Mr. Roland Phelps reports

GALANTAS CLOSES GBP 1,000,000 PRIVATE PLACEMENT

Galantas Gold Corp.'s proposed private placement for 23,529,412 common shares for gross proceeds of one million British pounds ($1.6-million), previously announced on Aug. 5, 2019, has closed and was fully subscribed.

The private placement has received conditional approval of the TSX Venture Exchange and closed on Aug. 21, 2019, for 23,529,412 common shares for receipt of $1.6-million (one million British pounds). The net proceeds to be raised by the private placement are intended to be used to implement recently identified optimization initiatives at the Omagh gold mine, including increased mechanization and improved underground infrastructure, as well as for general working capital of the company.

The private placement included a subscription by Miton Asset Management Ltd., a U.K.-based investment institution, in respect of the Miton U.K. Microcap Trust, which has subscribed for 3,764,706 common shares in the private placement. The total number of shares controlled by Miton postcompletion of the private placement is 53,764,706, representing approximately 16.63 per cent of the company's enlarged issued and outstanding common shares.

The private placement also included a subscription from Melquart Ltd., for 15,341,174 common shares, which gives rise to an enlarged holding of 77,565,719 common shares postcompletion of the private placement, or approximately 24.00 per cent of the company's enlarged issued and outstanding common shares.

A four-month hold period will apply to the common shares of the private placement. The hold period will expire on Dec. 22, 2019. The shares issued pursuant to the private placement will rank pari passu with the existing common shares in issue of the company.

Commission payable to Whitman Howard Ltd. for acting as the broker in relation to the private placement totals 49,500 British pounds ($79,000).

Miton and Melquart are deemed to be related parties of the company by virtue of being substantial shareholders of the company (as defined in the Alternative Investment Market Rules for Companies). As a consequence, the directors of the company consider, having consulted with their nominated adviser, Grant Thornton U.K. LLP, that the terms of the private placement are fair and reasonable insofar as shareholders are concerned. The subscriptions made by Miton and Melquart are related-party transactions within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. The company has relied on the exemptions from the formal valuation and minority approval requirements of MI 61-101 contained in Section 5.5(g) of MI 61-101 in respect of related-party participation.

The company has applied for admission of the 23,529,412 common shares in connection with the private placement to trading on the AIM market of the London Stock Exchange with admission expected to occur on or around Aug. 27, 2019.

Following admission and closing of the private placement, Galantas Gold's issued and outstanding common shares total 323,216,217.

Roland Phelps, president and chief executive officer, Galantas Gold, said: "I am delighted to welcome the increased participation by Melquart, Miton and other investors. The funding is expected to allow the company to implement optimization initiatives at the Omagh gold mine with the goal of increasing output."