Mr. Nick Brodie reports

GALANE GOLD LTD. ANNOUNCES REPLACEMENT OF CONVERTIBLE DEBENTURE AND AN UPDATE ON THE BARAK LOAN FACILITY

Galane Gold Ltd. has entered into an agreement with Traxys Europe SA to replace the existing 4 per cent unsecured convertible debenture in the principal amount of $3,249,433 (U.S.). The debenture was issued to Traxys on March 29, 2016, and is convertible into common shares in the capital of the company. Under the terms of the new debenture, the conversion price of the principal amount of the debenture has been reduced from 58 Canadian cents to 15 Canadian cents per common share and the maturity date has been extended from Nov. 20, 2019, to Nov. 20, 2021. The TSX Venture Exchange has conditionally approved the proposed replacement of the debenture, subject to the satisfaction by the company of certain conditions.

The company has made material progress toward the disbursal of the $5-million (U.S.) secured loan facility with Barak Fund SPC Ltd. previously announced on March 5, 2018. The company is working through the various conditions precedent and documentation with respect to the facility, and anticipates first drawdown on the facility early in the third quarter of 2018. As a result of such progress, the company and Barak have entered into an addendum to the loan agreement to extend the expected closing date to on or before July 31, 2018.

Galane Gold chief executive officer Nick Brodie commented: "We are very pleased to announce the restructuring of Traxys's debenture to match when we are planning for the Galaxy project to be in full production. In addition we are pleased to be nearing completion of the conditions for the drawdown of the debt facility provided by Barak Fund and expect to be able to provide further updates with respect to the restart of Galaxy in the near future."

About Galane Gold Ltd.

Galane Gold is an unhedged gold producer and explorer with mining operations and exploration tenements in Botswana and South Africa. Galane Gold's management team comprises senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programs. 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.

We seek Safe Harbor.