GALILEO MINING LTD — Interim / Quarterly Report 2021

Apr 20, 2021

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21 April 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

Fraser Range Project Nickel-Copper-Cobalt

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Highlights

Fraser Range Project (Nickel-Copper-Cobalt)

• Diamond drill hole completed at the Lantern South Prospect with zones of heavily disseminated sulphide intercepted from 110.5m to 111.35m and from 169m to 171.3m

• Two diamond drill holes tested EM conductor at the Lantern East Prospect with source of the EM conductor interpreted to be iron sulphide (pyrrhotite) on the edge of a large mafic intrusion

• Modelling of EM targets at the Delta Blues Prospect shows two highly conductive targets

• DB1 modelled as a single 800-metre-long body with conductivity of 11,000 Siemens

• DB2 modelled as a 460-metre-long body with conductivity of 3,300 Siemens

• Independent geophysical modelling confirms high value targets at Delta Blues (post quarter end)[1]

Norseman Project (Nickel-Cobalt)

• Nickel sulphide exploration at Norseman progressing well with multielement assays received from 1,620 unique sample locations (1,726 assays in total)

• Interpretation and evaluation of results is ongoing with a 52 element, raw geochemical data set for each sample

• Integration of new hyperspectral data with existing data sets is expected to generate focus areas for nickel targeting

Corporate

• Well-funded to continue exploration programs with approximately $6.1 million in cash as at 31[st] March 2021[2]

Contact Details

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

Galileo Mining Ltd (ASX: GAL, “Galileo” or the “Company”) is pleased to provide a summary of activities for the quarter ending 31 March 2021 from its Fraser Range nickelcopper-cobalt project and Norseman nickel-cobalt project in Western Australia.

• (1) Refer to the Company’s ASX Announcement dated 12th April 2021

• (2) Refer to the accompanying Appendix 5B Report dated 21st April 2021

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

“Lantern East and Lantern South are early greenfields targets located in a globally significant nickel-copper province and, while recent drilling did not locate economic mineralisation, our knowledge of the region continues to expand. The geology results from drilling have increased our confidence that the Fraser Range is an exceptional region to be exploring and we will maintain our strategy of aggressive drill campaigns as we work towards a breakthrough discovery. Our Delta Blues prospect is developing into an excellent drill prospect and we have ongoing target generation programs at both the Fraser Range and Norseman projects. We plan to complete several more drill campaigns in the current field season with each round of drilling having the potential to make a discovery.”

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

Two diamond drill holes were completed at the Company’s Lantern East prospect during the March Quarter 2021. The drill holes targeted an EM anomaly on the margin of a major intrusive rock unit.

Drillhole LADD001 tested a Fixed Loop EM model and intersected a complex package of intrusive rock units on the margin of the regionally large gabbronorite intrusion at approximately 210m downhole. No significant sulphides were recorded in this drill hole. Drillhole LADD002 tested a Moving Loop EM model[1] and intersected the same complex package of intrusive rock units at the contact with the gabbronorite. Minor bands of pyrrhotite (iron sulphide) were noted from 190m downhole which corresponded well with the modelled source of the EM anomaly at this location.

Figure 1 –– Diamond Drilling at Galileo’s Lantern East Prospect

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1 Refer to ASX announcement dated 20th October 2020

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Although the structure and geology of the Lantern East prospect is compelling, the sulphide recorded so far is pyrrhotite dominant and does not contain significant nickel or copper mineralisation.

Figure 2 ––Completed Diamond Drill Holes at the Lantern East Prospect (Magnetic Background)

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At Lantern South, one diamond drill hole was completed to check for mineralisation beneath RC drill hole LARC012 and to establish a platform for down hole EM surveying. Two zones of heavily disseminated sulphide were intercepted within drill hole LADD003 from 110.5m to 111.35m and from 169m to 171.3m. (Figure 3)

Figure 3 –– Disseminated Sulphide in LADD003 at 170m (pyrrhotite with minor pentlandite/chalcopyrite)

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LADD003 intersected a multi-phased ultramafic unit within a gabbronorite host rock. Disseminated sulphides (pyrrhotite-chalcopyrite-pentlandite) occur close to the contact zone between the ultramafic and the host rock. Detailed structural and lithological logging of all drill core will provide valuable information to assist the understanding of the occurrence and nature of the mineralisation.

This will greatly benefit future drill targeting at the Lantern Prospects and within Galileo tenements over the surrounding area. Core will be submitted to the laboratory for assaying after the completion of logging however handheld XRF readings did not identify nickel or copper at levels above those recorded from diamond drilling at Lantern South in 2020.[2] Please see Table 1 for drill log summary and Figure 4 for drill hole location.

Downhole EM surveying at the Lantern South and Lantern East prospects will be completed to look for off-hole conductive targets that might represent significant accumulations of massive sulphides.

