RESULTS FOR THE 3 AND 6 MONTHS ENDED JUNE 30, 2026

Galantas Gold Corporation

27 August 2026

 

GALANTAS GOLD Reports Second Quarter 2026 Results

Toronto, Ontario - August 27, 2026 - Galantas Gold Corporation (TSX-V: GAL | AIM: GAL) ("Galantas" or the "Company") reports its financial and operating results for the three and six months ended June 30, 2026 ("Q2 2026"). All dollar amounts are expressed in Canadian dollars, unless stated otherwise.

The Company's unaudited condensed interim consolidated financial statements (the "Financial Statements") and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2026 have been filed with Canadian securities regulatory authorities and AIM. These filings are available on the Company's website at www.galantas.com, on SEDAR+ (www.sedarplus.ca) under Galantas' issuer profile.

Q2 2026 HIGHLIGHTS

Financial results for the six months ended June 30, 2026 ("YTD 2026") are summarized below.

	Q2 2026 ($)	Q2 2025 ($)	YTD 2026 ($)	YTD 2025 ($)
Cost and expenses of operations	(1,783,525)	(108,274)	(2,241,341)	(213,001)
General administrative expenses	(2,553,368)	(1,274,016)	(4,158,604)	(2,361,504)
Foreign exchange gain/(loss)	75,589	656,841	(90,152)	900,341
Unrealized (loss)/gain on derivative fair value adjustment	(363,102)	48,747	(448,485)	(316,543)
Share of loss on investment in associate	(61,140)	Nil	(101,790)	Nil
Other (expenses)/income	Nil	(33,333)	Nil	55,556
Total net loss from operations	(4,685,546)	(710,035)	(7,040,372)	(1,935,151)
Net loss per share	(0.01)	(0.01)	(0.01)	(0.02)
Cash and cash equivalents	108,853,827	245,085	108,853,827	245,085
Total assets	217,570,601	37,786,621	217,570,601	37,786,621
Total non-current liabilities	24,580,648	8,217,778	24,580,648	8,217,778
Working capital surplus/(deficit)	91,637,721	(19,086,212)	91,637,721	(19,086,212)

Operating, Financial and Corporate Updates:

·    As of June 30, 2026, the Company had approximately $108.9 million of cash and cash equivalents.

·    On June 23, 2026, the Company announced the successful acquisition of the Andacollo Gold Project in Chile (refer to "Andacollo Gold Project, Chile" below).

·   On June 16, 2026, the Company announced a change in management with the appointment of Andreas L'Abbé, CPA CA as Chief Financial Officer of Galantas.

·    On May 28, 2026, the Company announced the completion of a $100 million private placement consisting of 181,819,000 units (consisting of one common share of the Company and one half warrant exercisable at $0.80) of the Company at a price of $0.55 per unit.

·   On May 5, 2026, the Company announced the filing of a technical report containing an updated Mineral Resource Estimate ("MRE") for the Andacollo Gold Project (refer to "Andacollo Gold Project, Chile" below).

Subsequent to Q2 2026

Operating, Financial and Corporate Updates:

·    On August 12, 2026, the Company announced the selection of contractors for the Andacollo Gold Project with M3 Engineering & Technology Corporation ("M3") being selected to lead the Preliminary Economic Assessment ("PEA") and the crushing plant relocation program from Mexico to site. The PEA is targeting completion for Q4 2026. NCL Ingenieria y Construccion Ltda ("NCL") has been contracted to advance the mine design and production schedules for restart and expansion scenarios. Stracon is providing early contractor involvement and practical input into mining fleet requirements, operating costs, mine infrastructure, pit dewatering, truck-shop refurbishment, contractor mobilization and mining execution planning.

·    On August 10, 2026, the Company announced an update on the ongoing exploration program at the Indiana Project. Key highlights include the completion of 5,060 metres of the planned 5,000 metre drill program (total of 13 holes) resulting in the identification of potential exploration targets. The drill program was expanded to 12,500 metres. Assays are pending for the program.

·    On August 5, 2026, the Company announced the resignation of the Chief Operating Officer, Brendan Morris. Mr. Morris will remain a consultant for Galantas.

·   On July 24, 2026, the Company announced an amendment to a Dragones Share Purchase Agreement whereby the originally scheduled 2029 payment of USD$14 million was brought forward with USD$5 million being advanced and paid in July 2026 and USD$9 million advanced and to be paid in April 2027 (refer to the "Sol de Oro Acquisition" section of the MD&A).

·    On July 13, 2026, the Company announced the signing of a binding agreement to acquire a three-stage, 20,000 tonnes per day ("tpd") crushing plant and associated agglomeration plant equipment to be used at the Andacollo Gold Project. The consideration totals USD$4.2 million with completion of the purchase subject to the execution of a definitive asset purchase agreement and satisfaction of customary conditions, including regulatory, corporate, export, import and other third-party approvals.

·    On July 8, the Company announced the resignation of the Chair of the Board, Róisín Magee. Mr. David Cather is currently acting as Interim Chair.

·    On July 6, 2026, the Company announced the granting of 33,650,000 restricted share units  and 775,000 stock options to certain directors, consultants and employees.

Andacollo GoLD Project, Chile

Exploration and Development:

·    Key highlights of the technical report containing an updated MRE include:

•  Current pit-constrained MRE update comprises an Indicated Mineral Resource of 102.4 million tonnes ("Mt") at 0.45 grams/tonne ("g/t") gold ("Au") containing 1.47 million ounces ("Moz") Au and an Inferred Mineral Resource of 347.9 Mt at 0.41 g/t Au containing 4.54 Moz Au;

•  Additional and significant gold mineralization identified by DRA Americas Inc. is contained within the Andacollo Gold Project property boundary and could be accessed with a potential land access agreement from the adjacent property controlled by Teck Resources Limited ("Teck");

•  Andacollo Gold Project is a brownfield, past-producing open pit heap leach gold operation with approximately 1.12 Moz of historical gold production;

•  Existing site infrastructure and local environmental approvals provide a strong platform for future engineering, permitting, and restart-readiness studies; and

•   Open-pit optimization sensitivity analysis indicates large, optimized pit shells with relatively low stripping ratios across a range of gold price assumptions. This sensitivity analysis is not additive to the current MRE and does not represent an economic analysis or production scenario.

·    Since the completion of the acquisition of the Andacollo Gold Project, Galantas has assembled an experienced technical, engineering and operations team to lead execution of the restart program. Ongoing activities include:

•    Detailed engineering for crushing plant relocation and installation, following the purchase of a three-stage, 20,000 tpd crushing plant and associated agglomeration plant equipment;

•    Site preparation and infrastructure upgrades;

•    Procurement and contracting for key project work packages;

•    Operational readiness planning;

•    Mine planning and development activities;

•    Recruitment and expansion of the Chilean operating team; and

•    Advancement of environmental, permitting and regulatory activities.

·   Company has engaged M3, STRACON and NCL as key contractors to complete a PEA by Q4 2026 and advance toward a potential restart, currently targeted for the first half of 2027.

·    Company is designing a drill program with the following objectives: infill and confirmatory drilling in support of the mine plan, testing of high-grade structures to enhance overall grade of the MRE, and evaluating the extent of copper mineralization possibly related to the adjacent Teck's Carmen del Andacollo porphyry copper deposit.

Cautionary Note: The Company has not made a production decision in respect of the Andacollo Gold Project. Any decision to restart production will be subject to, among other things, completion of further technical, operational and financial review, completion of installation, rehabilitation and commissioning activities, receipt of any remaining approvals required at the relevant time, and formal approval by the Company's board of directors.

