News & Media

Galane Gold Ltd. Releases Financial and Operating Results for 2012

March 22, 2013

TORONTO, Mar. 22, 2013 /CNW/ - Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX VENTURE:GG) is pleased to announce the release of its financial results for the year ended December 31, 2012. All amounts are in United States dollars unless otherwise indicated.

A copy of the audited consolidated financial statements for the year ended December 31, 2012 prepared in accordance with International Financial Reporting Standards and the corresponding Management's Discussion and Analysis will be available under the Company's profile on

2012 Highlights and Subsequent Events



Mineral Resource Update



Galane Gold CEO, Philip Condon commented: "2012 has been a significant year forGalane Gold. It was our first full year of operations and we have taken major steps toward meeting the objectives we set for the Company when we assumed control of Mupane Gold Mines in September 2011.

"A strong and committed management team has been built and they are constantly striving to improve the operational efficiencies through the operational improvement program. We have critically reviewed the costs of the business to drive costs down in every aspect. Where optimisation opportunities have arisen, for example the accelerated cut back at Tholo, we have taken advantage of them for the long term benefit of the Company. In addition we have extended the mine resources with the latest update to a total of 508.4 thousand ounces of gold in the measured and indicated category and 261.1 thousand ounces of gold in the inferred category and we expect to increase that over the coming year, whilst continuing to produce.

"The Company going forward will continue to focus on operational improvement and extending mine life so that when new opportunities arise it will be in a strong position to take advantage of them."

Performance Shares

In connection with the completion of the acquisition by the Company of all of the issued and outstanding shares of Gallery Gold Pty Ltd. from IAMGOLD Corporation, the Company entered into performance share agreements dated August 30, 2011 (the "Performance Share Agreements") with each of Philip Condon and Ravi Sood, the Chief Executive Officer and Chairman of the Company, respectively. Pursuant to the Performance Share Agreements, the Company is required to issue 1,250,000 common shares to each of Mr. Condon and Mr. Sood upon the achievement of either of the following milestones with respect to the Company's Mupane Property by September 2, 2014: (i) 130,000 ounces of gold production at an average cash cost per ounce of $900 or less over any eight consecutive fiscal quarters of the Company; or (ii) $25,000,000 of cash flow from operations in any four consecutive fiscal quarters (the "Financial Performance Milestone"). On March 22, 2013, upon approval of the audited financial statements for the year endedDecember 31, 2012 and after receiving confirmation from the Company's auditors that the Financial Performance Milestone had been achieved, the board of directors of the Company authorized the issuance of 1,250,000 common shares to each of Mr. Condon and Mr. Sood in accordance with the terms of the Performance Share Agreements.

About Galane Gold

Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in BotswanaGalane Gold is a public company and its shares are quoted on the TSX Venture Exchange and the BSE under the symbol GG. Galane Gold'smanagement 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.

Note :

(1) Total operating cash cost excluding royalties is a non-GAAP measure. Refer to "Supplemental Information to Management's Discussion and Analysis" in the Company's Management's Discussion and Analysis for the year ended December 31, 2012 for a reconciliation to measures reported in the Company's financial statements.

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 financial position and results of operations, strategy, potential savings as a result of outsourcing the mining fleet, the anticipated cost of a secondary crushing unit, 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 a single mineral project; gold price volatility; risks associated with the conduct of the Company's mining activities in Botswana; regulatory, consent or permitting delays; risks relating to the Company's exploration, development and mining activities being situated in a single country; 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; 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; 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.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that any of the mineral resources disclosed in the press release will be converted to mineral reserves. There is also no guarantee that any of the inferred mineral resources will be upgraded to measured or indicated mineral resources. Information of a technical and scientific nature that forms the basis of the disclosure in the MD&A has been approved by Charles Byron Pr. Sci. Nat., MAusIMM., MGSSA and Chief Geologist for Galane Gold, and a "qualified person" as defined by National Instrument 43-101.

Neither the 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.

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