Management Presentation

Management Presentation
March 2012

Forward Looking Statements
Certain information set forth in this presentation contains “forward-looking statements” and “forward-looking information” under
applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking
statements which include management’s assessment of Galane Gold‘s future plans and operations and are based on Galane Gold‘s
current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Forward-looking
statements are provided to allow potential investors the opportunity to consider management’s beliefs and opinions in respect of the
future so that they may use such beliefs and opinions as one factor in evaluating an investment in Galane Gold. Some of the forward-
looking statements may be identified by words such as “may”, “will”, “estimates”, “intends”, “expects”, “anticipates”, “believes”,
“potential”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance and undue
reliance should not be placed on them. In addition, the projections contained herein are based on the assumptions set out in
Appendix A. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause
Galane Gold‘s actual performance and financial results in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not
limited to: liabilities inherent in mining; technical problems; Galane Gold‘s inability to obtain permits and regulatory approvals
required in connection with operations; dependence on third party transportation systems; competition for, among other things,
capital, land, inputs and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and
regulations related to mining; the effects of competition and pricing pressures in the market; the oversupply of, or lack of demand for,
mineral products; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of
mining products, including labor stoppages and severe weather conditions; the demand for and availability of rail, port and other
transportation services; and management’s ability to anticipate and manage the foregoing factors and risks. Galane Gold undertakes
no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as
required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Such
forward looking statements and forward-looking information in this presentation speak only as of the date of this presentation.

2
Galane Gold Ltd. Management Presentation

Galane Gold Summary
Summary Trading Symbol GG:TSX-V
• Owner (100%) of the Mupane gold mine in Botswana, in
production since 2005 Shares O/S 45,108,000
• No hedges, no NSRs Shares O/S fully-diluted 75,048,733
• Control all prospective ground for gold on the Tati
Greenstone belt in Botswana Recent Price (Feb 7, 2012) $1.00
• Low-risk opportunity for resource expansion from existing Market Cap $45,108,000
properties through:
Enterprise Value ~$33,000,000
• Large portfolio of drill-ready targets obtained via soil
sampling and previous drilling Institutional Ownership 81.0%
• Drilling previously mined open pits where gold Management & Board 9.3%
mineralisation is known to be open at depth
Mupane Gold Mine Mill
Company History
• Acquired Mupane Gold Mining (Pty) Ltd. from IAMGOLD
Corp. (effective date: July 1, 2011)
• Acquire Northern Lights Exploration (closing pending)

Investment Case
• Low Geological Risk – Region has been producing gold for >
1000 years, large portfolio of low-risk targets
• Low Operating Risk – Mupane operation has been mining
and processing since 2005
• Low Financing Risk – Galane Gold can fund its expansion
through internally generated cash-flows
3

Management Team
Philip Condon • 25 years experience in mining industry, focus on gold and base metals
• Former CEO of National Mining Company of Oman, Technical Expert &
Chief Executive Development Specialist for Freeport McMoran Copper & Gold Inc.,
Officer and Engineering Manager for Golden Shamrock (Ashanti Goldfields), Project
Director Engineer and Manager, Engineering Services for Conzinc (Rio Tinto plc)
• B.Eng (Hons), MBA, Member of Australian Institute of Company Directors
• Australian

Charles Byron • 30 years experience as geologist focused on Archaen gold exploration and
mining
Chief Geologist • Previously with Phelps Dodge, Falconbridge and Gallery Gold where he led
and Director the team that discovered the Mupane Gold Deposit and saw it into
production in 2004
• B.Sc. (Hons) Geology, Soils, Geography (University of Natal)
• Motswana

