GALILEO MINING LTD — Interim / Quarterly Report 2021

Jul 21, 2021

==> picture [119 x 33] intentionally omitted <==

22 July 2021

ASX: GAL

QUARTERLY ACTIVITIES REPORT

Corporate Directory

Directors

Chairman & Managing Director Brad Underwood

Technical Director Noel O’Brien

Non-Executive Director Mathew Whyte

Projects Norseman Project Cobalt-Nickel-Copper

Fraser Range Project Nickel-Copper-Gold

==> picture [129 x 130] intentionally omitted <==

Fraser Range Project (Nickel-Copper-Cobalt)

• Approvals for diamond drilling at the Delta Blues nickel prospect in the Fraser Range received

• An initial 1,000 metre diamond drilling program at DB1 and DB2 close to commencing pending drill rig availability

• Independent geophysical modelling of the Delta Blues (DB1) EM data confirmed a highly conductive body near surface

• Modelling of the Delta Blues (DB2) EM data verified a highly conductive body with a shallow depth in the range of 125 – 185 metres

• Ongoing EM surveying focussed along strike of the Lantern East and Lantern South prospects where early drill results showed nickel-copper sulphides

Norseman Project (Nickel-Cobalt-Palladium)

• High palladium and rhodium assay results identified in database of previous RC drilling beneath and adjacent to existing cobalt resources

• Palladium and rhodium are high value “green” metals critical for pollution reduction

• 35 RC drill holes with anomalous palladium greater than 0.4 g/t in regolith and 16 RC drill holes with anomalous palladium greater than 0.2 g/t in fresh rock

• Best palladium results from weathered rock;

• 48 metres @ 0.89 g/t Pd, 0.45 g/t Pt, 0.1 % Cu & 0.37% Ni from 3m (MTRC112) including

• 5 metres @ 2.1 g/t Pd, 1.4 g/t Pt, 0.13% Cu & 0.23% Ni from 31m

• Best palladium results from fresh rock;

• 27 metres @ 0.58 g/t Pd, 0.12 g/t Pt, 0.13 % Cu & 0.18% Ni from 123m (MTRC096) including

Contact Details

T: +61 8 9463 0063 E: info@galmining.com.au W: www.galileomining.com.au 13 Colin St, West Perth, WA

• 3 metres @ 1.1 g/t Pd, 0.19 g/t Pt, 0.23% Cu & 0.26% Ni from 135m

• • Multiple drill ready targets with over 5km of prospective strike length at Mt Thirsty and over 10km of prospective strike length at Mission Sill

Corporate

• Well-funded to continue exploration programs with approximately $5.4 million in cash as at 30[th] June 2021 (refer to accompanying Appendix 5B Report)

==> picture [594 x 25] intentionally omitted <==

Page 1 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Galileo Mining Ltd (ASX: GAL, “Galileo” or the “Company”) is pleased to provide a summary of activities for the quarter ending 30[th] June 2021 from its Fraser Range nickel project and Norseman project in Western Australia.

Commenting on the recent activities, Galileo Managing Director Brad Underwood said:

“We are pleased with our progress at both the Fraser Range and Norseman projects during the June Quarter. The modelling of EM data at DB1 and DB2 shows Delta Blues is an exciting prospect with extremely conductive targets suggesting the presence of sulphide mineralisation. Our job now is to get on the ground and start our drilling campaign to establish the cause of the conductors. While labour shortages have pushed back timing on the campaign, we have all other preparations in place and I look forward to updating the market once drilling begins.

“At Norseman, results from our continuing review of the project shows outstanding prospectivity for palladium in the region. The existing drill results demonstrate the quality of the project and have provided the basis for a new understanding of the mineralising processes, leading to the development of robust drill targets with the potential for a significant palladium discovery. We will be aggressively pursuing this exceptional opportunity going forward.

“On the cash front, we remain fully funded to continue with our exploration campaigns at Fraser Range and Norseman for the foreseeable future.”

