Galiano Gold Inc. press release

Galiano Gold Reports Third Quarter 2026 Results

2026-11-05

TSX - Toronto Stock Exchange · Gold · Silver · Canada · Corporate Finance

Gold Production Increases 19% Quarter over Quarter, Full-Year Guidance Remains on Track at the Asanko Gold Mine

Vancouver, British Columbia--(Newsfile Corp. - November 5, 2026) - Galiano Gold Inc. (TSX: GAU) (NYSE American: GAU) ("Galiano" or the "Company")is pleased to report its third quarter ("Q3") 2026 operating and financial results. Galiano's operating asset is its 90% interest in the Asanko Gold Mine ("AGM") located in the Republic of Ghana, West Africa.

"Our team delivered a strong third quarter producing 40,922 gold ounces, improving all-in sustaining costs and achieving positive operating cash flows of $57 million. These results reflect the strength of our operations and position us well to achieve our full-year 2026 production and cost guidance," said Matt Badylak, Galiano's President and Chief Executive Officer.

"The recent extension of key mining licenses combined with a robust balance sheet provides a solid foundation to continue investing in the long-term growth of the AGM. During the quarter, we advanced several strategic initiatives, including resource definition drilling at Esaase, activities supporting the future underground development of Abore and accelerated waste stripping at Nkran Cut 3. These investments are designed to enhance operational flexibility and unlock additional value across the mine plan. We remain firmly on track to deliver our updated mineral reserves and mineral resources estimates in the first quarter of 2027. With our hedge book set to expire by year-end, we anticipate a significant inflection point in cash flow generation in 2027, positioning the Company to create sustainable long-term value."

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

Q3 2026 AND YEAR-TO-DATE HIGHLIGHTS

Safety

No lost-time injuries ("LTI") nor total recordable injuries (inclusive of LTIs) ("TRI") recorded during Q3 2026. The AGM has achieved 13.4 million hours worked without an LTI, equating to 548 accident-free days, as of September 30, 2026.

12‐month rolling LTI and TRI frequency rates as of September 30, 2026 of 0.00 and 0.00 per million hours worked, respectively.

Financial

Cash and cash equivalents of $86.8 million and restricted cash of $25.9 million as of September 30, 2026 and no debt.

Generated cash flow from operating activities of $57.0 million during Q3 2026.

Income from mine operations of $72.2 million during Q3 2026.

Net income of $0.15 and adjusted net income[1]of $0.09 per common share (basic) during Q3 2026.

Earnings before interest, taxes, depreciation, and amortization ("EBITDA1") of $82.3 million and Adjusted EBITDA1of $93.3 million during Q3 2026.

Settled 22,500 ounces of gold hedges during Q3 2026. The Company has 15,000 ounces remaining under its hedging program that are expected to be settled in Q4 2026.

Mining Operations

Mined 1.7 million tonnes ("Mt") of ore at an average mined grade of 1.0 grams per tonne ("g/t") gold with a strip ratio of 4.4:1 during Q3 2026. Approximately 82% of mined ore was from the Abore deposit.

Processing

1.4 Mt of ore was milled at an average feed grade of 1.0 g/t, with metallurgical recovery averaging 90% during Q3 2026. Mill availability during the quarter was 92%.

Produced 40,922 ounces of gold during the quarter, 19% higher than Q2 2026, and 110,060 ounces of gold year-to-date.

The Company maintains its full-year 2026 production guidance of between 140,000 ounces and 160,000 ounces of gold.

Sold 40,403 ounces of gold during the quarter and 109,831 ounces of gold year-to-date at average prices of $4,247 per ounce ("/oz") and $4,497/oz, respectively, excluding the effect of realized losses on gold hedging instruments.

Nkran Cut 3 Development

Development of Cut 3 at the Nkran deposit accelerated during the quarter with 8.5 Mt of waste mined, an increase of 40% from Q2 2026. Additional mining equipment was mobilized during Q3 2026, leading to increased mining rates at Nkran that are anticipated to further increase in Q4 2026.

Capitalized development pre-stripping costs at Nkran Cut 3 of $24.6 million during Q3 2026 and $60.2 million year-to-date.

Costs

All-in sustaining costs1("AISC") of $2,346/oz for the quarter, a 5% decrease compared to Q2 2026 primarily resulting from higher gold ounces sold.

Year-to-date AISC1of $2,391/oz. The Company maintains its full-year 2026 AISC1guidance of between $2,300/oz and $2,600/oz.

Mining Lease Extension

The Abirem and Miradani mining leases were extended by 15 years and 17 years through 2041 and 2043, respectively. The leases host the Nkran, Adubiaso, and Miradani North deposits, as well as the AGM's processing facility. Securing these mining lease extensions lays the foundation for operational certainty and production growth at the AGM.

