Galway Gold Intends to Recover Costs from Colombian Government

TORONTO, ONTARIO--(Marketwired - Aug. 31, 2016) - Galway Gold Inc. (TSX VENTURE:GLW) ("Galway Gold" or the "Company") announces that it has hired the law firm Arrieta, Mantilla & Associates to explore alternatives to recover its investment in the Vetas gold-silver project and other possible compensation from the Colombian government. The company's resident lawyer, Ricardo Convers, will continue to be involved in the process. The negotiations with the Colombian government will be related to how the administrative and judicial measures taken by the government have affected Galway´s investment in the Reina de Oro project.

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This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Galway Gold's objectives, goals or future plans, statements. Factors that could cause actual results to differ materially from such forward-looking information or on terms which are commercially acceptable, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in Galway Gold's public documents filed on SEDAR. Although Galway Gold believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Galway Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law."