Galway Resources provides an update for the Victorio molybdenum/tungsten project



    ELKO, NV, Dec. 11 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased
to provide an update on the Victorio molybdenum tungsten project located in
Deming, New Mexico. On May 30, 2007 the Company announced that it had engaged
SRK Consulting (U.S.) to provide a Scoping Study on the Victorio Project.
Subsequent to that date on August 15, 2007, an updated independent N.I. 43-101
resource estimate was released that incorporated the results from Galway's
first 10,000 foot infill drilling program. Then on October 25, 2007, the
resource was once again updated by SRK using a more market relevant longer
term price of $15 per pound for molybdenum.
    "It is important to note that prior to October 25, 2007, everyone was
focusing on optimizing a 35 million ton resource target. However, the latest
resource estimate based on a higher molybdenum price has considerably improved
the potential for this project, with the target resource now lying between 60
and 100 million tons. With the current molybdenum price of $33.10 per pound
and the tungsten price of $12.50 per pound, the implied metal value for
Victorio demonstrates its vast potential," states Robert Hinchcliffe,
President of Galway Resources. Mr. Hinchcliffe adds, "In early October 2007,
we began our second infill drilling program (currently drilling our fifth
hole) whose focus is on upgrading the resource, testing new areas for
additional tonnage, and to allow us to conduct more comprehensive geotechnical
studies."

    
    -------------------------------------------------------------------------
    Victorio 2007 Resource Model Run with $15 Mo and $8 WO(3)
    -------------------------------------------------------------------------
    Geologic Resource (October 2007)                Contained Metal in Pounds
    -------------------------------------------------------------------------
                  $       Tons
    Category   Cutoff  (Millions)   Mo %   WO3 %   Molybdenum  Tungsten (WO3)
    -------------------------------------------------------------------------
    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       0.12   0.12   100,000,000    98,000,000
    -------------------------------------------------------------------------
    Inferred     35        22       0.12   0.11    51,000,000    46,000,000
    -------------------------------------------------------------------------
    

    Marshall Himes, the COO of Galway Resources states, "Using a more
realistic long-term moly price and evaluating lower cost mining methods, has
allowed us to consider mining a much larger resource, thereby reducing
operating costs and improving the overall economics of the project. This new
approach has resulted in SRK having to retrace some of the steps in their
economic evaluation. We believe a very large portion of the project will be
amenable to low cost underground bulk mining methods, and we remain bullish
about the favorable development for the Victorio project. We now believe that
this Scoping Study will be finished by SRK Consulting by the end of January
2008."

    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, and are the Qualified Persons responsible for the
resource estimates that were announced on October 25, 2007.

    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$33.10 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

    The company is well capitalized with over $11 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 has compiled all the historical data,
and has carried out 5 drilling programs on its three U.S. based projects over
the past 12 months. Management believes that its strategic portfolio of
properties offers investors an interesting exposure to a unique blend of
commodities (molybdenum, tungsten, copper, zinc, and silver).


    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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Galway Resources Ltd.

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