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2 Refer to Galileo’s ASX announcement dated 28th October 2020

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Table 1: LADD003 Drill Log Summary

		Table 1: LADD003 Drill Log Summary
From (m)	To (m)	Comment
0	51	Transported cover
51	80.4	Saprolite/weatheredgabbronorite
80.4	110.5	Gabbronorite and leucogabbro
110.5	111.35	Olivinegabbronorite,heavilydisseminated sulphide
111.35	114	Olivinegabbronorite andpyroxenite
114	169	Gabbronorite
169	171.3	Gabbronorite,heavilydisseminated sulphide
171.3	213.2	Ultramafic andgabbronorite

Figure 4 ––Lantern South Prospect Plan Showing Sulphide Target Zone and Drill Hole LADD003

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At the Company’s Delta Blues prospect, infill EM surveying resulted in updated models for two targets at DB1 and DB2.

Updated modelling of EM data at anomaly DB1 shows a single, very strong conductor of 11,000 Siemens. The centre of target DB1 is less than 400 metres northwest of Galileo’s drill hole DBAC002 which intersected nickel prospective host rocks with minor weathered sulphides[3] .

Petrographic description of rock chips from DBAC002 (see Figure 5 for drill hole location) identified a metamorphosed cumulate mafic granulite with minor goethised sulphides. Goethised sulphide grains (0.5 – 1%) form 1mm clusters within the sample. This rock unit appears to have intruded a metamorphosed volcanosedimentary package in a similar geologic environment to magmatic systems with known nickel sulphide mineralisation in the Fraser Range.

Target DB1 also occurs approximately 4km along strike from Legend Mining’s Crean Prospect where drilling has identified ultramafic intrusive rock units prospective for nickel sulphide mineralisation[4] (Figure 5). Updated modelling of EM data at anomaly DB2 indicates a conductor of 3,300 Siemens.

Table 2: Delta Blues modelled conductors

Prospect	Conductance	Length	Height	Depth to Top
DB1	11,000S	800m	40m*	255m
DB2	3,300S	460m	300m*	185m

*Down-dip extents of sub-vertical conductive bodies are poorly constrained as EM surveying preferentially responds to the upper part of the conductor.

The centre of this conductive model is 300m south of a six-metre band of semi-massive and net-textured sulphide intercepted in diamond core drilling by S2 Resources (see S2 Resources ASX Announcement dated 14 December 2020).

The presence of sulphides in DBAC002 and in S2 Resource’s drilling suggests that the cause of the conductive anomalies could be related to additional sulphide mineralisation. However, conductive anomalies can also be formed by non-economic rock units including graphitic or sulphidic sediments. Drilling programs at Delta Blues will be undertaken following receipt of statutory approvals. Details of the modelled conductors are presented in Table 2.

3 Refer to Galileo’s ASX announcement dated 8th February 2021

4 Refer to Legend Mining’s ASX announcements dated 1st May 2019 and 22nd May 2020

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Figure 5 – Delta Blues Conductors with Aircore Drilling and Neighbouring Prospects (TMI Magnetic Image)

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Norseman Project (100% GAL)

While Galileo has been focussed on developing its Fraser Range project, during the period the Company also advanced exploration at its Norseman nickel-cobalt project, which occurs at the southern end of the Norseman-Wiluna greenstone belt.

Galileo received assay data from soil sampling undertaken to identify areas with prospectivity for nickel sulphide mineralisation. 1,726 soil samples (1,620 unique sample locations) targeting areas with potential for nickel were collected and analysed - see Table 3 for a summary of soil sampling assay results and Figure 6 for location/results of soil sampling programs.

Integration of soil sampling data with geophysical data, hyperspectral data, geological data, topographical data, and satellite imagery is being undertaken to give the sample assays context and meaning. A specialist remote sensing company was contracted to collect hyperspectral data and to integrate the new mineral mapping information with existing data sets, including the recently received soil assays.[5]

Airborne data collection has been completed while data interpretation utilising machine learning and Artificial Intelligence (AI) software is ongoing. A follow up exploration program will be devised upon the completion of all data integration and analysis. Results from this target generation work will be utilised in the planning of drill programs scheduled for the current field season.

Table 3: Summary of Soil Sampling Assay Results from the Norseman Project

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• Refers to element Average Crustal Abundance for Basalt. Source:Table 4.4 pp79-80 AusIMM Field Geologists Manual. 5th Edition Monograph 9

5 Refer to Galileo’s ASX announcement dated 15 December 2020

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Figure 6 – Soil Sampling Locations at the Norseman Project. Red Ellipses Show Outline of Soil Sampling Programs.

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Corporate

Galileo is well funded to continue exploration with approximately $6.1 million in cash as of 31 March 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 31 March 2021 for further information.

ASX Additional Information

1. ASX Listing Rule 5.3.1: Exploration and Evaluation expenditure during the March 2021 Quarter was $568,000. Full details of exploration activity during the March 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.

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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.

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 cobalt and nickel resources in Western Australia. GAL 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 7 below). GAL also has Joint Ventures with the Creasy Group over tenements in the Fraser Range which are highly prospective for nickelcopper-cobalt sulphide deposits.

Figure 7: 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

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