Lawrence • 15 years experience in open cut and underground mining of gold, base metals,
platinum and ferrochrome across a diversified spectrum of countries and cultures.
Manjengwa • Former Mining Director of Nordgold in Guinea, Mine Manager of National Mining
General Manager Company in Oman, Production Manager of Anglo Base Metals’ Skorpionzinc Mine
in Namibia, Senior Mining Engineer of Zimplats in Zimbabwe and Mine Manager
of Maranatha Ferrochrome in Zimbabwe.
• B.Sc.(Hons)Eng, Member of AusIMM.
• Zimbabwean

4

Board of Directors
Ravi Sood • Chairman of Feronia Inc., one of Africa’s oldest operating companies
and largest employers
Chairman (non- • Former CEO of Navina Asset Management a Toronto-based investment
exec) firm
• Director of several companies in the Agriculture, Mining, and Oil & Gas
sectors
• Canadian

Ian Egan • More than 30 years experience in the mining industry
• Currently a director of Kenmare Resources plc
Independent • Previous experience includes holding senior management positions at
Director BHP, Utah Mining Australia, Mineral Deposits Ltd and N L Industries
Inc., as well as being a director of Ok Tedi Mining Ltd.
• Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM)
and a Fellow of the Australian Institute of CPAs (FCPA)
• BEc in Accounting and Law, MEc in Industry Economics
• Australian

Amar Bhalla • President of Capital Investment Corp., an investment management
Independent firm focused on private equity and venture capital
Director • Previously served as CEO of Crescent Logic Inc., a Toronto-based
software firm
• Chairman of Ursa Major Minerals, a TSX listed nickel producer and
director of several TSX-V listed companies
• Canadian

Galane Gold Ltd. Management Presentation 5

Botswana Overview
Strong Economic Environment Stable and Simple Legal System
• Ranked as best mining country in Africa1 • Corporate Tax Rate as low as 22%
− Political Stability and Legal Stability • 5% Royalty on Gold Sales
• Strong GDP growth • IFRS Accounting System
• AA credit rating • English Law
• USD$7 billion Sovereign Wealth Fund • Banking system adheres to international standards
• English speaking
¹ Source: Fraser Institute

Emerging Mining Powerhouse Map of Botswana
• Mineral rich and historically underexplored
− Largest diamond exporter in world
− Gold producer
− Nickel producer Indian
Ocean

− Copper producer Atlantic
Ocean
− Platinum producer
− Potential uranium producer
− One of world’s largest measured coal resources

Operating in a stable and economically sound mining-friendly jurisdiction

6

Galane Operations – The Mupane gold mine
Type • Conventional open-pit gold mine with mill and carbon-in- Mine Location
leach processing
Location • Northeastern Botswana in southern Africa
• 30 km southeast of the town of Francistown (population of
around 100,000)
Ownership • 100% of the Mupane gold deposits and mining operations

Operating History • Commercial production started in January 2005
• Historical production is 507,972 oz Au to end Sept, 2011
Reserves and As at 31 December 2010 and a $1,200/oz. gold price:
Resources • Reserves: 130,000 oz Au
• Resource: 356,000 oz Au M&I and 77,000 oz Au Inferred Processing Operations
Annual Production • Processing capacity of 1.2 million tonnes per annum of
Capacity oxide ore and 1.0 million tonnes per annum of sulphide ore
• 57,000 oz of gold production in 2010

Mine Life • Currently 5+ years, opportunity to significantly extend
Production • 50,000 oz Au per annum / $1100 all-in cash cost
Forecast • Opportunity to improve production and reduce cash costs

7

Mining Optimization Opportunities
Improvement - Mining Description/Impact

Ore road transport • Complete set up of road-going trucks transporting ore to mill
on a contract basis
Ore dilution • More precise mining of ore to minimize dilution and thereby
transport and processing costs
Ore cut off grade reduction • Increasing gold prices allowing for reduced cut off grades in
ore mined increasing total reserve and gold produced
Blasting fragmentation • More consistent blast sizing to improve mining, transporting
and milling costs
Contract mining • Utilise contract mining to enhance production capacity,
reduce costs and improve processing feed blend flexibility
Mining equipment availability • Improve mining equipment availability from approximately
70% to 75% to 85% minimum

