Mr. Quinn Ellerbeck reports

NORTH VALLEY RESOURCES ANNOUNCES FILING OF EARLY WARNING REPORT

Malcolm Dorsey (the acquiror) has filed an early warning report under National Instrument 62-103 -- The Early Warning System and Related Take-Over Bid and Insider Reporting Issues following his acquisition of 1.25 million common shares of the company through a private share purchase at 0.1 cent per common share for total consideration of $1,250.

Prior to the transaction, the acquiror held 1.55 million common shares, representing approximately 8.72 per cent of the outstanding common shares. The acquired shares represent approximately 7.03 per cent of the outstanding common shares. Following the transaction, the acquiror holds 2.8 million common shares, representing approximately 15.57 per cent of the outstanding common shares.

The transaction was completed for investment purposes. The acquiror may, from time to time, acquire or dispose of additional securities of North Valley, depending on market and other conditions.

A copy of the early warning report will be available under the company's profile at SEDAR+. The head office of the company is 255 Battle St. West, Kamloops, B.C., V2C 1G8.