Bold Ventures Inc. press release

Galiano Gold Reports First Quarter 2026 Results

2026-05-13

TSXV - TSX Venture Exchange · Chromium · Nickel · Copper · Gold · Platinum · Palladium · Molybdenum · Lead · Zinc · Silver · Canada · Corporate Finance

Vancouver, British Columbia--(Newsfile Corp. - May 13, 2026) - Galiano Gold Inc. (TSX: GAU) (NYSE American: GAU) ("Galiano" or the "Company") is pleased to report its first quarter ("Q1") 2026 operating and financial results. Galiano owns a 90% interest in the Asanko Gold Mine ("AGM") located on the Asankrangwa Gold Belt in the Republic of Ghana, West Africa.

All financial information contained in this news release is unaudited and reported in United States dollars.

Q1 2026 HIGHLIGHTS

Safety

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No lost-time injuries ("LTI") nor total recordable injuries (inclusive of LTIs) ("TRI") recorded. The AGM has achieved 8.8 million hours worked without an LTI as of March 31, 2026.

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12‐month rolling LTI and TRI frequency rates as of March 31, 2026 of 0.00 and 0.11 per million hours worked, respectively.

Financial

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Cash and cash equivalents of $114.9 million as of March 31, 2026 and no debt.

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Generated cash flow from operating activities of $46.7 million during Q1 2026, an 80% increase from Q1 2025.

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Income from mine operations of $72.5 million during Q1 2026.

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Net income of $0.13 and adjusted net income1of $0.11 per common share (basic) during Q1 2026.

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Adjusted EBITDA1of $93.4 million during Q1 2026, an increase of 364% from Q1 2025.

Mining Operations

Mined 1.5 million tonnes ("Mt") of ore at an average mined grade of 0.9 grams per tonne ("g/t") gold with a strip ratio of 6.0:1. Approximately 70% of mined ore was from the Abore deposit.

Processing

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1.3 Mt of ore was milled at an average feed grade of 0.9 g/t, with metallurgical recovery averaging 90%. Mill availability during Q1 2026 was 89% due to a planned 5-day maintenance shutdown.

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Produced 34,747 ounces of gold, a 68% increase compared to Q1 2025, and in line with the Company's first half indicative production range.

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Sold 34,181 ounces of gold at a record quarterly average price of $4,857 per ounce ("/oz"), excluding the effect of realized losses on gold hedging instruments.

Nkran Cut 3 Development

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Development of Cut 3 at the Nkran deposit continued with 4.7 Mt of waste mined. Additional mining equipment is expected to be mobilized during Q2 2026 and, thereafter, mined volumes at Nkran are forecast to increase significantly.

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Capitalized development pre-stripping costs at Nkran Cut 3 of $13.5 million.

Costs

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All-in sustaining costs1("AISC") of $2,361/oz, a 6% decrease compared to Q1 2025 despite higher royalties expense.

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FY 2026 AISC1guidance has been revised to between $2,300/oz and $2,600/oz (previously $2,000/oz and $2,300/oz), resulting from the amendment to Ghana's royalty framework.

Exploration

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Drilled 11,578 meters ("m") at the Abore deposit, which consisted of infill and step-out drilling up to 200m below the existing underground Mineral Resource boundary. Drilling successfully indicated extension of mineralization at depth, along strike, and across previously untested areas outside the current underground Mineral Resource. Highlights from the Q1 2026 Abore drilling program, as reported in the Company's news release dated May 11, 2026, included:

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Main pit ore shoot expanded ~95m further down dip to the north;

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~200m of strong mineralization defined between the Main pit ore shoot and the saddle zone;

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High-grade intercept below the northern end of Main pit, which remains open; and

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High-grade mineralization intersected up to 180m below the current underground Mineral Resource.

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Completed 2,501m of infill drilling at Esaase to support the conversion of Inferred Mineral Resources to the Indicated category. Following successful initial results, the Company has expanded the FY 2026 exploration budget by $7.5 million to complete a total program of 33,000m at Esaase.

