Galiano Gold Inc. (TSX: GAU) (NYSE American: GAU) is pleased to report its fourth quarter and full year 2024 production 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 reported in United States dollars.

During Q4, the Company produced 28,508 gold ounces at all-in sustaining costs¹ of $2,638 per gold ounce sold, or $1,773/oz excluding capitalized waste stripping costs at Abore, and generated $13.8 million of operating cash flows while remaining debt free with $105.8 million in cash and cash equivalents. Operating cash flows continue to support the ramp-up of mining at the AGM’s Abore deposit.

During FY 2024, the Company produced 115,115 gold ounces at AISC¹ of $2,063/oz, or $1,533/oz excluding capitalized waste stripping costs at Abore, and generated $55.7 million of operating cash flows, which included a $13.1 million payment to terminate the AGM’s gold sales offtake agreement.

Asanko Gold Mine Q4 and FY 2024 highlights

The Company completed the acquisition of Gold Fields Limited’s 45% interest in the AGM joint venture on March 4, 2024 and as of that date, the operational and financial results of the AGM have been consolidated into the Company’s results. To enable a comprehensive understanding of the operational performance at the mine asset level, year-to-date highlights for the AGM below are presented on a 100% basis for the entire year ended December 31, 2024.

• Safety: The AGM recorded one lost-time injury and three total recordable injuries (inclusive of LTIs) during Q4 2024. The 12‐month rolling LTI and TRI frequency rates as of December 31, 2024 were improved year-on-year to 0.15 and 0.58 per million hours worked, respectively, reflecting a stronger safety performance in 2024.
• Mining performance: During Q4 2024, waste stripping activities at Abore continued with 8.7 million tonnes of waste rock mined, while ore tonnes mined from the Abore deposit totalled 0.5 Mt at an average mined grade of 1.0 grams per tonne (“g/t”) gold. During FY 2024, the AGM mined 30.7 Mt of waste material and 1.9 Mt of ore from the Abore deposit at an average mined grade of 1.0 g/t gold.
• Milling performance: During Q4 2024, 1.2 Mt of ore was milled at an average feed grade of 0.9 g/t, with metallurgical recovery averaging 85%. Mill throughput in Q4 2024 remained approximately the same as Q3 2024 due to crushing constraints as harder Abore ore was treated. It is expected that mill throughput will be directly linked to crusher circuit performance until a new secondary crusher is constructed and commissioned in Q3 2025. Mill throughput for FY 2024 totaled 5.1 Mt of ore at an average feed grade of 0.8 g/t and metallurgical recovery of 85%.
• Production performance: Gold production of 28,508 ounces during Q4 2024. Gold production during the quarter was 4% lower than Q3 2024 due to lower metallurgical recoveries resulting from the blending of stockpiled Esaase ore into the mill feed, which was expected to have lower recovery. FY 2024 gold production of 115,115 ounces, below revised guidance of between 120,000 to 130,000 ounces, was impacted by lower throughput resulting from lower mobile crusher availability and harder ore processed.
• Cost performance: Total cash costs¹ of $1,426/oz and AISC¹ of $2,638/oz during Q4 2024. AISC¹ for FY 2024 was $2,063/oz, in line with revised AISC¹ guidance of between $1,975/oz to $2,075/oz. Excluding capitalized waste stripping costs at Abore would result in Q4 2024 AISC¹ of $1,773/oz and $1,533/oz for FY 2024.
• Financial performance: Gold revenue of $64.4 million generated from 24,673 gold ounces sold at an average realized price of $2,609/oz during Q4 2024. FY 2024 gold revenue of $264.6 million from 113,357 gold ounces sold at an average realized price of $2,334/oz.
• Updated mineral reserves: Reported an updated Mineral Reserve estimate of 2.1 million ounces (“Moz”) (47.1 Mt at 1.36 g/t gold) for the AGM as of December 31, 2024. Refer to the Company’s news release dated January 28, 2025 for further details.
• Termination of gold offtake: Terminated the AGM’s gold purchase and sale agreement with Red Kite Opportunities Master Fund Limited (“Red Kite”) on December 4, 2024 for total cash consideration of $13.1 million, thereby removing the obligation to sell 100% of gold production from the AGM at prices selected by Red Kite during a quotational period. This investment allows the AGM to sell gold at market prices.
• Nkran mining contract awarded: A competitive tender process was undertaken during 2024 for the Nkran mining contract, and a preferred contractor was selected in February 2025.

Galiano Q4 and FY 2024 highlights

• Consolidating ownership: Completed the transaction with Gold Fields, acquiring their 45% interest in the AGM and thereby securing 90% ownership in the AGM.
• Robust liquidity: The Company ended the year with $105.8 million in cash and cash equivalents and no debt.
• Positive operating cash flow: The Company generated $13.8 million of operating cash flow during Q4 2024 and $55.7 million during FY 2024, which included a $13.1 million payment to terminate the gold sales offtake agreement.
• Earnings: Net income attributable to common shareholders of $0.9 million or $0.00 per common share during Q4 2024, and $6.1 million or $0.02 per common share during FY 2024. Adjusted net income¹ attributable to common shareholders of $5.1 million or $0.02 per common share and $42.2 million or $0.17 per common share for Q4 2024 and FY 2024, respectively.
• Management and board additions: During 2024, the Company welcomed the addition of Michael Cardinaels, as Chief Operating Officer, and appointed Navin Dyal (effective June 13, 2024), Moira Smith (effective June 13, 2024), and Lauren Roberts (effective January 1, 2025) as independent directors of the board.

