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Non-GAAP Information

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The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.

Asanko Gold Mine

Production

Located in Ghana, West Africa, the Asanko Gold Mine is a joint venture with Gold Fields Ltd (JSE, NYSE: GFI). Galiano and Gold Fields both have a 45% economic interest in the mine, with the Government of Ghana holding the remaining 10%. Galiano is the manager and operator.

The Asanko Gold Mine is a multi-deposit complex, with two main deposits, Nkran and Esaase, and multiple satellite deposits, situated on the Asankrangwa Gold Belt, and a 5Mtpa carbon-in-leach (CIL) processing plant. Gold production commenced in January 2016 and commercial production was declared on April 1, 2016.

In 2019, the mine exceeded the upper-end of guidance with record gold production of 251,044 gold ounces. In 2020 the mine is targeting approximately 245,000 ounces of gold production at all-in sustaining costs of approximately $1,150/oz (100% basis).

Approximately 2,600 people are employed at the mine. 99% of the total workforce are Ghanaians, of which around 53% are from our local communities.

The Asanko Gold Mine has a downstream tailing storage facility, further details are available here: Asanko TSF Disclosure

Geology

The Nkran deposit is located within the Kumasi Basin on the "Asankrangwa gold belt". The basin is bound to the south by the Ashanti Fault/Shear and the Bibiani shear to the north. The Asankrangwa gold belt expresses itself as a complex of northeast trending shear zones situated along the central axis of the Kumasi Basin. The Nkran deposit is located on a jog along the regional Nkran Shear, which is a zone of about 15 km in width and may be traced on a northeast to southwest trend for a distance of some 150 km. This is one of several major northeast trending shears/structures that bisect the Kumasi Basin/Asankrangwa Gold Belt.

map

Exploration

Ghana is currently the largest gold producer on the African continent and as such plays host to a number of globally important gold belts and their associated deposits. The Asankrangwa gold belt is located within the Kumasi basin which is dominated by Palaeoproterozoic metasedimentary and metavolcanic rocks. The belt itself is approximately 200km long and 20km wide and contains numerous significant gold deposits and occurrences. The Asanko Gold Mine holds the largest land package within the belt, with approximately 21,000 hectares of tenure (see figure 1) on this highly prospective and under-explored portion of central Ghana.


Regional Geology

The geology of the Asankrangwa Belt comprises strongly deformed Birimian meta-sediments, with minor granitic intrusions and mafic igneous rocks. The lithological units are cut by steeply north-west dipping primary and secondary structures. It is this combination of structural architecture and permissive lithologies that have been important in the localization of gold mineralization, and provides the capacity for enhanced fluid flow forming major alteration systems associated with the gold bearing systems. The gold mineralization is linked to at least two separate deformation events and fluid emplacement, with many similarities to the gold deposits on the adjacent Sefwi and Ashanti Greenstone Belts.

Much of the Asankrangwa belt geological understanding and prospectivity mapping comes from a combination of airborne geophysical surveys such as VTEM and magnetics, and the wealth of accumulated geochemical and geological data. These datasets have allowed the company to develop our current pipeline of exploration targets.

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Asumura Project, Sefwi-Bibiani Belt

The Asumura Project is located on the western boundary of the Sefwi-Bibiani Belt, which is one of three major gold producing belts in southwest Ghana (see figure 1). The project is located 65 km southwest and along strike from Newmont’s Ahafo deposits. The Asumura project contains numerous criteria in common with the Ahafo deposit group. Initial work will include soil sampling and mapping in preparation for more focused drill targeting.

