Galiano Gold Inc. (TSX: GAU) (NYSE: GAU) is pleased to report its second quarter 2025 operating and financial results. Galiano owns a 90% interest in the Asanko Gold Mine located on the Asankrangwa Gold Belt in the Republic of Ghana, West Africa.

All financial information contained in this news release is unaudited and reported in United States dollars.

Q2 2025 AND YEAR-TO-DATE HIGHLIGHTS

Safety

• No lost-time injuries nor total recordable injuries (inclusive of LTIs) recorded during Q2 2025.
• 12‐month rolling LTI and TRI frequency rates as of June 30, 2025 of 0.42 and 0.97 per million hours worked, respectively.

Mining

• Mining activities focused on the Abore and Esaase deposits with 1.4 million tonnes of ore mined at an average mined grade of 0.8 grams per tonne gold and a strip ratio of 5.9:1 during Q2 2025.
• Development of Cut 3 at the Nkran deposit continued to ramp up with 1.7 Mt of waste mined during the quarter, a 113% increase compared to Q1 2025.

Processing

• 1.2 Mt of ore was milled at an average feed grade of 0.8 g/t gold, with metallurgical recovery averaging 89% during Q2 2025.
• Secondary crushing circuit was completed on budget and commissioned at the end of July 2025. Processing plant milling capacity is now expected to return to a 5.8 Mt per annum throughput rate.
• Produced 30,350 ounces of gold during the quarter, a 46% increase compared to Q1 2025. 51,084 ounces of gold produced year-to-date.
• Sold 29,287 ounces of gold during the quarter and 56,281 ounces of gold year-to-date at average realized prices of a quarterly record $3,317 per ounce (“/oz”) and $3,084/oz, respectively, excluding the effect of realized losses on gold hedging instruments.

Cost and capital expenditures

• Total cash costs¹ of $1,602/oz and all-in sustaining costs¹ of $2,251/oz for the quarter (year-to-date AISC¹ of $2,339/oz). AISC¹ declined by 10% compared to Q1 2025.
• Sustaining capital expenditures, excluding capitalized stripping costs, of $2.2 million and development capital expenditures (excluding Nkran pre-stripping costs) of $4.9 million during Q2 2025.
• Capitalized development pre-stripping costs at Nkran Cut 3 of $6.9 million during Q2 2025, and $10.1 million year-to-date.

Financial

• Cash and cash equivalents of $114.7 million at June 30, 2025, and no debt.
• Generated cash flow from operating activities of $35.8 million during Q2 2025.
• Income from mine operations of $37.2 million during Q2 2025.
• Net income of $0.07 per common share and adjusted net income¹ of $0.08 per common share during Q2 2025.
• Adjusted EBITDA¹ (as defined herein) of $39.9 million during Q2 2025.

Exploration

• A deep step-out drilling program at the Abore deposit, totaling 1,907m across a 1,200m strike length, yielded positive results with mineralization intercepted in all four holes, including 36m at 2.5 g/t gold (refer to news release dated July 14, 2025).

“We are pleased with the progress made during the period with production, all-in sustaining costs, earnings per share, and cash balances all improving quarter-on-quarter.  This momentum, in combination with the commissioning of the secondary crusher ahead of schedule in late July, positions us well for a strong second half of the year,” said Matt Badylak, Galiano’s President and Chief Executive Officer. “The results from our Abore deep drilling program confirm the presence of a mineralized system 200 metres below the current Mineral Reserve over a significant 1,200 metre strike length. These findings highlight the expansion potential at Abore and provide additional exploration targets to unlock further value beneath our existing reserves.”

