Mr. Nick Brodie reports

GALANE GOLD LTD. REPORTS FIRST DRAW DOWN ON THE BARAK FACILITY AND UPDATE ON THE PLAN TO RECOMMENCE PRODUCTION IN APRIL 2019 AT GALAXY

Galane Gold Ltd. has received the funds from its first drawdown request with regard to the secured loan facility with Barak Fund SPC Ltd.

The funds from the Barak facility will be used to increase the processing plant capacity to 30,000 tonnes per month (1). It will also be used for the development and first fit work required to recommence underground operations. The company expects to produce first concentrate in April, 2019, as previously announced.

Galane Gold chief executive officer Nick Brodie commented: "The drawing of the funds from Barak is in line with our internal forecast and ensures that the Galaxy project remains on track.

"We are still targeting at Galaxy steady-state annual production to be on average 25,000 ounces of gold at cash cost per ounce of less than $800 (U.S.) (2) (3). 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 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.

Notes

(1) 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 and there are multiple technical and economic risks of failure which are associated with producing at such plant's throughput capacity. 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, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.

(2) 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.

(3) Operating cash cost is a non-IFRS (international financial reporting standards) measure. Refer to "Supplemental Information to Management's Discussion and Analysis" in the company's management's discussion and analysis for the three and nine months ended Sept. 30, 2018, for reconciliation to measures reported in the company's financial statements.

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