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Galleon Gold sells non-core Quebec properties to concentrate on Timmins

May 4, 2021

"As we focus our efforts on the West Cache Gold Project in Timmins, we are very pleased to have reached an arrangement that will drive exploration on the Quebec properties," said R. David Russell CEO and President of Galleon Gold. 

"Our exposure to the upside through our equity interest in a newly formed Quebec based gold company ensures we will benefit from the development and growth of this company going forward." 

Galleon Gold Corp. has entered into an agreement  to sell its non-core Quebec properties  to a private company, Quebec Aur Ltd. Pursuant to the terms of the agreement, Quebec Aur has paid $250,000 and will issue to the Company 600,000 common shares of Quebec Aur, to obtain 100% ownership of the Properties. The Properties included in the Agreement are the East Bay, Destor and Nelligan Properties.

Quebec Aur has entered into a Letter of Intent with a publicly listed TSX Venture Exchange listed company ("PublicCo") whereby Quebec Aur will be acquired by PublicCo and each Quebec Aur Share will be exchanged for one share of PublicCo. The price of the PublicCo common shares is currently at $0.25. If the acquisition of Quebec Aur by PublicCo is not completed by September 15, 2021, Quebec Aur shall, at its election, pay to Galleon Gold $150,000 or Quebec Aur shall transfer the Properties back to Galleon Gold. In addition, Quebec Aur has granted a 1% net smelter returns royalty (the "NSR") on any of the Properties' claims that do not have an existing royalty. The NSR can be repurchased by Quebec Aur for one million dollars.

The Quebec Aur Shares are subject to a hold period under applicable Canadian securities laws until the date that is four months and a day after the later of: (i) the issuance of the Quebec Aur Shares, and (ii) the date Quebec Aur becomes a reporting issuer in any province or territory of Canada.

About Galleon Gold 

Galleon Gold is a North American exploration and development company. Eric Sprott holds approximately 23% of the Company's outstanding common shares and is also the Company's partner on the Neal Gold Project in Idaho. A Preliminary Economic Assessment is currently underway for the Company's flagship project, the West Cache Gold Project, located 13 km from Timmins, Ontario.

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