Galane Gold Ltd.

Climate Impact & Sustainability Data (2016, 2020, 2021)

Short-term Goals:

Dependence on two mineral projects
Gold price volatility
Risks associated with mining activities in Botswana and South Africa
Regulatory, consent, or permitting delays
Reliance on management team and outside contractors
Risks regarding mineral resources and reserves
Inability to obtain insurance
Currency fluctuations
Failure to generate sufficient cash flow from operations
Project financing and equity issuances
Inaccuracy of reserves and resources, metallurgical recoveries, and capital and operating costs
Contests over title to properties
Laws and regulations governing the environment, health, and safety
Reclamation costs and related liabilities
Operating or technical difficulties
Lack of infrastructure
Employee relations, labor unrest, or unavailability
Health risks in Africa
Interactions with surrounding communities and artisanal miners
Ability to successfully integrate acquired assets
Risks related to restarting production
Speculative nature of exploration and development
Development of exploration properties into commercially viable mines
Stock market volatility
Conflicts of interest among certain directors and officers
Lack of liquidity for shareholders
Market perception of junior gold companies
Litigation risk
Environmental laws and regulations

Expenditures to ensure compliance with applicable laws and regulations
Discussions with potential ‘farm-in’ joint venture partners to carry out exploration activities on the Corporation’s Botswana properties
Ongoing test work being conducted at COREM (Canada) involving all present and future feed material to address recovery issues
Project to tap into a nearby mines raw water supply to supplement Mupane’s needs

Frameworks Used: NI 43-101, SAMREC Code, SAMVAL

Donation of 17% of Galaxy shares to Phakamani Foundation Trust and 10% to a South African community-based trust and employee share scheme to meet BEE requirements.

Long-term Goals:

Phase 3 expansion of Galaxy Property to increase production to 60,000 ounces per annum.

Medium-term Goals:

Phase 2 expansion of Galaxy Property to increase production to over 43,000 ounces per year by Q4 2022.

COVID-19 pandemic impacting operations in Botswana and South Africa.
Dependence on two mineral projects (Mupane and Galaxy).
Gold price volatility.
Risks associated with operating in Botswana and South Africa (labor disputes, regulatory changes, political instability).
Regulatory, consent, or permitting delays.
Reliance on management team and outside contractors.
Currency fluctuations.
Failure to generate sufficient cash flow.
Risks related to climate change.
Risks related to information security.

Mupane designated as essential operation during Botswana lockdown.
Galaxy designated as essential service, operating at reduced capacity initially.
Protocols implemented to manage COVID-19 spread.
Ongoing exploration programs to replace mined resources.
Maintenance of insurance coverage (though not comprehensive).
Efforts to maintain good relations with local communities.
Training programs for employees.
Joint management-worker committees to review work practices and environment.
Measures to mitigate climate risks (emergency response plans).
Focus on protection against cybersecurity incidents.

Frameworks Used: NI 43-101

Donation of 17% of Galaxy shares to Phakamani Foundation Trust and 10% of Galaxy Gold Reefs (Pty) Ltd. shares to a South African community-based trust and employee share scheme to meet BEE requirements.