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Galantas Targets Early Ore for Underground Development

V.GAL, GAL

TORONTO, ONTARIO--(Marketwired - Sept. 7, 2016) - Galantas (TSX VENTURE:GAL) (AIM:GAL) has identified amongst its recent drilling results the presence of a gold vein stringer in the western part of the Kearney vein system. Core H159 (reported 24th August 2016) intersected 1 metre of mineralisation grading 5.7 g/t gold and 6.2 g/t silver. The vein stringer was not previously worked within the open pit because it lay close to the edge of the permitted open pit mining envelope.

The vein stringer has now been confirmed by a surface exposure made during recent safety works on the area above the planned lower underground portal and adit, which is scheduled to be built at the base of the Kearney open pit. Samples have been taken of the vein stringer at surface. The samples returned 52.9, 24.5, 10.2 and 6.2 g/t gold, 81.6, 30.4, 28.8 and 13.8 g/t silver and 0.3, 4.8, 3.9 and 0% lead. Due to the outcrop of the vein near and over the brow of a pit safety bench, the vein was not channel sampled, however grab samples were collected. The surface exposure of the vein stringer lies approximately 50 metres vertically above the vein intersect of core H159 and continuity of mineralisation is not certain from the data acquired so far.

The presence of the Kearney vein stringer is potentially important because it is anticipated to be about 11 metres south from the planned underground development decline. The surface samples suggest that, if sufficient vein continuity and mineralisation can be established during development, it may be possible to develop limited ore, on this part of the Kearney system, earlier in the underground development program than previously considered, with processing of the recovered ore within the existing processing plant.

The processing of ore earlier in the development program than previously considered may have positive cash flow implications.

Roland Phelps, President & CEO, Galantas Gold Corporation said, "Whilst there is still work to do to be certain that this Kearney stringer is viable to mine, its discovery is an interesting development that could prove very beneficial to the early cash-flow of the underground project."

The samples were taken by geological staff under the supervision of R. Phelps C.Eng MIMMM, (President & CEO, Galantas Gold Corporation), the Qualified Person (QP) for the program under NI 43-101 and who is also a "Qualified Person" as defined in the Note for Mining Oil & Gas Companies, June 2009, of the London Stock Exchange. Sampling methodology, security and verification followed standard procedures (April 2006) with standards, blanks and duplicates added at a frequency of 1 for every 20. The samples were analysed as follows: gold by fire assay and ICP-AES on 50g samples (fire assay and gravimetric finish for samples >10 ppm Au); other metals by ICP-MS and ICP-AES, at ALS Geochemistry Laboratories of Galway, Ireland, and were considered compliant with all requirements of International Standards ISO 17025:2005. Grab samples are not reliable data for the purposes of resource estimation, although these samples are strongly indicative of gold mineralisation. Readers are referred to the disclosure dated 24th August 2016 for complete technical details regarding Core H159.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including amongst others, geological matters, development intentions and cash flow expectations, for the Omagh Gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas believes are appropriate in the circumstances. Many factors could cause Galantas' actual results, the performance or achievements to differ materially from those expressed or implied by the forward looking statements or strategy, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metallurgical recoveries and throughputs; mining operational risk, geological uncertainties; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of or availability of key employees; additional funding requirements; uncertainties regarding planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Galantas' Management Discussion & Analysis of the financial statements of Galantas and elsewhere in documents filed from time to time with the Canadian provincial securities regulators and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Galantas Gold Corporation
Jack Gunter P.Eng
Chairman
+44 (0) 2882 241100

Galantas Gold Corporation
Roland Phelps C.Eng
President & CEO
+44 (0) 2882 241100
info@galantas.com
www.galantas.com

Grant Thornton UK LLP (Nomad)
Philip Secrett, Richard Tonthat
+44(0)20 7383 5100

Whitman Howard Ltd (Broker & Corporate Adviser)
Ranald McGregor-Smith, Nick Lovering
+44(0)20 7659 1234



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