Galantas Gold : Q3 2021 Management Discussion and Analysis

GALANTAS GOLD CORPORATION

Management's Discussion and Analysis

Three and Nine Months Ended

September 30, 2021

GALANTAS GOLD CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

Three and Nine Months Ended September 30, 2021

Introduction

This Management Discussion and Analysis ("MD&A"), dated November 29, 2021 provides a review of the financial position and the results of operations of Galantas Gold Corporation ("Galantas" or the "Company") and constitutes management review of the factors that affected the Company's financial and operating performance for the three and nine months ended September 30, 2021 This MD&A has been prepared in compliance with the requirements of National Instrument 51-102 - Continuous Disclosure Obligations. The review is provided to enable the reader to assess the significant changes in the financial condition of the Company as at and for the three and nine months ended September 30, 2021. This MD&A should be read in conjunction with the unaudited consolidated financial statements of the Company for the three months ended September 30, 2021 together with the notes thereto. The Company's consolidated financial statements and the financial information reported in this MD&A have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations issued by the IFRS Interpretations Committee ("IFRIC"). All amounts presented are stated in Canadian dollars, unless otherwise indicated. Information contained herein is presented as of September 30, 2021 unless otherwise indicated.

For the purposes of preparing this MD&A, management, in conjunction with the Board of Directors, considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of Galantas's common shares; or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management, in conjunction with the Board of Directors, evaluates materiality with reference to all relevant circumstances, including potential market sensitivity. Additional information about the Company is available on SEDAR at www.sedar.com or at the Company's website www.galantas.com.

Cautionary Note Regarding Forward-Looking Information

This MD&A contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this MD&A speak only as of the date of this MD&A or as of the date specified in such statement. The following table outlines certain significant forward-looking statements contained in this MD&A and provides the material assumptions used to develop such forward-looking statements and material risk factors that could cause actual results to differ materially from the forward looking statements.

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Forward-looking information

Assumptions

Risk factors

Potential

of

the

Company's

Financing will be available for

Metal price volatility; uncertainties

properties

to

contain

economic

future

exploration

and

involved in interpreting geological

deposits of base metals and other

development and operation of the

data and retaining title to acquired

metals.

Company's properties; the actual

properties;

the

possibility

that

results

of

the

Company's

future exploration results will not

exploration

activities

will

be

be consistent with the Company's

favourable;

operating

and

expectations;

availability

of

exploration costs will not exceed

financing

for

future

exploration

the Company's expectations; the

and

development

of

the

Company will be able to retain and

Company's properties;

increases

attract skilled staff; all requisite

in

costs;

environmental

regulatory

and

governmental

compliance

and

changes in

approvals for exploration projects

environmental

and

other

local

and other operations will be

legislation and regulation; interest

received on a timely basis upon

rate

and

exchange

rate

terms acceptable to the Company,

fluctuations; changes in economic

and

applicable

political

and

and

political

conditions;

the

economic

conditions

will

be

Company's ability to retain and

favourable to the Company; the

attract skilled staff.

price of applicable metals and

applicable interest and exchange

rates will be favourable to the

Company; no title disputes exist

with respect to the Company's

properties

The Company's ability to meet its

The

operating

and exploration

Adverse changes in debt and

working capital needs at the

activities of the Company for the

equity

markets;

timing

and

current level for the year ending

year ending September 30, 2022

availability of external

financing

September 30, 2022.

and

the

costs

associated

on acceptable terms; increases in

therewith, will be dependent on

costs;

environmental compliance

raising sufficient additional capital

and changes

in

environmental

consistent

with

the

Company's

and other local legislation and

current expectations;

debt

and

regulation;

interest

rate

and

equity

markets,

exchange

and

exchange

rate

fluctuations;

interest rates and other applicable

changes in economic conditions.

economic

conditions

will

be

favourable to the Company.

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Management's outlook regarding	Financing	will	be		available	Metal	price volatility; changes in
future trends.	for the Company's	exploration,	debt and equity markets; interest
	development	and		operating	rate	and	exchange	rate
	activities; the price of applicable	fluctuations; changes in economic
	metals,	interest	rates	and	and political conditions.
	exchange rates will be favourable
	to the Company.
Asset values for the quarter	Management's	belief	that	no	If the Company does not obtain
ended September 30, 2021.	write-down is required for its	equity or debt financing on terms
	property and equipment resulting	favorable to the Company or at all,
	from continuing efforts to raise	a decline in asset values that
	capital (debt or equity, or a	could be deemed to be other than
	combination of both) to implement	temporary, may	result	in
	planned work programs on the	impairment losses.
	Company's projects.
Sensitivity analysis of financial	The Company has an interest rate	Changes in debt and equity
instruments.	risk on its G&F Phelps Ltd. and	markets;	interest	rate	and
	Ocean Partners UK Ltd. loans.	exchange rate fluctuations.
	The Company has no significant
	deposit interest rate risk due to
	low interest rates on its cash
	balances.
Prices and price volatility for	The price of metals will be	Changes in debt and equity
metals.	favourable; debt	and equity	markets and the spot prices of
	markets,	interest and	exchange	metals;	interest	rate	and
	rates and other economic factors	exchange	rate	fluctuations;
	which may impact the price of	changes in economic and political
	metals will be favourable to the	conditions.
	Company.

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Inherent in forward-looking statements are risks, uncertainties, and other factors beyond Galantas's ability to predict or control. Please also make reference to those risk factors referenced in the "Risks and Uncertainties" section below. Readers are cautioned that the above chart does not contain an exhaustive list of the factors or assumptions that may affect the forward-looking statements, and that the assumptions underlying such statements may prove to be incorrect. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this MD&A.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Galantas' actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward- looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.

Date of MD&A

This MD&A was prepared on November 29, 2021.

Overview - Strategy - Description of Business

Galantas Gold Corporation has been a producing mineral resource issuer and the first to acquire planning consent to mine gold in Northern Ireland. Cavanacaw Corporation, a wholly owned subsidiary of Galantas, owns all of the shares of the Northern Ireland companies - Flintridge Resources Limited, Omagh Minerals Limited and Galantas Irish Gold Limited. During 2014 Cavanacaw acquired Flintridge Resources Limited, a dormant company, and following a strategic review of its business, certain assets owned by Omagh Minerals were acquired by Flintridge.

Mining at the Omagh mine had been conducted by open pit methods up to the suspension of production in 2013. The mine produced a flotation concentrate and was shipped to a smelter under an off-take agreement. The Company's strategy to increase shareholder value has been to:

• With the additional funding, continue the expanded exploration programme and the further development of its underground mine;
• Recommence production at the mine and processing plant;
• Continue to explore and develop extensions to the Kearney, Joshua and nearby known veins so as to expand resources and increase gold production in stages;
• Explore the Company's prospecting licences, focusing on the more than 60 gold targets identified to date; these targets are the subject of further evaluation to rank and prioritise the more prospective targets.

Underground development of a decline tunnel, located at the base of the existing open pit, commenced in 2017. The underground gold mine at Omagh commenced limited production of gold concentrate, from feed produced in development of the Kearney vein in 2018. The processing plant uses a non-toxic flotation process to produce concentrates, without the use of cyanide or mercury. It satisfies strict environmental monitoring criteria set by the Northern Ireland regulatory authorities. The decline tunnel is planned to be extended in depth to provide access to lower levels of in vein development which will form the development necessary to block off production stopes.

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