(All dollar amounts are United States dollars unless otherwise stated)

VANCOUVER, BC, March 29, 2022 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) reports fourth quarter ("Q4") and full year 2021 operating and financial results for the Company and the Asanko Gold Mine ("AGM"), located in Ghana, West Africa. The AGM is a 50:50 joint venture ("JV") with Gold Fields Ltd (JSE, NYSE: GFI) which is managed and operated by Galiano. All financial information contained in this release is reported in US$.

Asanko Gold Mine Key Metrics (100% basis):

Production performance: Annual gold production of 210,241 ounces, below revised 2021 production guidance of 215,000-220,000 ounces as mined grades were lower than plan. Fourth quarter production of 50,278 ounces.
Cost performance: Total cash costs per ounce1 of $1,177 and all-in sustaining costs1 ("AISC") of $1,431/oz during the year, in line with revised cost guidance (as of Q2 2021) of $1,350-$1,450/oz. Total cash costs per ounce1 and AISC1 for Q4 2021 were $1,257 and $1,539, respectively.
Financial performance: Reported gold revenue of $381.7 million generated from 216,076 gold ounces sold at an average realized price of $1,767/oz, and Adjusted EBITDA1 of $76.7 million during the year.
Impairment of mineral properties: The AGM recorded a $153.2 million impairment charge against its mineral properties, plant and equipment and, accordingly, the JV reported a net loss for the year totaling $114.5 million and adjusted net income1 of $38.7 million.
2022 production guidance: While technical work to support a Mineral Reserve at the AGM is ongoing, mining will continue at Akwasiso Cut 3 and Esaase Cut 3 until their depletion (expected in Q2 2022). Following this, the process plant is expected to continue to operate at full capacity (5.8Mtpa) processing a portion of the existing 9.5Mt of stockpiles (as outlined in the press release titled "Galiano Gold Provides Updated Mineral Resource Estimate and an Update on Mining Operations" dated March 29, 2022). For 2022, the AGM is targeting 100,000-120,000 ounces of gold production.
Focus on exploration: During the year, drilling was completed at Miradani in support of its maiden Mineral Resource estimate. Additionally, drilling at Dynamite Hill, and near-mine targets at Kaniago West and Midras South all showed positive exploration results.
Culture of safety: Strong safety performance with 1 lost-time injury ("LTI") and 2 total recordable injuries ("TRI") reported during the year, resulting in 12-month rolling LTI and TRI frequency rates of 0.10 and 0.21 per million employee hours worked, respectively.
Stable liquidity: $49.2 million in cash, $13.6 million in gold sales receivables and $3.2 million in gold on hand and no debt as of December 31, 2021.
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1 See "8. Non-IFRS measures"

Galiano Gold Highlights:

Stable balance sheet: Cash on hand of $53.5 million and $7.4 million in receivables as at December 31, 2021, while remaining debt-free.
Earnings: Reported a net loss of $68.9 million or $0.31 per share during the year due to impairments recorded on the Company's equity investment in the AGM JV and the recognition of the Company's share of the JV's net loss, while adjusted net income1 and Adjusted EBITDA1 for the year were $7.7 million and $28.5 million, respectively.
Management changes and additions to Board of Directors: During the year, Matt Badylak, the Company's former COO, was appointed to the position of CEO and also joined the Company's Board of Directors. The Company further augmented the Board of Directors through the addition of Dawn Moss as a director of the Company. On March 23, 2022, the Company announced that Fausto Di Trapani had stepped down as CFO of the Company to pursue another opportunity. Following Mr. Di Trapani's departure, the Company intends to appoint Matt Freeman, current SVP Finance, as its new CFO, in line with the Company's succession plan.
Asanko Gold Mine - Summary of Q4 2021 Operational and Financial Results (100% basis)

Asanko Gold Mine (100% basis)
Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020
Ore mined ('000t) 1,623 1,464 1,333 1,841 1,964

Waste mined ('000t) 8,752 10,017 9,073 9,552 11,773
Total mined ('000t) 10,375 11,481 10,406 11,393 13,737
Strip ratio (W:O) 5.4 6.8 6.8 5.2 6.0
Average gold grade mined (g/t) 1.2 1.3 1.2 1.3 1.4
Mining cost ($/t mined) 3.75 3.28 3.03 3.31 3.20

Ore transportation from Esaase ('000 t) 1,264 1,272 1,261 870 622
Ore transportation cost ($/t trucked) 6.13 5.88 6.20 6.48 7.15
Ore milled ('000t) 1,472 1,542 1,475 1,444 1,438

Average mill head grade (g/t) 1.2 1.1 1.1 1.4 1.5
Average recovery rate (%) 91 90 94 95 95

