GALILEO MINING LTD — Capital/Financing Update 2018

Nov 28, 2018

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29 November 2018

ASX: GAL

FRASER RANGE UPDATE

Highlights

Corporate Directory

Directors

Non-Executive Chairman Simon Jenkins

Managing Director Brad Underwood

Technical Director Noel O’Brien

Fast Facts

Fast Facts
Issued Capital	120.4m
Share Price	$0.175
Market Cap	$21.1m
Cash (30/09/18)	$10.1m

Projects

Norseman Cobalt Project Fraser Range Nickel Project

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Contact Details

T: +61 8 9463 0063 E: info@galmining.com.au W: www.galileomining.com.au

• Follow up Induced Polarisation geophysical survey has commenced at the Empire Rose prospect where initial drilling intersected 36m @ 0.2% nickel[(1)]

• New survey aims to confirm the position of an electro-magnetic conductor which may represent sulphide mineralisation down dip of existing nickel drill intercepts

• POWs approved for drilling at the Nightmarch and Lantern prospects with a 7,000m planned program of first pass aircore drilling scheduled to begin in February 2019

• Galileo benefits from a high level of experience in the Fraser Range having been spun out of the successful Creasy Group exploration team

Galileo Mining Ltd (ASX: GAL, “Galileo” or the “Company”) is pleased to provide an update on the Fraser Range Project where the first drilling program at the Empire Rose prospect reported highly anomalous levels of nickel. An electro-magnetic survey over the prospect has further identified a conductive unit that may represent mineralised sulphide material down-dip of the nickel intersection[(1)] . A follow up Induced Polarisation geophysical survey is now underway and has been planned to refine the conductive target recognised in the electro-magnetic survey. The outcome of the Induced Polarisation geophysical survey will be announced to the market upon the delivery and interpretation of field data.

Initial drill results at the Empire Rose Prospect were of high calibre with 36m @ 0.2% nickel from 18m reported from drillhole EARC015, including 3m @ 0.56% nickel from 24m[(1)] . Very few publicly listed companies have announced similar nickel results from the Fraser Range outside of the Nova-Bollinger mine site. The first drilling at Empire Rose Prospect has proven that nickel rich rocks exist at the prospect and Galileo’s task is to now determine whether economically significant mineralisation also occurs.

Galileo Managing Director, Brad Underwood, said targets at the Fraser Range project are developing quickly with the Company benefiting from the many years of staff experience within the Fraser Range area while working at the Creasy Group.

“ Galileo was spun out of the Creasy Group and listed on the ASX on the 29[th] of May this year. Within six months, and on the back of our first drilling program, we have delivered highly encouraging results from our Fraser Range project. This outcome can be attributed to our team’s high level of expertise in the Fraser Range with two of the geologists involved in the discovery of the Creasy Group’s Silver Knight deposit now working for Galileo.

“Between the staff at Galileo we have a combined total of over 15 years’ successful exploration experience in the Fraser Range. No other publicly listed company has staff with the same level of exposure to discoveries in the Fraser Range as Galileo. Having been intimately involved with previous Fraser Range discoveries we are confident that our prospects exhibit similar characteristics to what could be expected from mineralised systems within the belt. We intend to aggressively explore our tenements with the anticipation that a discovery is a real possibility.”

(1) Refer to the Company’s ASX announcement dated 30th October 2018 accessible at https://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=gal&timeframe=Y&year=2018

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Drilling at the Empire Rose prospect has previously been released to the market[(1) ] with a plan view of the drill hole locations shown in Figure 1. Pyroxenite and peridotite rock units, which are often associated with nickel mineralisation, have been identified in drilling. The position of the highly conductive geophysical target is marked on the map and is shown in section view in Figure 2. Conductive targets are frequently pursued in nickel exploration due to the association between large accumulations of sulphides, the minerals which can contain nickel, giving a measurable conductive response when a current is passed through the ground during survey work. However not all conductors represent sulphides and false positives can occur. For this reason, an Induced Polarisation (IP) geophysical survey is being conducted to refine the location and quality of the target prior to drill testing. The initial line of IP surveying will be across the top of the conductor and will extend across the ultramafic sill on the western side of the prospect. IP surveying is also capable of detecting disseminated mineralisation which may have been overlooked by the initial electro-magnetic survey. Upon the receipt and interpretation of field data a deep drilling program will be planned with work approvals required from the Mines Department prior to drill testing.

Figure 1 – Empire Rose Prospect with aircore drill holes (red dots) over Total Magnetic Intensity image. Mafic-ultramafic units are interpreted with red outlines and the geophysical conductor has a black box outline. The location of the section in Figure 2 is marked as a yellow line.

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(1) Refer to the Company’s ASX announcement dated 30th October 2018 accessible at https://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=gal&timeframe=Y&year=2018

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Figure 2 – Empire Rose Prospect cross section through drillhole EARC015 showing the location of the EM conductor projected along strike. A proposed 300m drillhole to test the conductor is shown with the planned location of drilling to be finalised after the completion of the current IP geophysical survey.

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Work at Galileo’s Nightmarch and Lantern Prospects has progressed to a point where drill programs have now been planned and Mines Department approvals received. Drilling is expected to commence in February 2019 due to the remote nature of the work and the significant fire risk over the summer months.

