April 29, 2023: Galantas Gold Corporation (the ‘Company’) is pleased to announce its audited annual financial results for the year ended December 31, 2022.

A copy of the Financial Statements and Management Discussion and Analysis will be sent to shareholders in due course and are available on the Company’s website at www.galantas.com/investors.

The Annual and Special Meeting of the Company is to be held at 11:00 a.m. (Toronto time) on 27th June 2023 at The Canadian Venture Building, 82 Richmond Street East, Toronto, Ontario, M5C1P1, Canada.

Financial Highlights

Highlights of the 2022 audited annual results, which are expressed in Canadian Dollars, are summarized below:

All figures denominated in Canadian Dollars (CDN$) Year Ended
December 31
2022 2021
Revenue $ 0 $ 0
Cost and expenses of operations $ (284,262) $ (255,901)
Loss before the undernoted $ (284,262) $ (255,901)
Depreciation $ (624,620) $ (547,991)
General administrative expenses $ (5,401,289) $ (4,332,865)
Foreign exchange (loss) $ (195,308) $ (154,798)
Impairment of Exploration and Evaluation Assets $ 0 $ 0
(Loss) / Gain on disposal of property, plant and equipment $ (2,910) $ 7,124
Impairment $ (10,124,920) $ 0
Net Loss for the year $ (16,633,939) $ (5,284,431)
Working Capital Deficit $ (11,027,964) $ (1,095,882)
Cash loss from operating activities before changes in non-cash working capital $ (2,254,291) $ (1,678,797)
Cash at December 31, 2022 $ 1,038,643 $ 1,069,751
Sales revenue for year ended December 31, 2022 amounted to $ Nil as per the year ended December 31, 2021. Provisional concentrate sales totalled US$ 608,000 for 2022 compared to US $ 1,114,000 for the year 2021. However, until the mine commences commercial production, the net proceeds from concentrate sales are being offset against development assets.

The Net Loss for the year ended December 31, 2022 amounted to $ 16,633,939 (2021: $5,284,431) and the cash outflow from operating activities before changes in non-cash working capital for the year ended December 31, 2022 amounted to $2,254,291 (2021: $1,678,797).

The Company had a cash balance of $ 1,038,643 at December 31, 2022 compared to $ 1,069,751 at December 31, 2021. The working capital deficit at December 31, 2022 amounted to $ 11,027,964 compared to a working capital deficit of $1,095,882 at December 31, 2021. Current liabilities include financing facilities and loans. Negotiations with current finance providers to extend short-term loans have commenced, are progressing positively and the maturity dates for these loans are expected to be extended beyond December 31, 2023

The detailed results and Management Discussion and Analysis (MD&A) are available on www.sedar.com and www.galantas.com and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.

Qualified Person

The financial components of this disclosure has been reviewed by Alan Buckley (Chief Financial Officer) and the production and permitting components by Brendan Morris (CEO), and the exploration and geological components by Dr. Sarah Coulter, all qualified persons under the meaning of NI. 43-101. The information is based upon local production and financial data prepared under their supervision.

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