SUMMARY OF QUARTERLY OPERATIONAL AND FINANCIAL HIGHLIGHTS

Mining

• Development of the Abore pit continued during Q2 2025 with mined ore totaling 0.8 Mt, an increase of 18% from Q1 2025, at an average grade of 0.9 g/t gold. The strip ratio at Abore was 6.2:1, a decrease of 17% from Q1 2025.
• Continued mining operations at the Esaase deposit with mined ore totaling 0.5 Mt at an average grade of 0.7 g/t gold and a strip ratio of 5.5:1.
• Mining cost per tonne at Abore and Esaase averaged $3.59 per tonne (“/t”) in Q2 2025 compared to $2.98/t in Q2 2024 at Abore only. The increase in mining unit rates was due to higher load and haul costs associated with mining deeper benches, as well as higher drill and blast costs resulting from mining a higher proportion of fresh granite ore at Abore.
• Continued with waste stripping of Cut 3 at the Nkran deposit with 1.7 Mt of waste rock mined during Q2 2025, an increase of 113% from Q1 2025. Mined volumes at Nkran are expected to gradually increase as the mining contractor continues to mobilize most of its mining fleet over the remainder of this year.
• At Nkran, mining cost per tonne was $4.00 for Q2 2025, which included an allocation of general overhead costs. Nkran waste stripping costs were capitalized as development capital expenditures during the quarter.

Processing

• The AGM produced 30,350 ounces of gold during Q2 2025, an increase of 46% from Q1 2025, as the processing plant milled 1.2 Mt of ore at an average grade of 0.8 g/t gold with metallurgical recovery averaging 89%. The increase in gold production was driven by higher plant availability, following the 14-day maintenance shutdown in Q1 2025, resulting in 10% more tonnes milled in Q2 2025. Gold production in Q2 2025 was also positively impacted by the high gold-in-process inventory balance that existed at the end of Q1 2025.
• Gold production during Q2 2025 continued to be impacted by lower milling rates, as harder mined ore from Abore required additional crushing and grinding, compared to softer ore from Esaase that was the primary mill feed source in Q2 2024. The AGM remains on track to meet the lower end of the production guidance range of 130,000 to 150,000 ounces of gold in 2025.
• The construction of a permanent secondary crushing circuit at the AGM processing plant was completed at the end of July 2025. As of the date of this news release, the secondary crushing circuit is ramping up to full capability. The objective of the secondary crushing circuit is to maintain plant throughput at the design capacity of 5.8 Mt per annum when treating harder ore.
• Processing cost per tonne for Q2 2025 was $12.89, a 10% decrease from Q1 2025. On an absolute basis, processing costs were consistent quarter-on-quarter. The decrease in processing cost per tonne in Q2 2025 was driven by 10% more tonnes milled, which decreased fixed processing costs on a per unit basis.

Capital Expenditures

• Sustaining capital expenditures during Q2 2025 totaled $2.2 million and related primarily to a tailings facility expansion.
• Development capital expenditures, excluding Nkran pre-stripping costs, during Q2 2025 totaled $4.9 million and related primarily to construction of the now completed secondary crushing circuit.
• $6.9 million in development pre-stripping costs were incurred at the Nkran deposit related to Cut 3 waste removal and initial site establishment costs.

Costs

• AISC¹ for Q2 2025 was $2,251/oz, compared to $1,759/oz in the comparative period. The increase in AlSC¹ was primarily driven by higher capitalized stripping costs at the Abore and Esaase deposits and higher royalties expense relative to Q2 2024. Also, during Q2 2024, low grade stockpiled ore was processed that had no accounting book value and, as such, had no mining cost attributed to it, which resulted in lower operating costs in the comparative quarter.
• Relative to Q1 2025, AISC¹ decreased by 10% in Q2 2025 due to 8% higher gold sales volumes.
• The Company expects AISC¹ for FY 2025 at the higher end of its guidance range due to production expectations at the lower end of the guidance range. In addition, there have been several factors outside of the Company’s control that impact the Company’s reported AISC¹. Higher royalties resulting from higher realized gold prices and the increase to the Growth and Sustainability Levy (“GSL”) from 1% to 3% effective April 1, 2025, are estimated to impact FY 2025 AISC¹ by approximately a further $100/oz (at the current spot gold price). Furthermore, the rapid appreciation of the Ghanaian Cedi against the US dollar during Q2 2025 adds further upward pressure on AISC¹, if sustained over the remainder of 2025.

