Barclays Finances Galantas Gold Mill.

LONDON -- Galantas Gold Corporation (TSX VENTURE:GAL) -

Barclays Bank plc, through its subsidiary, Barclays Mercantile Business Finance Ltd, has provided a sale and lease back facility for crushing, grinding, flotation and other equipment at the Omagh Mine of Galantas Gold Corporation. Approximately half the cost of the equipment has been financed by cash with the remainder coming from the sale and lease back arrangement. The sum financed is Pounds Sterling 180,000 (CDN$ 359,252) against an equipment cost of Pounds Sterling 358,903 (CDN$716,315). A lease purchase payment of Pounds Sterling 5577.78 (CDN$11,132) is payable monthly for 36 months. Galantas has the right to purchase the equipment for a nominal sum at the end of the 3 year term. The sale and lease back is the second deal with Barclays, the first arrangement being used to purchase open-pit mining equipment.

The equipment purchased includes Denver Float Cells, Denver Ball Mill, Eimco Thickeners, Mirrlees Blackstone generator, A40 Volvo articulated dumptruck, Volvo EC140 Excavator and other equipment. The milling equipment was sourced in Canada and refurbished to a good standard prior to shipment to Ireland. The Volvo equipment was purchased in the UK and although to be initially used in construction, will permit equipment to be released for the ongoing exploration program. The additional finance will enhance working capital. In order to protect the company against currency losses due to a strong Canadian dollar, the cash required to make Canadian purchases was maintained in CDN$.

Barclays Bank plc is a UK-based financial services group, with a very large international presence in Europe, the USA, Africa and Asia. It is engaged primarily in banking, investment banking and investment management. In terms of market capitalisation Barclays is one of the top ten largest banks in the world.

Galantas Gold Corporation is building Ireland's first gold mine on its 189 sq km exclusive Prospecting Licence. The corporate aim is to increase the resource base on the property through exploration and mine development, to expand mine production in stages, and to add value to the Company's production by marketing and selling certified Galantas(TM) Irish gold jewellery.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements".

Galantas Gold Corporation (TSX VENTURE:GAL)