Galena Mining : Abra Construction to 39% Complete

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ASX ANNOUNCEMENT

19 January 2022

ASX: G1A

ABRA CONSTRUCTION TO 39% COMPLETE

GALENA MINING LTD. ("Galena" or the "Company") (ASX: G1A) is pleased to announce that the construction progress at its Abra Base Metals Mine ("Abra" or the "Project") has reached 39% complete on 31 December 2021. Construction milestones achieved during the month include,

• Completion and commissioning of mines new airstrip (figure 1 below)
• Manufacture completion of primary jaw crusher (figure 2 below)

Managing Director, Tony James commented, "The completion and commissioning of the new Abra airstrip is a really significant milestone for the project. Being able to use larger planes for our FIFO work cycles during the remaining construction phase of the project makes a significant improvement to the project's logistics and accessibility. The overall construction progress at Abra has now reached 39% complete, with the focus remaining on the other key site construction activities.

Underground development has reached 440m from the portal against a plan of 364m."

Figure 1 - Completed new Abra airstrip commissioned in early January and now fully

operational.

GALENA MINING LTD.

CORPORATE OFFICE: GF, 1 CENTRO AVE, SUBIACO WA 6008 (TEL [phone])

WEBSITE: www.galenamining.com.au/ TWITTER: @GalenaMiningASX

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Figure 2 - Manufactured Abra primary Jaw Crusher assembly.

Update on Abra Project progress

Abra Construction Progress At 31 December 2021 (Percentage Spent By Category)					Remaining
							% Actual			% Planned											Project
																			Capex
Accommodation Camp - $14.7M																					100%		$0.1M
																					100%
Bulk Earthworks - $15.0M																69%								$4.6M
																77%
Process Plant EPC - $81.9M					26%																	$60.4M
				26%
Non-Process Infrastructure - $6.0M													54%											$2.8M
												56%
Mining Pre-Production - $48.2M					29%																	$34.3M
				26%
Other Pre-Production - $12.3M1													52%											$5.9M
													55%
Owner's Costs & Contingencies - $53.3M2										39%												$32.4M
										44%
Total Project Capex - $231.4M3										39%												$140.5M
										40%
0%	10%	20%		30%	40%	50%	60%	70%	80%	90%	100%

Notes: (1) Includes water supply & recovery, vehicles & mobile equipment, initial fills & spare parts, shire road maintenance, paste fill plant acquisition and construction indirect costs. (2) Includes employee & contractor, flights, accommodation, fuel, site management and general & administration costs as well as additional owner's contingencies on the remaining project capex. (3) Total project capex includes expenditure from the commencement of the project in July 2019 through to planned practical completion of the process plant in January 2023. As at 31 December 2021 the total remaining project capex was $140.5M.

Figure 3 - Shows the progress of the various Abra construction packages.

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Description

Manufacturer

Source

Order

Completion

Forecast

Country

Date

Date

On Site

Date

Jaw Crushers

Metso Outotec

China

19 Aug 21

10 Jan 22

21 Feb 22

Cone Crushers

Metso Outotec

Finland

19 Aug 21

16 Mar 22

27 Apr 22

Flotation Cells

Metso Outotec

China

18 Aug 21

01 Jul 22

12 Aug 22

Thickener

Metso Outotec

China

18 Aug 21

16 Mar 22

27 Apr 22

Slurry Analyser

Metso Outotec

Finland

18 Aug 21

10 Jan 22

21 Feb 22

Grinding Mill

CITIC HIC

China

23 Jul 21

04 Apr 22

30 May 22

Filter

Ishigaki

Japan

26 Jul 21

31 May 22

12 Jul 22

Regrind Mill

Glencore

Germany

23 Sep 21

29 Jun 22

03 Aug 22

LNG Storage

AMG

China

15 Jun 21

28 Apr 22

05 Jul 22

Tanks

Cryogenics

Table 1 - Key equipment order and delivery schedule from overseas suppliers.

Figure 4 - Construction offices, mine administration, and mining contractor buildings in place. Completed plant site earthworks in the foreground and civil construction occurring in the background on site power station earthworks.

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Figure 5 - Underground decline has progressed 440m project to date against a plan of

364m.

Figure 6 - Concentrate thickener fabrication.

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Figure 7 - Processing plant site works showing crusher, screening, and ore storage

foundations.

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

For further information contact:

Galena Mining Limited

Anthony (Tony) James

Managing Director

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