INDIANA PROJECT, CHILE

Exploration and Development:

·  Galantas is currently in the process of preparing plans to develop the Indiana Project and bring it into production by the end of 2026.

·    On March 18, 2026, Galantas announced the start of a 5,000-metre diamond drilling program at its Indiana Project with a focus to tighten up the drill spacing and provide geotechnical information as the final steps for the development of the mine plan; and test for high-grade gold mineralization at structural intersections and down-dip extensions of the Bondadosa and Flor de Espino gold veins that could potentially expand the resource base while supporting mine planning and development.

·    On August 10, 2026, the Company announced an update on the ongoing exploration program including the completion of 13 holes totalling 5,060 metres of drilling, resulting in the identification of potential exploration targets. Assays are pending for the program. The drill program was expanded to 12,500 metres.

Technical Reports

Scientific and technical information relating to the Andacollo Gold Project and the current MRE is supported by the technical report titled "Mineral Resource Estimate Update, Andacollo Oro Gold Project, Coquimbo Region, Chile", dated May 4, 2026 (with an effective date of February 1, 2026), prepared by DRA Americas Inc.

Scientific and technical information relating to the Indiana Project and the current MRE is supported by the technical report titled "Mineral Resource Estimate, Indiana Project, Atacama Region, Chile", dated December 31, 2025 (with an effective date of December 9, 2025), prepared by DRA Americas Inc.

For readers to fully understand the information in the Technical Reports, reference should be made to the full text of the Technical Reports in their entirety, including all assumptions, parameters, qualifications, limitations and methods therein. The Technical Reports are intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Reports were prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards, and are available electronically on SEDAR+ (www.sedarplus.ca) under Galantas Gold's issuer profile and on the Company's website at www.galantas.com.

Qualified Person Statement

The scientific and technical information in this news release has been reviewed and approved by Dorian L. (Dusty) Nicol, (P. Geo., Chartered Geo., FAusIMM), the Company's exploration consultant, who is considered, by virtue of his education, experience and professional association, a Qualified Person for the purposes of NI 43-101. Mr. Nicol is a shareholder of the Company and acts as a Special Advisor on exploration to the Company. 

About Galantas Gold Corporation

Galantas Gold Corporation is a publicly traded gold and copper company focused on the acquisition, development, and advancement of gold and copper assets in stable mining jurisdictions. The Company is currently advancing the development of the Indiana Project and the Andacollo Gold Project in Chile. Galantas' strategy is to build long-term shareholder value through disciplined capital allocation, technically rigorous project evaluation, and responsible development of high-quality mineral assets.

Enquiries

Galantas Gold Corporation

Mario Stifano: Chief Executive Officer

Email: [e-mail]

Website: www.galantas.com

Grant Thornton UK LLP (AIM Nomad)

Philip Secrett, Harrison Clarke, Elliot Peters

Telephone: [phone]

SP Angel Corporate Finance LLP (AIM Broker)

David Hignell, Charlie Bouverat (Corporate Finance)

Grant Barker (Sales & Brokering)

Telephone: [phone]

Cautionary Statement Regarding Forward-Looking Information

This news release contains certain forward‑looking information and forward‑looking statements within the meaning of applicable securities laws (collectively, "forward‑looking statements"). These forward‑looking statements relate to future events or the Company's future performance and reflect management's current expectations, assumptions and beliefs based on information currently available. All statements other than statements of historical fact are forward‑looking statements.

Forward‑looking statements in this news release include, but are not limited to, statements regarding: the potential of the Company's mineral properties to host economic deposits of gold, copper or other metals; the advancement, development and potential expansion of the Indiana Project and the Andacollo Gold Project; the timing, scope and results of exploration, development and mining activities; the Company's ability to exercise its option to acquire a 100% interest in the Indiana Project; the Company's ability to settle the deferred consideration related to the Andacollo Gold Project acquisition, the anticipated availability of financing to fund exploration, development, operating activities and capital commitments; expectations regarding commodity prices, interest rates and foreign exchange rates; the Company's working capital position and liquidity requirements; management's outlook regarding industry, market and macroeconomic trends; and expectations regarding asset values, impairment assessments and sensitivity analyses of financial instruments.

Forward‑looking statements are frequently identified by words such as "plans", "expects", "is expected", "estimates", "forecasts", "projects", "intends", "anticipates", "believes", "continues", or similar expressions, or by statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" occur or be achieved.

Forward‑looking statements are based on a number of assumptions that management believes are reasonable at the time such statements are made, including, without limitation: that financing will be available on acceptable terms to fund the Company's planned exploration, development and operating activities; that exploration and development programs will proceed as anticipated and yield results consistent with management's expectations; that operating, capital and exploration costs will remain within anticipated ranges; that the Company will be able to retain and attract qualified personnel; that all required regulatory, environmental and governmental approvals will be obtained on a timely basis; that title to the Company's mineral properties will not be challenged; and that commodity prices, interest rates, foreign exchange rates and general economic and political conditions will be broadly supportive of the Company's business objectives.

Forward‑looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward‑looking statements. These risks and uncertainties include, without limitation: volatility in gold and copper prices; changes in capital markets and the availability and timing of financing on acceptable terms; risks inherent in mineral exploration and development, including geological uncertainty and the possibility that exploration results may not support further development; increases in operating, capital or exploration costs; risks related to permitting, environmental compliance and changes in laws or regulations; foreign exchange and interest rate fluctuations; adverse economic or political developments, particularly in jurisdictions where the Company operates; risks related to the Company's reliance on the Indiana Project as its principal asset; and the risk that asset carrying values may not be recoverable, resulting in impairment charges if financing is not obtained or project expectations are not realized. In addition, the Company is exposed to financial risks, including interest rate risk on certain debt instruments and foreign exchange risk associated with assets, liabilities and expenditures denominated in currencies other than the Company's functional currency.

The forward‑looking statements in this news release speak only as of the date of this news release or as of the date specified in such statements. Readers are cautioned that forward‑looking statements are not guarantees of future performance and that actual results and developments may differ materially from those expressed or implied by such forward‑looking statements. Accordingly, readers should not place undue reliance on forward‑looking statements.

Readers are also encouraged to refer to the "Risks and Uncertainties" section of the MD&A and to the Company's other public disclosure for a discussion of additional factors that could affect the Company's future results. The Company undertakes no obligation to update or revise any forward‑looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. If the Company updates any forward‑looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward‑looking statements.

Neither TSXV nor its Regulation Services Provider, as that term is defined in the policies of the TSXV, accepts responsibility for the adequacy or accuracy of this news release.

The information contained in this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014, which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. This information is disclosed in accordance with the Company's obligations under Article 17 of UK MAR. Upon publication of this announcement, this inside information is now considered to be in the public domain.

