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

    ELKO, NV, Aug. 15 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased
to announce an updated independent NI 43-101 compliant resource estimate
provided by SRK Consulting (U.S.) Inc. for the Victorio molybdenum/tungsten
project located near Deming, New Mexico. The resource estimate incorporated
the results from the Company's first 10,000 foot (6 core holes) drilling
campaign. The prior estimated resource that was announced earlier this year
(January 29, 2007) was derived from 165,000 feet of drilling conducted by Gulf
Minerals in the early 1980's.
    "The new drilling and resource estimate certainly confirms the high
quality of work done by Gulf Minerals. This all has a significant positive
impact on our Scoping Study now underway. Upon completion of our next program
of closer-spaced drilling, which will commence in the fall, Galway hopes to
upgrade the resource estimate and continue advancing the project toward
development. The size of the resource, implied metal value, and favorable
infrastructure make the Victorio Project the flagship property in our
portfolio," cites Marshall Himes the COO of Galway Resources.

    Highlights of the New Reserve Estimate:

    -   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 has
        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, while the price of
        tungsten remains above $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 (WO3)
    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 (WO3)
    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.

    "We are very pleased with the outcome of the latest resource estimate.
The geometry of the deposit is flat and tubular, which lends itself to low
cost, bulk tonnage underground mining. Given the favorable metallurgical
results achieved by Hazen Research in the 1980's on behalf of Gulf Mineral
Resources and the location of the project, we are very encouraged with
Victorio's potential," states Paul Valenti, Head of Project Development for
Galway Resources.
    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 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

    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 $14 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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