Galane Gold Provides an Update on Its Galaxy Property and Announces that it has Initiated Phase 2 of Its Galaxy Expansion Plan - Seite 3

Galane CEO, Nick Brodie, commented: “Giant steps continue to be made at Galaxy and I congratulate the team for completing the processing plant upgrade and the implementation of a new mining programme.

The work done to accelerate the implementation of Phase 2 is of great benefit to Galane and puts us in a strong position to profit from the current gold environment in advance of our original plans.

I believe it is time for us to stop talking about expansion phases as I expect that once we complete the work to support Phase 3 we will already be planning Phase 4. It is the reality of the camp resource that we have at Galaxy that there is the potential to continue to expand production in a staged, self-funded, process for years to come.”

About Galane Gold

Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana and South Africa. Galane Gold is a public company and its shares are quoted on the TSX Venture Exchange under the symbol “GG” and the OTCQB under the symbol “GGGOF”. Galane Gold’s management team is comprised of senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programmes. Galane Gold is committed to operating at world-class standards and is focused on the safety of its employees, respecting the environment, and contributing to the communities in which it operates.

Notes

(1)	Total all in operating cash cost is a non-generally accepted accounting principles ("GAAP") measure. Refer to “Non-GAAP Measures” below and “Supplemental Information to Management’s Discussion and Analysis – Cash Costs” in the Company’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2020 (the “MD&A”), for reconciliation to measures reported in the Company’s financial statements.
(2)	The deposits at the Galaxy mine are supported by a technical report entitled “NI 43-101 Technical Report on the Galaxy Gold Mine, South Africa” which was issued on July 3, 2020 (the “Technical Report”), with an effective date of June 29, 2020, a copy of which is available under the Company’s profile on www.sedar.com. The preliminary economic assessment (“PEA”) supported by the Technical Report is preliminary in nature as the resources included in the PEA are comprised 54% of inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.
(3)	This is forward-looking information and is based on a number of assumptions. See “Cautionary Notes”.
(4)	The Company is not basing its decision to expand the throughput capacity of the Galaxy mine’s processing plant to 50,000 tonnes per month on a feasibility study of mineral reserves demonstrating economic and technical viability of production at such levels, and as a result there is increased uncertainty and there are multiple technical and economic risks of failure which are associated with producing at such plant’s throughput capacity. These risks, among others, include applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.

Non-GAAP Measures