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GALANTAS GOLD CORPORATION

Condensed Interim Consolidated Financial Statements
(Expressed in Canadian Dollars)

(Unaudited)

Three and Six Months Ended June 30, 2026

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Galantas Gold Corporation Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian Dollars) (Unaudited)

		As at June 30, 2026			As at December 31, 2025
ASSETS
Current assets
Cash and cash equivalents (note 7)	$	108,853,827		$	13,315,844
Accounts receivable and prepaid expenses (note 8)		1,808,266			228,522
Total current assets		110,662,093			13,544,366
Non-current assets
Investment in associates (note 9)		5,842,125			5,820,725
Property, plant and equipment (note 10)		499,547			-
Exploration and evaluation assets (note 11)		97,872,330			11,372,320
Total non-current assets		104,214,002			17,193,045
Total assets	$	214,876,095		$	30,737,411
EQUITY AND LIABILITIES
Current liabilities
Accounts payable and other liabilities (note 12)	$	3,426,868		$	2,070,078
Deferred consideration (note 13)		4,970,000			-
Convertible debenture (note 14)		1,123,408			908,916
Due to related parties (note 17)		6,248,923			1,816,584
Deferred revenue (note 15)		2,680,000			550,000
Derivative liability (note 14)		575,173			126,688
Total current liabilities		19,024,372			5,472,266
Non-current liabilities
Deferred consideration (note 13)		24,580,648			-
Total non-current liabilities		24,580,648			-
Total liabilities		43,605,020			5,472,266
Equity
Share capital (note 16(a)(b))		220,520,814			89,244,398
Reserves		46,804,906			25,035,020
Deficit		(96,054,645	)		(89,014,273	)
Total equity		171,271,075			25,265,145
Total equity and liabilities	$	214,876,095		$	30,737,411

The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.

Commitments (note 11)

Events after the reporting period (note 19)

Galantas Gold Corporation Condensed Interim Consolidated Statements of Net Loss (Expressed in Canadian Dollars) (Unaudited)

		Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Cost and expenses of operations
Operational costs	$	1,783,525		$	14,471		$	2,241,341		$	29,406
Depreciation		-			93,803			-			183,595
		1,783,525			108,274			2,241,341			213,001
Loss before general administrative and other expense		(1,783,525	)		(108,274	)		(2,241,341	)		(213,001	)
General administrative expenses
Salaries and benefits (note 17)		1,427,869			161,903			1,806,410			291,685
Professional fees		381,504			86,192			672,022			132,742
Stock-based compensation (notes 16(d) and 17)		7,677			39,442			31,501			110,915
Shareholder communication and investor relations		148,601			194,729			256,191			253,950
Transfer agent		56,213			22,605			78,968			26,189
Director fees (note 17)		71,727			35,000			120,514			70,000
General office		155,618			36,072			765,180			74,862
Accretion expenses (notes 14 and 17)		57,721			194,719			117,028			397,870
Interest and bank charges (net) (notes 14 and 17)		246,438			503,354			310,790			1,003,291
		2,553,368			1,274,016			4,158,604			2,361,504
Other expense (income)
Foreign exchange loss (gain)		(75,589	)		(656,841	)		90,152			(900,341	)
Unrealized loss (gain) on derivative fair value adjustment (note 14)		363,102			(48,747	)		448,485			316,543
Share of loss on investment in associate (note 9)		61,140			-			101,790			-
Other expense (income)		-			33,333			-			(55,556	)
		348,653			(672,255	)		640,427			(639,354	)
Net loss for the period	$	(4,685,546	)	$	(710,035	)	$	(7,040,372)		$	(1,935,151	)
Basic and diluted net loss per share	$	(0.01	)	$	(0.01	)	$	(0.01)		$	(0.02	)
Weighted average number of common shares outstanding - basic and diluted		597,249,443			114,770,587			527,770,292			114,770,587

The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.

Galantas Gold Corporation Condensed Interim Consolidated Statements of Net Loss and Total Comprehensive Loss (Expressed in Canadian Dollars) (Unaudited)

		Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Net loss for the period	$	(4,685,546)		$	(710,035	)	$	(7,040,372)		$	(1,935,151	)
Other comprehensive income
Items that will be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations		280,861			195,423			312,330			612,073
Total comprehensive loss	$	(4,404,685)		$	(514,612	)	$	(6,728,042)		$	(1,323,078	)

The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.

Galantas Gold Corporation Condensed Interim Consolidated Statements of Cash Flows (Expressed in Canadian Dollars) (Unaudited)

		Six Months Ended June 30,
		2026			2025
Operating activities
Net loss for the period	$	(7,040,372	)	$	(1,935,151	)
Adjustment for:
Depreciation		-			183,595
Stock-based compensation (note 16(d))		31,501			110,915
Accrued interest (notes 14 and 17)		86,693			1,382,834
Foreign exchange loss (gain)		259,192			(608,536	)
Accretion expenses (notes 14 and 17)		117,028			397,870
Unrealized loss on derivative fair value adjustment (note 14)		448,485			316,543
Share of loss on investment in associate (note 9)		101,790			-
Non-cash working capital items:
Accounts receivable and prepaid expenses		(642,879	)		2,374
Inventories		-			(34,866	)
Accounts payable and other liabilities		604,500			(138,255	)
Net cash used in operating activities		(6,034,062	)		(322,677	)
Investing activities
Net purchase of property, plant and equipment		(499,547	)		(748,512	)
Exploration and evaluation assets		(1,630,153	)		(162,169	)
Acquisition of Sol de Oro (note 6)		(2,438,443	)		-
Net cash used in investing activities		(4,568,143	)		(910,681	)
Financing activities
Proceeds of private placement (note 16)		100,000,450			-
Share issuance costs		(5,410,835	)		-
Proceeds from exercise of warrants		11,529,105			-
Advances from related parties		2,402,890			944,108
Repayments to related parties		(2,402,890	)		-
Net cash provided by financing activities		106,118,720			944,108
Net change in cash and cash equivalents		95,516,515			(289,250	)
Effect of exchange rate changes on cash held in foreign currencies		21,468			8,692
Cash and cash equivalents, beginning of period		13,315,844			525,643
Cash and cash equivalents, end of period	$	108,853,827		$	245,085
Cash	$	108,784,488		$	245,085
Cash equivalents		69,339			-
Cash and cash equivalents	$	108,853,827		$	245,085
Supplemental information
Shares issued to acquire Sol (note 6)	$	46,570,084		$	-

The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.

Galantas Gold Corporation Condensed Interim Consolidated Statements of Changes in Equity (Expressed in Canadian Dollars) (Unaudited)

											Reserves
										Equity settled				Foreign
		Number of									share-based			currency
		common			Share			Warrants			payments			translation
		shares			capital			reserve			reserve			reserve			Deficit			Total
Balance, December 31, 2025		458,863,772		$	89,244,398		$	8,272,483		$	16,849,160		$	(86,623	)	$	(89,014,273	)	$	25,265,145
Shares issued in private placement (note 16(b)(i))		181,819,000			100,000,450			-			-			-			-			100,000,450
Warrants issued (note 16(b)(i))		-			(22,047,134	)		22,047,134			-			-			-			-
Share issue costs (note 16(b)(i))		-			(7,928,303	)		2,517,468			-			-			-			(5,410,835	)
Convertible debenture converted (note 14)		39,215			13,667			-			-			-			-			13,667
Shares issued to acquire Sol (note 6)		91,313,890			46,570,084			-			-			-			-			46,570,084
Exercise of warrants		97,602,813			14,667,652			(3,138,547	)		-			-			-			11,529,105
Stock-based compensation (note 16(d))		-			-			-			31,501			-			-			31,501
Exchange differences on translating foreign operations		-			-			-			-			312,330			-			312,330
Net loss for the period		-			-			-			-			-			(7,040,372	)		(7,040,372	)
Balance, June 30, 2026		829,638,690		$	220,520,814		$	29,698,538		$	16,880,661		$	225,707		$	(96,054,645	)	$	171,271,075
Balance, December 31, 2024		114,770,587		$	71,782,203		$	3,401,849		$	14,921,992		$	1,824,659		$	(80,520,994	)	$	11,409,709
Stock-based compensation (note 16(d))		-			-			-			110,915			-			-			110,915
Warrants expired		-			-			(1,767,545	)		1,767,545			-			-			-
Exchange differences on translating foreign operations		-			-			-			-			612,073			-			612,073
Net loss for the period		-			-			-			-			-			(1,935,151	)		(1,935,151	)
Balance, June 30, 2025		114,770,587		$	71,782,203		$	1,634,304		$	16,800,452		$	2,436,732		$	(82,456,145	)	$	10,197,546

The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements.

