Mr. Nick Brodie reports

GALANE GOLD LTD. RELEASES FINANCIAL AND OPERATING RESULTS FOR FIRST QUARTER 2017

Galane Gold Ltd. has released its financial results for the three months ended March 31, 2017. All amounts are in United States dollars unless otherwise indicated.

A copy of the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2017, prepared in accordance with international financial reporting standards and the corresponding management's discussion and analysis will be available under the company's profile on SEDAR.

First quarter 2017 highlights:

• Sold 5,531 ounces of gold;
• Positive cash flows from operating activities of $821,253;
• Cash balance of $1,241,089 at the end of the quarter.

Subsequent events:

• Announced letter of intent to acquire Vantage Goldfields Ltd., an Australian gold mining company with two mines and processing plant proximate to Galane Gold's Galaxy operation.

Galane Gold chief executive officer Nick Brodie commented: "The first quarter of 2017 was challenging for Galane Gold as unseasonably high rainfall at the Mupane property resulted in flooding at our underground mine and operational issues related to feeding wet ore to our plant. While we managed to continue production throughout this period, albeit at a reduced rate, we did not reach our own internal targets. The second quarter to date has seen us move past these challenges, and we have resumed a normal rate of production.

"The announcement of the potential acquisition of Vantage is a significant opportunity for Galane. We expect to integrate Galaxy and Vantage with a view to deriving substantial operational and cost synergies and take a major step forward in our goal to reshape the company into a long-life and low-cost operation that can produce positive returns for investors across commodity cycles."

Options and deferred share units

The company has authorized the grant of options to the chief financial officer of the company. Options to purchase up to 500,000 common shares were authorized for grant with a five-year term and an exercise price equal to the closing price of the common shares on the TSX Venture Exchange on May 26, 2017. Such options shall vest according to the following schedule: 10 per cent on the award date, 10 per cent on the first anniversary of the award date, 15 per cent on the second anniversary of the award date, and 32.5 per cent on each of the fourth and fifth anniversaries of the award date.

The company has also authorized the grant of deferred share units (DSUs) to the chief executive officer of the company equal to 25 per cent of his salary (approximately 62,500 pounds sterling) and to the chief operating officer of the company equal to 25 per cent of his salary (approximately $68,000), each determined based on the closing price of the common shares on the TSX Venture Exchange on May 26, 2017. Such DSUs shall vest in three equal instalments on the first, second and third anniversaries of the award date. The DSUs have been awarded based on the achievement of certain key performance indicators for the 2016 financial year as previously approved by the compensation committee of the company in May, 2016.

About Galane Gold Ltd.

Galane Gold is an unhedged gold producer and explorer with mining operations and exploration tenements in Botswana and South Africa.

We seek Safe Harbor.