Mr. Robert Hinchcliffe reports

DRAMATIC INCREASE IN GOLD RECOVERY SIGNIFICANTLY IMPROVES THE BUSINESS OPTIONS FOR PAST-PRODUCING HIGH-GRADE GOLD ZINC ESTRADES MINE - SCOPING STUDY TO BE INITIATED

Galway Metals Inc. has provided an updated mineral resource estimate prepared by SLR Consulting Ltd. and has updated metallurgical testing performed at Base Metal Laboratories Ltd. under the design and direction of principal metallurgist Ken Roberts on the Estrades property located in the northern Abitibi of western Quebec, Canada. The 100-per-cent-owned Estrades project is a high-grade gold and zinc deposit. Historically, Breakwater Resources Ltd. spent $20-million developing the precious-metal-rich volcanogenic massive sulphide deposit, which was previously mined through a 200-metre-deep ramp with production in 1990-1991 totalling 174,946 tonnes grading 12.9 per cent zinc, 6.4 grams per tonne gold, 1.1 per cent copper and 173.3 g/t silver.

"We are extremely excited about 31-per-cent increase in gold recovery and its significant impact on the potential economics of the project. We had previously undertaken two internal scoping studies that indicated to us that, absent a new discovery at the Estrades project, the next biggest improvement we could make at Estrades was increasing the gold recovery, which is exactly what Galway accomplished as can be seen below. We also achieved improvements in copper, silver and lead recoveries," stated Rob Hinchcliffe, president and chief executive officer of Galway.

He added: "A positive scoping study would facilitate our quest to move the project forward by establishing a more relevant value in the marketplace. There are several operating mills in the area it is worth mentioning. The Clarence Stream gold project, located in southwest New Brunswick, remains our flagship project, where the vast majority of the company's resources and attention is focused. We are currently drilling at Clarence Stream, and we remain quite bullish about the company's prospects as we look forward to 2025."

Metallurgical and mineral resource estimate highlights:

• Gold recoveries have improved by 31 per cent and now stand at 86.6 per cent with further room for additional improvement. Moreover, for Ag, the company finds that recoveries stand at 45 per cent, improving by just under 9 per cent.
• With strong precious metal prices, gold now accounts for 48 per cent of the total NSR (net smelter return) of indicated mineral resources and 41 per cent for the total NSR of inferred mineral resources.
• Open circuit testing produced marketable concentrates for copper that assayed 28 per cent Cu with low lead and zinc content with 95-per-cent copper recovery versus previous results of 22 per cent assayed copper and 44 per cent recovered.
• Strong exploration potential: With 31 kilometres of strike length on the Casa Berardi fault for lode gold exploration and 17 km of the highly prospective Newiska horizon for gold and polymetallic VMS exploration, the company believes the upside potential for making new discoveries at Estrades is very high.
• The company sees a modest increase in tonnage with the new mineral resource estimate with a 17-per-cent increase in indicated resource and a 22-per-cent increase in inferred resource compared with the 2018 Estrade resource estimate conducted by SLR Consulting Inc. (at a $150-per-tonne net smelter royalty cut-off compared with $140 per tonne used in 2018).

Details of the Estrades mineral resource update

The mineral resource update was done to reflect current metal prices, with the gold price having increased 38 per cent, and to include infill drilling conducted since 2018. SLR's mineral resource update also includes a sensitivity analysis at the same $140-per-tonne NSR cut-off as used in 2018.

That apples-to-apples comparison at the same 2018 $140-per-tonne NSR cut-off shows that infill drilling and current metal prices resulted in the tonnage increase of 19 per cent for indicated and 25 per cent for inferred, with a decrease in average grade of 11 to 15 per cent for all metals, resulting in a minimal net change in total metal content.

Metallurgical improvements from previous work

Further metallurgical testing has been completed at Base Metallurgical laboratories (Base Met Labs, now Intertek) on the Estrades project to determine if improvements could be made in both metal recoveries and upgrading of the concentrates. The previous work had been completed in 2007 and 2008. Highlights for the program are as follows.

The following are excerpts from the report "Metallurgical Update Study for the Estrades Project, by Base Met Labs, Aug. 2, 2024:

• "Testing compared full sequential versus bulk Cu/Pb sequential Zn, the bulk option was initially thought to produce higher copper and precious metal recoveries.
• "Locked cycle testing on the bulk flow sheet option generated recoveries to separate concentrates of 58 per cent Cu, 44 per cent Pb and 85 per cent Zn. Precious metal recovery to Cu and Pb concentrates was demonstrated to be 86.6 per cent Au and 45 per cent Ag.
• "Open circuit testing produced marketable concentrates for copper that assayed 28 per cent Cu with low Pb and Zn content with 95-per-cent copper recovery. The zinc concentrate assayed 54.6 per cent Zn with 82-per-cent recovery.
• "Precious metals recovered to the copper and lead concentrate (with additional recovered from solution) were 86 per cent Au and 45 per cent Ag."

Additional testing was recommended.

Ore sorting discussion

Ore sorting results suggested XRT based sensors were successful in rejecting dilution/waste for all material types except central-east, which did not demonstrate an amenability to sorting. Qemscan analysis indicated that the ore is classified as ultrafine textured massive sulphide polymetallic. The current program tested grind sizes down to a k80 of 13 micrometres. It is likely regrind sizes in the below-five-micrometre range may be required to produce more favourable separations of the base metals, particularly the zinc. The locked cycle copper concentrate contained too much zinc. Future studies should evaluate finer regrind sizes in the sub-k80 of 10- or even five-micrometre size ranges to reduce the amount of zinc in the copper concentrate.

Qualified persons

The mineral resource estimate and other scientific and technical information in this news release has been prepared and approved by independent qualified persons for purpose of National Instrument 43-101: Reno Pressaco, MSc(A), PGeo, of SLR Consulting, principal metallurgist Kenny Roberts of KJRoberts Metallurgical Services Inc. and principal metallurgist Jake Lang, BECs, of Base Metallurgical Laboratories Ltd.

About Galway Metals Inc.

Galway is a Canadian mineral exploration and development company focused on advancing its 100-per-cent-owned, high-grade, open-pittable flagship Clarence Stream gold project in southwestern New Brunswick. Clarence Stream is an emerging gold district with an exploration strike length of approximately 65 kilometres, and the existing resource is open in virtually all directions. Galway also has 100-per-cent ownership in the Estrades project, a former-producing high-grade, gold-rich polymetallic VMS mine in the northern Abitibi of western Quebec. Led by a management team with a proven record of creating shareholder value, having sold Galway Resources for $340-million (U.S.), Galway Metals is focused on creating value for all its stakeholders.

We seek Safe Harbor.