Galane Gold Ltd. Announces Financial and Operating Results for Second Quarter 2012

Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX VENTURE:GG)(BOTSWANA:GG)
is pleased to announce its financial results for the second quarter ended June
30, 2012. All amounts are in United States dollars unless otherwise indicated.


A copy of the unaudited condensed consolidated interim financial statements for
the three and six months ended June 30, 2012 and the corresponding Management's
Discussion and Analysis will be available under the Company's profile on
www.sedar.com.


Second Quarter Highlights



--  Produced 11,621 ounces of gold (17,523 ounces, Q1 2012) at a total cash
    cost excluding royalties of $1,494 ($929, Q1 2012) per ounce (composed
    of $1,172 ($690, Q1 2012) per ounce in total operating cash cost
    excluding royalties and $322 ($239, Q1 2012) per ounce in capitalised
    waste (stripping) costs). 
--  Sold 14,024 ounces of gold (15,155 ounces, Q1 2012) at an average
    selling price of $1,601 per ounce ($1,711 per ounce, Q1 2012). 
--  Completed acquisition of The Northern Lights Exploration Company (Pty)
    Ltd. ("NLE") on April 10, 2012 (the "NLE Acquisition"). 
--  Realized basic and diluted earnings per share of $0.008. 
--  After the effect of an adjustment to gold in carbon ("GIC") inventory of
    $2.9 million, working capital decreased in the quarter by $1.9 million,
    as at June 30, 2012. 
--  Exploration program has been significantly expanded for 2012 and 2013 as
    a result of the review of the previous exploration data base and aero-
    magnetic data with up-to-date interpretation technology. 
--  Listed on the Botswana Stock Exchange on August 22, 2012 by way of
    secondary listing under the trading symbol 'GG'. 



2012 Year to Date Highlights



--  Produced 29,144 ounces of gold at a total cash cost excluding royalties
    of $1,154 per ounce (composed of $882 ($977, since acquisition) per
    ounce in total operating cash cost excluding royalties and $272 ($212,
    since acquisition) per ounce in capitalised waste (stripping) costs). 
--  Sold 29,179 ounces of gold an average selling price of $1,658 per ounce.
--  Realized basic and diluted earnings per share of $0.254. 
--  After the effect of the adjustment to GIC inventory of $2.9 million,
    working capital increased in the first half of 2012 by $6.2 million, to
    $25.5 million as at June 30, 2012. 



Operations Summary



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                                                                Total since 
                    Q2 2012                YTD 2012             acquisition 
                    (before                 (before                  (after 
                  inventory               inventory               inventory 
               adjustments)        Q1  adjustments)        FY  adjustments) 
                        (2)      2012           (2)   2011(3)           (2) 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Tonnes milled       307,624   285,185       592,809   385,000       977,809 
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Gold grade                                                                  
 (g/t)                 1.46      2.18          2.18      1.86          1.71 
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Recovery % of                                                               
 gold                 80.00%    88.10%        85.60%     87.5%         85.5%
----------------------------------------------------------------------------
Gold ounces                                                                 
 produced            11,621    17,523        29,144    20,193        45,957 
----------------------------------------------------------------------------
Gold ounces                                                                 
 sold                14,024    15,155        29,179    16,853        46,032 
----------------------------------------------------------------------------
Gold price                                                                  
 realized per                                                               
 ounce         $      1,601  $  1,711  $      1,658  $  1,697  $      1,673 
----------------------------------------------------------------------------
Total                                                                       
 operating                                                                  
 cash cost per                                                              
 ounce(1)      $      1,172  $    690  $        882  $    951  $        977 
----------------------------------------------------------------------------
Total cash                                                                  
 cost per                                                                   
 ounce(1)      $      1,494  $    929  $      1,154  $  1,039  $      1,189 
----------------------------------------------------------------------------
                                                                            
