M. J. Drinkwater and L. A. Jones, University of New South Wales; O. M. Blaes, T. Hurt and R. Antonucci, University of California at Santa Barbara; and K. Hurley, University of California at Berkeley, report: "We have measured the optical spectrum of the galaxy in the HRI error circle of the possible x-ray counterpart to GRB 920501 with the Australian National University 2.3 m telescope at Siding Spring Observatory. The galaxy is labelled source 7 in Fig. 1 of Blaes et al. (1997, Ap.J., in press). This figure is available on the World Wide Web at http://vela.physics.ucsb.edu/people/jkeck.html. The HRI error circle depicted there has 6" radius and center at R.A. = 8h15m18s.06, Decl. = -32d44'27".0 (equinox 2000.0). The spectrum shows H-beta, [O III] (495.9 and 500.7 nm), H-alpha and the [S II] doublet in emission at a redshift of 0.315. The H-alpha line has an equivalent width of approximately 40 nm and an FWHM of 2300 km/s. This strongly suggests that the galaxy is a type 1 Seyfert and that it is the x-ray source. Given the possible association with the gamma-ray burst, we encourage further observations of this Seyfert."