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Galantas Gold Corporation Notes to Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) (Unaudited)

1. Description of Business and Nature of Operations

Galantas Gold Corporation (the "Company" or "Galantas") is a Canadian-based precious metals company primarily engaged in mineral exploration and development primarily in Europe and South America. The Company's common shares are listed on the TSX Venture Exchange ("TSXV") and London Stock Exchange AIM under the symbol GAL, and under the symbol GALKF on the OTCQX in the United States. The Company's head office is located at The Canadian Venture Building, 82 Richmond Street East, Toronto, Ontario, Canada, M5C 1P1.

The Company's Board of Directors authorized the issuance of these unaudited condensed interim consolidated financial statements as at and for the three and six months ended June 30, 2026 and 2025 (the "Condensed Interim Consolidated Financial Statements") on August 26, 2026.

2. Basis of Preparation

The Condensed Interim Consolidated Financial Statements have been prepared in accordance with IFRS® Accounting Standards ("IFRS") applicable to the preparation of interim financial statements under International Accounting Standard 34, Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB"). As such, certain disclosures required by IFRS have been condensed or omitted. These Interim Financial Statements should be read in conjunction with the Company's audited consolidated financial statements and related notes for the years ended December 31, 2025 and 2024. The Company's interim results are not necessarily indicative of its results for a full year.

3. Material Accounting Policies

The material accounting policies adopted by the Company in the preparation of its Condensed Interim Consolidated Financial Statements remain materially consistent with those disclosed in note 4 of the Company's consolidated financial statements for the years ended December 31, 2025 and 2024, except as noted below:

Basis of consolidation

The Condensed Interim Consolidated Financial Statements incorporate the financial statements of the Company and its subsidiaries. The results of subsidiaries acquired or disposed of during the periods presented are included in the Condensed Interim Consolidated Statement of Net Loss from the effective date of control and up to the effective date of disposal or loss of control, as appropriate. An investor controls an investee if the investor has the power over the investee, has the exposure, or rights, to variable returns from its involvement with the investee and the ability to use its power over the investee to affect the amount of the investor's returns. All intercompany transactions, balances, income and expenses are eliminated upon consolidation.

The Company's principal subsidiaries and its properties are as follows:

	Ownership
Direct Parent Company	Percentage	Properties
Gairloch Resources Limited	100%	Gairloch Project
RDL Mining Corp. ("RDL")	100%	Indiana Project
Sol de Oro Mining Ltd. ("Sol") (1)	100%	Andacollo Gold Project

(1) Acquisition effective June 23, 2026. Refer to note 6.

Functional and presentation currency

The Condensed Interim Consolidated Financial Statements are presented in Canadian Dollars ("CAD"), which is the parent Company's functional currency.

Items included in the financial statements of each of the Company's operating subsidiaries are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The functional currency of the Chilean subsidiaries is the Chilean Peso ("CLP") and the functional currency of the United Kingdom is the U.K. Pound Sterling ("GBP").

The exchange rates used to reflect the change in presentation currency in the accompanying unaudited Condensed Interim Consolidated Financial Statements were as follows:

		June 30, 2026
Closing rate (CLP to CAD)		0.0015
Average for the six-month period (CLP to CAD)		0.0015
Closing rate (GBP to CAD)		1.8823
Average for the six-month (GBP to CAD)		1.8536
		December 31, 2025
Closing rate (CLP to CAD)		0.0015
Closing rate (GBP to CAD)		1.8428
		June 30, 2025
Average for the six-month (GBP to CAD)		1.8485

4. Accounting Pronouncements

New accounting standards adopted

The following amendments were effective for the Company from January 1, 2026:

·  Classification and measurement of Financial Instruments - Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures

·      Annual Improvements to IFRS Accounting Standards - Amendments to:

o IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;

o  IFRS 9 Financial Instruments;

o  IFRS 10 Consolidated Financial Statements; and

o  IAS 7 Statement of Cash flows

There was no material impact on the Condensed Interim Consolidated Financial Statements as a result of their adoption.

Accounting standards issued but not yet adopted

IFRS 18 Presentation and Disclosure in Financial Statements ("IFRS 18")

In April 2024, the IASB issued IFRS 18, which will replace IAS 1. IFRS 18 is effective for periods beginning on or after January 1, 2027, with early adoption permitted. IFRS 18 will require defined categories and subtotals in the statement of profit or loss, require disclosure about management-defined performance measures, and adds new principles for aggregation and disaggregation of information. The Company is assessing the impact of this standard on its disclosures.

IFRS 19 Subsidiaries without Public Accountability: Disclosures ("IFRS 19")

In May 2024, the IASB issued IFRS 19, which is effective for annual reporting periods on or after January 1, 2027, with earlier application permitted. IFRS 19 permits some subsidiaries to apply IFRS Accounting Standards with reduced disclosure requirements. These entities apply the requirements in other IFRS Accounting Standards except for the disclosure requirements. Instead, these entities apply the requirements in IFRS 19. The Company is assessing the impact of this standard on its disclosures.

5. Critical Judgments and Estimates in Applying Accounting Policies

The preparation of Condensed Interim Consolidated Financial Statements in accordance with IFRS requires management to make judgments and estimates that affect the application of accounting policies and the reported amounts of assets, liabilities, contingent liabilities, income and expenses. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and applied prospectively. The significant judgments, estimates, and assumptions made by management are set out in the Company's audited consolidated financial statements for the years ended December 31, 2025 and 2024.

6. Acquisition of Sol

On June 23, 2026, the Company acquired a 100% ownership interest in the Andacollo Oro Gold Project (the "Andacollo Gold Project"), located in the Coquimbo Region of central Chile (the "Andacollo Transaction").

The Andacollo Transaction was effected by way of a share purchase agreement (the "Agreement"), pursuant to which Galantas acquired 100% of the shares of Sol, which in turn owns 100% of Compañía Minera OXI SpA ("OXI"). OXI has purchased 100% of the shares of Compañía Minera e Inmobiliaria Dragones SpA ("Dragones"), the owner of the Andacollo Gold Project, pursuant to certain share purchase agreements dated January 6, 2026 with the former Dragones shareholders (the "Dragones Agreements"). On July 24, 2026, the Dragones Agreements were amended to adjust the timing of cash payments (the "SPA Amendment"). All former Dragones shareholders were at arm's length to OXI, Sol and Galantas. If the payments described below are not completed to the former Dragones shareholders, such shares will be transferred back to the former shareholders with any partial payments forfeited. Sol and OXI were established as dedicated transaction vehicles to consolidate ownership and facilitate the acquisition of the Andacollo Gold Project.

Sol is owned 100% by Robert Sedgemore, who is an executive officer of Galantas and is a Non-Arm's Length Party as defined in the TSXV policies in relation to Galantas.

The total cash consideration payable under the Agreement and the SPA Amendment is US$32.5 million (CAD$46.2 million), originally structured as staged payments over four years.