(1)  Excluding royalties. Total cash cost excluding royalties and total     
     operating cash cost excluding royalties are non-GAAP measures. Refer to
     "Supplemental Information to Management's Discussion and Analysis" in  
     the Company's Management's Discussion and Analysis for the three and   
     six months ended June 30, 2012 for a reconciliation to measures        
     reported in the Company's financial statements.                        
(2)  As a result of the Company's OI Program (as defined below), a one-time 
     net downward adjustment to inventory quantities and cost has been      
     recognized in Q2 2012 as discussed in the Commentary to the Financial  
     Results section of this press release.                                 
(3)  2011 results are for the four months from the date of acquisition of   
     the Mupane mine (August 30, 2011 to December 31, 2011).                



Comments on operations are as follows:

Mining:



--  The revised mine plan at Tholo is progressing well and on schedule.
    Further optimisation of the mine plan has identified an opportunity to
    accelerate the stripping rate and thereby make available additional ore
    tonnes at higher grade sooner in 2013. The board has approved the
    additional expenditure rate associated with this higher stripping rate. 
--  Mining, drilling and blasting contracts have been reviewed with renewed
    contracts revised to include performance and efficiency requirements
    better aligned with the Company's objectives. 
--  Mine resource review is ongoing and is anticipated to be completed
    during Q4 2012. 



Processing:



--  Process water dam extension has been completed and will be commissioned
    prior to the end of Q3 2012. Following this commissioning, the original
    dam will be emptied, cleaned and re-commissioned. This will result in an
    approximate 200% increase on current process water storage capacity and
    thereby significantly reduce risk associated with process water supply
    shortages and associated production loss for current and increased
    planned milling tonnage amounts. 
--  Process instrumentation and control improvement program has begun with
    the aim of improving gold recovery. A SCADA system review has been
    completed and an upgraded process control system will be installed
    during Q3 2012. Concurrently, an instrumentation review is being
    conducted and will be finalised when the SCADA system upgrade is
    completed. Installation of instrumentation upgrades will occur
    progressively throughout Q3 and Q4, 2012. 
--  A review of the metal accounting system as used by the operations
    previously has been completed and has resulted in the identification of
    procedures that required improvement to ensure consistent and accurate
    metal accounting and reconciliation. 
--  Tonnage throughput increase studies are progressing with the initial
    crushing and milling circuit changes being designed and specified.
    Further detail modelling, design, specification and cost estimation is
    planned to be completed during Q3 2012. Additional alternatives shall
    also be examined to ensure modifications are optimal for the operation
    in both the medium and long term. 



Early benefits of some of these programs have resulted in improved performance
as planned for Q2 2012 such as improved tonnage throughput rates through the
processing plant from 285,185 tonnes in Q1 2012 to 307,624 tonnes for Q2 2012.
The combination of average gold ore grade of 1.46 g/t and 80% recovery for Q2
2012, and an average ore grade of 1.82 g/t and 85.6% recovery for the six months
ended June 30, 2012, was anticipated and resulted in the total gold production,
sales and cash costs outlined in the table at the beginning of this section. 


The review of the metal accounting system identified possible inconsistencies in
GIC at the end of May 2012, and an investigation was initiated immediately.
Certain inconsistencies in inputs were identified, quantified and rectified.
These include over-estimation of the volume of loaded carbon in the CIL tanks
(from both sample gathering and sample analysis techniques used) and incorrect
density Specific Gravity factor, which resulted in an overestimation of the GIC
by 3,380 ounces. Corrective measures have now been put in place that include:
(i) a more representative sample gathering technique; (ii) an accurate estimate
of contained carbon and associated assay of gold load; (iii) more accurate
density factors being utilised and reviewed on an ongoing basis; and (iv) a
rigorous monthly review of the end of month reconciliation of GIC.


Similarly, a review of the procedures used to quantify the gold content of the
low-grade stockpiles identified an error in conversion of surveyed volume to
tonnage estimate. This had a positive impact with an upward adjustment to the
quantity of ore contained therein by 3,139 ounces. The monthly reconciliation
procedure on the low-grade stockpile has now been modified to be driven by
actual survey data carried out monthly, which will help to ensure that a regular
and accurate estimate of low-grade stockpile tonnage is maintained.