Fraser Range (67% GAL / 33% Creasy Group JV)

In April 2021, Galileo reported on results from additional geophysical modelling at the Delta Blues nickelcopper prospect in the Fraser Range region of Western Australia.[1]

The priority EM conductor at the Delta Blues DB2 target was corroborated by an independent geophysicist with results from modelling demonstrating a robust target. Modelled parameters fall within a range of 1,500 to 5,000 Siemens (conductive strength), with a strike length between 350m and 500m, and a depth extent between 250m and 500m. Depth to the top of the conductive source was estimated at between 125 and 185 metres below surface.

All modelled parameters indicate a sizeable conductive body that may be related to significant sulphide mineralisation. Interpretation of gravity and magnetic data further supports the possibility that the target is associated with magmatic sulphide mineralisation.

Independent modelling of EM data from the DB2 target at the Delta Blues prospect confirmed the location of the conductor within a range overlapping with the original modelling.

Independent review of EM data from the DB1 prospect confirmed the very high conductivity of the target model.[2] A component of this high conductivity is attributed to near surface/cover effects which limit the ability to model the depth extent of the conductor. The modelled depth extent is restricted (25m to 40m – see Table 1) with the result that a high conductivity is required to provide a best fitting scenario between the modelled response and

1 Refer to ASX announcement dated 12th April 2021.

2 Refer to ASX announcement dated 4th May 2021.

==> picture [594 x 25] intentionally omitted <==

Page 2 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

the observed field data. The proposed drill hole shown in Figure 2 will test the source of the anomaly. Table 1 shows the updated parameters of the DB1 and DB2 models.

Table 1: Delta Blues modelled conductors

==> picture [490 x 104] intentionally omitted <==

Figures 1 and 2 below display the gravity and magnetic data respectively. Figure 1 clearly shows the presence of large gravity anomalies adjacent to the EM targets at DB1 and DB2. These anomalies are interpreted to represent dense material associated with mafic/ultramafic intrusive rocks at depth. The interpreted deep intrusions could be the source rocks responsible for near surface cumulate rocks with the potential to host mineralisation.

Figure 1 – Delta Blues EM Conductors DB1 and DB2 over Bouguer Gravity Image

==> picture [485 x 345] intentionally omitted <==

----- Start of picture text -----

Page 3 | 18
----- End of picture text -----

==> picture [594 x 25] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Figure 2 – Delta Blues EM Conductors DB1 and DB2 over TMI Magnetic Image

==> picture [496 x 353] intentionally omitted <==

In May, Galileo received statutory approvals for diamond drilling at Delta Blues. Two high priority nickel targets at DB1 and DB2 will be tested with 1,000 metres of drilling planned for the initial program.

Several drill holes will be required to test for mineralisation at DB2 due to the large scale of the target. It is expected that at least two drill holes will be undertaken in the first round of drilling at this location.

The EM conductor at the DB1 target has been verified by an independent geophysicist as a particular conductive anomaly. Modelled conductivities fall within a range of 10,000 to 25,000 Siemens with a strike length between 800m and 900m. Depth estimates to the top of the conductor vary between 175m and 255m with the variation attributed to near surface cover effects which limit the accuracy of modelling.

One drill hole is planned at the DB1 target as a first test to determine the cause of the conductive anomaly and to pinpoint the optimum position for potential mineralisation.

In late June, Galileo advised that while labour shortages had prevented an immediate start to drilling at Delta Blues, all other preparations have been completed. A firm start date has not been provided at this stage and an ASX announcement will be made when drilling has commenced on site.

==> picture [594 x 25] intentionally omitted <==

Page 4 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Figure 3 – Initial Proposed Diamond Drill Hole at Delta Blues DB2 Prospect

==> picture [490 x 510] intentionally omitted <==

==> picture [594 x 25] intentionally omitted <==

Page 5 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Figure 4 – Initial Proposed Diamond Drill Hole at the Delta Blues DB1 Prospect

==> picture [486 x 505] intentionally omitted <==

==> picture [594 x 25] intentionally omitted <==

Page 6 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Figure 5 – Plan View of Delta Blues Conductors with Aircore Drilling and Neighbouring Prospects (over TMI Magnetics background)

==> picture [491 x 605] intentionally omitted <==

==> picture [594 x 25] intentionally omitted <==

Page 7 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Figure 6 –– Current Focus Area of Fraser Range EM Surveying – Along Strike of the Lantern East and Lantern South Prospects (TMI magnetic background image)

==> picture [491 x 393] intentionally omitted <==

Galileo’s program of electro-magnetic (EM) surveying in the Fraser Range is currently focussing on a zone along strike of the Lantern East and Lantern South prospects (Figure 6). Previous drilling at these prospects identified mafic-ultramafic intrusions with disseminated and banded sulphides.[3]

Although the metal content of the sulphides was not economic, the geology in the area is recognised as very prospective and any conductive anomaly that is identified will represent a high priority drill target. EM surveying is expected to continue through July with results available upon the completion of field work.

