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Markedly Improved Net Income in First Quarter

Thursday 27th May 2010

Galantas Gold Corporation (the Company) results for the Three Months ended March 31st 2010 have just been published.

The Net Income for the three months ended March 31, 2010 amounted to $ 772,418 compared to a Net Loss of $ 290,013 for the three months ended March 31, 2009. When the Net Income is adjusted for non cash items on the Income Statement the cash generated from operating activities amounted to $ 728,890 for the first quarter of 2010 compared to $ 54,098 for the first quarter of 2009.

The main reason for the improved results in 2010 is due to the increased production levels achieved during the first quarter.

Highlights of the 2010 first quarter’s results, which are expressed in Canadian Dollars, are :

20102009
Revenue $ 1,980,815 $ 1,143,004
Cost of Sales $ 1,054,223 $ 813,384
Amortization $ 289,679 $ 303,878
Income (loss) before Other Costs/Income $ 636,913 $ 25,742
General administrative expenses $ 204,380 $ 291,905
Foreign exchange/(gain) loss $(339,885) $ 23,850
Net Income (Loss) for the period $ 772,418 $(290,013)

 

The detailed results and Management Discussion and Analysis (MD&A) are available on www.sedar.com and www.galantas.comand the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.

Whilst the first quarter performance has reduced the working capital shortfall, the lack of working capital will continue to impact performance and lead to inconsistent results going forward.

This disclosure has been reviewed by Leo O’ Shaughnessy (Chief Financial Officer), a qualified person under the meaning of N.I 43-101. The information is based upon local production and financial data prepared under his supervision.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including revenues and production estimates, for the Omagh Gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas believes are appropriate in the circumstances. Many factors could cause Galantas’ actual results, the performance or achievements to differ materially from those expressed or implied by the forward looking statements or strategy, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas’s forward-looking statements are discussed in greater detail in the section entitled “Risk Factors” in Galantas’ Management Discussion & Analysis of the financial statements of Galantas and elsewhere in documents filed from time to time with the Canadian provincial securities regulators and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.

Galantas Gold Corporation Issued and Outstanding Shares total 190,100,055.

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.

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

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