27 September 2024

Galileo Resources Plc

("Galileo" or the "Company" or the "Group")

Audited Results for the year ended 31 March 2024

Galileo (AIM: GLR), the exploration and development mining company, announces its audited results for the year ended 31 March 2024.

Highlights for the period under review

·      Significant advancements were made towards near-term copper production at the Luansobe project in Zambia. Post-year end, a small-scale mining licence was granted, inclusive of the Luansobe copper mineral resource, and external consultants were commissioned to generate a mining schedule, prioritise contractor communication and quotations, and aid the development of a profitable mining operation. It has been demonstrated, that with minor attunement and remodelling of the geological block model, mine design scenarios can be optimised to enable maximum return from a primary open pit operation and secondary underground mine, enabling informed discussion with contractors.

·      The mining licence covers an area in which Galileo previously reported JORC (2012) Inferred Mineral Resources of;

o  Approximately 5.8 million tonnes gross at 1% total Cu above a cut-off grade of 0.25% total Cu for 56,000 tonnes of contained Cu, potentially amenable to open pit mining.

o  Approximately 6.3 million tonnes gross at 1.5% total Cu above a cut-off grade of 1% total Cu for 97,000 tonnes of contained Cu, potentially amenable to underground mining. 

o  Significant potential exists to extend the mineral resource, including the inclusion of shallow underground mineralisation excluded due to drill density, and by geological remodelling over the untested deeper mineralisation

·      At Shinganda, the Phase Two drilling programme was completed, and a third phase of drilling commenced post-year end. Phase Two drilling consisted of 2,379m drilled in 13 drill holes and focussed on testing deeper targets, including breccias and magnetic and IP anomalies on the Shinganda Fault Splay and Main Fault. The drilling intersected impressive wide zones (up to 300m) of hydrothermal alteration and brecciation with lower grade sulphide copper-gold mineralisation. Two holes drilled, SHDD021 & SHDD022 targeted strong magnetic/IP geophysical anomalies along the Main Shinganda Fault, and intersected a 200m zone of intense diamictite-style conglomerate analogous to the high-grade Kamoa copper deposit.    

·      Phase Three drilling has the objective of defining a substantial resource of supergene mineralisation ranging up to 2% CuEq at shallower depths, following on from previous Phase One drill intercepts, such as 50.3m @ 1.77% CuEq from 21m depth in drill hole SHDD002. An initial programme of up to 30 holes for an estimated 2,400m of shallow RC drilling has been planned, testing a combined strike length of roughly 10km of the Shinganda Main Fault and Splay structures.   

·      The company has completed the requirements to enable it to enter a joint venture agreement and be issued a 51% interest in the Shingnda Copper-Gold Project, following the expenditure of more than US$500,000 in direct exploration costs. This enables Galileo to increase its equity in the project to a percentage ranging from 65 to 85 per cent depending on the size of any future discovery.

·      In September 2023, the company announced that it had entered an earn-in agreement with Cooperlemon Consultancy Limited for the exploration of copper on its licence 28001-HQ-LEL in Northwest Zambia. After the initial cash payment of US$230,000, Galileo will have the opportunity to earn a 65% interest in the joint venture via the commitment of a Phase One exploration expenditure of not less than US$750,000 over an initial 18-month period, and issuance of 2,500,000 Galileo Resources plc shares at a price of 1.175 pence per share.

·      Post-year end it was announced that drilling had commenced on licence 28001, in the prospective Western Foreland district of NW Zambia, drill hole targeting is focussed on the potential for the suitable stratigraphic horizons to create REDOX fronts and enable the correct environment for copper deposition in stratabound layers, akin to the Kamoa-Kakula copper complex.

·      At the Kamativi project in Zimbabwe, it was reported that results of a Phase One drilling programme had been returned. Ten holes were drilled for a total of 1,428.4m of drilling across a 1.5km x 0.5km Li-Cs-Sn-Ta-REE in soil anomaly. An 18m zoned pegmatite was intersected in drill hole KSDD001, inclusive of a high-grade mineralised core returning 4m @ 1.03% Li2O from 35m depth, within a wider 64m zone assaying 0.26% Li2O across both pegmatites and mica-schist host rock. Anomalous tin was also encountered, with 0.19% Sn returned from 95.2m depth in drill hole KSDD005.

·      Systematic Terraleach TM soil sampling was completed, for a total of 3,373 samples collected across priority identified licences in the companies Kalahari Copper Belt portfolio in Botswana, with multiple high-priority copper targets delineated, which share many similarities with the Khoemacau/Arc Mowana Fold prospect.  Additionally, it was announced that at no cost, the company will acquire the results of an airborne gravity survey jointly commissioned by Cobre Limited and Sandfire Resources, who hold neighbouring licences, on part of its licence PL253/2018. 

·      At the Bulawayo project, in Southeast Zimbabwe, licence wide airborne magnetics was flown, leading to a geological and structural re-interpretation, and identification of high-priority areas for the targeted collection of soil samples. Several gold-in-soil targets were identified that follow structural trends surrounding the historic Queen's Gold Mine and are being prepared for follow-up work. In addition, three priority targets have been delineated in the south of the licence, all exhibiting significant prospectivity for gold and nickel mineralisation associated with mapped greenstone and ultramafic lithology. In the west of the licence, potential persists, associated with nickel and zinc anomalism occurring coincident with previously identified Banded Iron Formation lithology.

·      Post-year end, it was reported that the Glenover sale had been settled in full, with the second tranche payment received on the 2 May 2024, amounting to approximately ZR 48.8 million (approx. GBP2.1M), and the final payment of ZAR5.7 million (approx. GBP 0.25M) due at the end of May 2024.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

You can also follow Galileo on Twitter: @GalileoResource.