EM surveying is a very useful tool in exploration for nickel sulphide mineralisation due to the conductive response of sulphide minerals that are associated with nickel. However, conductive anomalies can also be caused by other sources including barren sulphides, sulphide rich sediments, and graphite bearing rock units.

3 Refer to ASX Announcements dated 8th March 2021 and 16th March 2021.

==> picture [594 x 25] intentionally omitted <==

Page 8 | 18

==> picture [120 x 32] intentionally omitted <==

Norseman (100% GAL)

Target generation work conducted at the Norseman project identified significant intersections of palladium and rhodium from the Company’s existing drill hole database. Multiple drill ready targets were developed through geological interpretation of the prospective contact zones which host palladium in association with copper sulphide mineralisation.[4]

Figure 7 – Drill Section with Palladium Mineralisation and Target Zone at the Mt Thirsty Prospect[5]

==> picture [465 x 483] intentionally omitted <==

• 4 Refer to ASX announcement dated 17 May 2021.

• 5 Refer to Appendices in ASX announcement dated 17 May 2021 for details of anomalous palladium drill holes

==> picture [594 x 25] intentionally omitted <==

Page 9 | 18

==> picture [120 x 32] intentionally omitted <==

Table 1 – Key Palladium Intersections for the Norseman Project[6]

==> picture [436 x 374] intentionally omitted <==

Table 2 – Key Rhodium Intersections for the Norseman Project[6]

==> picture [404 x 104] intentionally omitted <==

Drilling completed in 2016 by Galileo beneath the cobalt-nickel laterite resource at Mt Thirsty intersected a previously unrecognised zone of sulphide containing highly anomalous levels of palladium, platinum, copper, and nickel (see section in Figure 7). This sulphide zone occurs within an ultramafic rock unit interpreted to be an apophysis from the Mt Thirsty sill which itself is visible as a pronounced high in the magnetic map to the east of the anomalous drill holes (Figure 9).

6 Refer to Appendices in ASX announcement dated 17 May 2021 for drill hole details

==> picture [594 x 25] intentionally omitted <==

Page 10 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

The stratigraphy at the drill hole location is flat and the sharp magnetic contact is believed to represent the position at which the sill crosscuts stratigraphy. This contact between the intruding sill and the flat lying stratigraphy is the prospective target zone with potential for higher grade mineralisation.

The grade within the sulphide zone increases towards the east (Figure 7), supporting the interpretation that more mineralisation occurs within the target zone. The prospective contact zone is easily traced to the north over 5km of strike and represents a substantial target. There is no record of any historic exploration for palladium/platinum along this basal contact position.

Figure 8 – Plan View of Anomalous Palladium Drill Holes and Prospective Contact Zone at the Mt Thirsty Prospect[6]

==> picture [511 x 479] intentionally omitted <==

==> picture [594 x 25] intentionally omitted <==

Page 11 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Figure 9 – Magnetic Map (TMI) of Mt Thirsty Prospect showing over 5km of Prospective Contact Zone

==> picture [421 x 611] intentionally omitted <==

==> picture [594 x 25] intentionally omitted <==

Page 12 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Figure 10 – Drill Section with Basement Palladium Mineralisation and Target Contact Zone at the Mission Sill Prospect[6 ]

==> picture [521 x 359] intentionally omitted <==

Galileo assay results are further supplemented by historical results. Drilling at the Mission Sill in the year 2000 by Anaconda Nickel was designed to investigate the development of nickel laterite resources in the area. Seven drill holes in the original program intercepted anomalous palladium and platinum within the near surface saprolite overlying the ultramafic component of the Mission Sill. Later drilling by Australian Gold Resources (AGR) focussed on the platinum potential in fresh rock of the ultramafic unit. Subsequent drilling by Galileo also concentrated on platinum intercepts within the ultramafic as well as drilling out the cobalt-nickel laterite resource to JORC compliant resource standards.