Exploration

The Esaase conversion drilling program was completed during Q3 2026 with approximately 32,900 meters ("m") for the program. Data review and modelling are underway, and results of this work are expected to be included in the AGM's 2027 mineral reserves and mineral resources update planned for Q1 2027.

During the quarter, approximately 4,500m were drilled at Abore and year-to-date drilling stands at approximately 20,600m of a planned 32,000m program. The objective of this program is to test extensions of mineralization 200m below Abore's existing underground mineral resource.

Secured the necessary regulatory approvals in Ghana to develop an underground exploration adit at the Abore deposit. The Company has commenced a contract tender and mining contractor selection process.

Conference Call and Webcast

Management will host a conference call and webcast to review and discuss the results of Q3 2026 at 10:30am ET (7:30am PT or 8:30am Vancouver time) on Friday, November 6, 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/15027https://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/15027 |

SUMMARY OF QUARTERLY OPERATIONAL AND FINANCIAL HIGHLIGHTS

| | | Q3 2026 | | Q2 2026 | | Q1 2026 | | Q4 2025 | | Q3 2025 | | | | Health and Safety | | | | | | | | | | | | | LTIs(1) | - | | - | | - | | - | | - | | | | TRIs(1) | - | | - | | - | | - | | 1 | | | | 12-month rolling LTI frequency rate | 0.00 | | 0.00 | | 0.00 | | 0.24 | | 0.39 | | | | 12-month rolling TRI frequency rate | 0.00 | | 0.11 | | 0.11 | | 0.48 | | 0.90 | | | | Mining Operations | | | | | | | | | | | | | Ore mined ('000t) | 1,712 | | 1,751 | | 1,521 | | 1,575 | | 1,605 | | | | Waste mined ('000t) | 7,579 | | 6,529 | | 9,084 | | 8,337 | | 9,067 | | | | Strip ratio (waste-to-ore) | 4.4 | | 3.7 | | 6.0 | | 5.3 | | 5.7 | | | | Average gold grade mined (g/t) | 1.0 | | 0.9 | | 0.9 | | 0.9 | | 0.8 | | | | Mining costs ($/t mined) | 4.53 | | 4.56 | | 3.73 | | 3.94 | | 3.38 | | | | Ore tonnes trucked ('000 t) | 1,573 | | 1,192 | | 1,163 | | 1,069 | | 1,288 | | | | Ore transportation costs ($/t trucked) | 4.65 | | 4.96 | | 4.42 | | 4.45 | | 4.35 | | | | Processing | | | | | | | | | | | | | Ore milled ('000t) | 1,396 | | 1,255 | | 1,305 | | 1,369 | | 1,283 | | | | Average mill head grade (g/t) | 1.0 | | 0.9 | | 0.9 | | 1.0 | | 0.9 | | | | Average recovery rate (%) | 90 | | 90 | | 90 | | 91 | | 91 | | | | Processing costs ($/t milled) | 15.40 | | 14.05 | | 12.79 | | 12.13 | | 12.57 | | | | General and administrative costs ($/t milled) | 7.97 | | 8.48 | | 7.04 | | 7.58 | | 6.62 | | | | Gold produced (oz) | 40,922 | | 34,391 | | 34,747 | | 37,574 | | 32,533 | | | | Development Stripping - Nkran Cut 3 | | | | | | | | | | | | | Waste mined ('000t) | 8,536 | | 6,113 | | 4,707 | | 4,324 | | 3,426 | | | | Mining costs ($/t mined) | 2.87 | | 3.58 | | 2.85 | | 2.48 | | 3.29 | | | | Development capitalized stripping costs ($m) | 24.6 | | 22.1 | | 13.5 | | 11.1 | | 12.0 | | | | Capital Expenditures | | | | | | | | | | | | | Sustaining capital ($m) | 5.0 | | 2.0 | | 3.6 | | 4.4 | | 4.2 | | | | Development capital ($m) | 2.2 | | 2.4 | | 3.4 | | 0.7 | | 2.9 | | | | Sustaining capitalized stripping costs ($m) | 4.5 | | 8.5 | | 6.4 | | 11.7 | | 11.9 | | | | Financial, Costs and Cash Flow | | | | | | | | | | | | | Revenue ($m) | 172.1 | | 156.6 | | 166.5 | | 159.7 | | 114.2 | | | | Gold sold (oz) | 40,403 | | 35,247 | | 34,181 | | 38,276 | | 32,577 | | | | Average gold sales price - gross ($/oz)(2) | 4,247 | | 4,432 | | 4,857 | | 4,164 | | 3,501 | | | | Average gold sales price - net ($/oz)(3) | 3,557 | | 3,853 | | 4,122 | | 3,744 | | 3,099 | | | | AISC ($/oz sold)(4) | 2,346 | | 2,473 | | 2,361 | | 2,033 | | 2,283 | | | | Income from mine operations ($m) | 72.2 | | 92.8 | | 72.5 | | 51.1 | | 10.0 | | | | Adjusted net income (loss) ($m)(4) | 23.2 | | 23.1 | | 29.5 | | 40.0 | | (2.8) | | | | Adjusted EBITDA ($m)(4) | 93.3 | | 78.5 | | 93.9 | | 85.5 | | 40.2 | | | | Cash flow from operating activities ($m) | 57.0 | | 6.0 | | 46.7 | | 55.8 | | 40.4 | |

(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.