The total cash consideration payable as per the June 23, 2026 Agreement is as follows:

·    On closing of the Andacollo Transaction (the "Closing"): US$5.0 million (CAD$7.1 million), comprised of:

o  the assumption of debts held by OXI and Sol, which is approximately US$3.5 million (CAD$5.0 million); and

o  US$1.5 million (CAD$2.1 million) payable to the Sol shareholder, Robert Sedgemore, as consideration for 100% of the shares of Sol (the "Sol Payment").

Total consideration remaining to be paid:

·    By December 31, 2026: US$3.5 million (CAD$5.0 million) payable to the Dragones shareholders.

·    On December 31, 2027: US$4.0 million (CAD$5.7 million) payable to the Dragones shareholders.

·    On December 31, 2028: US$6.0 million (CAD$8.5 million) payable to the Dragones shareholders.

·    On December 31, 2029: US$14.0 million (CAD$19.9 million) payable to the Dragones shareholders.

In addition to the cash consideration, on Closing, Luis Catril, the controlling shareholder of Dragones, received 91,313,890 common shares of Galantas (representing 19.9% of the issued and outstanding common shares of Galantas as of January 6, 2026), excluding Robert Sedgemore as a connected party to the Andacollo Transaction.

The Andacollo Transaction did not meet the definition of a business combination under IFRS 3, Business Combination. Accordingly, the acquisition was accounted for as an asset acquisition.

The following table summarizes the fair value of the purchase price and the allocation to net assets acquired:

Purchase Price Consideration
Cash consideration (i)	$	36,755,906
91,313,890 common shares issued (ii)		46,570,084
Cost related to the acquisition		402,926
	$	83,728,916
Net Assets Acquired (Fair Value)
Cash and cash equivalents	$	94,483
Accounts receivable and prepaid expenses		936,865
Exploration and evaluation assets		84,869,857
Accounts payable and other liabilities		(752,289	)
Deferred revenue		(1,420,000	)
	$	83,728,916

(i) The cash consideration includes deferred cash payments of $29,550,648 measured at their net present value using a discount rate of 12% (note 13), as well as the assumption of a deferred revenue liability of $710,000 (note 15) and a loan payable to Ocean Partners UK Ltd. ("Ocean Partners") of $4,365,258 (note 17).

(ii) Fair value was calculated using the closing price of $0.51 on the day prior to the issuance date.

On July 24, 2026, the Company announced an amendment to the payment schedule with the schedule as follows (total consideration remained the same).

·      On closing of the Andacollo Transaction: US$5.0 million (CAD$7.1 million), comprised of:

o  the assumption of debts held by OXI and Sol, which is approximately US$3.5 million (CAD$5.0 million); and

o  US$1.5 million (CAD$2.1 million) payable to the Sol shareholder, Robert Sedgemore, as consideration for 100% of the shares of Sol.

·      On July 7, 2026: US$0.5 million (CAD$0.7 million) payable to the Dragones shareholders.

·      On July 24, 2026: US$5.0 million (CAD$7.1 million) payable to the Dragones shareholders.

Total consideration remaining to be paid:

·      By December 31, 2026: US$3.0 million (CAD$4.3 million) payable to the Dragones shareholders.

·      By April 25, 2027: US$9.0 million (CAD$12.8 million) payable to the Dragones shareholders.

·      On December 31, 2027: US$4.0 million (CAD$5.7 million) payable to the Dragones shareholders.

·      On December 31, 2028: US$6.0 million (CAD$8.5 million) payable to the Dragones shareholders.

The amendment to the payment schedule will result in an increase of $6,212,212 in the fair value of the deferred consideration liability.

7. Cash and Cash Equivalents

		As at June 30, 2026			As at December 31, 2025
Cash	$	108,784,488		$	13,315,844
Cash equivalents		69,339			-
	$	108,853,827		$	13,315,844

8. Accounts Receivable and Prepaid Expenses

		As at June 30, 2026			As at December 31, 2025
Sales tax receivable - Canada	$	136,702		$	47,269
Valued added tax receivable - Chile		557,671			6,389
Accounts receivable (i)		494,222			-
Prepaid expenses and other receivables (ii)		619,671			174,864
	$	1,808,266		$	228,522

(i) Accounts receivable comprise amounts due from customers arising from sales transactions completed by Dragones prior to its acquisition by the Company (note 6).

(ii) Prepaid expenses and other assets are principally comprised of advances, assigned receivables and promissory notes acquired from the acquisition of Sol (note 6).

9. Investment In Associates

The following table summarizes the Company's investments in associates, consisting of a 20% interest in each of Flintridge Resources Limited ("Flintridge") and Omagh Minerals Limited ("Omagh") through Cavanacaw Corporation ("Cavanacaw").

Investment in associates
Balance, December 31, 2024	$	-
Fair value of investment in associates		5,954,818
Share of loss in associate		(47,778	)
Foreign exchange adjustment		(86,315	)
Balance, December 31, 2025		5,820,725
Share of loss in associate		(101,790	)
Foreign exchange adjustment		123,190
Balance, June 30, 2026	$	5,842,125

10. Property, Plant and Equipment

		Freehold			Plant
		land and			and			Motor			Office		Development
Cost		buildings			machinery			vehicles			equipment			assets			Total
Balance, December 31, 2024	$	2,487,579		$	9,659,254		$	243,965		$	238,621		$	26,766,607		$	39,396,026
Additions		-			-			-			-			1,866,876			1,866,876
Cash receipts from concentrate sales		-			-			-			-			(787,929	)		(787,929	)
Disposals of interest in subsidiaries		(2,580,299	)		(9,984,217	)		(253,058	)		(247,515	)		(28,651,230	)		(41,716,319	)
Foreign exchange adjustment		92,720			324,963			9,093			8,894			805,676			1,241,346
Balance, December 31, 2025		-			-			-			-			-			-
Additions		181,037			-			-			318,510			-			499,547
Balance, June 30, 2026	$	181,037		$	-		$	-		$	318,510		$	-		$	499,547
Accumulated depreciation
Balance, December 31, 2024	$	2,080,106		$	7,979,488		$	208,788		$	181,188		$	-		$	10,449,570
Depreciation		2,079			257,249			8,254			6,589			-			274,171
Disposal of interest in subsidiaries		(2,159,755	)		(8,503,607	)		(224,969	)		(194,646	)		-			(11,082,977	)
Foreign exchange adjustment		77,570			266,870			7,927			6,869			-			359,236
Balance, December 31, 2025 and June 30, 2026	$	-		$	-		$	-		$	-		$	-		$	-
Carrying value
Balance, December 31, 2025	$	-		$	-		$	-		$	-		$	-		$	-
Balance, June 30, 2026	$	181,037		$	-		$	-		$	318,510		$	-		$	499,547

11. Exploration and Evaluation Assets

Six Months Ended June 30, 2026		Gairloch Project			Omagh Gold Project			Indiana Project			Andacollo Gold Project			Total
Acquisitions costs
Balance, December 31, 2025	$	1,140,115		$	-		$	9,449,568		$	-		$	10,589,683
Acquisition of Sol (note 6)		-			-			-			84,869,857			84,869,857
Balance, June 30, 2026	$	1,140,115		$	-		$	9,449,568		$	84,869,857		$	95,459,540
Exploration costs
Balance, December 31, 2025		782,637			-			-			-			782,637
Additions		244,221			-			610,441			775,491			1,630,153
Balance, June 30, 2026		1,026,858			-			610,441			775,491			2,412,790
Total	$	2,166,973		$	-		$	10,060,009		$	85,645,348		$	97,872,330

