Galway Resources provides an update on the Indian Springs open-pittable tungsten project



    ELKO, NV, Aug. 6 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased to
announce it has commenced the second round of infill drilling at its Indian
Springs open-pittable tungsten property located in Elko County, Nevada. In
June 2007, Galway engaged Haz-Tech Drilling, Inc. to perform a 15-hole
(7,000 foot) core program to collect additional sample material for
metallurgical testing and to also upgrade the resource. SGS Lakefield Research
has been retained to provide metallurgical and mineralogical services at
Indian Springs. Lastly, on August 1, 2007 the Environmental Assessment was
signed off on by the Bureau of Land Management (BLM).
    "We are pleased to have commenced our second drilling campaign at Indian
Springs. Hopefully working with SGS Lakefield will enable us to make some
progress on the metallurgical front which will enable us to begin a Scoping
Study in the fall of 2007. The resource estimate, current strong tungsten
pricing of $13.00 per pound, and the implied metal value for this deposit
demonstrates its vast potential," states Robert Hinchcliffe, President of
Galway Resources.
    Galway announced on May 1, 2007 the first NI 43-101 resource estimate
(the technical report was filed on sedar.com on June 18, 2007) for the Indian
Springs project prepared by SRK Consulting (U.S.) Inc. The resource estimate
was based on 62,000 feet of drill data (299) holes and approximately 2,500
trench samples. The majority of the work carried out on this property was
performed by Utah International which was later acquired by BHP Billiton. The
new resource estimate also included the results from Galway's 2006 drilling
program which consisted of 20 holes (8,000 feet) of reverse circulation
drilling and 3 core holes (1,000 feet).

    
    -------------------------------------------------------------------------
    Category   Tons (millions)   %WO(3) (Tungsten) Grade   Pounds of Tungsten
    -------------------------------------------------------------------------
    Indicated       10.8                  0.171                37,000,000
    -------------------------------------------------------------------------
    Inferred         8.2                  0.167                25,000,000
    -------------------------------------------------------------------------
    (*) A cut-off grade of 0.10% WO(3) was used for this resource estimate.
    

    Galway Engages SGS Lakefield for Metallurgical Testwork

    In order to expedite the advancement of the Indian Springs project,
Galway engaged SGS Lakefield Research in March 2007 to provide mineralogical
and metallurgical services to evaluate metallurgical performance to better
understand how to optimize the metallurgical recovery for this deposit. Future
work will be performed on core samples from the 2006 and 2007 core drilling
programs, which will represent ore internal to the deposit. A considerable
amount of historical metallurgical data exists based upon an extensive amount
of metallurgical test work performed by companies previously associated with
the property. That data was thoroughly analyzed by AKA PROS, Inc. prior to
initiating work at SGS and served as a basis for the current program.
    According to Paul Valenti, VP Project Development, "Better understanding
the metallurgy is key for the advancement of the Indian Springs project. So we
are very pleased to have an internationally recognized firm such as SGS
Lakefield Research conducting the metallurgical work. The samples from our
2006 and 2007 core drilling programs will allow us to perform the test work
necessary to develop a metallurgical flowsheet and determine the process
parameters, which will take us one step further in understanding the economic
potential at Indian Springs."

    Permitting Update

    To provide for future drilling at Indian Springs, Galway submitted a Plan
of Operations to the BLM in December 2006. Over the course of the past six
months Enviroscientists, Inc. performed an Environmental Assessment (EA) for
the project based upon the proposed future exploration activities. The Elko
Field Office of the Bureau of Land Management issued a Finding of No
Significant Impact and Decision Record on August 1, 2007, which will allow
Galway to continue infill drilling for resource definition and exploring
potential extensions of the deposit.

    Current Tungsten Pricing

    During the eighties and nineties tungsten pricing remained depressed,
with prices trading between US$2.50 to $3.00 per pound (or US$45 - $75 per
short ton unit as reported by Metal Bulletin and the United States Geological
Service). A significant decrease in exports from China served as the impetus
for prices to rise sharply at the end of 2004. Since October of 2005, tungsten
prices have remained above US$12.50 per pound (US$250 per short ton unit),
with current prices at US$13.00 per pound. Note, one short ton unit is equal
to 20 pounds of tungsten (WO(3)).

    New Options

    The Company has allocated 1,685,000 stock options at a price of $1.12 to
certain employees, directors, and officers for a period of 5 years.

    About the Company

    The company is well capitalized with $14 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 we 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
(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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