Galena Capital Corp.
TSX VENTURE : FYI

Galena Capital Corp.

May 30, 2011 08:00 ET

Galena Capital Corp. Provides Operational Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 30, 2011) -Galena Capital Corp. (TSX VENTURE:FYI) (the "Company" or "Galena"), a Vancouver-based company listed on the TSX Venture Exchange, wishes to provide the following operational update:

Oil Sands Recovery prospect:

Galena's potential joint venture partner, Imperial Petroleum Inc. by way of its subsidiary Arrakis Oil Recovery LLC, announced on May 16th, 2011 that Arrakis "has successfully completed commercial scale demonstration tests on oil sands from various locations".

Galena's management team has commissioned a due diligence report from an independent advisor which will include a comprehensive engineering examination as well as detailed lab analysis of the products resulting from the oil recovery process. Management expects to have these results within the next two weeks, and based on a satisfactory assessment of the process and business plan, management will determine whether or not Galena will be moving towards a definitive agreement covering the proposed joint venture.

Galena and Imperial Petroleum Inc. have previously entered into a letter of intent (February 07, 2011 News Release) to begin the development of oil sand recovery pilot operations later this summer.

Matagorda Bay prospect:

Management has been advised by the Operator (South Bay Resources) that the contracted rig is due to begin moving onto the 127-1 well site within the next week – once on site South Bay Resources (the Operator) expects to commence on-site operations immediately targeting the completion of the Bol Mex zone as previously discussed in our news release dated March 7, 2011.

"Galena is excited about Imperial's results and the future of bitumen opportunity & eagerly awaits the independent examination report. Bitumen is a longer term, highly involved project that requires significant due diligence. In the short term, Galena is optimistic about the low-cost, low-risk Matagorda Bay project which will commence in the very near future," States VP of Communications Michael Leahy.

To view the news release regarding the Bitumen demo for Imperial Petroleum please go to:

http://www.businesswire.com/news/home/20110516006518/en/Imperial-Update-Oil-Sands-Project

On Behalf of the Board of Directors of Galena Capital Corp.

"Arni Johannson"
Arni Johannson, Chairman

Certain of the statements made in this news release may contain forward-looking statements within the meaning of applicable Securities law. We have made numerous assumptions about the material forward-looking statements and information contained herein, including among other things, the assumptions about the price of oil and gas, anticipated costs and expenditures and our ability to achieve our goals. Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statements or information will prove to be accurate. Forward-looking statements and information include, but are not limited to statements or information with respect to known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and information. Such risks, uncertainties and other factors include, among others, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), and commodity price, interest rate and exchange rate fluctuations. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information. Although we have attempted to identify factors that would cause actual results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actual results, performances, achievements or events to not be as anticipated, estimated or intended. Also, many of the factors are beyond our control. There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly you should not place undue reliance on forward-looking statements or information. Except as required by law, we do not expect to update forward-looking statements and information as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

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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