news

Closes Second Tranche of Private Placement

Thursday 22nd July 2010

22 July 2010: Galantas Gold Corporation (the "Company")(TSX Venture -GAL) (AIM - GAL), which has a 100% interest in Ireland's only gold mine, has completed the second tranche of the private placement announced on June 3, 2010. The Company issued 24,550,000 units pursuant to the second tranche, subject to receipt of approval of TSX Venture Exchange ("TSX-V"). The placing is the final part of a larger offering of 45,550,000 units announced on June 3, 2010 ("Offering"). Each unit is priced at CDN$0.05 and is comprised of one common share and one warrant. Each warrant entitles the holder to purchase one common share within 24 months from closing at a price of CDN$0.10. The gross amount raised by the second tranche of the placing is CDN$1,227,500. A cash fee of 1% is payable to EF Malet de Carteret MCSI, an independent agent.

The securities issued under the second tranche of the Offering are subject to a hold period in Canada from the date of issuance until November 23, 2010 in accordance with applicable securities laws and TSX-V policies. An application will be made to admit shares issued under the placing to trading on the AIM market of the London Stock Exchange on the same day that they become free trading on the TSX-V.

Kenglo One Ltd of Jersey, Channel Islands ("Kenglo") has subscribed for all the units issued in the second tranche of the Offering. Subject to receipt of TSX-V, the subscription will increase Kenglo's holding in the Company to approximately 19.3 % of the issued shares in the Company immediately following the second tranche. If warrants within the Offering are exercised, Kenglo's stake in the Company could rise to approximately 32.4% of the issued shares in the Company immediately following the second tranche. The issuance of units to Kenglo pursuant to the second tranche was approved by the shareholders of the Company at the special meeting of shareholders on July 9, 2010 and remains subject to final approval by the TSX-V.

The Company intends to use the funds from the placing for an expanded drilling program, mobile and fixed plant improvements and working capital. The expanded drilling program will concentrate initially on targets close to the operating mine site that have already been reported upon by consultants ACA Howe (Press Release 12th June 2008) and is expected to commence later in the summer 2010.

Following the second tranche of the Offering, the Company has 235,650,055 in issue.

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.

This press release, required by applicable Canadian securities law, is not for distribution to U.S. news services or for dissemination in the United States, and does not constitute an offer of the securities described herein. These securities have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements"

Share Price

TSX-V (CDN $): 0.08

AIM (£ p): 5.25

Gold Price (oz)

USD : 1,277.80

GBP : 969.08

The figures presented here are for informational purposes of current trends only and should not be considered an exact count

This page and other parts of the website contain statements relating to the intentions of the management to develop mine production and jewellery production. Such statements are forward looking and readers are cautioned that these statements are subject to risk and uncertainties as further detailed in quarterly Management Discussion and Analysis published on www.sedar.com

Approved for website uploading : R.Phelps