Total • Significant improvements in mining efficiency with a
potential for cost reduction per oz. of gold of $50 to $100 per
oz

Potential to significantly increase mine production and operational efficiencies at a
minimal cost
8

Processing Optimization Opportunities
Improvement - Processing Cost Impact
(US$M)
Cone crusher $1.0M • Increase mill feed tonnage capacity
SAG mill load increase $0.05M • Increase mill feed tonnage capacity
Operating availability $0.0M • Increase mill availability ( better maintenance planning)
Activate flotation circuit $0.15M • Increase processing capacity and recovery
Instrumentation and automation $1.0M • Improved recoveries of gold
upgrade
Water supply upgrade $0.6M • Eliminate operating loss due to water shortage
Total $2.8M • Improved tonnage throughput estimated at 15% to 20% and
recovery of gold by 1% to 2% to further lower cash costs/oz.
Tailings reprocessing TBC • Potential for additional gold extraction through reprocessing
of 8 million tonnes of tailings containing a preliminary
estimate of +60,000 oz of gold
Processing of ‘sub grade’ ore NA • Sub grade material that is now economic to process which
could add approximately 30,000 oz in gold production

Potential to improve processing capacity and gold recovery resulting in increased
production and decreased cash costs

9

Tenements


Simplified Geology of the Tati Greenstone Belt


Regional Soil Sampling Gold

MONARCH

TEKWANE

MAP NORA

GOLDEN EAGLE JIM’S LUCK

MUPANE
RAINBOW
Greenstone belt outline
MATOPI
Licence boundary

MOLOMOLO SIGNAL HILL

15
12

Tati Greenstone Belt Geology & AeroMagnetics

20 kilometres

Francistown

Total Field AeroMagnetics Geology Directional Filtered AeroMagnetics

13

Proximity of Key Gold Targets to Mill

Location of existing
Mupane processing
and tailings facility

Potential for discovery of numerous large gold deposits located within 20 km of existing
processing operations

14

Exploration Programme
Target Cost Description
(US$M)
Drill and define resource at US$1.9M • Definition and in-fill drilling on known mineralized zones to
Jim’s Luck define an NI 43-101 reserve and resource
• Drilling of mineralized zones along strike to add to the
Resource
Tau and Tholo Pit drilling US$0.5M • Prove up additional gold ore below and between existing pits
(existing pits that are open at • Tau already has one hole from pit base with 52 m at 4.5 g/t Au
depth) including 20 m at 6.5 g/t Au
Drill known gold anomalous US$1.5M • These locations are consistent with previous gold deposits
targets having soil sample anomalies but have not had significant
drilling carried out if at all.
Golden Eagle pit drilling (open US$0.4M • Gold mineralisation known to continue below current mine
at depth) plan pit depth but not included in reserve/resource

Review of exploration database US$0.1M • A complete and extensive database has not been utilised in
respect of extensive exploration activity
• Also requires review with 2010 technology (currently based on
1995) – especially geophysical data

Targeting increase in reserves and resource to +1 million oz Au at a cost of approximately
$4.4 million over the next 2 years
15

Low Risk Resource Expansion – Tau and Tholo Pits
• Recent drilling results at the previously mined Tau pit include a 53m intersection averaging 4.55 g/t Au
including:
– 24 m at 6.57 g/t Au
– 15 m at 5.86 g/t Au
• Potential for underground mines at Tau, Golden Eagle, and other locations

