Mr. Mario Stifano reports

GALANTAS GOLD CLOSES TRANSACTION TO FORM JOINT VENTURE WITH OCEAN PARTNERS UK LIMITED TO DEVELOP OMAGH GOLD PROJECT IN NORTHERN IRELAND

Galantas Gold Corp. has closed the previously announced joint venture transaction with Ocean Partners U.K. Ltd. to develop the high-grade Omagh gold project in County Tyrone, Northern Ireland, as described in the binding term sheet dated June 6, 2025 (see Galantas Gold's news release dated June 9, 2025).

Mario Stifano, chief executive officer of Galantas, commented: "We are delighted to have closed this transformative transaction with Ocean Partners. With finance in place and the joint venture formally established, work will begin on a new drill program targeting high-grade zones at the Joshua vein and testing the northern extension of the Kearney vein to accelerate resource definition at the Omagh project.

"With the company's now-strengthened financial position, through the substantially reduced legacy debt along with the Melquart debt conversion, Galantas will continue advancing its other interests, including exploration at the Gairloch high-grade gold and copper volcanogenic massive sulphide (VMS) project in Scotland."

Highlights of the closing

Ocean Partners has completed the exchange of its existing loans, totalling approximately $14-million (U.S.) (10.3 million British pounds), for an 80-per-cent interest in Flintridge Resources Ltd. and Omagh Minerals Ltd., subsidiaries of Galantas that collectively own the Omagh project. As a result, Galantas retains a 20-per-cent interest in each subsidiary.

As part of the transaction, Ocean Partners has provided an initial capital investment of $3-million (U.S.) (2.2 million British pounds). These funds are allocated toward exploration, restart planning, and general and administrative costs during the first phase of the joint venture, referred to as the initial term. Galantas is free carried during this period. Ocean Partners has also confirmed its option to provide an additional $5-million (3.7 million British pounds) in a second phase, which will be directed toward further exploration and the commissioning of a development program. Galantas retains the option to participate pro rata in this future financing.

In connection with the joint venture, a shareholder agreement has been executed, appointing Ocean Partners as operator of the Omagh project. The board of Flintridge will consist of four representatives nominated by Ocean Partners and one representative nominated by Galantas, for so long as Galantas maintains at least a 10-per-cent interest in Flintridge.

During the initial term, Galantas holds the right to convert its 20-per-cent equity interest in Flintridge into a 3.00-per-cent net smelter return (NSR) royalty. Half of this royalty would be subject to buyback by Flintridge for $8-million (U.S.) (5.9 million British pounds). If Galantas does not exercise this option and its ownership in Flintridge is subsequently diluted below 10 per cent, its equity interest will automatically convert into a 1.50-per-cent NSR royalty, with half of that amount subject to buyback for $4-million (U.S.) (3.0 million British pounds).

Closing of Melquart debt transaction

The company also announces the closing of the proposed Melquart debt transaction, previously announced on June 9, 2025. Pursuant to shareholder approval at the annual and special meeting held on Aug. 5, 2025, Melquart converted $875,000 (U.S.) (646,171 British pounds) of its debt under a convertible note, plus accrued interest of $182,803 (U.S.) (134,997 British pounds), into 17,630,050 common shares of no par value in Galantas, at a deemed price of six U.S. cents (4.4 pence) per share.

Following the closing of the Melquart debt transaction, Melquart now holds 47,372,977 common shares, representing approximately 35.4 per cent of the issued share capital of Galantas. The common shares issued in connection with the Melquart debt transaction are subject to a hold period of four months and one day, expiring on Jan. 24, 2026.

Issued share capital on admission and total voting rights

Application will be made for the admission of the Melquart common shares to trading on the AIM (Alternative Investment Market), with admission expected to occur on or around Sept. 29, 2025. Following admission, the company's issued share capital will comprise 132,400,637 ordinary shares, each with one voting right per share. There are no shares held in treasury. When calculating the total number voting rights, shareholders should use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the company under the Financial Conduct Authority's disclosure guidance and transparency rules.

About Galantas Gold Corp.

Galantas Gold is a Canadian public company that trades on the TSX Venture Exchange and the London Stock Exchange AIM, both under the symbol GAL. It also trades on the OTCQB exchange under the symbol GALKF. The company's strategy is to create shareholder value by expanding gold production and resources at the Omagh project in Northern Ireland and exploring the Gairloch project hosting the Kerry Road gold-bearing VMS deposit in Scotland.

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