For immediate release

8 November 2021

Galileo Resources Plc

("Galileo" or "the Company")

Update on Drilling Programme over Kalahari Copper Belt Licences

Galileo Resources plc ("Galileo "or the "Company") is pleased to provide an update on drilling progress on the Kalahari Copper Belt ("KCB") Project in western Botswana.

Highlights

·     A total of over 5,000 metres (m) of mixed core and reverse circulation drilling has been completed to date on five of the Kalahari Copper Belt exploration licences in Botswana, including both the Company's retained licences and the Sandfire Agreement Licences (see RNS dated 16 September 2021), with the agreement of Sandfire Resources

·     Drilling on the Sandfire Agreement Licences intersected visible copper mineralisation at 242.7m in core hole BDDD004 on PL366/2018 in the form of vein-hosted chalcopyrite. This interval will be sent for laboratory assay, along with other zones of interest highlighted by detailed logging of reverse circulation chips

·     Galileo drilled in two of its retained licences, PL40/2018 and PL253/2018, with most holes intersecting the target D'kar/Ngwako Pan Fm. While no copper mineralisation was found, one hole intersected a 6.32m interval of 2-5% fine-grained disseminated pyrite at the target horizon level which might represent a hydrothermal mineral system lateral to a copper occurrence

·     Drilling is ongoing on PL253/2018 and drilling has just commenced on PL39/2018 with the aim of testing an extensive airborne EM target on this property, focussed on the margins of a regional scale dome feature

·     The Company looks forward to receiving assay results from the PL366/2018 copper intersection as well as the results of the continuing drilling programme

Colin Bird Chairman & CEO said: "We are very pleased that drilling on the Sandfire Agreement licences hit mineralisation of a type that can be associated with copper deposits on the KCB. This intersection site is located within a licence block where Sandfire has a US$4m exploration commitment over the following two years. Initial results bode well for our prospects of earning a deferred consideration and we look forward to results of further drilling by Sandfire on these licences. Drilling on the other sites is encouraging in that the target horizon has been successfully found in most holes and drilling is continuing. We have now commenced drill testing on a further promising EM target on PL39/2018.

Results to date are very encouraging, with the limited drilling programme having already encountered copper mineralisation. We await with interest the assay results from the drill samples and the outcome of our ongoing drilling."

Please see the following web link for the location of the Galileo target areas on the regional geology map of the KCB:
http://www.rns-pdf.londonstockexchange.com/rns/5763R_1-2021-11-7.pdf

Galileo KCB target areas on geology

Figure 1 - link

Aims of Drilling Programme

As announced on 5 May 2021, the Company commenced a drilling programme over its' Kalahari Copper Belt ('KCB') licences, which is ongoing and has consisted of a combined Diamond Drilling ("DD") and Reverse Circulation ("RC") drilling programme utilising several rigs. There were two elements to the programme - the first was to drill test targets on PLs 40/2018, 39/2018 and 253/2018 over which the Company continues to hold a 100% interest, with expenditure incurred being used to meet licence programme and expenditure commitments. The second element of the programme was devised in conjunction with Sandfire Resources Ltd ("Sandfire") covering those licences held by Galileo which formed part of the Licence Sale Agreement with Sandfire, as previously announced. As several of these licences were shortly set to fall due for renewal with limited previous work completed, a drill programme was prepared by arrangement with both companies to assist with airborne EM geological interpretation, as well as testing zones of potential mineral interest and meeting licence expenditure commitments. The programme was managed by Galileo as the then licence holders, under an arrangement with Sandfire which agreed to reimburse all drilling costs up to a maximum of US$500,000 to Galileo once the licences were transferred to Sandfire. The licences drilled as part of this arrangement were PLs 250/2018, 251/2018 and 366/2018. All drill core, RC samples and information from this element of the programme have been handed over to Sandfire. Under the terms of the agreement with Sandfire, Galileo is entitled to a 'Success Payment' based on a first ore reserve defined on any of the licences subject to the agreement.

Summary of Drilling Results to Date

Holes on all licences were primarily targeted at testing the interpreted D'kar Fm/Ngwako Pan Fm contact, where copper mineralisation is typically found at previously discovered copper deposits in the KCB. Most of the holes were successful in intersecting the target contact zone. This provides useful information for further geological modelling and planning for future targeted drilling. Copper mineralisation was observed in hole BDDD004 on PL366/2018. In this hole vein-hosted chalcopyrite was intersected in D'Kar Fm rocks at 242.70m downhole depth. Further mineralisation observed appears to be primarily iron hematite, however the zone will be assayed to ascertain the extent of copper-bearing interval.

Drilling on all the Sandfire agreement licences is now completed, while drilling is continuing on Galileo's retained licence PL253/2018, with drill testing just commencing on PL39/2018.

