Galway files new N.I. 43-101 report with new resource estimate for the Victorio Molybdenum Project

    ELKO, NV, March 14 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) ("Galway"
or the "Company") is pleased to announce that it has filed a National
Instrument Technical Report and resource estimate (NI 43-101) prepared by SRK
Consulting (U.S.) Inc., an independent consulting firm. The Victorio
molybdenum-tungsten project is located approximately 20 miles west of Deming,
New Mexico in Luna County with very favorable infrastructure that includes
accessible power, natural gas, along with a nearby railway.
    The Company is currently moving the Victorio project forward on several
fronts as outlined in the N.I. 43-101 Technical Report. Such items include but
are not limited to: the necessary geotechnical, hydrogeological and
confirmatory metallurgy studies, in addition to engaging an environmental
consulting firm to advance this project in an expedient manner. A drilling
program, focused on upgrading and confirming the resource estimates listed
below is coming to an end and the assay results will be forthcoming.
    "We look forward to advancing this project to the Scoping Study level
which should be completed during the Summer of 2007. Positive results from
that study will then enable us to take the next step in the development of the
project and commence a pre-feasibility study in the Fall of 2007. The resource
numbers, implied metal value and the project's extremely attractive
infrastructure, re-enforce in our view, the vast potential of this deposit,"
states Robert Hinchcliffe, the President of Galway Resources.
    As reported on January 29, 2007 the Company reported on the new resource
estimate, some of the highlights of that press release include:

    -   The deposit contains over 65 million pounds of molybdenum and
        57 million pounds of tungsten (WO(3)) in the Indicated Category, and
        31 million pounds of molybdenum and 33 million pounds of tungsten
        (WO(3)) in the Inferred Category.
    -   Approximately 65% of the stated resources fall in the Indicated
        category, with the balance falling into the Inferred category. The
        focus of the current drilling program is to continue to upgrade the
    -   The current price for molybdenum is US$28.00 per pound, and for
        tungsten (WO(3)) is currently US$13.00 per pound.

    Resource      Total       Average Grade       Contained Metal In Pounds
                   Tons                                           Tungsten
    Category    (millions)  Mo (%)   WO(3) (%)   Molybdenum        (WO(3))
    Indicated      21.5      0.15      0.13      65,000,000      57,000,000
    Inferred       11.7      0.13      0.14      31,000,000      33,000,000

    Cutoff grade is based on dollar rock value calculated from contained
molybdenum valued at US$12.00 per pound combined with the contained tungsten
(WO(3)) valued at US$8.00 per pound. As noted, the metal prices used in
arriving at the different cut off values are considerably lower than the
current molybdenum and tungsten prices. The cut-off used to arrive at the
numbers provided in the prior table is US$40.00 per ton.
    The resource is based on data from 71 holes (over 165,000 feet of
drilling) completed in the late seventies by Gulf Minerals. This is the first
National Instrument 43-101 independent resource estimate prepared for the
Victorio Project. It forms the foundation for advancing the project towards
    Using a higher cutoff US$50 per ton and the same metal price assumptions
produces the following resource estimate:

    Resource      Total       Average Grade       Contained Metal In Pounds
                   Tons                                           Tungsten
    Category    (millions)  Mo (%)   WO(3) (%)   Molybdenum        (WO(3))
    Indicated      11.4      0.19      0.15      42,000,000      34,000,000
    Inferred        6.0      0.16      0.16      19,000,000      19,000,000

    "We are very pleased with the outcome of the resource estimation study.
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.
    SRK has completed independent resource estimation according to CIM
resource categories in compliance with NI 43-101 guidelines. Leah Mach, Allan
Moran, and Bart Stryhas of SRK Consulting (U.S.) Inc., are "Qualified Persons"
as defined by NI 43-101, and are the Qualified Persons responsible for the
resource estimations contained in this news release and the NI 43-101
Technical Report. To see a more detailed analysis please see the Technical
Report filed at
    The resource estimation was generated utilizing Vulcan software using an
inverse distance weighting to the third power 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. The molybdenum and
tungsten grade estimations were limited by individual hard boundary grade
shells using only composite data from the same rock type.

    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 or so,
prices for molybdenum have traded around US$25.00 per pound, and within the
past months prices have moved to US$28.00 per pound. Higher levels of global
molybdenum demand is 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 have 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 the two primary drives for sustained strong
tungsten pricing.

    About the Company

    Galway is focused on developing three U.S. based exploration projects
that are favorably located with respect to infrastructure and have over
300,000 feet of historical drilling. We have established a solid technical
team that has compiled all the historical data and is 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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