Mr. Nick Brodie reports

GALANE GOLD LTD. RELEASES FINANCIAL AND OPERATING RESULTS FOR THIRD QUARTER 2014

Galane Gold Ltd. has released its financial results for the three and nine months ended Sept. 30, 2014. All amounts are in United States dollars unless otherwise indicated.

A copy of the unaudited condensed consolidated interim financial statements for the three and nine months ended Sept. 30, 2014, prepared in accordance with international financial reporting standards and the corresponding management's discussion and analysis will be available under the company's profile on SEDAR.

Third quarter 2014 highlights

• Operating cash cost of $886 per ounce (excluding royalties);
• Net loss of $212,101;
• Cash balance of $12,047,571;
• Cash flows from operating activities, before working capital adjustments, of $2,545,843;
• Cash flows used in investing activities of $3,191,406 which included development at Tau underground plus prestripping at Golden Eagle and Tawana;
• Produced 8,206 ounces of gold;
• Total ore mined of 172,104 tonnes at an average grade of 1.69 grams per tonne;
• In addition 30,201 tonnes of historical tailings material at 1.25 grams per tonne transported to the processing plant;
• Total ore milled of 200,042 tonnes at a head grade of 1.68 grams per tonne;
• As disclosed in the company's press release of May 26, 2014, failure of the SAG mill motor during the second quarter of 2014; installed a smaller spare motor but as a result the milling capacity was restricted to 70 per cent of the normal capacity; adversely affected the amount of ounces produced in the quarter which in turn affected the financial results and the operating cash cost per ounce; new motor installed on Aug. 28, 2014.

Galane Gold chief executive officer Nick Brodie commented: "The most pleasing aspect of the quarter was that all the hard work we have put into reducing costs and improving efficiencies in the operation has resulted in an operating cash cost per ounce of $886. This is despite only operating with the new SAG mill motor for one month of the quarter.

"In addition, we have rolled our five-year plan on another year and identified further areas where we can improve operating costs, production efficiencies and recoveries, and as a result we feel we are in a strong position to remain cash positive during this low-gold-price environment."

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