Galway Resources provides a corporate update

    GWY: TSX-V

    ELKO, NV, Feb. 1 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased to
provide a corporate update. The Company's principal focus has been on
advancing three U.S. based projects (with over 300,000 feet of historical
drilling) and assessing exploration opportunities in Colombia. During 2007,
two new N.I. 43-101 resource estimates were announced and subsequently
upgraded with data from our own drilling programs for the Victorio
molybdenum-tungsten project and the Indian Springs tungsten project. More
recently we announced the receipt of two coal concessions in Colombia South
America and the submittal of new gold concession applications.
    "In just under two years advancing our US based projects (Galway has
drilled over 85,000 feet on the 3 projects) and developing an exciting
exploration campaign in Colombia we are pleased with the progress that we have
made in the past year. We remain optimistic with commodity prices remaining
strong, particularly with molybdenum and tungsten trading at $33 and
$12 per pound, respectively," states Robert Hinchcliffe, President & CEO of
Galway Resources.

    Victorio Molybdenum Tungsten Project - Scoping Study Due Out Next Few

    The Scoping Study for this project is expected to be finished over the
next few weeks and is assessing using different low cost underground bulk
mining methods, and the potential to mine the higher grade core in the early
years. This project with 165,000 feet of historical drilling (from 65 holes)
is currently being drilled for the second time as part of a 20-hole
40,000 foot drilling program. During 2007, an updated 43-101 resource was
released incorporating the data from our first drilling program. The Scoping
Study will examine the economic impact of designing a mine plan oriented
around a 60 million ton target mining reserve, versus the option of targeting
the larger 100 million ton resource. This report will be released in the
middle of February 2008. This project is 100% owned by Galway Resources.

    Victorio 2007 Resource Model Run with $15 Mo and $8 WO(3)
    Geologic Resource - N.I. 43-101 Compliant      Contained Metal in Pounds
    Category      $       Tons     Mo %   WO(3) %   Molybdenum     Tungsten
               Cutoff  (Millions)                                   (WO(3))
    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

    Update on the Indian Springs Tungsten Project

    Indian Springs is a project that was worked on by a few of the majors,
with a total of 65,000 amount of drilling done during the seventies and
eighties. Galway recently completed its second drilling campaign to upgrade
the resource estimate and provide material for metallurgical testing, with
Galway drilling 17,000 feet over the course of its two drilling programs. A
large metallurgical sample batch will be sent to SGS Lakefield's labs over the
next few weeks. The Company hopes to make some improvements on the
metallurgical front and will then advance the project to the Scoping Study
level. During 2007, an updated 43-101 resource was released incorporating the
data from our first drilling program. The open-pittable Indian Springs project
was acquired just under two years ago and is 100% owned by Galway Resources.

    Indian Springs 2007 Resource Model - N.I. 43-101 Compliant
    Category         Tons (millions)     %WO(3) (Tungsten)        Pounds of
                                              Grade                Tungsten
    Indicated             10.8                 0.17               37,000,000
    Inferred               8.2                 0.17               25,000,000
    (*) A cut-off grade of 0.10% WO3 was used for this resource estimate.

    Latest on the new Colombian Exploration Initiative Announced in December

    Over two years ago, Galway began to assess and evaluate various coal and
gold alternatives given the country's vast history for both of these
commodities. With such an apparent trend towards high quality coal in a world
where energy prices are reaching all time highs, coal deposits can be explored
for and developed in a time period much quicker than for other commodities, on
a relative basis. This approach has been successful and thus far the Company
has been awarded two coal concessions that are directly adjacent to well
recognized coal deposits.
    The Company has also been actively assessing privately held mining
concessions for gold exploration. Galway Resources has also submitted several
mining concessions for gold properties. Colombia is host to several recently
discovered world class gold deposits, and the country ranks at the top in
terms of cumulative historical gold production for Latin America.

    Update on the Lone Mountain Copper Zinc Project

    Management has decided to relinquish ownership of this project. The
corporate strategy for the US based projects is to find properties with ample
historical data that demonstrate significant upside potential to be developed
into profitable mines. This was evident at Lone Mountain after compilation of
a large volume of historic data demonstrating the presence of high grade
polymetallic skarn mineralization peripheral to the quartz monzonite porphyry.
The drill target of a moderate tonnage of high grade skarn was well conceived,
efficiently and adequately tested with 7 holes totaling 15,000 feet. A summary
of the results can be reviewed at:
    Even though high-grade copper and zinc mineralization were intersected in
the drilling, additional exploration expenditures are not justified in our
view. In short, it is management's view that the Company's capital can more
effectively be deployed with the other initiatives currently underway.

    New Options

    The Company has allocated 320,000 stock options at a price of $0.50 to
certain employees, directors, and officers for a period of 5 years.

    About the Company

    The company is well capitalized with just under $10 million in the
treasury. Management is focused on advancing two U.S. based exploration
projects and exploring for coal and gold in Colombia. The US projects are
favorably located and have over 250,000 feet of historical drilling, plus the
50,000 feet of additional drilling carried out by Galway in the past eighteen
months. Management believes that its strategic portfolio of properties offers
investors an interesting exposure to a unique blend of commodities
(molybdenum, tungsten, thermal and metallurgical coal, and gold).

    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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Galway Resources Ltd.

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