Year Ended December 31, 2025		Gairloch Project			Omagh Gold Project			Indiana Project			Andacollo Gold Project			Total
Acquisitions costs
Balance, December 31, 2024	$	1,140,115		$	-		$	-		$	-		$	1,140,115
Acquisition of RDL		-			-			9,449,568			-			9,449,568
Balance, December 31, 2025		1,140,115			-			9,449,568			-			10,589,683
Exploration costs
Balance, December 31, 2024		584,155			3,762,926			-			-			4,347,081
Additions		198,482			340,237			-			-			538,719
Disposal of interest in subsidiaries		-			(4,243,418	)		-			-			(4,243,418	)
Foreign exchange adjustment		-			140,255			-			-			140,255
Balance, December 31, 2025		782,637			-			-			-			782,637
Total	$	1,922,752		$	-		$	9,449,568		$	-		$	11,372,320

Indiana Project

On December 31, 2025, the Company completed the acquisition of 100% of the issued and outstanding shares in RDL. The acquisition of RDL provides Galantas with an option to acquire a 100% interest in the Indiana Project (the "Purchase Option"), by meeting certain conditions, pursuant to an option agreement between Compañía Minera RDL SpA, a wholly-owned subsidiary of RDL, and Minería Activa SpA ("Activa") dated October 30, 2025. The Indiana Project is currently owned 100% by Activa, subject to the Purchase Option. Additional details of the Purchase Option are included in Galantas' press releases dated November 13, 2025, November 21, 2025, and December 19, 2025.

The Indiana Project sits within the rich copper-gold-silver belt of the coastal cordillera of the Atacama Region, Chile. The Indiana Project is a gold and copper mine, ready for immediate expansion. It comprises mineral concessions covering 923 hectares.

In order to exercise the Purchase Option, RDL must make payments totaling US$15 million ($20.9 million) to Activa over a period of five years (the "Option Period"). An initial payment of US$500,000 was made. Of this amount, US$450,000 ($625,000) was paid by Ocean Partners as an advance to Galantas and paid to Activa in the fourth quarter of 2025 (the "Ocean Payment"). The Ocean Payment was repaid by Galantas on December 31, 2025. The remaining payments consist of US$1 million ($1.4 million) in each of the years one and two, US$2 million ($2.8 million) in each of the years three and four and a final payment of US$8.5 million ($11.8 million) in year five (together, the "Option Payments").

RDL has committed to spend a minimum of US$1 million ($1.4 million) per year during the Option Period on exploration and development activities within the Indiana Project. In addition, RDL has committed to (i) excavate a minimum of five hundred linear metres of exploration drifts, (ii) complete a minimum of 2,500 metres of exploration drilling, or (iii) a combination thereof using an equivalence ratio of one metre of drifts for every five metres of drilling.

Until RDL has exercised the Purchase Option in full, RDL will be leasing the Indiana Project for a 10% net smelter return royalty ("NSR") royalty payable to Activa. Until the Indiana Project goes into commercial production, the NSR royalty will be paid as a rent payment, which will not be less than 25% of the Option Payment corresponding to that year. Once the Indiana Project goes into commercial production, the NSR royalty will not be greater than 50% of the Option Payment corresponding to that year.

There is an existing NSR royalty of 2.5% payable to an underlying property owner, which covers approximately 40% of the present concessions comprising the Indiana Project and which will be payable by RDL, including after exercise of the Option.

Andacollo Gold Project

The Andacollo Gold Project ("Andacollo") (note 6) is located in the Coquimbo Region of north-central Chile. Andacollo is comprised of a total of 91 exploitation mining concessions covering approximately 1,213 hectares and encompasses the area of the former Andacollo open pit gold mining operations, including the historical pits, processing facilities, heap leach pads, waste rock storage areas and associated infrastructure.

Gairloch Project

On January 26, 2023, the Company announced that it entered into an agreement to acquire a 100% interest and the exclusive rights to explore and develop the Gairloch Project from the owners of the Gairloch Estate lands (the "Lessors"). The Company has acquired exploration and developments rights for an initial payment of GBP 347,000 (approximately $580,000 - paid on signing) and annual payments of GBP 69,000 (approximately $115,000) beginning in year 6 through year 30 (the term of the lease). This annual payment is index-linked per lease-year.

The lease agreement is renewable at the election of Galantas, upon 90 days' prior written notice and upon the approval of the Lessors, not to be unreasonably withheld, for a further 20-year period, assuming all conditions of this agreement have been met satisfactorily according to the Lessors, acting reasonably, in respect of the Galantas' conduct and operations. Galantas may terminate the agreement with 18 months' notice.

During any mining phase, Galantas will pay the lessor GBP 50,000 (approximately $85,000) index linked per lease year, with such payment to be made at the commencement of each such lease year. Galantas will grant a 5% net profits interest royalty (the "NPI"), calculated according to standard industry terms and practices with the option by the Lessors to convert the NPI to a 2% net smelter returns royalty, calculated according to standard industry terms and practices.

Omagh Gold Project

On September 23, 2025, the Company sold 80% of its interest in Flintridge and 80% of its interest in Omagh Minerals Limited ("Omagh") to Ocean Partners and as a result, the Omagh Gold Project was derecognized on the Company's Consolidated Statement of Financial Position. The remaining 20% interest in Flintridge and Omagh is now recognized as an investment in associates with the Company's share in net profit and loss being recognized in the Consolidated Statement of Net Loss and Comprehensive Loss.

12. Accounts Payable and Other Liabilities

Accounts payable and other liabilities of the Company are principally comprised of amounts outstanding for purchases relating to exploration costs on exploration and evaluation assets, general operating activities and professional fees activities.

		As at June 30, 2026			As at December 31, 2025
Accounts payable	$	1,972,066		$	1,578,605
Accrued liabilities (i)		1,454,802			491,473
Total accounts payable and other liabilities	$	3,426,868		$	2,070,078

(i) Accrued liabilities consists of legal and other professional fees primarily related to the Andacollo Transaction and exploration costs related to the Indiana Project and the Andacollo Project.

13. Deferred Consideration

In connection with the Andacollo Transaction (Note 6), the purchase price included the issuance of deferred consideration. The movement of the deferred consideration payments is as follows:

Balance at January 1, 2026	$	-
Additions (note 6)		29,550,648
Balance at June 30, 2026	$	29,550,648
Current portion	$	4,970,000
Non-current portion		24,580,648
Deferred consideration	$	29,550,648

14. Convertible Debentures

		Convertible debentures			Derivative liabilities
Balance, January 1, 2025	$	6,556,155		$	123,542
Convertible debenture converted		(1,657,582	)		(105,423	)
Extinguishment of convertible debentures		(5,928,478	)		(432,013	)
Loss on extinguishment of convertible debentures		447,424			-
Loss on settlement of debt		507,932			-
Interest payment		(289,639	)		-
Interest expense		844,441			-
Accretion expense		625,592			-
Change in fair value		-			540,582
Foreign exchange adjustment		(196,929	)		-
Balance, December 31, 2025		908,916			126,688
Convertible debenture converted (i)		(13,667	)		-
Interest expense (i)		72,328			-
Accretion expense (i)		117,028			-
Change in fair value (i)		-			448,485
Foreign exchange adjustment		38,803			-
Balance, June 30, 2026	$	1,123,408		$	575,173

(i) As at June 30, 2026, the fair value of the derivative liability was revalued at $575,173 using the Black-Scholes option pricing model with the following assumptions:

·      expected dividend yield - 0%;

·      expected volatility - 114%;

·      risk-free interest rate - 2.72%; and

·      expected average life of 0.47 years.