Exploration

Exploration activity for Q2 2012 has ramped up significantly as anticipated.
Subsequent to the NLE Acquisition, a portfolio-wide exploration plan was
developed and this extensive program is now underway.




--  The ongoing review of the exploration database generated through
    previous extensive exploration activity has resulted in confirmation of
    provisional exploration targets in the exploration plan as well as the
    identification of additional high priority targets. The review of
    previous aero-magnetic survey data with the most advanced interpretation
    technology has been a central and critical component of this process. As
    a result of these activities, the Company's exploration program has been
    expanded to include the additional identified targets. The board has
    approved the expanded program which now extends out to the end of 2013
    and allocated additional funding from $3.8 million for 2012 and 2013 to
    $7.8 million for the same period. 
--  Tau Deeps: The first phase of the deep drilling program has been
    completed with two diamond drill holes being drilled to an approximate
    vertical depth of 480m. Drill metre totals on the Tau Deeps project for
    Q2 2012 are 800m reverse circulation ("RC") drilling and 903m of diamond
    core drilling. It is anticipated that assay results from this drilling
    will be received in Q3 2012. An additional deeper diamond hole is
    expected to be completed in Q3 2012 down to a vertical depth of
    approximately 900m. 
--  Tekwane: An additional 45 pits have been completed. A third program of
    pits will now be planned and implemented during Q3 and Q4, 2012. The
    program is designed to progressively and cost effectively locate the
    source of the quartz rubbles and thereby any gold mineralisation
    contained. 
--  Jim's Luck: Drilling program is underway and progressing well. A total
    of six RC holes for 963m and 1 diamond core hole for 161 metres have
    been completed during Q2 2012. This program will continue in Q3 2012 and
    beyond to define an initial NI 43-101-compliant resource estimate and
    then on to strike extensions. Assay results on the completed drilling
    are anticipated to be received in Q3 2012. 
--  Matopi: The first phase of the Matopi drilling program has been
    completed. A total of 5 RC holes for 847m and 1 diamond hole for 300m
    have been completed. Assay results have been received from the RC holes
    which confirm the low-grade mineralization, consistent with the historic
    holes. Additionally, no new zone of mineralization was intersected. 
--  Fines Dumps: A program of auger sampling has been planned on a number of
    fines dumps from previous mining activity on the Company's properties,
    including over 8 million tonnes of Mupane tailings. The objective is to
    determine the potential for economic retreatment of these dumps. This
    program will commence during Q3 2012 and will be ongoing until at least
    the end of 2012. The program is designed to progressively and cost
    effectively test the grade and economic gold recovery potential of the
    fines tailings materials. 
--  Orapa Road: A program of higher density soil sampling will be commenced
    during Q3 2012 on the northern part of the "Orapa Road" anomalies. Gold
    in soil had been previously identified and this combined with the
    reinterpretation of the aero-magnetic survey data has highlighted a
    number of areas of higher interest. The program will be completed during
    Q3 and Q4 2012 with assays being progressively received during this
    period. 
--  Mupane: The sample preparation lab has been installed and commissioned.
    The lab is now handling all the sample preparation for the Galane Gold
    exploration program. It is anticipated that further sample preparation
    capacity will be required to service the Company's expanded exploration
    program. 



BSE Secondary Listing

The Company is also pleased to announce that it has listed its shares on the
Botswana Stock Exchange ("BSE") under the trading symbol "GG". This listing will
serve as a secondary listing for the Company's common shares and the primary
exchange for the common shares will remain the TSX Venture Exchange (the
"TSXV"). 


The listing on the BSE does not involve the issuance of new common shares of the
Company or any other securities or derivatives, such as depositary receipts, as
it was structured solely to allow the common shares of the Company that are
currently issued and outstanding to be tradable by investors through the
facilities of the BSE. The listing will not result in any changes to the rights
and entitlements of holders of the Company's common shares, irrespective of
whether they purchase their shares through the TSXV or the BSE.