The potential for palladium at the Mission Sill has now been recognised after a review of the data showed the existence of significant thicknesses of disseminated sulphide mineralisation (up to 5% in patches) at the contact between the ultramafic and mafic units of the Mission Sill. This contact position matches the location of multiple zones of anomalous mineralisation up to 74 metres thick containing approximately 0.2g/t palladium (MTRC036, Figure 10). The possibility of higher-grade mineralisation along this contact position is interpreted to be considerable, especially where the geometry and relative exhumation of the sill changes along strike.

==> picture [594 x 25] intentionally omitted <==

Page 13 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

The prospective contact zone continues over 10km to the north with additional prospectivity to the south on

the southern flank of an offset ultramafic block (Figure 12). This southern block also contains a cobalt-nickel laterite resource and was the subject of drilling by Galileo in 2018 to investigate the relationship between Platinum Group Metals (PGMs) and cobalt in the regolith.[7]

This southern prospect contains the highest-grade palladium intercepted in weathered rock (MTRC112), and the highest grades of rhodium in MSSD001. The contact zone between ultramafic and mafic units has not yet been drilled at this location and is a priority target.

Two further drill ready targets occur on the Mission Sill where soil sampling completed late in 2020[8]

highlighted two separate zones of anomalous palladium with maximum soil values of 0.31g/t Pd and 0.16g/t Pd respectively (shown on Figure 12).

Figure 11 – Plan View of Anomalous Palladium Drill Holes and Prospective Contact Zone at the Mission Sill Prospect[5]

==> picture [354 x 410] intentionally omitted <==

• 7 Refer to ASX announcement dated 27th September 2018.

• 8 Refer to ASX announcement dated 13th January 2021.

==> picture [594 x 25] intentionally omitted <==

Page 14 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Figure 12 – Magnetic Map of the Mission Sill Prospect with over 10km of Prospective Contact Zone

==> picture [441 x 641] intentionally omitted <==

==> picture [44 x 8] intentionally omitted <==

----- Start of picture text -----

Page 15 | 18
----- End of picture text -----

==> picture [594 x 25] intentionally omitted <==

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Occurrences of high-grade palladium up to 4.3 g/t have also been observed within fresh rock of the ultramafic unit at Mission Sill (MTRC128, see section in Figure 10). This intersection was accompanied by a rhodium grade of 0.18g/t and demonstrates the fertility of the host rock units. However, the focus for exploration is currently on the ultramafic/mafic contact zones where sulphides occur in association with palladium.

This is a similar position to where mineralisation occurs at other known deposits such as the Lac des Iles palladium mine in Canada and the Munni Muni platinum group metal deposit in Western Australia.

Planned and upcoming work programs at the Norseman Project

• RC drilling of the known sulphide zones at the Mt Thirsty Sill and the Mission Sill

• 10,000m aircore drilling program targeting the prospective contact zones along strike of the sulphide zones at the Mission Sill and Mt Thirsty Sill[9]

• Ongoing target generation work for nickel, copper and cobalt including soil sampling, mapping, and rock chip sampling

Corporate

Galileo is well funded to continue exploration with approximately $5.4 million in cash as of 30 June 2021. The Company remains in a secure position to undertake all its planned exploration programs.

Please refer to the accompanying Appendix 5B report for the period ended 30 June 2021 for further information.

ASX Additional Information

1. ASX Listing Rule 5.3.1: Exploration and Evaluation expenditure during the June 2021 Quarter was $573,000. Full details of exploration activity during the June 2021 Quarter are set out in this report.

2. ASX Listing Rule 5.3.2: There was no substantive mining production and development activities during the Quarter.

3. Rule 5.3.5: – Payments to related parties of the Company and their associates during the Quarter (as detailed in Section 6 of the accompanying Appendix 5B) totalling $141,000 was paid to Directors and Associates for salaries, superannuation, and director and consulting fees. Please see the Remuneration Report in the 2020 Annual Report for further details on Directors’ remuneration.

