For immediate release

7 December 2021

Galileo Resources Plc

("Galileo" or "the Company")

Option and Joint Venture Agreement over

Shinganda Copper-Gold Project, Zambia

Galileo Resources plc ("Galileo "or the "Company") is pleased to provide details regarding an Option and Joint Venture Agreement entered into on 6 December 2021 with Garbo Resource Solutions Ltd, covering the Shinganda Copper-Gold Project, Zambia comprising Large Scale Exploration Licence No. 22990-HQ-LEL (the "Project")

Highlights

·     Option agreement gives Galileo the right to earn an initial 51% interest in the Shinganda copper-gold project in central Zambia, subject to any necessary Zambian regulatory approval, by spending US$0.5m on exploration and evaluation over two years

·     The Company can subsequently increase its interest through entering into a Joint Venture to develop a mining operation, ranging from 65% interest for a large deposit of greater than 1Mt of contained copper equivalent, up to an 85% interest in a smaller deposit of less than 200,000 tonnes of contained copper equivalent

·     The project area covers part of a major 10km structural trend with two previously developed small-scale open pit copper-gold mines

·     Very limited historic drilling on the property is reported to have intersected 1.07% Cu over a true width of 28.3m at shallow depth within supergene copper oxides

·     Drilling on the structure off-property to the west by Vale S.A. recorded 2m @ 3.93% Cu, 1.72 g/t Au

·     Historic grab sampling in an exploration pit towards the south of the Project area by Vale S.A., with reported assay values of 10.45% Cu, 11g/t Au, will be followed up in the field by Galileo for confirmation purposes

·     Galileo plans to review past exploration data followed by a drilling programme focussed on testing the tenor and extent of the shallow copper/gold mineralisation indicated by previous drilling and nearby mining 

Colin Bird Chairman & CEO said: "This project fits the Galileo model in that the licence areas have good copper and gold intersections from previous campaigns. The agreement gives us the opportunity for new deposit discovery and/or small mine production potential.

We look forward to working on this project commencing early in the New Year."

Summary

Galileo has entered into an Option and Joint Venture agreement with Garbo Resource Solutions Ltd ("Garbo"), a private special purpose UK company established to hold the Shinganda copper-gold property located in Central Zambia. The property is held as a large-scale exploration licence No. 22990-HQ-LEL, covering an area of 186.76km², by Garbo Resource Zambia Ltd., which is 99.4% owned by Garbo.

Historic Exploration

There has been quite an amount of historic exploration on the licence and small-scale open pit mining just outside the licence to the E-SE ('Western Sun pit' and 'Moxico pit') along the Gerhard trend (E.SE-W.NW), which extends for at least 10km. This trend appears to be a large, near-vertical fault/shear zone. The Gerhard trend is marked by a strong magnetic linear and soil geochemical anomaly, reflecting a zone of hematite-magnetite mineralisation, along with associated copper-gold, which probably represents a hydrothermal system driven by intrusives at depth. Apart from the two developed pits off the property to the east, the main showing of interest is the Shinganda prospect on the Shinganda property which was tested by two historic angled drillholes across the fault structure which is 35m wide in this area. The shallower hole intersected a reported 28.3m true width interval assaying 1.07% Cu within the oxide zone at about 50m vertical depth which appears not to have been followed up. Drilling suggests that mineralisation may fade out at depth. Drilling off-property by Vale S.A. is reported to have intersected shorter intervals of higher grade up to 2m @ 3.93% Cu, 1.72g/t Au. It is also reported that an exploration pit in the southern part of the Shinganda property yielded a sample collected by Vale S.A. assaying 10.45% Cu, 11g/t Au (Source: Competent Persons Report on Garbo Resource Solutions Limited in North-Western Province, Zambia by Coffey Geotechnics Ltd, March 2019 - page 53). This report will be followed up by Galileo in the field for confirmation purposes.

Project Potential

The Company believes that there may be considerable further potential around the Shinganda target, as previous drilling there appears very limited (just 2 holes known) and there remains considerable untested strike potential. Higher copper-gold grades are recorded to the west in the ex-Vale property, and two open pits were previously developed along the Gerhard structure to the east. The target for Galileo would be primarily supergene-enhanced shallow copper-gold mineralisation which is amenable to small to medium scale open pit mining development and that can be readily tested by shallow drilling.

Project Licence

Licence No. 22990-HQ-LEL is in its initial 4-year term which expires on 22 August 2022. An exploration licence is valid for a period of four years. It may be renewed for two further periods not exceeding three years each but the maximum period from the initial grant of the licence shall not exceed 10 years. A holder of an exploration licence shall relinquish 50% of the licence at each renewal.

Summary of Option Terms

An Option and Joint Venture Agreement has been signed with Garbo on the following summary terms:

i.      Galileo may earn an initial 51% interest in the Project by spending US$500,000 on exploration, including drilling and evaluation studies, over a two-year period, subject to any necessary Zambian regulatory approval.

ii.     Galileo may withdraw without penalty at any stage during the Option period

iii.    At any time during the Option period Galileo may elect to move forward to a Joint Venture to more fully evaluate and, if warranted, develop the Project.

iv.   Should the parties decide to advance the Project to feasibility study, then Galileo will pay the cost of such a study.

v.    Galileo's share of profits from a mining operation will vary, depending on the projected size of the deposit, ranging from 85% if the project has the potential of greater than 50,000 but up to 200,000 tonnes of contained copper equivalent, to 65% if the project has the potential for more than 1,000,000 tonnes of contained copper equivalent.

vi.   On decision to mine, each party will be responsible for funding of the development pro-rata to its equity holding in the Joint Venture

vii.  Should Garbo fail to finance its share in the development of the Project, 100% ownership of the Project will revert to Galileo and Garbo will be granted a 2% net smelter royalty on commercial production

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