Galantas Reports Results for the Quarter Ended March 31, 2014

Galantas Gold Corporation (TSX VENTURE:GAL) (AIM:GAL) (the 'Company') is pleased
to announce its annual financial results for the Quarter ended March 31, 2014. 


Financial Highlights

The Net Loss for the Quarter ended March 31, 2014 amounted to $ 501,200 which
compared with a Net Loss of $ 440,554 for the Quarter ended March 31, 2013.
Highlights of the first quarter 2014 results, which are expressed in Canadian
Dollars, are:




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                                                     Quarter Ended March 31 
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All in CDN$                                             2014           2013 
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Revenue                                        $           0  $     364,676 
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Cost of Sales                                  $      77,234  $     397,588 
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(Loss) before the undernoted                   $     (77,234) $     (32,912)
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Amortization                                   $      65,092  $     124,606 
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General administrative expenses                $     272,181  $     297,059 
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(Gain) Loss on disposal of property, plant and                              
 equipment                                     $        (548) $           0 
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Foreign exchange loss(gain)                    $      88,141  $     (14,023)
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Net (Loss) for the Quarter                     $    (502,100) $   ( 440,554)
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Working Capital (Deficit)                      $  (4,468,576) $  (2,722,908)
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Cash (loss)generated from operations before                                 
 changes in non-cash working capital           $    (519,533) $    (239,907)
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Cash at March 31, 2014                         $      59,616  $     823,661 
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Sales revenues for the quarter ended March 31, 2014 amounted to CDN$ Nil (2013:
CDN$ 364,676). Following the suspension of production during the fourth quarter
of 2013 due primarily to lower concentrate gold grade coupled with falling gold
prices, there were no shipments of concentrates sales from the mine during the
first quarter. The Company is presently reviewing the economics of continuing
production through the processing of tailings cells.


Cost of sales for the quarter ended March 31, 2014 amounted to CDN$ 77,234
(2013: CDN$ 397,588). There was a decrease in various production costs at the
Omagh mine during the quarter following the suspension of production during
2013. 


The Net Loss for the quarter ended March 31, 2014, amounted to CDN$ 502,100
(2013: Net Loss CDN$ 440,554). The cash loss generated from operating activities
before changes in non-cash working capital for the first quarter of 2014
amounted to CDN$ 519,533 (2013: $ 239,907). The cash loss generated from
operating activities after changes in non-cash working capital for 2014 amounted
to CDN$ 62,262 (2013: CDN$ 85,235). The Company's cash balances March 31, 2014
amounted to CDN$ 59,616 which compared with CDN$ 823,661 at March 31, 2013. The
Company working capital deficit at March 31, 2014 amounted to CDN$ 4,468,576
which compared with a deficit of CDN$ 2,722,908 at March 31, 2013.


Subsequent to March 31, 2014 Galantas completed a private placement financing
for aggregate gross proceeds of approximately UKGBP  516,500. Pursuant to the
offering, an aggregate of 10,330,000 units were sold at a price of UKGBP 
0.05/CDN$0.09375 per common share. Each unit is comprised of one common share
and one common share purchase warrant. In addition an application for a shares
for debt exchange of 15,125,140 common shares for CDN$ 756,257 of the Company's
debt was made to the TSX Venture Exchange subsequent to quarter end.


Production 

Production at the Omagh mine remains suspended awaiting planning consent to
continue operations underground. Due to continued delays in the planning
process, management had to make significant redundancies in the workforce,
alongside other cost reduction measures. 


