GALENA MINING LTD. ('Galena' or the 'Company') (ASX: G1A) announces that it has acquired the Higginsville Gold Operations Pastefill Plant ('HPP') from Westgold Resources Limited ('Westgold') for consideration of 11.6 million Galena shares ($2.25 million).

The HPP will be contributed by Galena to Abra Mining Pty Limited ('AMPL'), the jointventure company for the Abra Base Metals Project ('Abra' or the 'Project'). It will then be refurbished, and reinstalled at the Project to provide the paste backfill cement required for Abra's underground mining operation.

Managing Director, Alex Molyneux commented, 'The refurbished and reinstalled HPP is much cheaper than alternatives but its also a technically robust solution to Abra's paste fill requirements. I'm pleased the opportunity presented itself to complete its acquisition.'

The HPP was designed and built by GR Engineering Services Limited (the awarded engineering, procurement and construction contractor for Abra's process plant) in 2008 as part of its contract to supply the 1.0 million tonne per annum Higginsville Treatment Plant. Its technical specifications exceed the requirements of Abra's bankable / definitive feasibility study. Currently on care and maintenance, the HPP is considered to have been well maintained and had a reliable operating history.

The Board of Directors of Galena authorized this announcement for release to the market.

Forward-looking statements

The contents of this announcement reflect various technical and economic conditions at the time of writing. Given the nature of the resources industry, these conditions can change significantly over relatively short periods of time. Consequently, actual results may vary from those in this announcement.

Some statements in this announcement regarding estimates or future events are forward looking statements. They include indications of, and guidance on, future earnings, cash flow, costs and financial performance. Forward-looking statements include, but are not limited to, statements preceded by words such as 'planned', 'expected', 'projected', 'estimated', 'may', 'Scheduled', 'intends', 'anticipates, 'believes', 'potential', 'predict', 'foresee', 'proposed', 'aim', 'target', 'opportunity', 'could', 'nominal', 'conceptual' and similar expressions.

Forward-looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements are provided as a general guide only and should not be relied on as guarantee of future performance. Forward-looking statement may be affected by a range of variables that could cause actual results to differ from estimated results and may cause the Company's actual performance and financial results in future periods to materially differ from any projections of future performance or results expressed or implied by such forward-looking statements. So there can be no assurance that actual outcomes will not materially differ from these forward-looking statements.

About Abra Base Metals Project

86.16% owned by Galena, the Abra Base Metals Project ('Abra' or the 'Project') is a globally significant lead-silver project located in the Gascoyne region of Western Australia (between the towns of Newman and Meekatharra, approximately 110 kilometres from Sandfire's DeGrussa Project).

Galena completed an outstanding definitive / bankable feasibility study ('FS') for development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing approximately 95kt of lead and 805koz of silver per year after ramp-up. Based on a pre-development capital expenditure estimate of A$170 million, the FS modelled a pre-tax net present value for Abra (at an 8% discount rate) of A$553 million and an internal rate of return of 39%.1

Contact:

Tel: +61 8 9462 3400

Email: reception@westgold.com.au

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