Galantas Gold Provides Update on Acquisition of RDL Mining Corp. and Brokered Financing

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A historical inferred mineral resource estimate for the Indiana Project¹ outlines approximately 714,600 ounces of gold equivalent (AuEq)², consisting of approximately 4,546,300 tonnes, averaging 4.89 parts per million (ppm) AuEq, supported by a technical report (the “2013 Technical Report”) prepared for Minera Activa SpA in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).

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The historical inferred mineral resource estimate² for the Indiana Project is contained in the table below.

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The below table presents the inferred mineral resource estimate² in terms of equivalent gold grade.

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The Company considers the historical estimate to be relevant as it provides an indication of the mineral potential of the Indiana Project. However, a qualified person of Galantas has not done sufficient work to classify this historical estimate as current mineral resources or mineral reserves, and Galantas is not treating this historical estimate as current mineral resources or mineral reserves. Galantas has not verified this information and is not relying on it. To verify the historical estimate, Galantas will need to prepare an updated mineral resource estimate and NI 43-101 technical report with respect to the Indiana Project (the “New Technical Report”). Galantas is currently preparing the New Technical Report and intends to file it on SEDAR+ upon the completion of the Transaction in accordance with the policies of the TSXV and applicable securities laws.

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Since the date of the 2013 Technical Report, additional exploration has been conducted on the Indiana Project. Approximately 1,500 meters of exploitation and exploration drifts have been excavated, mapped and sampled. In addition, approximately 960 meters of core was drilled in 2020.

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Offering Update

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The Company intends to rely on the “part and parcel pricing exception” provided for in the corporate finance policies of the TSXV in relation to gross proceeds raised that are specifically allocated and necessary for the Transaction, being $10 million (the “Transaction Funds”). The Offering Price for any non-Transaction Funds raised under the Offering may need to be adjusted after the Common Shares resume trading, and therefore closing of the Offering relating to any non-Transaction Funds will occur at least two business days after the Common Shares resume trading. Any adjustments to all or a portion of the Offering will require the approval of the TSXV and will be announced via a subsequent press release.

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The securities offered under the Offering have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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Notes

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¹ “Technical Report Indiana Gold and Copper Project Region III Chile” dated December 9, 2013, prepared in accordance with NI 43-101 by Dr. Eduardo Magri for Activa.

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² Gold equivalency based on the following prices: gold US$1,100/oz, copper US$2.80/lb, molybdenum US$12/lb, and adjusted for the following recovery rates: gold 75%, copper 88%, molybdenum 60% (e.g., 1 pound copper = (1 x $2.80) / $1,100 x (88% / 75%) AuEq). Areas, tonnages and metal content are rounded to the nearest hundred square metres, tonnes and ounces, respectively; vein thickness is rounded to the nearest centimetre, grades are rounded to two decimal places. Rounding may result in apparent differences between tonnes, grade and metal content. Inferred mineral resources were estimated as a global inferred geological resource using a vein accumulation methodology base on true widths, with grades estimated using Sichel’t estimation due to limited data density. No cut-off grade was applied to the inferred mineral resource estimate.

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Qualified Person

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Scientific and technical disclosures in this news release have been reviewed and approved by Mr. Gavin Berkenheger, who is considered, by virtue of his education, experience and professional association, a “qualified person” and independent under the terms of NI 43-101.