16

Low Risk Resource Expansion - Jim’s Luck
 The Jim’s Luck Project constitutes a ½ million oz exploration target
 In excess of 7 km of strike of prospective ironstone lithologies
- 830 meters has been drill tested
- Known low grade mineralization exists over the balance (6km+)
 Production could commence quickly from the drilled out portion
 140 RC holes (13,170m) and 7 diamond drill holes (1,212m) completed by Gallery Gold (1999 to 2004) and
IAMGOLD (2006)
- 77 RC and 7 diamond holes outline the 830m long target zone averaging 6.0m @ 1.87g/t Au, which
‘envelopes’ a higher grade core averaging 3.18m @ 2.77g/t Au
- Two wider, higher grade ‘shoots’ have also been identified within the 830m – 30m of strike averaging
6.8m @ 4.65g/t and 50m of strike averaging 6.6m @ 4.28g/t
- Drilling to 100m+ has shown the mineralization generally, including the high grade shoots, to be open at
depth with strong down plunge continuity

• Preliminary work is in progress on open pit resources and metallurgical testing.

Historical Workings Historical Workings


Jim’s Luck – 7km Of Strike


Jim’s Luck – Detail Drilling


Additional Growth Opportunities
Monarch Mine (Under Application for Prospecting Licence)

 Largest historic Gold producer (240,000 oz @ 6+g/t) and mined to 200m below surface
 Approximately 500,000 tonnes of fines dump at 1.4g/t Au (preliminary estimate)
 Examine the potential below 200m where limited drilling by previous workers indicates that the reef continues
with intersections that include 3.20m @ 3.56g/t and 1.51m @ 3.62g/t
- Design a “deep drilling” program to test this potential
- Also examine the Northern extension up to the old Mambo workings, some 1.5 km
- There is potential for 250,000 ozs for every 200m vertical depth tranche
 Planning work to be completed by mid 2012.

Fines Dump at Monarch Mine

20


MapNora (Shashe Mine)

 Historical operation impeded by the
refractory nature of the ore. The Phelps
Dodge attempt in late 1980’s to early
1990’s failed due to metallurgical
complexities
 High grade shoots (>10g/t) are continuous
down plunge allowing for a Resource of the
order of 100,000 to 150,000 ozs to depth
of 300m vertical depth
 The potential exists for 200,000ozs for
every 300m vertical depth tranche
 Under ground infrastructure, including
shaft, headgear and winder, in place and in
good order to 340m vertical depth
 Metallurgy now better understood and a
concentrate could be processed at Bioleach
facilities in South Africa
 Extract a bulk sample from underground
for metallurgical test work in late 2012.

Headgear at Map Nora Underground Mine


Matopi :
• Virgin discovery by Gallery Gold in 1997 as a coincident Gold and Arsenic in soil geochemistry anomaly
• Preliminary trenching and drilling show a large but low grade and discrete Ultramafic unit with uniform
mineralization e.g. 35m @ 0.85g/t (including 4m @ 2.25g/t) and 41m @ 0.86g/t (including 16m @ 1.85g/t)
• Additional work planned for early 2012 to better understand this significant anomaly and to test for better
mineralization possibly missed by the previous work.
Rainbow :
• Favourably located geologically and physically, between Jim’s Luck and Matopi and close to Signal Hill.
• An historic underground mine exploiting narrow high grade ‘shoots’ with the potential for larger, lower grade
mineralized ‘halos’
• Access to site needs to be repaired before work can commence – planned for Q2 2012, after the rain season.
Orapa Road Anomalies :
 A string of subtle Gold in soil geochemical anomalies sporadically developed over a strike length of 20 km and
coincident with a strong linear aeromagnetic geophysical anomaly typical of a significant fault system.
 This group of anomalies potentially constitutes a classic case of gold ‘leakage’ up and along a structural system
and could be indicative of significant gold mineralization at depth.
 More detailed magnetic surveys are planned with drilling of any targets generated in late 2012.
Tekwane :
• This manifests itself as a “standout” gold in soil geochemical anomaly some 4.5 sq km in size and caused by an
auriferous quartz rubble horizon in the soil profile.
• Origin of the quartz rubble needs to be established –theory is it could originate from an as yet undiscovered
underlying “stockwork” system associated with existing favourable lithologies.
• A systemic and extensive, but phased, pitting exercise commences in late 2011.


