Exploration Update At The Asanko Gold Mine

VANCOUVER - Galiano Gold Inc. reported an update from its 2020 exploration program underway at the Asanko Gold Mine (AGM), located in Ghana, West Africa. The AGM is a 50:50 joint venture (JV) with Gold Fields Ltd, which is managed and operated by Galiano. In addition to the previously announced 2020 exploration program at the AGM consisting of approximately 36,000m of Diamond (DD) and Reverse Circulation (RC) drilling, the Company has completed a 33 hole drilling program at the AGM's Nkran pit. The program was designed to both confirm and improve confidence in the Mineral Reserve Estimate for the third phase of mining at Nkran as well as test the extent of mineralization below the proposed Cut 3 pit shell. Mining of Cut 3 is contemplated to start in late 2022.

"Our in-pit drilling program has indicated that the Nkran mineralized system is continuing to depth," said Greg McCunn, Chief Executive Officer. "While the drilling has improved our confidence in the third cut of the open pit that was envisioned in our life of mine plan, the results indicate that further drilling and engineering is required to determine if Nkran Cut 3 can be expanded or should be transitioned from an open pit to an underground mine."

The Nkran pit is located immediately adjacent to the 5.4 million tonne per annum processing plant and has been the main source of ore at the AGM since commercial production commenced in 2016. Cut 2 of the open pit operations was depleted at the end of Q2 2020 and in-pit drilling commenced in early July. Cut 3 is envisioned to commence waste stripping operations in late 2022 as part of the life of mine plan.

The July 2020 drill program was designed to improve confidence in the Cut 3 Resource Estimate for continued open pit operation. In total, 4,591 meters of RC and DD drilling were completed with key intercepts. Estimates of the contribution of this material to the Mineral Resources and Reserves at the AGM is expected to be included in the end-of-year updated Mineral Resource and Reserve Estimate expected to be dated December 31, 2020 and published in Q1 2021.

A second phase of drilling was initiated in August 2020 and is currently underway with one drill rig operating. The second phase drill program consists of 26 RC holes which will be drilled from surface around the existing pit rim, testing for mineralization in push-back zones for the proposed Cut 3 waste material.

In addition, a geotechnical drilling and engineering campaign has been initiated targeting the proposed new west wall location for Cut 3. Previous instability in the west wall of the Nkran pit has largely been attributed to the presence of a small waste dump created in the early 2000's by prior oxide mining operations. Cut 3 development envisions removing all of this waste dump, potentially improving the geotechnical conditions in the new west wall.

Upon completion of the current drilling and geotechnical work, it is expected that the design of Cut 3 will be finalized and a definitive mine plan and capital cost estimate completed in early 2021.

In parallel to the Cut 3 drilling and engineering work underway for Nkran, the Company is evaluating the potential to transition Nkran to an underground mine, either prior to or following the completion of Cut 3. Planned work over the coming months will include planning for an underground exploration decline, development of a drilling program to follow-up on testing the extent of the mineralized system at depth and completing a conceptual study to investigate the potential of transitioning Nkran to an underground mine.?The Nkran geological setting is typical of the Asankrangwa belt with a sedimentary sequence of inter-layered shale, siltstone, and sandstone. Two granitic bodies intrude along shear zones that control mineralization which dips steeply to the northwest along with the sheared host stratigraphy. The mineralization indicated by the Company's drilling program lies within and below the currently planned Cut 3 pushback of the Nkran pit. The grade and continuity of the mineralization indicated by the Company's drilling program are sufficient to warrant evaluation of this mineralization for potential underground mining.