Galore Resources Announces Exploitation Agreement

VANCOUVER, BC / ACCESSWIRE / April 11, 2022 / Galore Resources Inc. (TSXV:GRI)(OTCQB:GALOF) ("Galore") is pleased to announce it has entered into an Exploitation Agreement between Oztoc Metal Corporation S. de R.L. de C.V. ("OZTOC") and Galore's wholly owned subsidiary Minerales Galore S.A. De CV. ("Minerales Galore"). This Exploitation Agreement is an agreement for mining operation services to "reengage" the mining activities that the previous tenant, URBYASA, was conducting.

The Company has entered into a 5-year contract with OZTOC to extract available gold at Galore's 100% owned Duraznillo Ranch, which includes the mining concessions Los Gemelos I and Duende 7 ("Mineral Claims") and jointly with Duraznillo Ranch will now be referred to as the Duraznillo Mine. Mr. Francisco Garza Vargas, who participated in Galore's recent private placement financing, is an insider by his shareholdings of 13.09% of the total issued and outstanding common shares of Galore, and he owns a minority position of 45% in OZTOC.

Highlights to the terms of the Agreement:

1. Under the Exploitation Agreement, Galore will maintain 100% legal interest and title in the Duraznillo Mine.
2. This Agreement is a service agreement, whereas OZTOC is providing mining and operational services to Minerals Galore.
3. This Agreement provides for a 30% split of the Gross Revenues in favour of Galore after payment of government duties and taxes, with the balance of 70% going to OZTOC for (i) its expenses related to the development and production of the Duraznillo Mine and (ii) profit from the production of the Duraznillo Mine.
4. All equipment, maintenance, personnel, permits, fees, expenditures and any and all cost associated with the mining activities covering the Duraznillo Mine are the responsibility of OZTOC.
5. Galore retains the right to conduct any and all exploration activities in the Mineral Claims to further Galore's technical data base, which may be used by OZTOC to aid in understanding of the local geology in its operation.
6. All proceeds from the sale of concentrated material will be handled by an independent third-party fiduciary to ensure the integrity.

Galore's decision to proceed with OZTOC is not based on a feasibility study of mineral reserves demonstrating the economic or technical feasibility of the project. There are known risks to such projects, but these risks lie with OZTOC, which has reviewed the available data on the associated claims and has taken independent sampling. Galore is not relying on this Exploitation Agreement for the survival of the Company. The parties intend to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study. Galore cautions that any production decision made by the parties will not be based on a NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability and as such, there may be involved increased uncertainty and various technological and economic risks such as the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance cost. Galore's Management believes this is a very fair and mutually beneficial agreement to both Galore and OZTOC.