Exploration Plan

23

Milestones
2011
 Complete Review of Org Structure and skills requirements
 Implement Organisational Restructuring
 Complete Exploration Plan
 Carryout Initial Mine Plan Review
 Identify impediments to performance above plan

2012
 Complete Acquisition of Northern Lights Exploration
 Resolution of dilution, fragmentation, mine geology and productivity issues
 Complete optimised ore tonnage throughput and gold recovery
 Complete Mine Geology and Resource Review
 Resource Expansion – commence drilling programme
 Complete revised mining plan
 Botswana Stock Exchange Listing
 Capital Expenditures – complete full 2 year capital plan

24

Capital Structure
• Share issuance for Northern Lights Acquisition driven by reaching pre-defined compliant measured category
resources ounces from the acquired properties
• Share issuance to Galane management driven by reaching production and cash-flow targets within 3 years of the
public listing

Northern Lights Exploration Contingent
Shares Management Performance Shares

• Contingent payment in relation to the Northern • Management will hold 2.5 million in Performance
Lights acquisition Shares
• Contingent payments based on NI 43-101 • Performance Shares will be issuable once the
compliant measured category resource defined at Company is public and either scenario A or B have
the Jim’s Luck Project and other priority targets occurred:
Contingent Shares Gold Resource (oz) Scenario A
+1.375 million 100,000 i) Production of 130,000 Au oz over a 24 consecutive
month period within three years of being public and
+1.750 million 250,000
ii) Average cash costs of less than US$900/oz Au over such
+3.125 million 500,000
period
+2.500 million 1,000,000
Scenario B
i) US$25 million in free cash flow over a 4 consecutive
quarter period within three years of being public

25

Capital Structure
# %

Common Shares
IAMGold Corporation 21,875,000 48.5%
Sprott Asset Management 5,875,000 13.0%
Other Institutions 5,687,500 12.6%
Retail Investors 4,374,000 16.6%
BOD and Management 4,195,000 9.3%
Total Shares O/S (Basic) 45,108,000 100%
Dilutive Securities incl options, warrants, performance shares
July 10, 2013 expiry, $0.80 strike (legacy from shell) 123,750
March 1, 2013 expiry, $1.10 strike listed warrant (GG.WT) 11,538,003
March 1, 2013 expiry, $0.80 strike broker warrants 1,888,980
Management Performance Shares 2,500,000
Management Share Options 2,015,000
Shares issuable pursuant to NLE acquisition closing 3,125,000
Shares issuable pursuant to NLE resource targets being met 8,750,000
Fully Diluted Shares O/S 75,048,733

26

Investment Highlights
Immediate Leverage Experienced Operating
Exploration Upside
to Spot Gold Management
• Unhedged gold producer • Control all prospective ground on • Strong operators with the ability
• Free cash flow from existing 2016 the Tati Greenstone belt to optimize and expand the mine
plan in excess of $100 million at • Substantial data set and portfolio • Ability to leverage African
$1,500/oz gold price and over of drill-ready targets relationships with accretive
$200 million at $1,800/oz • Likelihood of underground external growth
expansion of existing pits

Compelling Valuation on Current Production Alone

Current Extended Mine Valuation Re-
Valuation Life Rating

27

The Galane Gold logo was designed by an
employee in a company-wide contest. The
blue and black bars in the official colours of
Botswana represent the hands of Batswana
protecting the country’s resources for the
betterment of the country and its people.

28

Contacts

Philip Condon
Chief Executive Officer
Philip@GalaneGold.com
Mobile: +267 72 338 331

Ravi Sood
Chairman (non-executive)
Ravi@GalaneGold.com
Mobile: +1 647 987 7663

Investor Relations
IR@GalaneGold.com
Phone: +1 416 907 2027

29

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