Galane Gold Announces Commissioning of New Screening Plant at Botswana Operations

Galane Gold Ltd. ("Galane" or the "Company") is pleased to announce that it has commissioned a new screening plant at its operations in Botswana.

In 2013, Galane carried out an exercise to review the potential of screening its low grade stockpiles. The results of this exercise and related test work in respect of the previously disclosed measured mineral resource at the Mupane stockpiles are as follows:

• there are 702,259 tonnes of low grade stockpile at an average grade of 0.97 grams per tonne ("g/t"), which is located at the run-of-mine ("ROM") pad at the processing plant;
• screening the ore using a 40mm screen deck is expected to increase 38% of the stockpile grade by 65% and the upgraded ore would report to the minus 40 mm product size fraction;
• the process is expected to produce an additional 266,858 tonnes of ore at an average grade of 1.60 g/t to feed the processing plant;
• the screened material is expected to have a recovery rate of 83% and as it is predominately oxide in nature the milling rate is expected to increase by 20% due to the size and nature of the material; and
• the direct operating cost per ounce is forecast to be in the range of $600 to $700. Direct operating cost per ounce is a non-GAAP measure. See "Direct Operating Cost" and "Cautionary Notes" below.

Additional information regarding the Mupane stockpiles is set out in the Company's news release dated March 18, 2013 entitled "Galane Gold Ltd. Announces a Mineral Reserve Update For its Botswana Properties" and is available on the Company's SEDAR profile at www.sedar.com. In addition, the Company is reviewing a further 1.4 million tonnes of low grade stockpiles, not previously reported, to ascertain if they can also be treated in the same way.

The $295,000 capital cost for the acquisition and construction of the plant was funded from the Company's operating cash flows. The screening plant is fed from the ROM pad by direct tipping and feeds the processing plant crushed ore stockpile.

The Company intends to feed the low grade stockpile over the next three years, as required, to complement its other sources of ore. In addition, the screening plant will be used to process low and sub grade ore mined at the Company's other open cast pits.

Chairman Ravi Sood commented, "The commissioning of the screening plant is an important part of our current five year plan and a key component of our ongoing effort to decrease production costs.

This represents a testament to the experienced and innovative management team we have put in place and their commitment to making Galane a long mine-life, low-cost producer."

About Galane Gold

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

Direct Operating Cost

Direct operating cost includes mine site operating costs such as mining, processing, and attributable realized derivative gain or loss, but are exclusive of amortization, reclamation, administration, and exploration and development costs.

Source: http://www.galanegold.com/