Galway Resources infill drilling intercepts 55 feet of high grade molybdenum & tungsten at Victorio



    TORONTO, July 3 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased to
announce more encouraging drilling results from the Victorio
molybdenum-tungsten project located in southern New Mexico. The 12-hole,
25,000 foot, phase 2, infill drilling program was recently completed. Four
holes have been reported thus far, with the results of two additional holes
provided below. The purpose of the infill drilling program is to upgrade the
resource with the next step being a pre-feasibility study following the
positive results of the recently released Scoping Study.
    "We are very pleased with all of the results that we have seen from our
two drilling programs conducted thus far. While there is potential to expand
the deposit, the defined area of mineralization and the fact that this deposit
is amenable to low cost underground bulk mining methods is what drives our
enthusiasm for this project, in addition to the excellent infrastructure,"
cites Robert Hinchcliffe, President and CEO of Galway Resources.

    
    Highlights of the Current Drill Results:

    -   Thick Intercepts: The most noteworthy of the results received from
        the two holes is the 115 feet of mineralization in hole GRV-81 and
        the 112 feet of mineralization intersected in hole GRV-83.

    -   High Grade Intercept: For hole GRV-81, an intercept of 55 feet of
        0.25% Mo and 0.30% WO(3) was encountered, which is well above the
        average grades cited for the resource estimates which are provided in
        the table on the following page.

    Victorio Drill Results

    -------------------------------------------------------------------------
                                                           Intervals(*)
                   Depth in   Depth in   Thickness  -------------------------
    Hole Number   feet From    feet To    in feet    % Mo  % Tungsten - WO(3)
    -------------------------------------------------------------------------
    GRV-81            1630       1695        65       .10           .07
    -------------------------------------------------------------------------
                      1710       1825       115       .16           .19
    -------------------------------------------------------------------------
    including         1745       1800        55       .25           .30
    -------------------------------------------------------------------------
                      1835       1915        80       .12           .07
    -------------------------------------------------------------------------
    including         1845       1860        15       .24           .10
    -------------------------------------------------------------------------
                      1960       1975        15       .09           .01
    -------------------------------------------------------------------------
    GRV-83            1615       1640        23       .12           .10
    -------------------------------------------------------------------------
                      1680       1765        79       .09           .12
    -------------------------------------------------------------------------
                      1785       1830        42       .11           .13
    -------------------------------------------------------------------------
                      1845       1965       112       .10           .07
    -------------------------------------------------------------------------
    including         1845       1865        19       .09           .22
    -------------------------------------------------------------------------
                      2040       2055        14       .15           .00
    -------------------------------------------------------------------------
    (*) The cutoff is US$25/ton combined grade calculated using a price of
        U.S.$15/lb Mo and $8/lb WO(3).
    

    "We welcome people to go to our website www.galwayresources.com, to take
a virtual tour of the Victorio Project, and in particular to get a sense of
the how good the infrastructure really is for this project. Turning to the
metals, the continued strength and positive outlook for molybdenum and
tungsten pricing is very encouraging," states Robert Hinchcliffe, President of
Galway Resources. The intervals of the two drill holes in the aforementioned
table represent true thickness.
    As reported on February 27, 2008, the highlights of the Scoping Study
completed by SRK Consulting U.S. Inc., which contemplated two different mining
scenarios using an average life of a mine price of $15/lb molybdenum (versus
the current price of $33 per pound) and $8/lb tungsten price (versus the
current price of $13 per pound) include:

    Block Caving Scenario: This scenario is a larger project that considers
producing an average of 9.4 million pounds of molybdenum and 9.0 million
pounds of tungsten annually for 17 years. The preliminary economics suggest an
NPV (discount rate of 6%) of over US$270 million, a pre-tax (unlevered) IRR of
15%, and a required investment of US$442 million.

    Selective Mining Scenario: This is a smaller scale project that offers
higher returns with a pre-tax (unlevered) IRR of 26%, and a NPV of
US$95 million. Under this scenario only a portion of the target resource is
extracted, with an average of 6.2 million pounds of molybdenum and 5 million
pounds of tungsten annually for 10 years. The capital required is estimated to
be US$242 million, the mining methods are a combination of long-hole stoping
with paste backfill and room-and-pillar mining.

    
               VICTORIO 2007 RE

SOURCE MODEL RUN WITH PRICES PER POUND OF $15 MO AND $8 WO(3) GEOLOGIC RE

SOURCE (OCTOBER 2007) ------------------------------------------------------------------------- Tons Average Grade Contained Metal in Pounds Category $Cutoff Millions -------------------------------------------- Mo (%) WO(3)(%) Molybdenum Tungsten ------------------------------------------------------------------------- Indicated 25 67 0.10 0.10 132,000,000 134,000,000 ------------------------------------------------------------------------- Inferred 25 42 0.09 0.09 74,000,000 76,000,000 ------------------------------------------------------------------------- Indicated 35 41 0.14 0.12 100,000,000 98,000,000 ------------------------------------------------------------------------- Inferred 35 22 0.12 0.11 51,000,000 46,000,000 ------------------------------------------------------------------------- A critical component for advancing this project is for management to establish creative strategic alliances. The final Scoping Study report was filed on April 23, 2007, and can be located at www.sedar.com and also on the Company's website (www.galwayresources.com), where a detailed analysis of the assumptions made in the report and a more detailed listing of recommendations from SRK Consulting for advancing this project can be found. Cutoff grade is based on dollar rock value calculated from contained molybdenum valued using a price of US$15.00 per pound combined with the contained tungsten (WO(3)) valued at US$8.00 per pound. The cut-off used to arrive at the numbers provided in the prior table is US$25.00 per ton for the larger tonnage scenario, and $35 per ton for the selective mining scenario. The resource is based on data from 71 holes (over 165,000 feet of drilling) completed in the late seventies by Gulf Minerals, and 6-holes of confirmatory drilling done by Galway Resources. QA/QC Statement The Company has implemented a quality assurance and quality control (QA/QC) program to ensure collection and analysis of all drill samples is conducted in accordance with the best possible practices. Samples are stored in a secure facility in Deming, New Mexico prior to shipping to the Chemex lab in Sparks, Nevada. Other QA/QC procedures include the insertion of blanks and control samples every 20 samples and re-assaying duplicate pulps of 5% of all samples by a certified independent laboratory (SGS Labs). WO(3) is assayed at the Chemex Vancouver laboratory by two methods: (1) lithium borate fusion with an XRF finish and (2) lithium borate fusion with an ICP finish. The results of the Company's current drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff (which includes a "qualified person," Peter Hahn , CPG, for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators). Galway is following the "Best Practices Guidelines" in documenting, reporting, and conducting exploration activities at Victorio. The Company also announces, effective immediately, the resignation of Marshall Himes as Chief Operating Officer and Director. Mr. Himes has been working half time as COO. The Company will seek to replace him with a full time employee when appropriate. The Company would like to thank him for his efforts and wishes him the best in the future. About the Company The company is focused on developing and commercializing two U.S. based exploration projects that are favorably located and have over 250,000 feet of historical drilling, in addition to the 50,000 feet of drilling carried out by Galway over the past 18 months. The Company also has an exploration initiative underway in Colombia that is focused on coal and gold exploration. Management believes that its strategic portfolio of properties offers investors an interesting exposure to a unique blend of commodities (molybdenum, gold, tungsten, metallurgical and thermal coal) in varying stages of development. 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; www.galwayresources.com

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