Galane Gold Ltd. announced that it has entered into a binding offer (the "Offer") to acquire (the "Acquisition"), through a wholly-owned subsidiary, the Summit Mine (the "Mine") and the infrastructure constituting the Banner Mill in New Mexico (collectively, the "Assets") from Pyramid Peak Mining, LLC, a wholly-owned subsidiary of Waterton Precious Metals Fund II Cayman, LP (the "Seller"). The aggregate consideration to be paid for the Assets is USD 17.0 million, consisting of (i) cash consideration of USD 6.0 million (the "Initial Cash Consideration") on closing of the Acquisition (the "Closing"); (ii) issuance to the Seller on Closing of 16 million common shares of Galane (the "Consideration Shares") at a deemed issuance price of CAD 0.22 per share and warrants to purchase up to 16 million common shares of Galane exercisable at an exercise price of CAD 0.30 per share for a period of three years from Closing (the "Consideration Warrants"); and (iii) cash consideration of USD 8.2 million (the "Subsequent Cash Consideration") upon commencement of production at the Mine. The Company is also pleased to announce that it has entered into an engagement letter with Canaccord Genuity Corp. in respect of a CAD 9.0 million private placement (the "Offering") of subscription receipts of the Company (the "Subscription Receipts") to fund the Initial Cash Consideration, with a lead order from Palisades Goldcorp Ltd. ("Palisades"). Acquisition Highlights: Located in New Mexico, USA, a low-risk mining jurisdiction with a long history of support for gold and silver mines; A National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") compliant historical mineral resource estimate (the "Historical Estimate"), with a 4.35 g/t cut-off grade. Existing infrastructure in place of: 15,000 feet of underground workings; and a 240 ton per day permitted crush, mill and flotation plant. A 2014 Technical Report (as defined below) showing: a six-year mine life producing over 1 million ounces of silver and 16,000 ounces of gold per year; an all-in sustaining cost of USD 578 per gold equivalent ounce; and capital cost of USD 4.2 million to restart operations. Exploration upside with mining leases covering over 4,000 acres of prospective land as well as extension of the Mine at depth and near surface. All key permits in place to restart the operations.