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Mineral Resource Estimates (MRE) at a 0.5 g/t Au cut-off and at $1,600/oz Au as of February 28, 2022

Deposit Measured Indicated Measured & Indicated Total Inferred
Tonnes
(Mt)
Au Grade
(g/t)
Au Contained
(koz)
Tonnes
(Mt)
Au Grade
(g/t)
Au Contained
(koz)
Tonnes
(Mt)
Au Grade
(g/t)
Au Contained
(koz)
Tonnes
(Mt)
Au Grade
(g/t)
Au Contained
(koz)
Nkran -- -- -- 12.1 2.09 814 12.1 2.09 814 1.3 2.23 96
Esaase 10.9 1.25 437 11.7 1.27 475 22.6 1.26 912 0.6 1.22 25
Akwasiso -- -- -- 1.7 1.31 69 1.7 1.31 69 0.2 1.46 7
Abore 3.2 1.46 150 5.1 1.23 203 8.3 1.32 353 1.1 1.55 55
Adubiaso -- -- -- 1.6 1.80 90 1.6 1.80 90 0.2 1.38 9
Asuadai -- -- -- 1.6 1.29 67 1.6 1.29 67 0.0 1.17 1
Miradani North -- -- -- 7.1 1.28 293 7.1 1.28 293 2.6 1.21 102
Dynamite Hill -- -- -- 1.9 1.39 85 1.9 1.39 85 0.3 1.26 14
Stockpiles 9.5 0.72 221 -- -- -- 9.5 0.72 221 -- -- --
Total 23.6 1.06 808 42.7 1.53 2,096 66.4 1.36 2,904 6.4 1.49 309

Notes:

  • The Mineral Resource estimates are reported in accordance with the CIM Definition Standards for Mineral Resources & Mineral Reserves, adopted by CIM Council May 10, 2014.
  • Mineral Resource estimates account for mining depletion up to and including February 28, 2022
  • Reasonable prospects for eventual economic extraction assume open pit mining with conventional gold processing and was tested using NPV Scheduler™ pit optimization software at gold price of $1,600/oz. Mining, G&A, processing costs, and process recovery are dependent on deposit and detailed in the respective deposit sections of the Technical Report.
  • Applicable rounding has been applied to the stated tonnages, grades, and metal content to reflect the level of accuracy and precision of the estimate
  • The MRE for the Esaase and Abore deposits have been prepared by Mario E. Rossi, FAusIMM, SME, IAMG, and Principal Geostatistician of Geosystems International Inc. Mr. Rossi is a qualified person pursuant to NI 43-101 and is independent of Galiano Gold in accordance with the application of Section 1.5 of National Instrument 43-101.
  • The MRE for Nkran has been prepared by Malcolm Titley, MAIG, MAusIMM who is a Principal Consultant of CSA Global. Mr. Titley is a qualified person pursuant to NI 43-101 and is independent of Galiano Gold in accordance with the application of Section 1.5 of National Instrument 43-101.
  • The MRE for Akwasiso, Miradani North, and Dynamite Hill, have been prepared by Eric Chen, P.Geo. who is Galiano Gold’s former Vice President of Technical Services. The Mineral Resource Estimates for Adubiaso, Asuadai and Stockpiles have been prepared by others and reviewed and accepted by Mr. Chen. Mr. Chen is a qualified person pursuant to NI 43-101 and is not independent of Galiano Gold in accordance with the application of Section 1.5 of National Instrument 43-101.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources:

Disclosure regarding the Company's mineral properties, including with respect to mineral resource estimates included in this release, was prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. NI 43-101 differs significantly from the disclosure requirements of the SEC generally applicable to U.S. companies. Accordingly, information contained in this annual report is not comparable to similar information made public by U.S. companies reporting pursuant to SEC disclosure requirements.


Technical Report

Ghana

Ghana is the oldest, democratic independent state in Africa, south of the Sahara. The country achieved independence in March 1957 and it has a stable and functioning constitutional democracy. The most recent parliamentary and Presidential elections took place in December 2020. The country has a free press.

The country is the 2nd largest producer of cocoa in the world and is also well endowed with natural resources, including bauxite, manganese ore, industrial diamonds, timber, solar salt and major offshore oil reserves.

Ghana is Africa's largest gold producer. It has a long history of large scale gold mining, with four prolific greenstone belts that have yielded +120Moz of gold in past production. There are a number of gold mining companies operating in the country, including AngloGold Ashanti, Newmont, Gold Fields and Golden Star. It is a respected mining jurisdiction. The mining tenure, royalty and tax laws are stable and well legislated. The country has a highly trained and skilled mining workforce at all levels of operation.

The climate is tropical with seasonal rains. It has a population of approximately 31 million and an educational level from primary to tertiary across country.

Ghana