Processing cost ($/t treated) 10.07 9.68 9.87 10.31 10.46

Gold production (oz) 50,278 49,543 50,421 59,999 65,571

Gold sales (oz) 51,368 48,435 53,348 62,925 60,655

Average realized gold price ($/oz) 1,771 1,758 1,782 1,757 1,828

Operating cash costs1 ($/oz) 1,168 1,185 1,147 901 801
Total cash costs1 ($/oz) 1,257 1,273 1,236 989 892

All-in sustaining costs1 ($/oz) 1,539 1,598 1,497 1,158 1,179
All-in sustaining margin1 ($/oz) 232 160 285 599 649
All-in sustaining margin1 ($m) 11.9 7.8 15.2 37.7 39.4

Revenue ($m) 91.1 85.3 95.2 110.8 111.1

(Loss) income from mine operations ($m) (8.9) 13.0 18.1 35.9 46.3

Cash provided by operating activities ($m) 14.0 26.5 10.8 35.4 48.0

Free cash flow1 ($m) (3.6) 11.9 (2.9) 20.5 21.5

The AGM produced 50,278 ounces of gold during the quarter, as the processing plant achieved milling throughput of 1.5Mt of ore processed at a grade of 1.2g/t.
Produced 210,241 ounces of gold in FY 2021 below the lower end of 2021 production guidance of 215,000?220,000 ounces as mined grades were lower than plan.
Sold 51,368 ounces of gold in Q4 2021 at an average realized gold price of $1,771/oz for total revenue of $91.1 million (including $0.1 million of by-product silver revenue), a decrease of $20.0 million from Q4 2020. The decrease in revenue quarter-on-quarter was a function of a 15% reduction in sales volumes and a 3% decrease in realized gold prices in Q4 2021.
Total cost of sales (including depreciation and depletion and royalties) amounted to $100.0 million in Q4 2021, an increase of $35.2 million from Q4 2020. The increase in cost of sales was primarily due to a $26.9 million downward net realizable value ("NRV") adjustment on stockpile inventory due to lower expected recoveries from Esaase material and higher ore transportation costs, partly offset by fewer gold ounces sold.
Total cash costs per ounce1 were $1,257 in Q4 2021 compared to $892 in Q4 2020, a 41% increase. Cash costs were higher in Q4 2021 due in part to lower gold sales volumes which had the effect of increasing fixed production costs on a per unit basis, higher ore transportation costs, and general inflationary pressures on fuel and consumables and government levies. In addition, a negative NRV adjustment on stockpile inventory was recorded against production costs during the current period; whereas, during the prior period, a positive NRV adjustment on stockpile inventory was recorded resulting in a decrease in production costs of $7.1 million.
Loss from mine operations for Q4 2021 totaled $8.9 million compared to income from mine operations of $46.3 million in Q4 2020. The reduction in income from mine operations was due to a $20.0 million decrease in revenue and $35.2 million increase in cost of sales (as described above).
As the AGM was not in a position to declare mineral reserves at the balance sheet date as a result of current metallurgical uncertainty of the material mined from Esaase, an impairment charge of $153.2 million was recorded by the AGM in Q4 2021.
The AGM generated $14.0 million of cash flows from operating activities and free cash flow1 of negative $3.6 million during Q4 2021. This compares to $48.0 million of cash flows from operating activities and $21.5 million of free cash flow1 during Q4 2020. The decrease in free cash flow1 was primarily due to lower revenues from lower gold production and higher AISC1.
AISC1 for the FY 2021 was $1,431/oz, in line with revised guidance (as of Q2 2021) of $1,350-$1,450/oz, and was higher than FY 2020 AISC1 of $1,115/oz. AISC1 was higher in 2021 primarily due to fewer gold ounces sold, higher ore transportation costs at Esaase and inflationary cost pressures.
Reported Adjusted EBITDA1 of $76.7 million in FY 2021 compared to $169.0 million in FY 2020. The decrease in Adjusted EBITDA1 was primarily due to lower mine operating income in 2021.
Galiano Gold Inc. – Summary Q4 2021 Financial Results

Galiano Gold Inc. (consolidated)

Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020
Net (loss) income after tax ($m) (91.0) 4.1 5.0 13.0 17.7
Net (loss) income after tax per share (0.40) 0.02 0.02 0.06 0.08
Adjusted net (loss) income1 ($m) (14.5) 4.1 5.0 13.0 17.7
Adjusted net (loss) per share1 (0.06) 0.02 0.02 0.06 0.08
Adjusted EBITDA1 ($m) 0.3 6.2 6.1 15.8 20.4