During the first quarter of 2014 the Company commenced pilot tests with regards
to the processing of tailing cells filled during the earlier operation of the
mine. The results confirm pre-existing data that indicated the tailings contain
between 0.5g/t gold and 1 g/t gold and meet European Union standards for
definition as inert material. A low energy cost processing solution, based upon
a Knelson CD12 centrifugal gravity concentrator, which was already utilized in
the gold processing plant in a secondary role, was successfully pilot tested as
a prime re-treatment component for flotation tailings. The tailings do not
require comminution (crushing and grinding) for re-processing by this method.
Concentrate grades produced by the pilot study were higher than grades for
flotation concentrate from mined vein material. Further test-work has produced
anomalous results regarding percentage recovery and this is to be further
investigated. The Company is presently reviewing the economics of continuing
production through the processing of tailings cells as the size of the existing
Knelson concentrator, whilst large enough to test the process, is not large
enough to satisfactorily operate the process at the scale required for robust
economics at present gold prices. The economics of acquiring a larger
concentrator unit and ancillary equipment is subject to satisfactory recoveries
being confirmed and the parallel assessment of other low power treatment
methodologies is also being carried out.


Exploration

Exploration during the first quarter was restricted to surface sampling to
conserve cash funds. Results were received for samples taken within the licences
3039, 3040 & 3235, which are located in the Republic Of Ireland, bordering the
Company's Northern Ireland OM4 licence. Nineteen float, outcrop and stream
sediment samples were collected from areas closely associated with major fault
systems. The largest gold anomaly was identified in a stream sediment sample
(0.37 g/t) taken from a NE tributary to Lough Derg. The general drainage for
this area is derived from parts of the OM4 catchment. Further samples have been
collected in the vicinity of anomalous results and from licence area 2315.


Key pathfinder element anomalies have been discovered for float, outcrop and
soil samples collected within the OM4 Magheranageeragh target. Gold, Arsenic,
Lead, Zinc and Copper anomalies were detected in a central area and specific
element associations are identified which point towards a local mineral source.
Analysis of geochemistry in combination with pH readings were performed this
quarter. Under some circumstances this may assist in locating buried
mineralization, in this case the method has helped to constrain an important
area of interest. Further sampling and the examination of alternate influences
are required before mineralization can be confirmed. 


Official documents for two new licence areas in the ROI were received during the
quarter. These licences encompass 47.8 km2 in the Manorhamilton region, 15 km
east of Sligo town. The geological inlier is composed partially of rocks from
the Dalradian group, and has a general trend of SW to NE. Importantly, NE
trending faults are dominant and one major structure correlates with the Omagh
Thrust. Historical records indicate the occurrence of Gold in this area. The
duration of the licence is six years, with renewal and reports required every
second year. These bring the total number of licences held by OML to 11, with a
total coverage of 766.5 km2. 


Technical detail of the exploration status of all licences is to be included in
the upcoming NI.43-101 Technical Report.


During 2012 ACA Howe International Ltd (Howe UK) completed an Interim Resource
to Canadian National Instrument NI 43-101 compliant mineral resource estimate
and a Preliminary Economic Assessment for the Omagh Gold Project (see press
release dated July 3, 2012). This report, filed in August 2012, which was based
on drilling results and analyses received to June 2012, identified all resources
discovered at that date. An updated resource estimate was prepared by the
Company during the second quarter of 2013 based on drilling results received to
May 5, 2013 (see press release dated June 12, 2013). The drilling program was
mainly targeted to increase the amount of measured and indicated resources
related to the potential development of an underground mine. When compared to
the resource estimate prepared in 2012 there has been a 50% increase in
resources classified as measured and indicated from a total of 95,300 troy
ounces gold (2012) to 142,533 troy ounces gold (2013) and a 28% increase in
resources classified as inferred, from 231,000 troy ounces gold (2012) to
295,599 troy ounces gold (2013). The overall increase was 34%. Galantas
subsequently filed an updated Technical Report on SEDAR in July 2013. 


Work continued during the first quarter of 2014 on updating the 2013 resource
estimate to incorporate results from drill holes subsequent to May 2013 and not
included previously. Also the main veins were re-strung to incorporate the new
drill data and accommodate a revised cut-off grade and minimum mining width
parameters. Importantly, the Joshua and Kearney drill intersects were strung to
individual channels, this time consuming process has incorporated all of the
available assay data in order to make a more informed assessment of grade
continuity and vein geometry. The improved statistical assessment is expected to
allow some category upgrading in that portion of the resource affected. 