Q3 2026 Operational Analysis for the Asanko Gold Mine

Mining

Mined 1.4 Mt of ore at the Abore deposit at an average grade of 1.1 g/t gold and a strip ratio of 3.4:1. Mined grades at Abore during Q3 2026 increased by 9% compared to Q2 2026, as higher grades at deeper elevations began to be mined.

Mined 0.3 Mt of ore at the Esaase deposit at an average grade of 0.8 g/t gold and a strip ratio of 10.9:1. Mined ore tonnes and grade were largely consistent with Q2 2026.

Mining costs per tonne at Abore and Esaase averaged $4.53 per tonne ("/t") in Q3 2026, consistent with Q2 2026.

Processing

The AGM produced 40,922 ounces of gold during Q3 2026, a 19% increase from Q2 2026 gold production, as the processing plant milled 1.4 Mt of ore at an average grade of 1.0 g/t gold with metallurgical recovery averaging 90%.

Mill throughput in Q3 2026 was 11% higher than Q2 2026 as there was less plant downtime in the current quarter. Consequently, mill availability improved from 90% in Q2 2026 to 92% during Q3 2026.

Approximately 80% of the mill feed was sourced from mined ore at Abore, with the remainder of mill feed primarily from the Esaase deposit.

Processing costs per tonne for Q3 2026 was $15.40, a 10% increase from Q2 2026. The increase in processing costs per tonne was largely driven by replacement of mill liners and maintenance on the primary crusher and ball mill.

Costs

AISC1for Q3 2026 was $2,346/oz, compared to $2,473/oz in Q2 2026. The 5% decrease in AlSC1resulted from more gold ounces sold, partly offset by higher sustaining capital expenditures related to a tailings facility expansion.

For the nine months ended September 30, 2026, reported AISC1was $2,391/oz, tracking in line with full-year 2026 cost guidance of between $2,300/oz and $2,600/oz.

Nkran Cut 3

Nkran Cut 3 waste stripping accelerated during the quarter with 8.5 Mt of waste rock mined, an increase of 40% from Q2 2026, which was supported by the mobilization of additional mining equipment.

Mining costs per tonne at Nkran was $2.87 for Q3 2026, compared to $3.58/t in Q2 2026. The decrease in mining unit costs was driven by higher tonnes mined.

Nkran Cut 3 development capitalized stripping costs totaled $24.6 million during Q3 2026 and $60.2 million for the nine months ended September 30, 2026.

Capital Expenditures

Sustaining capital expenditures totaled $5.0 million during Q3 2026, $3.0 million higher than Q2 2026. The increase in sustaining capital expenditures in Q3 2026 related to advancing the construction of a tailings facility expansion.

Development capital expenditures during Q3 2026 totaled $2.2 million, consistent with Q2 2026. Development capital expenditures in Q3 2026 related mainly to costs of relocating villages near the AGM's operations.

Exploration

An infill drilling program at Esaase was completed during Q3 2026. This program was designed to convert existing open pit mineral resources from the inferred to indicated category and has the potential to significantly increase Esaase's mineral reserves to support planning of potential open pit expansions. 16,732m of drilling was completed in the quarter, bringing the program total to approximately 32,900m. Data review and modelling are underway, and results of this work are expected to be included in the AGM's 2027 mineral reserves and mineral resources update planned for Q1 2027.

A drilling program at Abore, designed to expand the underground mineral resource through step out drilling to at least 200m below the maiden underground mineral resource, resumed in late Q3 2026. The Abore drilling campaign was previously paused to prioritize the Esaase conversion drilling program. During the quarter, 4,445m were drilled at Abore and year-to-date drilling stands at approximately 20,600m of a planned 32,000m program. Completion of this underground drilling program is expected in Q4 2026.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

| | | Three months ended September 30, | | | | (All amounts in 000's of US dollars, except per share amounts) | 2026 | 2025 | | | Revenue | 172,138 | 114,197 | | | Income from mine operations | 72,246 | 9,977 | | | Net income (loss) attributable to common shareholders | 40,505 | (38,636) | | | Net income (loss) per share attributable to common shareholders - basic | 0.15 | (0.15) | | | Adjusted net income (loss) attributable to common shareholders(1) | 23,216 | (2,770) | | | Adjusted net income (loss) per share attributable to common shareholders(1) | 0.09 | (0.01) | | | EBITDA(1) | 82,259 | 12,213 | | | Adjusted EBITDA(1) | 93,300 | 40,213 | | | Cash and cash equivalents | 86,822 | 116,440 | | | Restricted cash | 25,922 | - | | | Cash flow from operating activities | 56,950 | 40,449 |