“During 2024, Galiano completed the transformative transaction with Gold Fields, terminated our offtake agreement with Red Kite, and ended the year with a strong position of over $105 million in cash and no debt,” said Matt Badylak, Galiano Gold’s President and Chief Executive Officer. “Operationally, it was a complex year with a new contractor recommencing mining at the AGM in the Abore pit, while simultaneously stepping out to access a 45% larger reserve. The harder ore, coupled with lower availabilities in the mobile crushing circuit, ultimately led to a slight miss on our revised production guidance. That said, the challenges we faced in 2024 are not long-term and are being addressed. The mining contractor is now fully mobilized, softer ore is being delivered from Esaase, and construction of the secondary crusher is progressing to schedule. 2025 production is expected to be weighted to the second half of the year, and we are well-positioned to generate positive cash flows from operations in this favorable gold price environment.”

Subsequent events after December 31, 2024

In early February 2025, the AGM concluded a competitive tender process for the Nkran mining contract and signed a mining services agreement with a preferred contractor. As of the date of this news release, the contractor has mobilized a limited fleet of mining equipment and preliminary waste mining activities at Nkran have commenced.

On February 21, 2025, the AGM processing plant was scheduled for a planned maintenance shutdown. While performing the planned maintenance work, it was identified that a key component of the SAG mill required repair, which resulted in the shutdown extending to March 6, 2025. As a result, the AGM processing plant was down for a period of 14 days, during which no gold was produced. During this period, mining activities continued and mined ore was stockpiled for future processing. Therefore, first quarter 2025 gold production is expected to be lower than management’s expectations; however, the Company does not expect this to impact its 2025 production guidance for the AGM.

Asanko Gold Mine – Summary of quarterly operational and financial highlights (100% basis)

Operating and financial results are on a 100% basis for all periods presented to enable comparability with prior quarters.

• Ore tonnes mined from the Abore deposit totalled 0.5 Mt at an average mined grade of 1.0 g/t. Ore mining rates at Abore decreased by 21% during Q4 2024 compared to Q3 2024 as mining activities in Q4 2024 focused on pushing back benches to access ore at deeper elevations.
• Waste stripping activities at Abore continued with 8.7 Mt of waste rock mined at a strip ratio of 16.4:1. The strip ratio was elevated in Q4 2024 due to an increase in the size of the Abore pit shell resulting from a larger mineral reserve (refer to the Company’s news release dated August 8, 2024). The strip ratio at Abore is expected to reduce in 2025 as the ore body of the current mining cut is exposed.
• The AGM produced 28,508 ounces of gold during Q4 2024, as the processing plant milled 1.2 Mt of ore at a grade of 0.9 g/t with metallurgical recovery averaging 85%. Gold production during Q4 2024 continued to be impacted by lower milling rates as mined ore from Abore and stockpiles of harder ore both required additional crushing and grinding. The Company continues to make progress on installation of a permanent secondary crushing circuit at the AGM processing plant, which is expected to be completed in Q3 2025.

Asanko Gold Mine – Financial and operational highlights for the three months and years ended December 31, 2024 and 2023 (100% basis)

The following tables present excerpts of the operating and financial results of the AGM on a 100% basis for the three months and years ended December 31, 2024 and 2023, allowing performance to be compared with the comparative periods.

• The AGM sold 24,673 ounces of gold in Q4 2024 at an average realized gold price of $2,609/oz for total revenue of $64.6 million (including $0.1 million of by-product silver revenue). Revenue was higher in Q4 2024 relative to the comparative period as a 34% increase in realized gold prices was partly offset by a 19% reduction in sales volumes.
• Income from mine operations for Q4 2024 totaled $21.1 million compared to $8.7 million in Q4 2023. The increase in mine operating income in Q4 2024 was due to higher realized gold prices. Additionally, production costs were higher in Q4 2023 resulting from a $2.3 million provision against supplies inventory and a $5.0 million legal provision.
• Reported Adjusted EBITDA¹ of $19.1 million in Q4 2024 compared to $9.0 million in Q4 2023, higher due to the provisions recorded in Q4 2023 as mentioned above.
• Total cash costs¹ in Q4 2024 amounted to $1,426/oz compared to $1,352/oz in Q4 2023. The increase in total cash costs¹ was primarily driven by 19% lower gold sales volumes in Q4 2024, which had the effect of increasing fixed costs on a per ounce basis.
• AISC¹ for Q4 2024 was $2,638/oz compared to $2,065/oz in the comparative period. The increase in AlSC¹ was mainly due to stripping costs incurred at Abore and 19% fewer gold ounces sold, as well as the increase in total cash costs¹ described above. Excluding capitalized waste stripping costs at Abore, AISC¹ for Q4 2024 would be $1,773/oz.
• The AGM generated $15.9 million of cash flow from operating activities in Q4 2024, which included a $13.1 million payment to terminate the gold sales offtake agreement, compared to $24.1 million in Q4 2023. The decrease in operating cash flow was due to the offtake termination fee, partly offset by higher realized gold prices in Q4 2024.