Figure 3 – Lantern Prospect showing interpreted nickel prospective intrusions over TMI magnetic image.

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Figure 4 – Lantern Prospect showing gravity image with interpreted intrusions located on the margin of regional gravity highs. Figure 4 is at the same scale and position as Figure 3 for ease of reference.

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The Lantern prospect contains interpreted intrusions identifiable as relatively low magnetic response features highlighted in Figure 3. Figure 4 displays the same interpreted features over a residual gravity image at the same scale. The intrusions therefore occur on the margins of a regional gravity high which is believed to represent an excellent structural location for the development of intrusions with the potential to host mineralisation. A 4,000 metre first pass aircore drilling program has been planned. This will be the first nickel drilling completed in the area with the prospect being a virgin greenfield target of high prospectivity.

Figures 5 and 6 below show the Nightmarch Prospect with the magnetic image on the left and detailed gravity image on the right, both at the same scale. As previously released to the market[(2)] , the prospect has a coincident magnetic and gravity anomaly suggesting potential for intrusive rocks similar to the world class Nova and Silver Knight nickel-copper-cobalt deposits. Magnetic modelling indicates depths to the top of the target rocks of 36 metres for the southern target and 83 metres for the northern target. Due to the extremely shallow nature of the targets, gravity surveying has been effective at outlining the extents of the interpreted intrusions. Both the northern and southern targets are interpreted to continue to 500m depth representing a significant continuity and size to each anomaly. Shallow cover rocks over both the Nightmarch and Lantern Prospect areas prevents traditional prospecting and exploration techniques from being used. Surface expressions of mineralisation, such as gossans and geochemical soil anomalies, will not occur in this terrain and the targets are classed as “blind” due to the lack of bedrock indicators on surface. Using detailed magnetic and gravity surveys has allowed Galileo to interpret where the prospective zones are at depth and has provided the Company with a first mover advantage in an exciting greenfields nickel belt. A 3,000 metre program of first pass aircore drilling is planned to begin in February 2019.

(2) Refer to the Company’s ASX announcement dated 22nd August 2018 accessible at https://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=gal&timeframe=Y&year=2018

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Figures 5 and 6 – Nightmarch magnetic image on left with residual gravity image on right at the same scale and location. Both intense magnetic anomalies are linked to gravity features, consistent with magmatic intrusions prospective for nickel-coper-cobalt mineralisation.

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Galileo has two Joint Ventures with the Creasy Group covering 492 km[2] of granted exploration licenses in the Fraser Range region of Western Australia. The tenements are prospective for magmatic nickel-coppercobalt mineralisation similar to that discovered at Nova and at Silver Knight. The presence of two significant discoveries in the Fraser Range indicate that the area is a developing mineral province and that substantial scope for future new discoveries is present. Figure 7 shows the location of Galileo’s prospects and tenements in the Fraser Range, with respect to the Nova and Silver Knight Deposits, and to other key tenement holders in the region.

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Figure 7 – Galileo’s Fraser Range tenement holdings (blue) with Empire Rose, Nightmarch and Lantern Prospect locations as marked. Silver Knight and Nova deposits are shown by mine symbols.

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Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Brad Underwood, a Member of the Australasian Institute of Mining and Metallurgy, and a full time employee of Galileo Mining Ltd. Mr Underwood has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Underwood consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Investor information: phone Galileo Mining on + 61 8 9463 0063 or email info@galmining.com.au

Media: David Tasker Managing Director Chapter One Advisors E: dtasker@chapteroneadvisors.com.au T: +61 433 112 936

About Galileo Mining:

Galileo Mining Ltd (ASX: GAL) is focussed on the exploration and development of cobalt and nickel resources in Western Australia. GAL holds tenements near Norseman with over 22,000 tonnes of contained cobalt, and 106,000 tonnes of contained nickel, in JORC compliant resources (see Figure 3 below). GAL also has Joint Ventures with the Creasy Group over tenements in the Fraser Range which are prospective for nickel-copper-cobalt deposits.

Figure 8: JORC Mineral Resource Estimates for the Norseman Cobalt Project (“Estimates”) (refer to ASX “Prospectus” announcement dated May 25[th] 2018 and accessible at http://www.galileomining.com.au/investors/asx-announcements/). Galileo confirms that all material assumptions and technical parameters underpinning the Estimates continue to apply and have not materially changed).

Cut-off Co, ppm	Class	Tonnes Mt	Co	Co	Ni	Ni	Mn %
			%	Kt	%	Kt
MT THIRSTY SILL
600	Indicated	10.5	0.12	12.1	0.58	60.8	0.71
	Inferred	2.0	0.11	2.2	0.51	10.2	0.71
	Total	12.5	0.11	14.3	0.57	71.1	0.71
1,000	Indicated	5.2	0.15	8.0	0.64	32.9	1.01
	Inferred	0.8	0.15	1.2	0.52	4.1	1.09
	Total	6.0	0.15	9.2	0.62	37.0	1.02
MISSION SILL
600	Inferred	7.7	0.11	8.2	0.45	35.0	0.80
1,000	Inferred	2.8	0.15	4.4	0.47	13.4	1.20
TOTAL JORC COMPLIANT		RESOURCES
600		20.2	0.11	22.5	0.53	106.1	0.74
1,000		8.8	0.15	13.6	0.57	50.4	1.08

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