PL40/2018:

Six diamond core holes were drilled on PL40/2018 along 20km of the overall 30km strike length of the projected D'kar Fm/Ngwako Pan Fm contact zone. The drill programme was successful in intersecting the interpreted the D'kar Fm/Ngwako Pan Fm contact along much of the area drill tested. Although no copper mineralisation was encountered, hole HHDD002 intersected 2-5% fine-grained disseminated pyrite from 296.83-303.15m downhole depth, just above the D'Kar/ Ngwako Pan Fm contact. The intersection of iron sulphides at this contact may represent a hydrothermal system which is distal, rather than proximal to a copper mineralised setting, with possible increasing prospectivity on the licence towards the east. Once the programme is fully evaluated, the data obtained will be used to update the 3D model with a view to refining targets for follow-up on the licence.

PL39/2018:

Diamond drilling on this licence has just commenced with the aim of testing one or more airborne EM targets on the property, focussed on the margins of a regional scale dome feature.

PL253/2018:

Five RC holes were completed on PL253/2018, with a further hole in progress. All the holes were designed to test the D'kar/Ngwako Pan contact where it was interpreted to sub-outcrop at the erosional surface below the Kalahari overburden. In this area the D'kar/Ngwako Pan contact is interpreted to be tightly folded and thrust repeated. The areas chosen were also along strike of anomalous soil geochemical results in the adjacent tenure held by Kalahari Metals Limited. The drill programme located the interpreted the D'kar Fm/Ngwako Pan Fm contact in several of the holes indicating potential structural mineral traps, although the contact has not been copper-mineralised to date.

PL250/2018:

Three RC holes were drilled on PL250/2018. The drill holes on this licence were planned in conjunction with Sandfire to test a D'kar/Ngwako Pan contact area where it was interpreted to occur at the erosional surface below the Kalahari overburden. GLRC001 was abandoned due to hole collapse but GLRC002 and GLRC003 were successfully drilled. GLRC002 located the D'kar/Ngwako Pan contact at 113m and GLRC003 located the D'kar/Ngwako Pan contact at 162m.

Hematite iron mineralisation was noted during logging of chip samples in hole GLRC002 from 109-110m and in hole GLRC003 from 129-133m and 149-151m. RC samples collected from these zones were passed to Sandfire for assay to test for any associated copper.

PL251/2018:

Two RC holes were drilled on PL251/2018, also with the aim of testing the prospective D'kar/Ngwako Pan contact area where it was interpreted to occur at the erosional surface below the Kalahari overburden. QBRC001 intersected the D'kar/Ngwako Pan contact at 70m and QBRC002 intersected the D'kar/Ngwako Pan contact 158m. Neither hole intersected copper mineralisation at the D'kar/Ngwako Pan contact, but the geological information obtained will be modelled and utilised in future drill planning.

PL366/2018:

Four diamond core holes were drilled on PL366/2018, all of which were focussed on the previously discovered Quirinius Prospect. Drill holes BDDD001 and BDDD002 were planned to test a Spectrum EM conductor anomaly running along the axis of the Quirinius Fold. However, both holes drilled into Ngwako Pan Fm rocks below the target horizon. As no mineralisation has been found in the Ngwako Pan Fm these drill holes were terminated.

Drill holes BDDD003 and BDDD004 on PL366/2018 were planned with SFR to drill EM anomalies that were selected from Sandfire's recent regional SkyTEM survey. BDDD003 intersected D'kar Fm rocks under the Kalahari overburden at 3.90m and was then drilled to a depth of 358.94m, when excessive water and collapse caused the drill hole to be abandoned prior to intersecting the D'kar Fm/Ngwako Pan Fm contact. The hole was left open with a view to possibly re-entering it at a future date.

BDDD004 was successful in intersecting copper mineralisation in the form of vein-hosted chalcopyrite in D'Kar Fm rocks at 242.7m. The cross-cutting mineral style and its position higher than usual in the stratigraphic column is interpreted to be the result of re-mobilisation of copper sulphides along structures. Assaying of samples from this zone will be undertaken by Sandfire.

Background to the KCB Exploration Programme

The interpreted geological setting beneath the Kalahari sand deposits for the area covered by the Galileo Kalahari licences is based on regional aeromagnetic and EM data. This area has strong similarities to the synclinal geological setting that hosts the world-class Khoemacau Copper-Silver Project, situated only 25 kilometres due west. The Zone 5 and Zone 5N deposits host a combined sulphide resource of 502Mt @ 1.4% Cu and 17g/t Ag, including 185Mt @ 2.0% Cu and 27g/t Ag - refer to Cupric's website www.khoemacau.com for details. The Galileo licences also lie close to Sandfire Resources' (ASX:SFR) Motheo Copper Mine (permitted in July 2021), which comprises the T3 Copper-Silver Project (60Mt @ 0.98% Cu & 13.6g/t Ag), where a Definitive Feasibility Study (DFS) was completed in December 2020, and the A4 Dome Prospect (9.8Mt @ 1.36% Cu & 21g/t Ag). 

Technical Sign-Off

Technical information in this announcement has been reviewed by Edward (Ed) Slowey, BSc, PGeo, Technical Director of Galileo. Mr Slowey is a geologist with more than 40 years' relevant experience in mineral exploration and mining, a founder member of the Institute of Geologists of Ireland and is a Qualified Person under the AIM rules. Mr Slowey has reviewed and approved this announcement.

You can also follow Galileo on Twitter: @GalileoResource

For further information, please contact: Galileo Resources PLC

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

Technical Glossary