Galantas Gold Corporation: Share Consolidation and Private Placing to Raise £500,000

Galantas Gold Corporation (TSX VENTURE:GAL) (AIM:GAL) ("Galantas" or the
"Corporation") today announces that the Board is seeking regulatory approval of
documents relating to the consolidation of the Corporation's issued and
outstanding share capital (the "Consolidation"), exchange of shares for debt and
the private placement of shares. 


Galantas announced on 23rd January 2014 that the Consolidation was passed at a
Special Meeting of Shareholders on 16th January 2014, with determination of the
consolidation ratio by the Directors. The Directors have determined that the
Consolidation will be on the basis of 5 old shares for 1 new share. The action
is being undertaken to improve on the current trading price for the Company's
securities as it falls below the minimum price requirements for private
placements as set out by TSX Venture Exchange Corporate Finance Policy 4.1.


Subject to Exchange approvals, the consolidation is scheduled to be effective at
opening on the TSX Venture Exchange and AIM on Monday 14th April 2014, from
which date the existing issued share capital will be cancelled and replaced by
the new Common Shares in consolidated form.


Application has been made for the Galantas Depositary Interests to be traded on
AIM with effect from 14th April 2014 under the ISIN: CA36315W2022 and SEDOL:
BKSZT76.


A private placement of new shares is expected to complete following
consolidation. A minimum of 10 million units will be subscribed at UKGBP 0.05
(five pence) / CDN$0.09375 per unit. Each unit will comprise 1 new ordinary
share and 1 warrant (the "Placement"). Each warrant will entitle the holder to
purchase 1 further new ordinary share at UKGBP 0.10 (ten pence) per share for a
period of two years from the date on which the subscription is closed. The
Placement will raise a minimum of UKGBP 500,000. The new ordinary shares issued
pursuant to the Placement are subject to a four month hold period. The new
ordinary shares and warrants to be issued pursuant to the placement represent
approximately 23.2 per cent of the enlarged issued share capital (at the minimum
placing amount).


Coincident with the placement (and following the Consolidation), subject to TSX
Venture Exchange approval, the Corporation will also undertake an exchange of
existing debt for new ordinary shares, as set out in the circular to
shareholders issued 16th December 2013 and approved by Shareholders at the
Special Meeting of Shareholders 16th January 2014. Roland Phelps (President &
Chief Executive) will exchange a loan of CDN$1,346,730 (UKGBP 716,256) for
14,365,120 new ordinary shares representing 16.6 per cent of the enlarged issued
share capital. Leo O'Shaughnessy (Chief Financial Officer) will exchange a loan
of CDN$30,046 for 320,491 new ordinary shares, representing 0.4 per cent of the
enlarged issued share capital. Following the exchange of debt for equity Mr
Phelps and Mr O'Shaughnessy will hold 24.9 per cent and 0.4 per cent of the
Galantas enlarged issued share capital respectively (at the minimum placing
amount). Loans due to certain other third party creditors have also agreed to
settlement of amounts owed totalling UKGBP 21,976, through the issue of 439,520
new ordinary shares, representing 0.5 per cent of the enlarged issued share
capital. No Warrants will be attached to the new ordinary shares issued in
relation to any of the equity for debt exchange.


In compliance with TSX Venture Exchange requirements, Galantas shareholders on
the Canadian register will receive a Letter of Transmittal, which they are
required to return, together with their original share certificate, for which
they will then receive the issue of a new certificate. Galantas shareholders on
the Jersey register will be mailed with new certificates without further action
required on their part. Current share certificates will no longer be valid after
close of business on 11h April 2014. The accounts of shareholders who hold
shares or depositary interests in electronic form will be adjusted
automatically.


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


FOR FURTHER INFORMATION PLEASE CONTACT: 
Galantas Gold Corporation
Jack Gunter P.Eng
Chairman
+44 (0) 2882 241100


Galantas Gold Corporation
Roland Phelps C.Eng.
President & CEO
+44 (0) 2882 241100
info@galantas.com
www.galantas.com


Charles Stanley Securities (Nominated Adviser)
Mark Taylor
+44 (0)20 7149 6000
Galantas Gold (TSXV:GAL)
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