Mr. Nick Brodie reports

GALANE GOLD LTD. REPORTS MATERIAL ORDERS PLACED FOR THE PROCESSING PLANT UPGRADE IN LINE WITH PLAN TO RECOMMENCE PRODUCTION IN APRIL 2019 AT GALAXY

Galane Gold Ltd. has placed the material orders required for the processing plant upgrade according to its plan to recommence production at its Galaxy project by April, 2019.

Galane has already refurbished the existing 15,000-tonne-per-month (tpm) processing plant at Galaxy, and the upgrade will increase the plant capacity to 30,000 tpm.

The company advises that it is not basing its decision to expand the throughput capacity of the Galaxy mine's processing plant to 30,000 tpm on a feasibility study of mineral reserves, demonstrating economic and technical viability of production at such levels, and as a result, there is increased uncertainty. These risks, among others, include areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves and environmental and community impacts.

The processing plant upgrade allows for the refurbishment of the Galaxy crushing plant and includes the installation of a new jaw and cone crusher, which will be able to crush up to 90 tonnes per hour (tph). This will provide for ample maintenance time, even at maximum mill throughput, and also accommodate future expansion. The consistency of the mineralized feed to the plant will be improved by the installation of an apron feeder under the ROM bin (1).

Initially, the existing mill and a single stream flotation will be used to operate up to 15,000 tpm while the new 3.6-metre-by-6.7-metre ball mill and second flotation stream are being erected. Once the new mill is completed, both flotation streams will be brought on line to produce concentrate. In addition, a new reagent makeup and dosing plant will be installed to accurately mix and dose flotation chemicals into the circuit (1).

The concentrate will then be thickened, initially in one 4.2-metre high-rate thickener, while a second unit is installed to cater for a 30,000-tonne-per-month throughput. Two 1,250-millimetre-by-1,250-millimetre automatic sidebar hydraulic filter presses will be installed to dewater the concentrate to approximately 10-per-cent moisture prior to bagging, containerization and dispatch (1).

The following material orders have been made:

• Jaw crusher: NMS JC850 jaw crusher, feed intake of 850 millimetres by 510 millimetres, max feed size of 450 mm, expected discharge size of zero mm to 75 mm and throughput of 65 to 95 tph;
• Cone crusher: NMS CC 100 EC cone crusher, maximum feed size of 135 mm, close size setting of 10 mm to 13 mm, product size of 80 per cent minus 16 mm and throughput of 48 to 89 tph;
• Reconditioned ball mill: a 3.6-metre-by-6.7-metre size, motor size of 1,700 kilowatts, feed size of 80 per cent at minus 16 mm, product size of 80 per cent passing 106 microns and design throughput of 50 tph;
• Concentrate filtration: two sidebar hydraulic filter press units of 1,250 mm by 1,250 mm, an automated electric operation, a 200-square-metre filter area, 76 filter chambers, design tonnage of 8.5 tph and product moisture of 10 to 11 per cent.

Furthermore, preparations for mining have commenced with the contractor having mobilized to site to start the development and first fit work required to recommence underground operations in the new year.

Galane Gold chief executive officer Nick Brodie commented: "With the completion of the funding requirements for our facility with Barak, Galane is now in a position that it can progress to the restarting of the operations at Galaxy.

"The work done by Galane while Galaxy was in care and maintenance has resulted in a detailed scope of work for the plant upgrade, which we have had verified by independent third parties. Galane has also followed the same process for the restart of underground operations.

"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."

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 is composed of 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 Kevin Crossling, PrSciNat, MAusIMM, SACNASP, business development manager for Galane Gold, a qualified person as defined by National Instrument 43-101.

Note

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

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