Galahad Metals Board Authorizes Return of Capital

Galahad Metals Inc. ("the Company")(TSX VENTURE:GAX) announced today that its
board of directors has authorized a distribution to its shareholders of the
common shares of its subsidiary, Red Ore Gold Inc. ("RXX"), by way of a tax-free
return of capital, subject to compliance with applicable laws and receipt of all
necessary regulatory and shareholder approvals. While the details of the return
of capital are being finalized, including the specific number of the 8.8 million
RXX shares held by the Company that will ultimately be distributed to
shareholders, it is anticipated that only Canadian shareholders entitled to
receive 1,000 or more RXX shares will qualify to receive such RXX shares. All
other shareholders will receive a cash payment equivalent to the value of the
RXX shares that would have otherwise been allocated to them.


Robin Dow, CEO of the Company, stated that "Galahad has for some time now been
working towards establishing RXX as an independent publicly listed company. In
these difficult markets, the return of capital is an important step in ensuring
that RXX has a sufficient public float of freely tradable shares. That being
said, there is currently no market for the RXX shares and it is unknown when and
if the RXX shares will be listed or quoted for trading on an exchange."


To effect the distribution as a tax-free return of capital, shareholders of the
Company will be required to approve a reduction in the Company's stated capital.
Full details regarding the return of capital and related reduction in stated
capital will be included in an information circular that will be delivered to
shareholders in connection with an upcoming special shareholders' meeting
currently anticipated to be held in mid-November. Upon approval of the reduction
in stated capital and receipt of all necessary regulatory approvals, the Company
will then announce the record date for the distribution in accordance with the
applicable rules of the TSX Venture Exchange.


For further information, please go to www.galahadmetals.com

"The statements in this Press Release may contain forward looking statements
that involve a number of risks and uncertainties. Actual events or results could
differ materially from the Company's expectations and projections. The TSX
Venture Exchange has not approved or disapproved of the information contained in
this Press Release."