Tumazos has been a perennially
top rated Wall Street analyst in the metals and steel sectors. A positive
Scoping Study performed by SRK Consulting was reported in April 2008.
    "Re-negotiating Victorio's contract terms gives Galway more flexibility
in terms of project advancement timing. We are pleased that our partners are
cognizant of current difficult market conditions. We do point out that while
pricing for molybdenum has come under pressure like most other commodities,
the price for tungsten has come off only slightly from its high and is
currently trading at over $10.00 per pound," cites Robert Hinchcliffe,
President and CEO of Galway Resources.

    Revised Deal Terms

    We have been successful in reducing the payments to Ben Donegan during
the next few years as outlined in the table below. In exchange for the
deferred payments we will be adding $150,000 to the final payment, making the
total price $2,150,000 payable to Mr. Donegan over the time period outlined
below.

    
    -------------------------------------------------------------------------
       Payment             Original Payment             Revised Payment
         Date                  Structure                   Structure
    -------------------------------------------------------------------------
                                           Payments made
    -------------------------------------------------------------------------
        6/1/2006                 $50,000                     $50,000
    -------------------------------------------------------------------------
        6/1/2007                $100,000                    $100,000
    -------------------------------------------------------------------------
        6/1/2008                $200,000                    $200,000
    -------------------------------------------------------------------------
                                         Upcoming payments
    -------------------------------------------------------------------------
        6/1/2009                $300,000                     $50,000
    -------------------------------------------------------------------------
        6/1/2010                $350,000                    $100,000
    -------------------------------------------------------------------------
        6/1/2011              $1,000,000                    $100,000
    -------------------------------------------------------------------------
        6/1/2012                       0                  $1,550,000
    -------------------------------------------------------------------------
          Total               $2,000,000                  $2,150,000
    -------------------------------------------------------------------------
    

    Indian Springs Project Update

    Management has decided not to proceed with the option agreement for the
Indian Springs tungsten project, located in northeastern Nevada. This project
has been studied and, in management's opinion, showed a lot of geological
promise. However, management also believed that metallurgical challenges for
the project did not justify the upcoming 400,000 share and $75,000 cash
payment required to maintain the project.

    Changes to the Board of Directors

    The Company also reports the resignation of Mr. Dave Dewitt as a member
of the Board of Directors. The Company would like to thank Mr. Dewitt for his
contribution as a Director, and wish him the best in the future. Galway
Resources is pleased to announce that Mr. Larry Strauss has agreed to join the
Board of Directors.
    Mr. Strauss has 18 years of experience as a mining and commodities
analyst in both Canada and the United States. He was most recently a Director
at GMP Capital Trust, where he spent seven years as a well regarded mining
analyst. During his time with GMP, the firm landed advisory roles on mergers
and acquisitions, and raised several billion dollars for many leading
international mining companies, including Goldcorp, Kinross Gold, Wheaton
River, Silver Wheaton, Northern Orion, Bema Gold, Ivanhoe Mines and Northgate
Minerals, among others. During his career, Mr. Strauss has been awarded "Best
on the Street" in the Mining and Metals category by the Wall Street Journal.
Earlier in his career, Mr. Strauss worked with Canaccord Capital, Prudential
Securities and Merrill Lynch.

    About the Company

    In addition to trying to commercialize the flagship Victorio project, and
advance its Colombian exploration initiative while preserving capital in
response to very difficult market conditions, the Company is seeking a partner
to advance the Carboluis coal project in Santander, Colombia. The recently
announced Joint Venture with Prodeco (the second largest coal producer in
Colombia) is proceeding and Prodeco should begin to drill over the next few
months. Prodeco has agreed to fund the first $7.5 million in expenditures in
order to earn 60% of the project. To earn 100% of the project they must pay
$0.80 per ton up to $80 million.

    
    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 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 possibility of coal deposits, future
exploration, development and production activities, future expenditures and
forecast Colombian coal production. 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,
without limitation, the timing and success of contemplated transactions and
exploration, development and production activities, the realization of coal
deposits, the timing and amount of expenditures and actual realized Colombian
Coal production. See the "risk factors" set out in Galway's management's
discussion and analysis files on the SEDAR website.





For further information:

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

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