During the three and six months ended June 30, 2026, the Company recorded an accretion expense of $57,721 and $117,028, respectively (three and six months ended June 30, 2025 - $191,800 and $390,681, respectively) and interest expense of $35,906 and $72,328, respectively (three and six months ended June 30, 2025 - $246,802 and $502,716, respectively) as loan interest and bank charges less deposit interest in the Condensed Interim Consolidated Statement of Net Loss.

During the three and six months ended June 30, 2026, $13,667 (US$10,000) of convertible debenture was converted into 39,215 common shares of the Company.

15. Deferred Revenue

(i) On September 3, 2025, RDL entered into an agreement granting a stream on a portion of the future copper production at the Indiana Project to a third party. In return for an upfront purchase price of $550,000, the third party will be entitled to purchase 6% of the copper produced by the Indiana Project until 2,000,000 pounds of copper have been delivered, after which the delivery amount will drop to 3%. The purchase price is set at 20% of the spot copper price at the time of delivery.

(ii) Two third parties hold silver streams on the Andacollo Project, each requiring delivery of 33.4% and 66.6%, respectively, of each payable ounce of silver produced at the Andacollo Project to the third parties until the payment of 333,334 ounces of silver and 666,667 ounces of silver, respectively, and after which 16.7% and 33.3%, respectively, of each ounce of payable silver produced at the Andacollo Project will be delivered to the third parties.

		June 30, 2026			December 31, 2025
Balance, beginning of period	$	550,000		$	-
Addition		-			550,000
Acquisition of Sol (note 6)		1,420,000			-
Assumed debt - Acquisition of Sol (note 6)		710,000			-
Balance, end of period	$	2,680,000		$	550,000

16. Share Capital and Reserves

a) Authorized share capital

At June 30, 2026, the authorized share capital consisted of an unlimited number of common and preference shares issuable in Series.

The common shares do not have a par value. All issued shares are fully paid.

No preference shares have been issued. The preference shares do not have a par value.

b) Common shares issued

At June 30, 2026, the issued share capital amounted to $220,520,814. The continuity of issued share capital for the periods presented is as follows:

		Number of common shares			Amount
Balance, December 31, 2024 and June 30, 2025		114,770,587		$	71,782,203
Balance, December 31, 2025		458,863,772		$	89,244,398
Shares issued in private placement (i)		181,819,000			100,000,450
Warrants issued (i)		-			(22,047,134	)
Share issue costs (i)		-			(7,928,303	)
Shares issued to acquire Sol (note 6)		91,313,890			46,570,084
Convertible debenture converted (note 14(i))		39,215			13,667
Exercise of warrants		97,602,813			14,667,652
Balance, June 30, 2026		829,638,690		$	220,520,814

(i) On May 28, 2026, the Company closed a brokered private placement of 181,819,000 units at a price of $0.55 per unit for gross proceeds of $100,000,450, which included the full exercise of the options (the "Agents' Option") granted to the agents. Each unit consists of one common share of the Company and one-half of one common share purchase warrant, with each warrant entitling the holder to purchase an additional common share at a price of $0.80 per share until for a period of 24 months. The fair value of the 90,909,500 warrants was estimated at $22,047,134 using the Black-Scholes option pricing model with the following assumptions: expected dividend yield - 0%, expected volatility - 136.50%, risk-free interest rate - 2.84% and an expected average life of 2 years.

The Company paid the agents a cash commission equal to $5,000,023 and issued 7,272,750 broker warrants of the Company. Each broker warrant is exercisable to acquire one common share at an exercise price of $0.55 for a period of 24 months. The fair value of the 7,272,750 broker warrants was estimated at $2,517,468 using the Black-Scholes option pricing model with the following assumptions: expected dividend yield - 0%, expected volatility - 136.50%, risk-free interest rate - 2.84% and an expected average life of 2 years. Other cash costs amounted to $410,812.

There is a 4-month hold period on the trading of securities issued in connection with this offering.

c) Warrant reserve

The following table shows the continuity of warrants for the periods presented:

					Weighted
		Number of			average exercise
		warrants			price
Balance, December 31, 2024		18,838,904		$	0.54
Expired		(8,674,631	)		0.54
Balance, June 30, 2025		10,164,273		$	0.55
Balance, December 31, 2025		209,448,648		$	0.14
Issued (notes 16(b)(i))		98,182,250			0.78
Exercised		(97,602,813	)		0.12
Balance, June 30, 2026		210,028,085		$	0.45

The following table reflects the actual warrants issued and outstanding as of June 30, 2026:

Expiry date		Number of warrants			Grant date fair value ($)			Exercise price ($)
December 20, 2026		158,823			24,670			0.35
December 31, 2027		8,453,562			775,047			0.08
March 27, 2028		7,924,841			1,284,806			0.55
April 26, 2028		2,080,609			324,828			0.55
May 28, 2028		90,909,500			22,047,134			0.80
May 28, 2028		7,272,750			2,517,468			0.55
December 31, 2028		93,228,000			2,724,585			0.12
		210,028,085			29,698,538			0.45

Subsequent to June 30, 2026, 2,591,633 warrants were exercised for total cash proceeds of $275,331.

d) Stock options

Option pricing models require the inputs including the expected price volatility. Changes in the inputs can materially affect the fair value estimate.

The following table shows the continuity of stock options for the periods presented:

		Number of options			Weighted average exercise price
Balance, December 31, 2024 and June 30, 2025		8,690,000		$	0.58
Balance, December 31, 2025		8,690,000		$	0.58
Expired		(3,985,000	)		0.85
Cancelled		(75,000	)		0.35
Balance, June 30, 2026		4,630,000		$	0.36

(i) The portion of the estimated fair value of options granted in the current and prior periods and vested during the three and six months ended June 30, 2026, amounted to $7,677 and $31,501, respectively (three and six months ended June 30, 2025 - $39,442 and $110,915, respectively).

The following table reflects the actual stock options issued and outstanding as of June 30, 2026:

Expiry date	Exercise price ($)	Weighted average remaining contractual life (years)	Number of options outstanding	Number of options vested (exercisable)	Number of options unvested
August 27, 2026	0.86	0.16	20,000	20,000	-
May 3, 2027	0.60	0.84	1,535,000	1,535,000	-
April 29, 2029	0.23	2.83	3,075,000	3,075,000	-
	0.36	2.16	4,630,000	4,630,000	-

17. Related Party Disclosures

Related parties pursuant to IFRS include the Board of Directors, close family members, other key management individuals and enterprises that are controlled by these individuals as well as certain persons performing similar functions.

Related party transactions conducted in the normal course of operations are measured at the exchange amount and approved by the Board of Directors in strict adherence to conflict of interest laws and regulations.

(a) The Company entered into the following transactions with related parties:

			Three Months Ended June 30,						Six Months Ended June 30,
			2026			2025			2026			2025
Interest on related party loans	(i)	$	20,046		$	460,901		$	58,379 $			880,118

(i) Refer to note 17(a)(ii)(iii).

(ii) As at June 30, 2026, the Company owes Ocean Partners $4,578,408 (December 31, 2025 - $205,590) which is recorded as due to related parties on the Condensed Interim Consolidated Statement of Financial Position. In 2026, the loan assumed as part of the acquisition of Sol in 2026 (note 6) bears simple interest at an annual rate of 6%. In 2025, the loans associated with subsidiaries that were disposed of during that year bore interest at an annual rate of 12% compounded monthly.

