Galway Resources - Gold Mine - Colombia Gold

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California

Galway has secured a significant land position in one of the world's most exciting gold trends. Galway has acquired 335.6 hectares (829 acres) of concessions in the California district of northeastern Colombia. The properties are located 1.5 kilometers south-west of Ventana's La Bodega project, and 3.0 kilometers from Greystar's Angostura project, and are along strike. Greystar Resources' Angostura gold deposit contains a National Instrument 43-101 ("NI 43-101") compliant measured and indicated resource of 11.5 million ounces of gold (plus 3.5 million ounces of inferred resources).

Galway has announced analytical results of the Phase I sampling program.. Galway's gold team has taken a total of 1,500 samples (including 952 assayed), and historic data has been compiled. Data compilation to delineate bulk-mineable drill targets is in progress.

High-grade gold/silver mineralization, up to 6 meters of 63 grams/tonne Au and 451 grams/tonne Ag, have been sampled. The Company is pleased to report the following sample results from the areas known as El Dorado, Machuca and Pie de Gallo.

El Dorado: A small underground mine, located along the La Baja fault, Galway sampling has returned an average of 9.21 g/t Au from 68 chip samples over 130m of tunnel walls, along multiple stacked mineralized zones. This includes 20m of 27.32 g/t Au (including 6m of 63.34 g/t Au that includes 86.03 g/t Au over 2.0m). Values across the zones include 26.79 g/t Au over 1.50m and 13.26 g/t Au over 2.40m, within a range of 1.11 to 26.79 g/t Au (7.05 g/t Au Average) in 15 samples. The main mineralized horizons at El Dorado are generally 0.5m true width, with subordinate veins commonly splaying off at low angles. The mineralization is hosted in highly sheared and altered, strongly silicified granodiorite. As at Pie De Gallo, veining is generally running east-west and northwest-southeast, and dipping north in two sets at 40º and at 75º. Mineralization remains open in all directions.

Machuca: Galway's 43 underground chip samples have returned an average of 3.85 g/t gold over 87m of tunnel walls, along a single grey siliceous vein with an approximate average true width of 0.4m. Included in these samples are 28m of 5.12 g/t Au including 2m of 34.92 g/t Au. Values across the zones range from 0.38 to 5.95 g/t Au in 27 samples. Host rocks for the mineralization are highly sheared and altered, strongly silicified gneiss and intrusive.

Pie De Gallo: A 300 meter-long pit, that was mined in ancient times, by the Spaniards, and was the location of Anaconda Mining Company's exploration efforts in 1946-47. Galway's surface chip sampling has returned 14.2 g/t Au over 2.0m, included in a 33.50m SW-NE continuous line of samples that gave 2.84 g/t of gold and 11.74 g/t of silver. This was taken across one of the zones. Historic sampling by Anaconda identified several areas of high grade gold mineralization including chip assays such as 15.55 g/t Au over 6.0m plus 8.23 g/t Au over 9.0m, (perpendicular to mineralization that also returned 20.37 g/t Au over 16.0m along it). True widths are currently unknown. These historical, and currently productive, mine workings contain dark grey siliceous veins at least up to 4.0m true width on surface hosted in a highly sheared and altered, silicified intrusive. Anaconda drilled six, shallow core holes under the pit in 1946-1947. Their assay data is unreliable due to a very low 20% core recovery.

Small-scale artisanal mining has gone on for hundreds of years within the boundaries of the newly-acquired concessions, and in the surrounding California gold district.

California - An Emerging Gold Trend With Good Infrastructure
Drilling programs are currently being carried out by Greystar Resources (TSX-GSL) and by Ventana Gold (TSX-VEN). Galway's management believes that its properties have the potential to contain a gold and silver deposit similar in nature to Ventana's adjacent La Bodega deposit. The La Bodega project is located 1.5 kilometers northeast of Galway's newly acquired concessions. Three kilometers to the northeast of Galway's concessions, along the same structural trend, is Greystar's Angostura deposit.

Location and Gold History
The district is located in the northern part of the Colombian State of Santander, in the municipality of California, 50 kilometers northeast of the city of Bucaramanga. The area has access by paved and gravel roads and available electricity. Gold mining in the district started in pre-colonial times with native Colombians, and continued through Spanish rule with the mining of high-grade veins and placers.

Historic data collected by Galway, including 500 geochemical samples, along with detailed mapping from Anaconda and Minercol (a government agency), strongly suggest a continuation of the Ventana-Greystar mineral trend to the southwest onto Galway's concessions.

In 1946-47, the Anaconda Mining Company examined a portion of the district for copper and gold, but left the area and the country when the Colombian civil war erupted. As part of this evaluation, Anaconda drilled 7 small diameter core holes on ground now controlled by Galway, but with only 20% core recovery. Anaconda also extensively sampled many of the small underground workings in the area, taking a total of 646 samples. Results of this work indicate gold and silver mineralization along structures ranging in grade up to 277 grams per tonne of gold and 579.4 grams per tonne of silver. 122 historical assays from various sources are greater than 0.5 g/t.

A 300 meter-long pit, Pie De Gallo, mined in ancient times, and which Galway now controls, also contains significant copper mineralization associated with gold. Galway has opened a field office in the town of California and geologists are currently analyzing the data from Galway's on-going geochemical program to identify drill targets for the next phase of exploration. Soil geochemistry and geophysics (magnetics and I.P.) both work very well in identifying mineralization, as indicated on Ventana's property. Ventana's soil geochemical anomalies closely approximate the locations of mineralization that was subsequently drilled. Greystar's published soil geochemical anomalies are currently being drilled by them.

Geological Discussion
Mineralization at Galway's California area principally occurs as a series of north-northwest-dipping parallel vein zones, breccias and mineralized faults situated within complexly altered and variably silicified gneiss and intrusive rocks. The alteration, and nature of the mineralization, as described below, is similar throughout the area. The La Baja fault follows the river valley through the Angostura, La Bodega, and Galway areas, and the structural setting is comparable to that described by Ventana Gold Corp.

Alteration in the area is composed of silicification, pyritization, sericitization, alunite and pyrophyllite and is suggestive of a high sulfidation mineralizing system. Gold and silver mineralization is associated with structures which are silicified and contain pyrite in stockworks, stringers and breccias. These structures have in places been reactivated or sheared by the regional NE trending structure that cuts through the district. Structural intersections within the area have the potential to contain high grade shoots similar to those present elsewhere in the district. Gold mineralization at Galway's California properties is hosted within the same wide, northeast-trending fault zones as Ventana Gold Corp's neighboring La Bodega gold deposit and Greystar Resources' Angostura gold deposit. Galway will be further commenting on the geology as the first round of sample results are released over the next few weeks.

California Deal Terms
Galway has acquired 80% of several concessions in the district covering 335.6 hectares. These concessions acquired to date have combined annual payments of US$230,000 and a payout of US$4-9/ounce gold for 80% of the NI 43-101 delineated reserve after 3 years. This is payable 60% in cash with the remaining 40% in Galway shares. The Company continues to negotiate with other concession holders in order to enhance the current property package.

California Project Presentation