"The AGM delivered another quarter of strong, consistent operational performance, building on the momentum we have established through 2025," said Matt Badylak, Galiano's President and CEO. "From a growth and mine-life extension perspective, we are pleased to have a clear line of sight to near-term mineral reserve expansion. At Esaase, mineral resource conversion drilling progressed well during the quarter, supporting an expansion of the program from 9,500 metres to 33,000 metres. Esaase represents a critical growth opportunity and will play a key role in developing a robust long-term mine plan. Importantly, we remain on track to deliver 140,000 to 160,000 ounces of gold production this year and are approaching a meaningful cash flow inflection point as hedges roll off, deferred payment is completed in December, and production continues to ramp up toward 2027."

Conference Call and Webcast

Management will host a conference call and webcast to discuss the results of Q1 2026 at 10:30am ET (7:30am PT) on May 14, 2026. Please refer to the details below to join the conference call or the webcast.

| Conference Call Participant Details | | | Webcast URL | https://www.gowebcasting.com/14680 | | Local | Toronto: 1-647-932-3411 | | North American toll-free | 1-800-715-9871 | | Conference ID | 9798035 | | Conference Replay | | | URL | https://www.gowebcasting.com/14680 |

SUMMARY OF QUARTERLY OPERATIONAL AND FINANCIAL HIGHLIGHTS

| | | Q1 2026 | | | Q4 2025 | | | Q3 2025 | | | Q2 2025 | | | Q1 2025 | | | Health and Safety | | | | | | | | | | | | | | | | | LTIs(1) | | - | | | - | | | - | | | - | | | 2 | | | TRIs(1) | | - | | | - | | | 1 | | | - | | | 3 | | | 12-month rolling LTI frequency rate | | 0.00 | | | 0.24 | | | 0.39 | | | 0.42 | | | 0.43 | | | Mining Operations | | | | | | | | | | | | | | | | | Ore mined ('000t) | | 1,521 | | | 1,575 | | | 1,605 | | | 1,365 | | | 1,296 | | | Waste mined ('000t) | | 9,084 | | | 8,337 | | | 9,067 | | | 8,101 | | | 8,314 | | | Strip ratio (waste-to-ore) | | 6.0 | | | 5.3 | | | 5.7 | | | 5.9 | | | 6.4 | | | Average gold grade mined (g/t) | | 0.9 | | | 0.9 | | | 0.8 | | | 0.8 | | | 0.8 | | | Mining costs ($/t mined) | | 3.73 | | | 3.94 | | | 3.38 | | | 3.59 | | | 3.31 | | | Ore tonnes trucked ('000 t) | | 1,163 | | | 1,069 | | | 1,288 | | | 1,030 | | | 1,053 | | | Ore transportation costs ($/t trucked) | | 4.42 | | | 4.45 | | | 4.35 | | | 4.49 | | | 4.43 | | | Processing | | | | | | | | | | | | | | | | | Ore milled ('000t) | | 1,305 | | | 1,369 | | | 1,283 | | | 1,193 | | | 1,086 | | | Average mill head grade (g/t) | | 0.9 | | | 1.0 | | | 0.9 | | | 0.8 | | | 0.8 | | | Average recovery rate (%) | | 90 | | | 91 | | | 91 | | | 89 | | | 87 | | | Processing costs ($/t milled) | | 12.79 | | | 12.13 | | | 12.57 | | | 12.89 | | | 14.37 | | | General and administrative costs ($/t milled) | | 7.09 | | | 7.58 | | | 6.62 | | | 6.24 | | | 5.78 | | | Gold produced (oz) | | 34,747 | | | 37,574 | | | 32,533 | | | 30,350 | | | 20,734 | | | Development Stripping – Nkran Cut 3 | | | | | | | | | | | | | | | | | Waste mined ('000t) | | 4,707 | | | 4,324 | | | 3,426 | | | 1,723 | | | 810 | | | Mining costs ($/t mined) | | 2.85 | | | 2.48 | | | 3.29 | | | 4.00 | | | 3.98 | | | Development capitalized stripping costs ($m) | | 13.5 | | | 11.1 | | | 12.0 | | | 6.9 | | | 3.2 | | | Capital Expenditures | | | | | | | | | | | | | | | | | Sustaining capital ($m) | | 3.6 | | | 4.4 | | | 4.2 | | | 2.2 | | | 1.3 | | | Development capital ($m) | | 3.4 | | | 0.7 | | | 2.9 | | | 4.9 | | | 3.3 | | | Sustaining capitalized stripping costs ($m) | | 6.4 | | | 11.7 | | | 11.9 | | | 15.1 | | | 11.9 | | | Financial, Costs and Cash Flow | | | | | | | | | | | | | | | | | Gross revenue ($m) | | 166.5 | | | 159.7 | | | 114.2 | | | 97.3 | | | 76.6 | | | Gold sold (oz) | | 34,181 | | | 38,276 | | | 32,577 | | | 29,287 | | | 26,994 | | | Average gold sales price - gross ($/oz)(2) | | 4,857 | | | 4,164 | | | 3,501 | | | 3,317 | | | 2,833 | | | Average gold sales price - net ($/oz)(3) | | 4,122 | | | 3,744 | | | 3,099 | | | 2,951 | | | 2,651 | | | AISC ($/oz sold)(4) | | 2,361 | | | 2,033 | | | 2,283 | | | 2,251 | | | 2,501 | | | Income (loss) from mine operations ($m) | | 72.5 | | | 51.1 | | | 10.0 | | | 24.7 | | | (19.8 | ) | | Adjusted net income (loss) ($m)(4) | | 29.5 | | | 40.0 | | | (2.8 | ) | | 21.0 | | | 0.4 | | | Adjusted EBITDA ($m)(4) | | 93.4 | | | 85.5 | | | 37.8 | | | 39.9 | | | 20.1 | | | Cash flow from operating activities ($m) | | 46.7 | | | 55.8 | | | 40.4 | | | 35.8 | | | 25.9 | |