Galiano Gold Inc. – Financial highlights for the three months and years ended December 31, 2024 and 2023

• The Company consolidated the financial results of the AGM commencing on March 4, 2024. As revenue and income from mine operations for the three months and year ended December 31, 2024 relate to the financial results of the AGM, refer to the discussion above on the AGM’s financial results for the quarter.
• The Company reported net income attributable to common shareholders of $0.9 million in Q4 2024 compared to a net loss of $5.8 million in Q4 2023. The increase in net earnings during Q4 2024 was due to consolidating the financial results of the AGM, which included a $13.1 million termination fee to buyout the AGM’s offtake agreement.
• Adjusted EBITDA¹ for Q4 2024 amounted to $21.2 million, compared to $0.1 million in Q4 2023. The increase in Adjusted EBITDA¹ was due to consolidating the financial results of the AGM; whereas, in the prior quarter, the Company only recognized its 45% share of the AGM’s Adjusted EBITDA¹.
• Cash generated from operating activities in Q4 2024 was $13.8 million, which included a $13.1 million payment to terminate the gold sales offtake agreement, compared to cash used in operating activities of $1.6 million in Q4 2023. The increase in cash generated from operating activities in Q4 2024 was driven by the consolidation of the AGM’s cash flows.
• As of December 31, 2024, the Company had cash and cash equivalents of $105.8 million and no debt.

¹ Non-IFRS Performance Measures

The Company has included certain non-IFRS performance measures in this news release. These non-IFRS performance measures do not have any standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Refer to the Non-IFRS Measures section of Galiano’s Management’s Discussion and Analysis for an explanation of these measures and reconciliations to the Company’s and the AGM’s reported financial results in accordance with IFRS.

• Total Cash Costs per Gold Ounce
  Management of the Company uses total cash costs per gold ounce sold to monitor the operating performance of the AGM. Total cash costs include the cost of production, adjusted for by-product revenue and production royalties per ounce of gold sold.
• AISC per Gold Ounce and All-in Sustaining Margin
  The Company has adopted the reporting of “AISC per gold ounce sold”. AISC include total cash costs, AGM general and administrative expenses, sustaining capital expenditure, sustaining capitalized stripping costs, reclamation cost accretion and lease payments made to and interest expense on the AGM’s mining and service lease agreements per ounce of gold sold. All-in sustaining margin per gold ounce sold is calculated by taking the average realized gold price for a period less that period’s AISC per ounce.  All-in sustaining margin is calculated as all-in sustaining margin per gold ounce sold multiplied by the number of gold ounces sold in a period.
  The Company has also provided the non-IFRS performance measure of AISC excluding capitalized stripping costs at the Abore deposit.  The Company believes that this non-IFRS performance measure provides additional insight into the costs of producing gold excluding activities associated with developing a new mining pit. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, some investors use this information to evaluate the AGM’s performance and ability to generate cash flow.
• EBITDA and Adjusted EBITDA
  Earnings before interest, taxes, depreciation and amortization (“EBITDA”) provides an indication of the Company’s continuing capacity to generate income from operations before taking into account the Company’s financing decisions and costs of amortizing capital assets. Accordingly, EBITDA comprises net income (loss) excluding finance expense, finance income, depreciation and depletion expense, and income taxes. Adjusted EBITDA adjusts EBITDA to exclude non-recurring items and non-cash items (“Adjusted EBITDA”) and includes the Company’s interest in the Adjusted EBITDA of the AGM joint venture for the period from January 1, 2024 to March 3, 2024. Other companies may calculate EBITDA and Adjusted EBITDA differently.
• Free cash flow
  The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use free cash flow to evaluate the AGM’s performance with respect to its operating cash flow capacity to meet non-discretionary outflows of cash. The presentation of free cash flow is not meant to be a substitute for the cash flow information presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. Free cash flow is calculated as cash flow from operating activities of the AGM, excluding one-time charges not indicative of current period cash flow performance, less cash flows used in investing activities and payments made to mining and service contractors for leases capitalized under IFRS 16.
• Adjusted net income (loss) and adjusted net income (loss) per common share
  The Company has included the non-IFRS performance measures of adjusted net income (loss) and adjusted net income (loss) per common share. Neither adjusted net income (loss) nor adjusted net income (loss) per share have any standardized meaning and are therefore unlikely to be comparable to other measures presented by other issuers. Adjusted net income (loss) excludes certain non-cash items or non-recurring items from net income (loss) to provide a measure which helps the Company and investors to evaluate the results of the underlying core operations of the Company or the AGM and its ability to generate cash flows and is an important indicator of the strength of the Company’s or the AGM’s operations and performance of its core business.

Qualified Person

Richard Miller, P.Eng., Vice President Technical Services with Galiano, is a Qualified Person as defined by Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects, and has approved the scientific and technical information contained in this news release.

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.