The Company sold 40,403 ounces of gold in Q3 2026 at an average gold sales price of $4,247/oz, before the effect of realized hedging losses, generating gross revenue of $172.1 million. The increase in revenue from the comparative period reflected a 24% increase in gold ounces sold and a 21% increase in average gold sales price. The average gold sales price, including the effect of realized gold hedging losses, for Q3 2026 amounted to $3,557/oz.

Income from mine operations for Q3 2026 totaled $72.2 million, compared to $10.0 million in Q3 2025. The increase was primarily due to higher revenue as described above. This was partly offset by higher royalties expense in Q3 2026 resulting from higher gold revenue and the introduction of a sliding scale royalty by the Government of Ghana, which took effect on March 10, 2026.

The Company reported net income attributable to common shareholders of $40.5 million in Q3 2026, or $0.15 per common share, compared to net loss of $38.6 million, or a loss of $0.15 per common share, in Q3 2025. The increase in net income was mainly due to higher recorded revenues, partly offset by higher royalties.

Reported Adjusted EBITDA1of $93.3 million in Q3 2026, compared to $40.2 million in Q3 2025. The increase in Adjusted EBITDA1was driven by higher revenues, partly offset by higher royalties, as described above.

The Company generated $57.0 million of cash flow from operating activities during Q3 2026, compared to $40.4 million in Q3 2025. The increase resulted from higher average gold sales prices and more gold ounces sold, partly offset by higher royalties expense and income taxes paid.

As of September 30, 2026, the Company maintained a strong cash position of $112.7 million, including cash and cash equivalents and restricted cash, and no debt.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

| | | Nine months ended September 30, | | | | | | (All amounts in 000's of US dollars, except per share amounts) | 2026 | 2025 | | | | | Revenue | 495,230 | | 288,091 | | | | Income from mine operations | 237,497 | | 14,874 | | | | Net income (loss) attributable to common shareholders | 135,073 | | (46,116) | | | | Net income (loss) per share attributable to common shareholders - basic | 0.52 | | (0.18) | | | | Adjusted net income attributable to common shareholders(1) | 75,817 | | 18,570 | | | | Adjusted net income per share attributable to common shareholders(1) | 0.29 | | 0.07 | | | | EBITDA(1) | 265,664 | | 38,178 | | | | Adjusted EBITDA(1) | 265,688 | | 102,959 | | | | Cash and cash equivalents | 86,822 | | 116,440 | | | | Restricted cash | 25,922 | | - | | | | Cash flow from operating activities, before legal restriction | 135,565 | | 102,155 | |

The Company sold 109,831 ounces of gold during the nine months ended September 30, 2026 at an average gold sales price of $4,497/oz, before the effect of realized hedging losses, generating gross revenue of $495.2 million. The increase in revenue from the comparative period was due to a 39% increase in average gold sales prices and a 24% increase in gold ounces sold. The average gold sales price, including the effect of realized gold hedging losses, for the nine months ended September 30, 2026, amounted to $3,828/oz.

Income from mine operations for the nine months ended September 30, 2026, totaled $237.5 million, compared to $14.9 million in the comparative period of 2025. The increase was mainly due to higher revenue as described above. This was partly offset by higher royalties expense in 2026 resulting from higher gold revenue and the introduction of a sliding scale royalty by the Government of Ghana.

The Company reported net income attributable to common shareholders of $135.1 million for the nine months ended September 30, 2026, or $0.52 per common share, compared to a net loss of $46.1 million, or a loss of $0.18 per common share, in the comparative period of 2025. The increase in net income was largely driven by higher recorded revenues, partly offset by higher royalties and income taxes.

Reported Adjusted EBITDA1of $265.7 million during the nine months ended September 30, 2026, compared to $103.0 million in the comparative period of 2025. The increase in Adjusted EBITDA1was driven by higher revenues, partly offset by higher royalties, as described above.

The Company generated $135.6 million of cash flow from operating activities, before legal restrictions, during the nine months ended September 30, 2026, compared to $102.2 million in the comparative period of 2025. The increase in operating cash flow benefited from higher average gold sales prices and gold ounces sold, partly offset by higher royalties and income taxes paid.

| 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 and nine months ended September 30, 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 accounting standards. 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 accounting standards.