9 Refer to ASX announcement dated 12th July 2021

==> picture [594 x 25] intentionally omitted <==

Page 16 | 18

==> picture [120 x 32] intentionally omitted <==

Competent Person Statement

The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation prepared 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.

With regard to the Company’s ASX Announcements referenced in the above Announcement, the Company is not aware of any new information or data that materially affects the information included in the Announcements.

Authorised for release by the Galileo Board of Directors.

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 nickel, copper and cobalt resources in Western Australia. GAL has Joint Ventures with the Creasy Group over tenements in the Fraser Range which are highly prospective for nickel-copper sulphide deposits similar to the operating Nova mine. GAL also holds tenements near Norseman with over 26,000 tonnes of contained cobalt, and 122,000 tonnes of contained nickel, in JORC compliant resources (see Figure 13 below).

Figure 13: JORC Mineral Resource Estimates for the Norseman Cobalt Project (“Estimates”) (refer to ASX “Prospectus” announcement dated May 25[th] 2018 and ASX announcement dated 11[th] December 2018, 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 Cobalt %	Class	Tonnes Mt		Co		Ni
			%	Tonnes	%	Tonnes
MT THIRSTY SILL
0.06 %	Indicated Inferred Total	10.5 2.0 12.5	0.12 0.11 0.11	12,100 2,200 14,300	0.58 0.51 0.57	60,800 10,200 71,100
MISSION SILL
0.06 %	Inferred	7.7	0.11	8,200	0.45	35,000
GOBLIN
0.06 %	Inferred	4.9	0.08	4,100	0.36	16,400
TOTAL JORC COMPLIANT RESOURCES
0.06 %	Total	25.1	0.11	26,600	0.49	122,500

==> picture [594 x 25] intentionally omitted <==

Page 17 | 18

==> picture [79 x 123] intentionally omitted <==

==> picture [120 x 32] intentionally omitted <==

Appendix 1: Galileo Mining Tenement Schedule as at 30 June 2021

Project	Tenement	Interest at	Interest at	Nature of
	reference & Location	beginning of Quarter	end of	Interest As at end of Quarter
			Quarter
NORSEMAN PROJECT	All tenements are in Western Australia
	E63/1041	100%	100%	Active
	E63/1764	100%	100%	Active
	P63/2053	100%	100%	Active
	P63/2105	100%	100%	Active
	P63/2106	100%	100%	Active
	P63/2107	100%	100%	Active
	P63/2108	100%	100%	Active
	P63/2109	100%	100%	Active
	P63/2110	100%	100%	Active
	P63/2111	100%	100%	Active
	P63/2112	100%	100%	Active
	P63/2113	100%	100%	Active
	P63/2114	100%	100%	Active
	P63/2115	100%	100%	Active
	P63/2116	100%	100%	Active
	P63/2117	100%	100%	Active
	P63/2118	100%	100%	Active
	P63/2123	100%	100%	Active
	P63/2136	100%	100%	Active
	P63/2137	100%	100%	Active
	M63/671	100%	100%	Active
	L63/83	100%	100%	Active
	L63/85	100%	100%	Active
	L63/86	100%	100%	Active
	L63/87	100%	100%	Active
	L63/88	100%	100%	Active
FRASER RANGE PROJECT	All tenements are in Western Australia
	E28/2064	67%	67% NSZ(1)	Active
	E28/2912	100%	100%	Active
	E28/2949	100%	100%	Active
	E63/1539	67%	67% FSZ(2)	Active
	E63/1623	67%	67% FSZ(2)	Active
	E63/1624	67%	67% FSZ(2)	Active

(1) 67% owned by NSZ Resources Pty Ltd a wholly owned subsidiary of Galileo Mining, 33% Great Southern Nickel Pty Ltd (a Creasy Group Company).

(2) 67% owned by FSZ Resources Pty Ltd a wholly owned subsidiary of Galileo Mining, 33% Dunstan Holdings Pty Ltd (a Creasy Group Company).

==> picture [594 x 25] intentionally omitted <==

Page 18 | 18