Galway Resources Completes $8.5 Million Financing



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
    SERVICES/

    VANCOUVER, Aug. 2 /CNW/ - Galway Resources Ltd. ("Galway" or the
"Company") (TSX-V: GWY) announces that it has completed its previously
announced brokered private placement of 6,400,000 units at a price of $1.25
per unit through Evergreen Capital Partners Inc. ("Evergreen") of Toronto,
Ontario, for aggregate gross proceeds of $8,000,000. Galway has also completed
a separate non-brokered private placement of 400,000 units at a price of $1.25
per unit, for aggregate gross proceeds of $500,000.
    "We are pleased to have considerably increased our institutional
shareholder base with this financing. The additional funding will enable us to
continue to aggressively advance our three US based mining projects," cites
Robert Hinchcliffe, CEO of Galway Resources.
    Each unit is comprised of one common share of the Company and one-half of
one non-transferable common share purchase warrant, each whole warrant being
exercisable for one additional common share of the Company at a price of $1.70
per share until February 1, 2009. The warrants are subject to acceleration in
the event the closing trading price of the common shares of Galway on the TSX
Venture Exchange is $2.00 per share or higher over a period of 20 consecutive
trading days beginning on or after December 2, 2007.
    In connection with the brokered private placement, the Company paid
Evergreen a cash commission equal to 7% of the gross proceeds of the brokered
private placement and issued Evergreen an aggregate of 448,000
non-transferable broker warrants (equal to 7% of the number of units sold
pursuant to the brokered private placement). Each broker warrant entitles
Evergreen to purchase one common share of the Company at a price of $1.25 per
share until February 1, 2009.
    The securities issued pursuant to the offering are subject to applicable
Canadian hold periods and may not be traded until December 2, 2007, except as
permitted by Canadian securities legislation and the TSX Venture Exchange.
    Galway intends to use the proceeds of the private placements for the
ongoing development of its three U.S. based projects and for general corporate
purposes and working capital.

    About Galway Resources

    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 including molybdenum, tungsten, zinc and copper.

    On behalf of the Board of Directors

    GALWAY RE

SOURCES LTD. Rob Hinchcliffe, President and Director The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the use of proceeds. 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, expenditures.

For further information:

For further information: Rob Hinchcliffe, President and Director,
1-800-475-2412

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Galway Resources Ltd.

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