Mr. Nick Brodie reports

GALANE GOLD LTD. ANNOUNCES SATISFACTION OF CONDITIONS PRECEDENT OF LOAN FACILITY

Galane Gold Ltd. has satisfied the majority of the various conditions precedent required under its previously announced $5-million (U.S.) secured loan facility with Barak Fund SPC Ltd. The remaining substantive conditions precedent to the effectiveness of the loan agreement are for the company to raise a minimum of $2-million (U.S.) of equity, and the execution and delivery of a three-year offtake agreement, which is well advanced and should be completed by the end of September. The proceeds of the loan facility and of the equity issue will allow the company to restart the Galaxy mine.

Accordingly, the company is pleased to announce a non-brokered private placement of up to 54 million units at a price of five cents per unit for aggregate gross proceeds of up to $2.7-million. Each unit will consist of one common share of the company and one common share purchase warrant, with each warrant entitling the holder thereof to acquire one common share at an exercise price of five cents for a period of 24 months from the date of closing. The expiry date of the warrants can be accelerated by the company to the date that is 10 business days after the date where the closing price of the common shares on the TSX Venture Exchange is higher than 20 cents for 10 consecutive trading days, provided such trading days occur four months and one day after the issuance of the warrants.

Galane Gold expects to complete the private placement on or about Sept. 24, 2018.

Galane Gold chief executive officer Nick Brodie commented: "It is exciting to think that we are now very close to the recommencement of operations at Galaxy. A mine that has historically produced over 1.2 million ounces and was where gold was first commercially mined in South Africa. (1)

"With completion of the financing expected by the end of September, we are aiming to be in production by the end of the first quarter of 2019. (2) Steady state annual production is targeted to be on average 25,000 ounces of gold at cash cost per ounce of less than $800 (U.S.). (3)(4)

"The total capital cost to restart operations is forecast to be approximately $5-million (U.S.), which includes the upgrading of the crush, mill and float circuits to 30,000 tonnes per annum, and development required to restart underground mining at the Galaxy and Princeton orebodies. The remaining funds available will cover working capital costs to be incurred on recommencement of mining and processing. This represents only the first step of our resurrection of the Galaxy mine and we will shortly commence a study with the aim being to double production and lower the all in cost as a result of increased economies of scale." (2)

Pursuant to applicable securities laws, the common shares and warrants comprising the units, and the common shares underlying the warrants, will be subject to a hold period until four months and one day after closing. The private placement remains subject to the approval of the TSX Venture Exchange.

It is expected that certain insiders of the company may participate in the private placement. Any issuance of units to insiders pursuant to the private placement would be considered a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company intends to rely upon exemptions from the formal valuation and minority approval requirements in sections 5.5(b) and 5.7(b) of MI 61-101.

Notes:

(1) Information regarding the quantity of gold produced historically should not be relied upon as a predictor of future results.

(2) This is forward-looking information and is based on a number of assumptions.

(3) Based on a technical report entitled "A Technical Report on the Galaxy Gold Mine, Mpumalanga Province, South Africa," which was issued Jan. 4, 2016, with an effective date of Sept. 1, 2015, and was prepared by Minxcon Pty. Ltd. and approved by Daniel van Heerden, BEng (Min), MCom (BusAdmin), PrEng, FSAIMM, AMMSA, a qualified person as defined by National Instrument 43-101. The Galaxy technical report satisfies the requirements to be a prefeasibility study.

(4) Operating cash cost is a non-generally accepted accounting principles measure. Refer to "supplemental information to management's discussion and analysis" in the company's management's discussion and analysis for the three and six months ended June 30, 2018, for reconciliation to measures reported in the company's financial statements.

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.

Information of a technical and scientific nature that forms the basis of the disclosure in the press release has been approved by Charles Byron, PrSciNat, MAusIMM, MGSSA and chief geologist for Galane Gold, and a qualified person as defined by National Instrument 43-101.

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