The Company reported a net loss after tax of $91.0 million in Q4 2021 compared to net income after tax of $17.7 million in Q4 2020. The decrease in earnings during Q4 2021 was due to impairments recorded on the Company's equity investment in the AGM JV and the recognition of the Company's share of the JV's net loss.
Adjusted EBITDA1 for Q4 2021 amounted to $0.3 million, compared to $20.4 million in Q4 2020. The decrease in Adjusted EBITDA1 was primarily a result of the Company's share of the lower earnings from the AGM.
Cash used in operating activities in Q4 2021 was $2.3 million, compared to $1.6 million in Q4 2020. The increase in cash used in operations was primarily due to an increase in receivables related to the Company's JV service fee.
As at December 31, 2021, the Company had cash on hand of $53.5 million and $7.4 million in receivables for a gross liquidity position of $60.9 million and no debt.
2022 AGM Outlook

While technical work to support a Mineral Reserve at the AGM is ongoing, mining will continue at Akwasiso Cut 3 and Esaase Cut 3 until their depletion (expected in Q2 2022). Following this, the process plant is expected to continue to operate at full capacity (5.8Mtpa) processing a portion of the existing 9.5Mt of stockpiles (as outlined in the press release titled "Galiano Gold Provides Updated Mineral Resource Estimate and an Update on Mining Operations" dated March 29, 2022).

As a result of moving to process stockpiles in the second half of 2022, the AGM is targeting 100,000 to 120,000 ounces of gold production in 2022.

Sustaining capital expenditure is budgeted at $22 million, with approximately $8 million for Nkran and Esaase infill drilling and recovery test work and $7 million for a lift of the tailings storage facility.

Development capital is forecast at $8 million, primarily for preparation of mining of Abore expected to begin in 2023. In addition, $15 million is budgeted for exploration, mainly around the Greater Midras, Abore and Miradani trends and assessing the underground potential at Nkran.

At prevailing gold prices and the midpoint of 2022 production guidance, (110,000oz), management expects the AGM to generate positive operating cash flows of approximately $10 million from the processing of stockpiles in 2022, before non-recurring working capital items related to winding down mining operations and payment of the Company's service fee as operator of the JV (approximately $8 million) during Q2 2022.

This news release should be read in conjunction with Galiano's Management's Discussion and Analysis and the Audited Consolidated Annual Financial Statements for the years ended December 31, 2021 and 2020, which are available at www.galianogold.com and filed on SEDAR.

1 Non-IFRS Performance Measures
The Company has included certain non-IFRS performance measures in this press release. These non-IFRS performance measures do not have any standardized meaning. 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 the Non-IFRS Measures section of Galiano's Management's Discussion and Analysis for an explanation of these measures and reconciliations to the Company's and the JV's reported financial results in accordance with IFRS.

Operating Cash Costs per ounce and Total Cash Costs per ounce
Operating cash costs are reflective of the cost of production, adjusted for share-based payments and by-product revenue per ounce of gold sold. Total cash costs include production royalties of 5%. Excluded from operating cash costs are one-time severance charges and net realizable value adjustments on stockpile inventory resulting from lower expected gold recovery recorded in Q4 2021 as the magnitude of such adjustments are not indicative of current period costs.
All-in Sustaining Costs Per Gold Ounce
The Company has adopted the reporting of "all-in sustaining costs per gold ounce" ("AISC") as per the World Gold Council's guidance. AISC include total cash costs, corporate overhead expenses, sustaining capital expenditure, capitalized stripping costs, reclamation cost accretion and lease payments made to and interest expense on the AGM's mining and service contractors per ounce of gold sold.
Adjusted EBITDA
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 interest expense, interest income, amortization and depletion, and income taxes. Adjusted EBITDA adjusts EBITDA to exclude non-recurring items and to include the Company's interest in the adjusted EBITDA of the JV. Other companies and JV partners may calculate EBITDA and Adjusted EBITDA differently.
Free cash flow
The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use free cash flow to evaluate the JV's performance with respect to its operating cash flow capacity to meet non-discretionary outflows of cash. The presentation of free cash flow is not meant to be a substitute for the cash flow information presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. Free cash flow is calculated as cash flows from operating activities of the JV adjusted for cash flows associated with sustaining and non-sustaining capital expenditures and payments made to mining contractors for leases capitalized under IFRS 16.
Adjusted net (loss) income
The Company has included the non-IFRS performance measures of adjusted net (loss) income and adjusted net (loss) income per common share. Neither adjusted net (loss) income nor adjusted net (loss) income per share have any standardized meaning and are therefore unlikely to be comparable to other measures presented by other issuers. Adjusted net (loss) income excludes certain non-cash items from net income or net 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 our operations and the performance of our core business.
About Galiano Gold Inc.

Galiano is focused on creating a sustainable business capable of long-term value creation for its stakeholders through exploration and disciplined deployment of its financial resources. The Company currently operates and manages the Asanko Gold Mine, located in Ghana, West Africa which is jointly owned with Gold Fields Ltd. The Company is strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities. For more information, please visit www.galianogold.com