(1)The Company records and reports injuries in accordance with the International Council on Mining and Metals' (ICMM) Mining Principles. (2)Gross average gold sales price is a non-IFRS measure and calculated by dividing revenue, as reported in the Company's consolidated financial statements, by the number of gold ounces sold during the period. (3) Net average gold sales price is a non-IFRS measure and calculated by dividing revenue less realized losses on gold hedge derivative instruments, as reported in the Company's consolidated financial statements, by the number of gold ounces sold during the period. (4)Refer to _"Non-IFRS Performance Measures"_in this news release.

Mining

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Mined 1.1 Mt of ore at the Abore deposit at an average grade of 0.9 g/t gold and a strip ratio of 6.1:1. Mined grades and strip ratio were largely consistent with Q4 2025.

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Mined 0.4 Mt of ore at the Esaase deposit at an average grade of 0.7 g/t gold and a strip ratio of 5.9:1. Ore tonnes mined were higher in Q1 2026 compared to Q4 2025 due to the temporary suspension of mining at Esaase in Q4 2025 that resulted from a community incident.

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Mining costs per tonne at Abore and Esaase averaged $3.73 per tonne ("/t") in Q1 2026, compared to $3.31/t in Q1 2025. The 13% increase in mining costs per tonne in Q1 2026 was attributable to higher drill and blast costs, resulting from mining a higher proportion of fresh rock at Abore, and increasing mining depths and haul distances.

Processing

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The AGM produced 34,747 ounces of gold during Q1 2026, a decrease of 8% from Q4 2025, as the processing plant milled 1.3 Mt of ore at an average grade of 0.9 g/t gold with metallurgical recovery averaging 90%. Mill throughput in Q1 2026 was 5% lower than Q4 2025 due to a planned 5-day shutdown of the processing plant to complete a mill reline and other maintenance activities.

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Approximately 60% of the mill feed was sourced from mined ore at Abore, with the remainder of mill feed primarily from the Esaase deposit.

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Processing costs per tonne for Q1 2026 was $12.79, an 11% decrease from Q1 2025. The decrease in processing costs per tonne was largely driven by higher mill throughput volumes, partly offset by costs associated with a mill reline and other maintenance activities in Q1 2026.

