Golden Valley Announces Intersection of High-Grade Gold at Cheechoo

Golden Valley Mines Ltd. provides the following information on the recently concluded diamond drilling campaign at the Cheechoo gold project ("Cheechoo") in James Bay, Quebec.

The information that follows has been prepared by program operator Sirios Resources Inc. (TSX VENTURE:SOI) and has not been independently verified by Golden Valley:

"Besides partial results already published, new results of the twenty-six holes undertaken include grades of 37.2 g/t Au over 4.1 metres including 102 g/t Au over 1.4 metres in drill hole #35; 31.8 g/t Au over 6 metres, including 124.0 g/t Au over 1.5 metres in drill hole #41; 6.0 g/t Au over 7.4 metres in drill hole #54; and 13.0 g/t Au over 2.7 metres, 29,1 g/t Au over 1,2 metres and 29.3 g/t Au over 1 metre in drill hole #53. Gold grades were also confirmed in drill holes where visible gold was observed (press release March 7, 2016) in the new sector located at more than 1.5 km from the main drilled sector, yielding up to 5.5 g/t Au over 1 metre and 5.3 g/t Au over 1.1 metres in drill hole #47 and up to 10.7 g/t Au over 1 metre in #48.

Gold grades, reaching respectively 16.1 g/t Au over 1 metre and 2.3 g/t Au over 6 metres, were obtained in meta-sedimentary rocks in drill hole #52 in addition to the section already announced at the end of March, of 12.1 g/t Au over 20.3 metres located at the contact between these units and the tonalite. Other gold grades were also obtained in meta-sedimentary rocks such as 1.2 g/t Au over 16.3 metres in drill hole #54.

The table below lists all significant results:

MAIN ASSAY RESULTS FROM 2016 WINTER DRILLING CAMPAIGN

New north-west sector

NQ-caliber drill cores of current campaign were sawed in half, with one half sent to a commercial laboratory for analysis and other half retained for future reference. A strict QA/QC program was followed by integrating blanks and certified reference materials to the drill core samples, all of which were prepared by IOS Services Géoscientifiques inc. of Chicoutimi, and assayed for gold by fire assay and atomic absorption finish (AA24) by the ALS Minerals laboratories in Val d'Or, Quebec. Samples grading more than 3 g/t were re-assayed by fire assay with gravimetric finish. (GRA22). Samples with visible gold were assayed by pyro-analysis with metallic sieve (SCR24) from a sample of about 1 kg."

Mr. Dominique Doucet, P. Eng., President of Sirios Resources Inc., is the Qualified Person pursuant to National Instrument 43-101, who prepared and is responsible for the technical information reported herein and has approved this written disclosure, including verification of the data disclosed, the sampling, and the analytical and QA-QC data underlying the technical information.

In 2012, Sirios concluded an agreement with Golden Valley regarding the ownership of Cheechoo that allowed it to, upon completion of certain obligations and counterparts, increase its current interest to 100%. Sirios has recently completed all these obligations and counterparts and will file shortly a request for transfer of mining claims to the competent authorities.

Golden Valley now owns 4,148,374 shares of Sirios, representing approximately 4.1% of the company. Golden Valley also holds a 4% net smelter royalty from all mineral products mined or removed from Cheechoo. Notwithstanding the foregoing, the royalty relevant to gold mineral products mined or removed from Cheechoo (the "Gold Portion") may be reduced as follows depending on the market price of Gold at the time of the payment of the Gold Portion:

1. If the price of Gold is less than $3,000 per ounce and higher than $2,400 per ounce, a 3.5% royalty on the Gold Portion shall be payable to Golden Valley;
2. If the price of Gold is less than $2,400 per ounce and higher than $1,200 per ounce, a 3% royalty on the Gold Portion shall be payable to Golden Valley; and
3. If the price of Gold is less than $1,200 per ounce, a 2.5% royalty on the Gold Portion shall be payable to Golden Valley.