		June 30, 2026			December 31, 2025
Balance, beginning of period	$	205,590		$	12,613,719
Assumed debt - Acquisition of Sol (note 6)		4,365,258			-
Advance		2,402,890			1,145,179
Repayment		(2,402,890	)		-
Interest		-			1,112,172
Foreign exchange adjustment		7,560			(26,672	)
Disposal of interest in subsidiaries		-			(14,638,808	)
Balance, end of period	$	4,578,408		$	205,590

(iii) As at June 30, 2026, the Company owes Melquart Limited $1,306,526 (December 31, 2025 - $1,264,265) which is recorded as due to related parties on the Condensed Interim Consolidated Statement of Financial Position. The loan bears simple interest at an annual rate of 12%.

Subsequent to June 30, 2026, the Company repaid the loan from Melquart in its entirety. As a result of the early extinguishment of the loan, an adjustment to the accrued interest in the amount of $44,014 was recorded against the accrued interest balance of $58,379.

		June 30, 2026			December 31, 2025
Melquart Limited
Financing facilities, beginning of period	$	1,264,265		$	922,030
Financing facility received		-			184,850
Accretion		-			1,415
Interest		58,379			137,155
Interest adjustment		(44,014	)		-
Foreign exchange adjustment		27,896			18,815
Balance, end of period	$	1,306,526		$	1,264,265

(b) Remuneration of officer and directors of the Company was as follows:

		Three Months Ended June 30,						Six Months Ended June 30,
		2026			2025			2026			2025
Salaries and benefits (1)	$	395,339		$	55,624		$	778,023		$	141,115
Director fees (1)		71,727			35,000			120,514			70,000
Stock-based compensation		5,282			27,136			21,673			76,309
	$	472,348		$	117,760		$	920,210		$	287,424

(1) As at June 30, 2026, due to directors for fees amounted to $120,785 (December 31, 2025 - $nil) and due to officers, mainly for salaries and benefits accrued amounted to $243,204 (December 31, 2025 - $346,729), and is included with due to related parties.

(c) As at June 30, 2026, the issued shares of Galantas total 829,638,690. Ocean Partners owns, directly and indirectly, 99,556,946 common shares of the Company or approximately 12.0% of the outstanding common shares of the Company. Melquart Limited ("Melquart") owns, directly and indirectly, 57,372,977 common shares of the Company or approximately 6.9% of the outstanding common shares of the Company. Eric Sprott owns, directly and indirectly, 135,530,667 common shares of the Company or approximately 16.3% of the outstanding common shares of the Company. Luis Catril owns, directly and indirectly, 91,313,890 common shares of the Company or approximately 11.0% of the outstanding common shares of the Company. Robert Sedgemore owns, directly and indirectly, 44,133,545 common shares of the Company or approximately 5.3% of the outstanding common shares of the Company. Lawrence Roulston owns, directly and indirectly, 44,133,545 common shares of the Company or approximately 5.3% of the outstanding common shares of the Company. Dorian Nicol owns, directly and indirectly, 44,133,545 common shares of the Company or approximately 5.3% of the outstanding common shares of the Company.

Excluding the Ocean Partners, Melquart, Eric Sprott, Luis Catril, Robert Sedgemore, Lawrence Roulston and Dorian Nicol shareholdings discussed above, the remaining 37.9% of the shares are widely held, which includes various small holdings which are owned by directors and management of the Company. These holdings can change at anytime at the discretion of the owner but in accordance and strict adherence to the Company's corporate governance policy on insider trading.

The Company is not aware of any arrangements that may at a subsequent date result in a change in control of the Company.

(d) On July 4, 2026, the Company granted a total of 33,650,000 restricted share units ("RSUs") and 775,000 stock options to certain management, employees and consultants (note 19).

(e) On July 8, 2026, the Chair of the Board resigned. In accordance with the RSU Plan, the Company cancelled her 2,000,000 unvested RSUs (note 19).

18. Segment Disclosure

The Company has determined that it has three reportable segments. The Company's operations are substantially all related to its investment in Cavanacaw, RDL and Sol de Oro and their subsidiaries. Substantially all of the Company's costs and assets of the business that support these operations are derived or located in Chile, the United Kingdom, and Canada. Segmented information on a geographic basis is as follows:

		Chile			United Kingdom			Canada			Total
As at June 30, 2026
Current assets	$	1,987,845		$	-		$	108,674,248		$	110,662,093
Non-current assets		96,204,904			8,009,098			-			104,214,002
Total assets		98,192,749			8,009,098			108,674,248			214,876,095
Total liabilities		8,716,151			-			34,888,869			43,605,020
Six Months Ended June 30, 2026
Net loss	$	(4,084,526	)	$	(101,790	)	$	(2,854,056	)	$	(7,040,372	)
Three Months Ended June 30, 2026
Net loss	$	(3,133,226	)	$	(61,140	)	$	(1,491,180	)	$	(4,685,546	)

		Chile			United Kingdom			Canada			Total
As at December 31, 2025
Current assets	$	70,791		$	-		$	13,473,575		$	13,544,366
Non-current assets	$	9,449,568		$	7,743,477		$	-		$	17,193,045
Total assets	$	9,520,359		$	7,743,477		$	13,473,575		$	30,737,411
Total liabilities	$	42,676		$	-		$	5,429,590		$	5,472,266
Six Months Ended June 30, 2025 Net loss	$	-		$	(328,315	)	$	(1,606,836	)	$	(1,935,151	)
Three Months Ended June 30, 2025 Net loss	$	-		$	(82,705	)	$	(627,330	)	$	(710,035	)

19. Events After the Reporting Period

(i) Issuance of long-term incentives

The Company allotted and reserved 33,650,000 restricted share units of the Company ("RSUs") to certain directors, officers, employees and consultants of the Company ("Participants"), consisting of a right to receive a share, cash payment or a combination thereof upon settlement of such RSU in accordance with the Company's omnibus equity incentive plan, which was approved by the Company's shareholders on June 15, 2026 (the "Plan"). The method of settlement of the RSUs is fully at the discretion of the Board of Directors as administrators of the Plan.

The RSUs will vest in accordance with the following schedule:

(i) 1/3 of the RSUs will vest on July 4, 2027;

(ii) 1/3 of the RSUs will vest on January 1, 2028; and

(iii) 1/3 of the RSUs will vest on January 1, 2029;

If an RSU expires during a closed period imposed by the Company or at a time when undisclosed material information exists, the expiry date of the RSU will automatically extend to the date that is 10 business days after the closed period is lifted.

On July 8, 2026, the Chair of the Board resigned. In accordance with the RSU Plan, the Company cancelled her 2,000,000 unvested RSUs.

The Company also reports that on July 4, 2026, it granted 775,000 incentive stock options ("Options") to consultants, pursuant to the Company's Plan which was approved by the Company's shareholders on June 15, 2026. 500,000 Options have been granted to a consultant and will vest immediately. The remaining 275,000 Options have been granted to another consultant, vesting in four equal tranches over the next 12 months. The exercise price for the Options is $0.55, and the Options shall expire on the date which is five (5) years from the date of grant.

The Company's Plan allows for the aggregate number of shares that may be reserved for issuance under this Plan as up to 10% of the Company's issued and outstanding shares. The total number of shares reserved under the Plan outstanding prior to this award was 4,630,000, which results in the total number of shares now reserved under the Plan outstanding for the Company being 39,055,000, representing 4.71% of the Company's issued and outstanding shares, which total 832,230,323 as of August 26, 2026, the date of filing of the Condensed Interim Consolidated Financial Statements.

 

END