Damon Heath                                                                  Tel +44 (0) 20 7186 9952

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

Chairman's report

Dear Shareholder,

The Company has enjoyed an exciting year in terms of project advancement and acquisition. The Company is focusing on new age metals, together with gold in southern Zimbabwe.

Our key focus is our Zambian copper assets, all located in highly prospective areas, with considerable promise for discovery.

The licence 28001 situated adjacent to Angola in the Western Foreland region of NW Zambia, is a large licence where we recently commenced drilling. Our initial sorties and detailed fieldwork have identified several targets with the required architecture for copper mineralisation and these targets will be drilled during the course of the drilling season, which may continue to mid-December.

Our Shinganda Project is intriguing; several mineralisation styles are displayed which will be investigated separately. Against the considerable optionality, we have elected to pursue a drilling programme, which is aimed at a reasonably identified haematite occurrence close to surface with a maximum depth of approximately 80m. The strike length could range up to 10km and our programme is aimed to define the strike limit and develop a resource to maximum depth. We have selected this target, since it is near surface, of good grade and potentially extensive in strike. We have commenced drilling and at the time of writing we have completed 4 holes.

The Luansobe Project, situated some 9km from the Mufulira complex, is probably one of the most advanced undeveloped projects in Zambia. We have completed required scoping drilling and have increased confidence on the design of an open pit. After resource modelling and early financial modelling, we engaged Sound Engineering Solutions in South Africa to carry out detailed open pit engineering, which has been extremely successful. The result of the various studies has resulted in an opportunity to develop a significant open pit operation from which potentially a decline system can be developed to extract resources down to a moderate depth expected to be around 550m. Below 500m the drilling density is more sparse, but there is significant optimism based on those drill holes that intersected mineralisation could extend the resource to deeper levels of up to 1,200m, representing the deepest hole on record.

Against the aforementioned, the Company is, subject to various conditions being satisfied including permitting and funding, planning the Phase 1 operation for the open pit and assessing the potential for this intermediate depth underground opportunity. The results of the planned deeper drilling will influence whether the decline system increases in depth or in the event of a significant resource addition, a deep shaft system is installed. The advanced state of the project together with the significant resource potential makes the project of high interest to the copper mining trade and as such we are entertaining companies tabling a wide range of options for financial and corporate involvement.

In Botswana, we have carried out soil sampling programmes and further fieldwork and are convinced that licences 39 and 40 have significant potential for mineralisation, as has licence 253, which is contiguous to the Cobre discoveries. Our joint venture with Sandfire continues and all the suggestions are that the T3 mine they have developed has rolled out very successfully, with operational performance objectives being met. This augurs well for the Botswana Copperbelt and in particular our licences, both those held by Sandfire and those under our ownership and management.

In Zimbabwe, we identified spodumene mineralisation within an 18m wide zoned pegmatite, intersected in the first hole drilled in our reconnaissance drilling programme. Pervasive lithium mineralisation was also intersected in the country rock, that is currently subject to detailed technical studies by external parties with appropriate lithium expertise.

We are currently awaiting extension of our exploration permit and once granted we will continue with detailed fieldwork in the pegmatites and undertake drilling in the most prospective areas. Field mapping remains the most effective and productive exploration tool that will be used to define future drill targets. The exploration strategy we have adopted has been validated by visiting experts, some of whom are involved in lithium production in Zimbabwe and elsewhere in the world. We have some 520km² under licence surrounding the former Kamativi mine, which is now being actively worked by a Chinese group, that has reactivated primary operations and are contemplating reprocessing a large dump arising from the former tin mining operations. The dump is known to contain significant quantities of lithium and is considered a valuable resource, since mining risk does not exist, and in-situ lithium grades are high.

In May 2024, the Company received the final payments, which completed the Afrimat acquisition of our Glenover phosphate asset. The net proceeds were GBP2.1 million and the receipt of these funds will allow us to aggressively pursue the technical and drilling programmes we have in place for the various projects outlined in this report.

The copper market and indeed the nickel market, for different reasons, have been extremely volatile with a high resistance against copper price movement, based on the fear that a sustained increase will put pressure on raw material supply in a number of industries, notwithstanding the global increase in demand based upon improved access to disposable income. There appears to be more global interest in keeping the copper price controlled at lower levels than allowing it to respond to true market fundamentals. We as a company believe that the tide driving copper will turn into a tsunami and will change how many things are done in the operating and marketing of copper, notwithstanding the real and fundamental problem of a lack of supply. Whilst nickel is not affecting Galileo, we believe that the volatile performance is based on the lack of sulphide producing mines, against high energy cost laterite mines, which has led to many mine closures.

The Junior Mining Sector is facing unprecedented times in terms of its ability to access funds to implement business plans in the best possible technical manner. Secondary placings are difficult to achieve, often insufficient for needs and hugely discounted.

Your board is familiar with this situation being part of the normal business cycle, but this period in the doldrums has been much more prolonged than historical norms. My recollection says that the dot-com boom is the last time that we experienced such adverse financing conditions. We are advancing our business on the premise that it is always darkest before dawn and the fundamentals are almost certain to bring a new beginning.

I thank our shareholders for their patience, fellow directors and management for all their hard work in what has been a very difficult but successful year.

Yours sincerely,

Colin Bird

Chairman

CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 March 2024

These financial statements were approved by the directors and authorised for issue on 26 September 2024 and are signed on their behalf by:

Colin Bird                                                                                                                              Joel Silberstein    

Company number: 05679987

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 March 2024

All operating expenses and operating losses relate to continuing activities.