2012 Outlook

The transition from Signal Hill mine to Golden Eagle mine has progressed well
during Q2 2012. Mining operations at Signal Hill will finish during Q3 2012 as
planned, at which time it is anticipated that Golden Eagle will be producing
approximately 50% of the run of mine ore being processed at the Mupane mill. The
Tholo strip continues to progress as planned and is producing ore at
progressively increasing rates. In addition, the Company has completed a revised
mine plan that involves accelerated stripping of the Tholo pit cut back to make
more ore available at a higher grade sooner. The board of directors has
considered the financial implications of this accelerated stripping and approved
the increase in expenditure rate. Company management and the board of directors
have also considered the Company's improved liquidity position and prospects for
additional future sources of ore and concluded that the Company would benefit
materially by bringing forward the availability and subsequent processing of
higher grade ore from the Tholo pit.


The acquisition of NLE was completed in April 2012 and as a result, the Company
now has approximately 90% of the Tati greenstone belt area, an area exceeding
1,200 square km, under either exploration or mining license. This has allowed a
portfolio-wide exploration approach that will bring efficiencies in exploration
activity not possible with smaller tenement areas. The first review of the
previous exploration database was completed during Q1 and Q2 2012 and included
the re-interpretation of a previously generated aero-magnetic survey data
utilising up-to-date software technology. This resulted in the confirmation of
existing high priority targets and generated additional high priority targets.
As a result of this updated review, including the aero-magnetic data, the
Company has expanded the exploration budget for the remainder of 2012 and all of
2013 from $3.8 million to $7.8 million. An intense phase of drilling and pitting
activity began in Q2 of 2012 and will continue well into 2013.


One of the Company's key post-acquisition activities has been the implementation
of a comprehensive Operations Improvement Program (the "OI Program"), which has
continued to build momentum throughout Q2 2012. Some of the activities
undertaken as part of the OI Program are achieving immediate results whilst
others will require a longer time-period to achieve the desired outcomes.
Certain outcomes of the OI Program have had a negative one-off impact, such as
the adjustment to the GIC inventory; however it is the intent of the program to
identify and eliminate such items expediently and therefore further reduce
business risk and improve management performance. Such OI Program developments
are critical to the long-term success of the business. There remains
considerable scope for additional improvement across the whole of the operation
both in the short to medium term and on an ongoing basis. Further recruitment of
high quality employees progressed during Q2 2012 and the positive impact of
these professionals is being realised across the operations and exploration
activities of the Company.


Galane Gold CEO, Philip Condon commented: "The Company is now well advanced in
the implementation of its OI Program, which is aimed at changing the trajectory
at Mupane to that of an efficient and continuously improving operation with a
long-term perspective. OI Program-driven improvements in measurement procedures
and processes have had a short-term negative impact due to the downward
adjustment to the GIC inventory; however, precise and accurate measurement
systems and processes are critical to reporting and optimising operating
performance and this improvement among others was a critical one. 


The ramp up of Golden Eagle mine continues as planned in conjunction with the
winding down of mining operations at Signal Hill. Mining activity at Signal Hill
will be completed during Q3 2012 and run of mine ore feed for the mill is
planned to be approximately 50% from Golden Eagle and 50% from Tholo during Q4
2012. Anticipated fluctuations in grade and stripping ratios occurred which had
a short term detrimental impact on business performance. Fluctuations in gold
recovery also occurred as anticipated primarily due to changing amounts of
sulphide to oxide ore ratios. Such fluctuations will continue throughout the
transitional period for the remainder or 2012 and into Q1 2013 as Golden Eagle
production ramps up and Signal Hill winds down, and Tholo production
progressively increases. Sulphide levels have increased to levels such that they
have now reached the threshold whereby the sulphide flotation circuit will be
invoked during Q3 2012 to assist with improving gold recovery and reducing such
fluctuations. 


