Galantas Closes Second Part of Private Placement

TORONTO, ONTARIO--(Marketwired - March 2, 2017) - Galantas Gold Corporation (the "Company") (TSX VENTURE:GAL)(AIM:GAL), the AIM and TSXV quoted gold producer and explorer with a 100% interest in Northern Ireland's Omagh gold mine, announces that the second part of the private placement as previously outlined in a disclosure dated 27 February 2017, has closed.

As previously anticipated, in the second part of the placement, the Company issued 5,722,222 common shares of no par value ("Common Shares") for receipt of CDN$424,798 (UK£257,500 at CDN$1.6497) ("the Placing").

A four month hold period will apply. The hold period will expire for the second closing of the Placing on 3 July 2017. The shares issued pursuant to the Placing will rank pari passu with the existing Common Shares in issue of the Company.

Melquart Ltd, ("Melquart") a UK based investment institution, subscribed for 5,722,222 Common Shares and was the only subscriber in the second closing of the Placing. The purchase increases Melquart's stake to 13% of the Company's issued Common Shares.

The Company has applied for admission of the Common Shares in connection with the first closing of the Placing to trading on the AIM market of the London Stock Exchange ("Admission") with Admission expected to occur on or around 7 March 2017.

Following Admission and the second closing, Galantas Gold Corporation's Issued and Outstanding Common Shares total 170,894,087.

Roland Phelps, President & CEO, Galantas Gold Corporation, said, "We see the development of an underground gold mine at Omagh as an exciting investment opportunity. I am delighted that Melquart has joined our shareholder base to assist in helping to bring the opportunity to fruition."

The net proceeds raised by the Placing are intended to be used for working capital purposes and to commence underground development at the Omagh gold mine.

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.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.