Updated Technical Report For The Galaxy Property

TORONTO - Galane Gold Ltd. reported the release of an independent updated National Instrument 43-101 (NI 43-101) technical report supporting the positive preliminary economic assessment (PEA) for its currently operating Galaxy property in South Africa.

Highlights: A 60% increase, 891,773 ounces, in all resource categories when compared to the previous technical report to give a new total of 970,904 ounces of measured and indicated mineral resources, and 1,409,764 ounces of inferred mineral resources; New PEA, modeled at an average gold price of $1,466 per ounce, with: an initial 11 year mine plan, producing 413,421 ounces, an all in sustainable cost of $747 per ounce, and a peak funding requirement of approximately $600,000; & Based on the PEA with a gold price of $1,700 per ounce and 11 year life, the project has a pre-tax internal rate of return of 1,498% and a NPV (5%) of $147 million (CAD$ 199 million).

CEO, Nick Brodie said, “We believe that our new independent technical report confirms that we have a ‘generational’ asset with the potential for further expansion in resource, throughput, and mine life with minimal capital requirement and robust ongoing economics. The decision to undertake a new technical report was made so that we could advise the market on the actual potential of Galaxy and how we plan to expand the current operation. Given our progress to date at Galaxy in the Phase 1 ramp up to approximately 26,000 ounces per annum, generation of positive cash flows at Galaxy, and upgrade of the plant, we expect to make a decision in the near future to implement the Phase 2 growth plan to target production of over 50,000 ounces per annum.

The Galaxy mine camp currently hosts 21 known mineralized zones and we continue our expansion objectives, by first implementing our Phase 3 expansion plan. We have thus far increased our compliant resource by concentrating on data already available for the three existing orebodies we have been targeting, and improving the economics on those orebodies. We will now start the same process on the remaining 18 mineralized zones. In addition, we will start a drilling campaign to prove extension of the mineralized zones at depth. We are optimistic that we can present a plan to double production again once we have proved the resource to support the data.”