The exploration program has advanced significantly during Q2 2012, building on
the preliminary review and planning phase carried out during Q1 2012. An
exciting phase of drilling and pitting across multiple high priority targets is
underway and will be ongoing for the remainder of 2012 and into 2013. Drilling
and pitting activity will be reviewed at appropriate stages throughout the
exploration program to ensure focused and efficient use of exploration resources
as well as optimised resource development direction and progress. Exploration
results will be released as assays are received and reviewed throughout this
field exploration phase. Concurrently, exploration results will be added to the
Company's resource model with the target of producing an updated resource
statement as soon as permissible.


Listing our shares on the BSE further aligns our Company with Botswana, home to
our operations, employees and future aspirations. We are very pleased to
facilitate investor participation from Botswana and Southern Africa and believe
that increased ownership in Botswana will benefit the Company and all of its
shareholders. We expect that over time, the BSE listing will contribute to a
lower cost-of-capital for the Company and increased liquidity in our shares.


The Company remains on plan for 2012 in respect of mining and processing
operations and exploration activity. The strategy for the Company continues to
be the improvement of operational efficiency, development of resources and
minimization of business risk. Good progress has been made thus far on this
strategy and is anticipated to continue."


Financial Discussion:

A. Results for the Second Quarter Ended June 30, 2012



----------------------------------------------------------------------------
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                       Six Months  Three Months  Three Months  Three Months 
                            ended         ended         ended         ended 
(In thousands of         June 30,      June 30,     March 31,  December 31, 
 dollars)                    2012          2012          2012          2011 
----------------------------------------------------------------------------
Mining Revenue:      $     48,387  $     22,451  $     25,936  $     27,125 
Mining Costs:             (35,772)      (20,678)      (15,094)      (19,937)
----------------------------------------------------------------------------
Earnings from mining                                                        
 operations                12,615         1,773        10,842         7,188 
Exploration                  (383)         (310)          (73)          (35)
Corporate general                                                           
 and administration:                                                        
  Cash                       (869)         (612)         (257)         (790)
  Share-based                                                               
   compensation                 -             -             -           271 
----------------------------------------------------------------------------
Earnings from                                                               
 operations                11,363           851        10,512         6,634 
Other income                                                                
 (expenses) (1)               444          (491)          935          (957)
----------------------------------------------------------------------------
Net earnings         $     11,807           360  $     11,447  $      5,677 
----------------------------------------------------------------------------
Per share                                                                   
  Basic              $      0.254  $      0.008         0.254         0.126 
  Fully diluted      $      0.254  $      0.008         0.254         0.126 
----------------------------------------------------------------------------
(1) Other income                                                            
 (expenses) include:                                                        
  Foreign exchange                                                          
   gain (loss)                214           318          (104)          720 
  Movement in fair                                                          
   value of warrants          609          (627)        1,236        (1,444)
  Non-cash                                                                  
   acquisition                                                              
   expenses                     -             -             -             - 
  Accretion                  (258)         (131)         (127)         (174)
  Interest on long                                                          
   term debt                 (115)          (57)          (58)          (60)
  Other                        (6)            6           (12)            1 
----------------------------------------------------------------------------
                              444          (491)          935          (957)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Commentary:

The second quarter reflects the third full quarter of mining operations for the
Company, generating earnings from mining operations of $3.844 million ($1.773
million after inventory adjustments) from the sale of 14,024 ounces of gold,
with earnings from mining operations of $274 per ounce before inventory
adjustments ($692 per ounce, Q1 2012). This brings year-to date results to
$14.686 million ($12.615 million after inventory adjustments) from the sale of
29,179 ounces of gold, and earnings from mining operations of $504 per ounce
($432 per ounce after inventory adjustments). 


As the mine was purchased on August 30, 2011, there are no comparable results
for the corresponding periods in 2011.