Based upon the updated technical analysis, work is also well advanced on the
drafting of a revised NI 43-101 report. The work is expected to allow the
delineation of mining reserves, following the completion of a detailed mining
plan, mining schedule and comprehensive cost estimates, based upon underground
working of the Joshua and Kearney veins.


Permitting

Discussions continued with the planning services in Northern Ireland during the
first quarter of 2014 with regards to the planning application for an
underground mine plan and accompanying Environmental Statement which were
submitted to the Planning Services in 2012. Shareholders may see progress on the
public planning portal at
http://epicpublic.planningni.gov.uk/PublicAccess/zd/zdApplication/application_detailview.aspx?caseno=M6QQVVSV30000


Roland Phelps, President & CEO, Galantas Gold Corporation, commented,
"Discussions are on-going with Planning Services on the underground mine
proposal and road improvements (i.e. passing bays). Additional information has
been submitted in relation to passing bays and we are awaiting confirmation from
Planning Services that there are no further outstanding issues in this regard.
Once confirmation is received, the application is expected to move to a
determination of that matter. The underground mine proposal is nearing a
conclusion also and we await confirmation that clarifications submitted in April
are acceptable. A decision on the underground mine is expected to follow a
decision on the passing bays. We have requested a further meeting with Planning
Service to confirm a determination timeframe for both elements but the Company
has been advised by its consultants that, due to bureaucratic delays, the
time-line for planning determination may now be in the second half of 2014,
although the date is undefined because it is in the hands of other parties. "


The detailed results and Management Discussion and Analysis (MD&A) are available
on www.sedar.com and www.galantas.com and the highlights in this release should
be read in conjunction with the detailed results and MD&A. The MD&A provides an
analysis of comparisons with previous periods, trends affecting the business and
risk factors. 


Qualified Person

The financial components of this disclosure has been reviewed by Leo O'
Shaughnessy (Chief Financial Officer) and the production, exploration and
permitting components by Roland Phelps (President & CEO), qualified persons
under the meaning of NI. 43-101. The information is based upon local production
and financial data prepared under their supervision.


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains
forward-looking statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian securities
laws, including revenues and cost estimates, for the Omagh Gold project.
Forward-looking statements are based on estimates and assumptions made by
Galantas in light of its experience and perception of historical trends, current
conditions and expected future developments, as well as other factors that
Galantas believes are appropriate in the circumstances. Many factors could cause
Galantas' actual results, the performance or achievements to differ materially
from those expressed or implied by the forward looking statements or strategy,
including: gold price volatility; discrepancies between actual and estimated
production, actual and estimated metallurgical recoveries and throughputs;
mining operational risk, geological uncertainties; regulatory restrictions,
including environmental regulatory restrictions and liability; risks of
sovereign involvement; speculative nature of gold exploration; dilution;
competition; loss of or availability of key employees; additional funding
requirements; uncertainties regarding planning and other permitting issues; and
defective title to mineral claims or property. These factors and others that
could affect Galantas's forward-looking statements are discussed in greater
detail in the section entitled "Risk Factors" in Galantas' Management Discussion
& Analysis of the financial statements of Galantas and elsewhere in documents
filed from time to time with the Canadian provincial securities regulators and
other regulatory authorities. These factors should be considered carefully, and
persons reviewing this press release should not place undue reliance on
forward-looking statements. Galantas has no intention and undertakes no
obligation to update or revise any forward-looking statements in this press
release, except as required by law.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Galantas Gold Corporation
Jack Gunter P.Eng
Chairman
[phone]


Galantas Gold Corporation
Roland Phelps C.Eng
President & CEO
[phone]
[e-mail]
www.galantas.com


Charles Stanley Securities (AIM Nomad & Broker)
Mark Taylor
[phone]