Costs

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AISC1for Q1 2026 was $2,361/oz, compared to $2,501/oz in Q1 2025. The decrease in AlSC1resulted from a 27% increase in gold ounces sold in Q1 2026, partly offset by a $10.0 million increase in royalties.

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Relative to Q4 2025, AISC1increased by 16% in Q1 2026 due to lower gold sales volumes and a $3.1 million increase in royalties.

Nkran Cut 3

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Nkran Cut 3 waste stripping continued during the quarter with 4.7 Mt of waste rock mined during Q1 2026, an increase of 9% from Q4 2025.

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Mining costs per tonne at Nkran was $2.85 for Q1 2026, compared to $3.98/t in Q1 2025. The decrease in mining costs per tonne was attributable to higher tonnes mined.

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Nkran Cut 3 development capitalized stripping costs totaled $13.5 million during Q1 2026. Waste stripping volumes are expected to rise following the mobilization of additional mining equipment during Q2 2026.

Capital Expenditures

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Sustaining capital expenditures totaled $3.6 million during Q1 2026, an increase of $2.3 million compared to Q1 2025. The increase in sustaining capital expenditures was largely driven by costs associated with a tailings facility expansion.

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Development capital expenditures during Q1 2026 totaled $3.4 million, in line with Q1 2025. Development capital expenditures in Q1 2026 related primarily to costs associated with relocating villages near the AGM's operations.

Exploration

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During Q1 2026, 11,578m of drilling completed at Abore of a planned program total of 32,000m of diamond drilling, which aims to grow the underground Mineral Resource through step-out drilling to at least 200m below the maiden underground Mineral Resource. Results received to date continue to demonstrate exceptional Mineral Resource growth potential at Abore. Current step-out drilling has intersected mineralization up to 180m below the existing underground Mineral Resource, while infill drilling has improved continuity across key mineralized zones that currently sit outside the existing Mineral Resource. Drilling beneath the Main and South pit areas also continues to confirm robust extensions of mineralization both down plunge and along strike of existing mineralization.

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A program of infill drilling is planned for Esaase through 2026, which is designed to convert existing open pit mineral resources from the Inferred to Indicated category, and has the potential to significantly increase the Esaase mineral reserve and support planning for potential future open pit expansion. Phase 1 of the Esaase infill drilling program consists of a planned 9,000m focused on the Main pit. The drilling commenced ahead of schedule in February with a rolling mobilization of up to four drill rigs operational by the end of Q1 2026. 2,501m of drilling was completed in Q1 2026. Following successful early results in Phase 1, the Company has committed to the full program of 33,000m, which is estimated to cost an additional $7.5 million in 2026 than previously guided.

Balance Sheet

The Company has maintained a strong cash position with $114.9 million as of March 31, 2026 and no debt.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

| | | Three months ended March 31, | | | | | | (All amounts in 000's of US dollars, except per share amounts) | | 2026 | | | 2025 | | | Gross revenue | | 166,524 | | | 76,590 | | | Income (loss) from mine operations | | 72,453 | | | (19,756 | ) | | Net income (loss) attributable to common shareholders | | 32,691 | | | (26,806 | ) | | Net income (loss) per share attributable to common shareholders - basic | | 0.13 | | | (0.10 | ) | | Adjusted net income attributable to common shareholders(1) | | 29,515 | | | 388 | | | Adjusted net income per share attributable to common shareholders(1) | | 0.11 | | | 0.00 | | | Adjusted EBITDA(1) | | 93,425 | | | 20,130 | | | Cash and cash equivalents | | 114,936 | | | 106,381 | | | Cash generated from operating activities | | 46,689 | | | 25,892 | |

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The Company sold 34,181 ounces of gold in Q1 2026 at a quarterly record average gold price (before the effect of realized hedging losses) of $4,857/oz for gross revenue of $166.5 million. The increase in revenue from the comparative period was due to a 71% increase in average gold sales prices and a 27% increase in gold ounces sold. The average gold sales price, including the effect of realized gold hedging losses, for Q1 2026 amounted to $4,122/oz.