Total operating cash costs in Q2 2012 reflect the effect of two factors:



1.  Lower grade ore (1.46 vs 2.18 g/t in Q1 2012) was mined in the period;
    and 
2.  Higher stripping costs were experienced in Q2 2012, as the ore was mined
    from pits with stripping ratios more indicative of the mine, compared to
    Q1 2012, where the main source of ore was from one of the pits ("Signal
    Hill") at which the stripping ratio was reduced significantly as it was
    nearing the end of its economic life on the current mine plan. 



Year-to-date, the average grade is 1.82 g/t and the operating strip ratio is 5.46.

In future quarters, the Company anticipates fluctuating grades and stripping
ratios causing cash costs to fluctuate as well. It is also anticipated that
variations in the sulphide to oxide ore ratios in the feed will cause
fluctuations in gold recovery.


As part of the post-acquisition OI Program, the Company has been and continues
to evaluate all of the systems used previously. Based on such evaluation during
Q2 2012, the Company has concluded that the variables used in the models for the
purposes of calculating inventory quantities have differed slightly from
actuals. This has affected the low-grade stockpile and the GIC inventory at June
30, 2012, and earnings for Q2 2012 and YTD 2012, as follows:




1.  The quantity and average grade of ore contained in the low-grade
    stockpile has been adjusted upward, resulting in an increase of 3,139
    ounces, and, based on the average cost of gold contained therein of
    $8.61 per ounce, by $0.8 million. This has decreased the mining cost of
    sales for the three and six months ended June 30, 2012 by an offsetting
    amount. 
2.  The variable which estimates the amount of gold contained in the
    processing line has been revised to more properly reflect the process,
    and as a result the GIC inventory has been reduced downward by 3,380
    ounces ($2.9 million), and the processing costs of sales increased by
    the same amount in the three and six months ended June 30, 2012. The
    Company has also made the requisite adjustments to the model used to
    reflect the proper variables going forward. 



While the inventory adjustments above had no effect on the cash costs of
production in the aggregate, given that the number of ounces has been adjusted,
they do have the effect of increasing the cash cost before royalties per ounce
as follows:




--  Total cash cost excluding royalties: 
    --  Since acquisition - increased by $82, from $1,107 to $1,189 
--  Total operating cash cost excluding royalties: 
    --  Since acquisition - increased by $67, from $910 to $977. 



Corporate general and administration costs of $0.6 million and $0.9 million in
Q2 2012 and YTD 2012, respectively, have increased to properly reflect the costs
of running a growing publicly-listed company, including an increase in
compensation for the Company's Chief Financial Officer by $56,000 as a result of
increased time requirements to fulfill this role. Further, as a result of the
movement of fair value of warrants, the Company recorded financing expense in Q2
2012 of $0.6 million, and income of $0.6 million for the six months then ended. 


B. Financial Position
Selected Consolidated Financial Position Data



----------------------------------------------------------------------------
                                      June 30,      March 31,   December 31,
                                          2012           2012           2011
(In thousands of dollars)                    $              $              $
----------------------------------------------------------------------------
Total current assets                    31,125         32,734         26,431
----------------------------------------------------------------------------
Total current liabilities                5,675          5,402          7,197
----------------------------------------------------------------------------
Working capital                         25,450         27,332         19,234
----------------------------------------------------------------------------
Mining assets                           35,118         28,828         26,603
----------------------------------------------------------------------------
Non-current liabilities                 13,723         12,351         13,476
----------------------------------------------------------------------------
Total shareholders' equity              46,845         43,809         32,361
----------------------------------------------------------------------------



Commentary:



--  Three and six months of mining operations to June 30, 2012 generated the
    following working capital (in thousands of dollars): 





                                                         Q2 2012   YTD 2012 
                                                      -----------           
  Mining operations:                                                        
    Working capital generated                          $   6,060  $  18,786 
    Capital expenditures                                  (4,418)    (8,789)
    Inventory adjustment                                  (2,912)    (2,912)
----------------------------------------------------------------------------
  Net from (to) mining operations                         (1,270)     7,085 
----------------------------------------------------------------------------
  General and administration                                (612)      (869)
----------------------------------------------------------------------------
Total working capital generated (used)                 $  (1,882) $   6,216 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

