Vancouver, British Columbia — December 4, 2006 — Galway Resources Ltd. (“Galway” or the “Company”) (TSX-V: GWY) announces that it intends to complete a non-brokered private placement of up to 6,250,000 units at a price of $0.80 per unit for gross proceeds of up to $5,000,000, subject to regulatory approval. Each unit will be comprised of one common share and one-half of one non-transferable common share purchase warrant, each whole such warrant exercisable for one additional common share at a price of $1.25 per share for a period of 18 months from the date of closing. The warrants will be subject to acceleration in the event the closing trading price of the common shares of Galway on the TSX Venture Exchange is $1.70 per share or higher over a period of 20 consecutive trading days beginning on the date that is four months and one day after the date of issuance of the warrants. A finder’s fee may be payable in connection with a portion of the private placement.
Galway intends to use the proceeds of the private placement to fund the Company’s 12 month work program for each of its three properties (Indian Springs, Victorio and Lone Mountain), as recommended in the technical reports prepared by SRK Consulting (U.S.), with the balance available for general working capital purposes.
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.
On behalf of the Board of Directors
GALWAY RESOURCES LTD.
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 completion of financings and, 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, the ability to complete contemplated financings and the use of proceeds.