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Income from mine operations for Q1 2026 totaled $72.5 million, compared to a loss of $19.8 million in Q1 2025. The increase in income from mine operations was due to higher revenues as described above. This was partly offset by higher royalties expense in Q1 2026 due to higher earned revenues and the introduction of a sliding scale royalty by the Government of Ghana, effective March 10, 2026.

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The Company reported net income attributable to common shareholders of $32.7 million in Q1 2026, or $0.13 per common share, compared to a net loss of $26.8 million in Q1 2025, or a loss of $0.10 per common share. The increase in net income during Q1 2026 was primarily due to higher recorded revenues, partly offset by higher royalties and income taxes.

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Reported Adjusted EBITDA1of $93.4 million in Q1 2026, compared to $20.1 million in Q1 2025. The increase in Adjusted EBITDA1was primarily driven by higher revenues, partly offset by higher royalties, as described above.

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The Company generated $46.7 million of cash flow from operating activities during Q1 2026, compared to $25.9 million in Q1 2025. The increase in operating cash flow was primarily driven by higher average gold sales prices and gold ounces sold during the current quarter.

| This news release should be read in conjunction with Galiano's Management's Discussion and Analysis and the Unaudited Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2026 and 2025, which are available at www.galianogold.comand filed on SEDAR+. |

1Non-IFRS Performance Measures

The Company has included certain non-IFRS performance measures in this news release. These non-IFRS performance measures do not have any standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Refer to _"Non-IFRS Measures"_of Galiano's Management's Discussion and Analysis for an explanation of these measures and reconciliations to the Company's reported financial results in accordance with IFRS.

Total Cash Costs per Gold Ounce Sold

Management of the Company uses total cash costs per gold ounce sold to monitor the operating performance of the AGM. Total cash costs include the costs of gold production, adjusted for costs allocated to by-products and production royalties per ounce of gold sold.

AISC per Gold Ounce Sold

The Company has adopted the reporting of "AISC per gold ounce sold". AISC includes total cash costs, AGM general and administrative expenses, sustaining capital expenditure, sustaining capitalized stripping costs, reclamation cost accretion and lease payments made on the AGM's mining and other service lease agreements per ounce of gold sold.

EBITDA and Adjusted EBITDA

Earnings before interest, taxes, depreciation and amortization ("EBITDA") provides an indication of the Company's continuing capacity to generate income from operations before taking into account the Company's financing decisions and costs of amortizing capital assets. Accordingly, EBITDA comprises net income (loss) excluding finance expense, finance income, depreciation and depletion expense, and income taxes. Adjusted EBITDA adjusts EBITDA to exclude non-recurring items and non-cash items ("Adjusted EBITDA").

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Common Share

The Company has included the non-IFRS performance measures of adjusted net income (loss) and adjusted net income (loss) per common share. Neither adjusted net income (loss) nor adjusted net income (loss) per share have any standardized meaning and are therefore unlikely to be comparable to other measures presented by other issuers. Adjusted net income (loss) excludes certain non-cash items, and items of income or expense not expected to recur in the future, from net income (loss) to provide a measure which helps the Company and investors to evaluate the results of the underlying core operations of the Company and its ability to generate cash flows and is an important indicator of the strength of the Company's operations and performance of its core business.

Qualified Person

The exploration information contained in this news release has been reviewed and approved by Mr. Chris Pettman, P.Geo, Vice President Exploration of Galiano.

All other scientific and technical information contained in this news release has been reviewed and approved by Mr. Amri Sinuhaji, P.Eng., Vice President Technical Services of Galiano. Mr. Pettman and Mr. Sinuhaji are "Qualified Persons" as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Galiano Gold Inc.

Galiano is focused on creating a sustainable business capable of value creation for all stakeholders through production, exploration and disciplined deployment of its financial resources. The Company owns the Asanko Gold Mine, which is located in Ghana, West Africa. Galiano is committed to the highest standards for environmental management, social responsibility, and the health and safety of its employees and neighbouring communities. For more information, please visit www.galianogold.com.