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Galleon Gold gets C$1.0M Commitment from Eric Sprott, Revises Terms of Private Placement

May 1, 2020

Galleon Gold Corp. announced an update to its C$3.0 million financing previously announced on April 28, 2020. The Company has received interest from Eric Sprott to subscribe for 20,000,000 units (or C$1,000,000). In addition, the Company is amending the terms to the flow-through portion of the Offering to flow-through Units.

The FT Units are being offered at C$0.055 per unit with each FT Unit now being comprised of one common share in the capital of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder to acquire an additional common share at a price of C$0.075 for a period of 24 months following the closing of the Offering. 

The proceeds from the sale of the non-flow-through units ("Units") will be used for exploration and general working capital purposes. The proceeds from the issuance of the FT Units will be used for "Canadian exploration expenses" and will qualify as "flow-through mining expenditures" (the "Qualifying Expenditures"), as defined in subsection 127(9) of the Income Tax Act (Canada). The Company intends to renounce the Qualifying Expenditures to subscribers of FT Shares for the fiscal year ended December 31, 2020.

The closing of the Offering is expected to occur on or about May 20, 2020 and is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The securities comprising the Units, the FT Units and any finders' warrants issued with respect to the Offering, will be subject to a hold period of four months and one day in accordance with applicable securities laws.

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

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