TORONTO - Galane Gold Ltd. ('Galane Gold' or the 'Company') (TSX-V: GG; OTCQB: GGGOF) is pleased to announce the release of an independent updated National Instrument 43-101 ('NI 43-101') technical report supporting the positive preliminary economic assessment ('PEA') for its currently operating Galaxy property (the 'Mine') in South Africa (the 'Technical Report').

Unless otherwise indicated, all references to '$' in this press release refer to United States dollars.

Highlights

A 60% increase, 891,773 ounces, in all resource categories when compared to the previous technical report to give a new total of 970,904 ounces of measured and indicated mineral resources, and 1,409,764 ounces of inferred mineral resources.

New PEA, modelled at an average gold price of $1,466 per ounce, with: an initial 11 year mine plan; producing 413,421 ounces; an all in sustainable cost of $747 per ounce and a peak funding requirement of approximately $600,000.

Based on the PEA with a gold price of $1,700 per ounce and 11 year life, the project has a pre-tax internal rate of return of 1,498% and a NPV (5%) of $147 million (CAD$ 199 million).(1)(2)

Galane Gold CEO, Nick Brodie commented: 'We believe that our new independent technical report confirms that we have a 'generational' asset with the potential for further expansion in resource, throughput, and mine life with minimal capital requirement and robust ongoing economics.

The decision to undertake a new technical report was made so that we could advise the market on the actual potential of Galaxy and how we plan to expand the current operation. Given our progress to date at Galaxy in the Phase 1 ramp up to approximately 26,000 ounces per annum, generation of positive cash flows (as announced on November 15, 2019) at Galaxy, and upgrade of the plant, we expect to make a decision in the near future to implement the Phase 2 growth plan to target production of over 50,000 ounces per annum.(3)

The Galaxy mine camp currently hosts 21 known mineralised zones and we continue our expansion objectives, by first implementing our Phase 3 expansion plan. We have thus far increased our compliant resource by concentrating on data already available for the three existing orebodies we have been targeting, and improving the economics on those orebodies. We will now start the same process on the remaining 18 mineralised zones. In addition, we will start a drilling campaign to prove extension of the mineralised zones at depth. We are optimistic that we can present a plan to double production again once we have proved the resource to support the data.'(3)

It should be noted that the PEA is preliminary in nature as the resources included in the PEA are comprised 54% of Inferred Mineral Resources. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized.

About Galane Gold

Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana and South Africa. Galane Gold is a public company and its shares are quoted on the TSX Venture Exchange under the symbol 'GG' and the OTCQB under the symbol 'GGGOF'. Galane Gold's management team is comprised of senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programmes. 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.

Cautionary Notes

Certain statements contained in this press release constitute 'forward-looking statements'. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's future expansion at the Mine, capital requirements for such expansion, mining strategies at the Mine, technical, financial and business prospects of the Company, future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words 'believe', 'expect', 'aim', 'intend', 'plan', 'continue', 'will', 'may', 'would', 'anticipate', 'estimate', 'forecast', 'predict', 'project', 'seek', 'should' or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements.

Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to: the Company's dependence on two mineral projects; gold price volatility; risks associated with the conduct of the Company's mining activities in Botswana and South Africa; regulatory, consent or permitting delays; risks relating to the Company's exploration, development and mining activities being situated in Botswana and South Africa; risks relating to reliance on the Company's management team and outside contractors; risks regarding mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks arising from the Company's fair value estimates with respect to the carrying amount of mineral interests; mining tax regimes; risks arising from holding derivative instruments; the Company's need to replace reserves depleted by production; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; operating or technical difficulties in connection with mining or development activities; lack of infrastructure; employee relations, labour unrest or unavailability; health risks in Africa; the Company's interactions with surrounding communities and artisanal miners; the Company's ability to successfully integrate acquired assets; risks related to restarting production; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; development of the Company's exploration properties into commercially viable mines; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; risks related to the market perception of junior gold companies and litigation risk. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.

Contact:

Nick Brodie

Tel: 44 7905 089878

Email: Nick.Brodie@GalaneGold.com

Web: www.GalaneGold.com

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