Exploration

• Infill drilling completed at the Abore deposit led to discovery of a new high-grade zone immediately below the mineral reserve pit shell at the south end of the Abore Main pit, including 50 meters (“m”) at 3.2 g/t gold (refer to news release dated May 5, 2025). The infill drilling also increased confidence in the mineral reserve and mineral resource in the area in and around the known high-grade zone at the Abore South pit, while also increasing the strike length of this zone from 90m to 180m.
• Positive results from a deep step-out drilling program at the Abore deposit, totaling 1,907m across a 1,200m strike length, with mineralization intercepted in all four holes, including 36m at 2.5 g/t gold (refer to news release dated July 14, 2025). The program confirmed the Abore granite and mineralizing system continues 200m below the current Mineral Reserve pit shell over a strike length of at least 1,200m, remains open in all directions and appears to carry sufficient grades and widths below the current Mineral Reserve pit shell to support the potential development of bulk underground mining.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND 2024

• The Company sold 29,287 ounces of gold in Q2 2025 at a quarterly record average realized gold price of $3,317/oz for total revenue of $97.3 million. The increase in revenue from the comparative period was due to a 45% increase in realized prices and a 5% increase in gold ounces sold.
• Income from mine operations for Q2 2025 totaled $37.2 million, compared to $23.6 million in Q2 2024. The increase in income from mine operations was due to higher revenues as described above. This was partly offset by higher depreciation expense on mining leases and higher depletion expense on Abore and Essase deferred stripping costs during Q2 2025. Royalties expense was also higher in Q2 2025 due to higher earned revenues and the increase to the GSL from 1% to 3% effective April 1, 2025.
• The Company reported net income attributable to common shareholders of $19.3 million in Q2 2025, compared to $7.3 million in Q2 2024. The increase in net income during Q2 2025 was primarily due to the increase in income from mine operations as described above, and partly offset by an increase in finance expense related to realized and unrealized losses on the Company’s gold hedging derivatives.
• Reported Adjusted EBITDA¹ of $39.9 million in Q2 2025, compared to $16.2 million in Q2 2024. The increase in Adjusted EBITDA¹ was primarily driven by higher revenues, partly offset by higher royalties as described above.
• The Company generated $35.8 million of cash flow from operating activities in Q2 2025, compared to $4.5 million in Q2 2024. The increase in operating cash flow was primarily driven by higher realized gold prices during Q2 2025.
• As of June 30, 2025, the Company had cash and cash equivalents of $114.7 million and no debt.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

• The Company sold 56,281 ounces of gold during the six months ended June 30, 2025 at an average realized gold price of $3,084/oz for total revenue of $173.9 million. The increase in revenue from the comparative period was due to a 38% increase in realized prices and 32% increase in gold ounces sold.
• Income from mine operations for the six months ended June 30, 2025 totaled $52.5 million, compared to $29.8 million in the comparative period of 2024. The increase in income from mine operations was due to the increase in revenue as described above and the Company only consolidating the financial results of the AGM from March 4, 2024 to June 30, 2024 in the comparative period. These factors were partly offset by higher depreciation and depletion expense and royalties in 2025.
• The Company reported a net loss attributable to common shareholders of $7.5 million for the six months ended June 30, 2025, compared to net income of $4.1 million in the comparative period of 2024. The decrease in net income was primarily driven by higher realized and unrealized losses on gold hedging instruments in 2025. This was partly offset by the Company consolidating a full six months of financial results of the AGM in 2025.
• Reported Adjusted EBITDA¹ of $58.9 million during the six months ended June 30, 2025, compared to $21.1 million in the comparative period of 2024. The increase in Adjusted EBITDA¹ was driven by higher realized gold prices and the Company consolidating a full six months of financial results of the AGM in 2025.
• The Company generated $61.7 million of cash flow from operating activities during the six months ended June 30, 2025, compared to $17.5 million in the comparative period of 2024. The increase in cash flow from operations was driven by higher realized gold prices and the Company consolidating a full six months of financial results of the AGM in 2025.

Qualified Person

The exploration information contained in this news release has been reviewed and approved by Mr. Chris Pettman, P.Geo, Vice President Exploration of Galiano. All other scientific and technical information contained in this news release has been reviewed and approved by Mr. Amri Sinuhaji, P.Eng., Vice President Technical Services of Galiano. Mr. Pettman and Mr. Sinuhaji are “Qualified Persons” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Galiano Gold Inc.

Galiano is focused on creating a sustainable business capable of value creation for all stakeholders through production, exploration and disciplined deployment of its financial resources. The Company owns the Asanko Gold Mine, which is located in Ghana, West Africa. Galiano is committed to the highest standards for environmental management, social responsibility, and the health and safety of its employees and neighbouring communities.