--  Working capital (in thousands of dollars) at June 30, 2012 (with
    comparatives for March 31, 2012 and December 31, 2011) was comprised of:

                                   June 30,       March 31,    December 31, 
                                       2012            2012            2011 
----------------------------------------------------------------------------
Cash                         $       15,688  $       10,669  $        6,531 
Gold:                                                                       
  Trade Receivable                    5,281           8,181           6,264 
  Gold Inventory (at average                                                
   cost)                              1,937           6,269           5,837 
----------------------------------------------------------------------------
Total cash and gold                  22,906          14,450          12,101 
Other receivables                     2,696           3,002           2,077 
Supplies inventory                    5,523           4,613           5,722 
Accounts payable                     (5,675)         (5,402)         (7,197)
----------------------------------------------------------------------------
                             $       25,450  $       27,332  $       19,234 
----------------------------------------------------------------------------
----------------------------------------------------------------------------



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 BSE 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.


Cautionary Notes

Certain statements contained in this press release constitute "forward-looking
statements". All statements other than statements of historical fact contained
in this press release, including, without limitation, those regarding the
Company's future financial position and results of operations, strategy,
proposed acquisitions, plans, objectives, goals and targets, and any statements
preceded by, followed by or that include the words "believe", "expect", "aim",
"intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate",
"forecast", "predict", "project", "seek", "should" or similar expressions or the
negative thereof, are forward-looking statements. These statements are not
historical facts but instead represent only the Company's expectations,
estimates and projections regarding future events. These statements are not
guarantees of future performance and involve assumptions, risks and
uncertainties that are difficult to predict. Therefore, actual results may
differ materially from what is expressed, implied or forecasted in such
forward-looking statements.


Additional factors that could cause actual results, performance or achievements
to differ materially include, but are not limited to: the Company's dependence
on a single mineral project; gold price volatility; risks associated with the
conduct of the Company's mining activities in Botswana; regulatory, consent or
permitting delays; risks relating to the Company's exploration, development and
mining activities being situated in a single country; risks relating to reliance
on the Company's management team and outside contractors; risks regarding
mineral resources and reserves; the Company's inability to obtain insurance to
cover all risks, on a commercially reasonable basis or at all; currency
fluctuations; risks regarding the failure to generate sufficient cash flow from
operations; risks relating to project financing and equity issuances; mining tax
regimes; risks arising from holding derivative instruments; the Company's need
to replace reserves depleted by production; risks and unknowns inherent in all
mining projects, including the inaccuracy of reserves and resources,
metallurgical recoveries and capital and operating costs of such projects;
contests over title to properties, particularly title to undeveloped properties;
laws and regulations governing the environment, health and safety; operating or
technical difficulties in connection with mining or development activities; lack
of infrastructure; employee relations, labour unrest or unavailability; health
risks in Africa; the Company's interactions with surrounding communities and
artisanal miners; the Company's ability to successfully integrate acquired
assets; the speculative nature of exploration and development, including the
risks of diminishing quantities or grades of reserves; development of the
Company's exploration properties into commercially viable mines; stock market
volatility; conflicts of interest among certain directors and officers; lack of
liquidity for shareholders of the Company; and litigation risk. Management
provides forward-looking statements because it believes they provide useful
information to investors when considering their investment objectives and
cautions investors not to place undue reliance on forward-looking information.
Consequently, all of the forward-looking statements made in this press release
are qualified by these cautionary statements and other cautionary statements or
factors contained herein, and there can be no assurance that the actual results
or developments will be realized or, even if substantially realized, that they
will have the expected consequences to, or effects on, the Company. These
forward-looking statements are made as of the date of this press release and the
Company assumes no obligation to update or revise them to reflect subsequent
information, events or circumstances or otherwise, except as required by law.