Vancouver, British Columbia, May 7, 2020 – Galiano Gold Inc. (“Galiano” or the “Company”) (TSX, NYSE American: GAU) (formerly Asanko Gold Inc.) reports first quarter (“Q1”) 2020 operating and financial results for 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.
Q1 2020 Asanko Gold Mine Highlights (100% basis)
• Record quarterly gold production of 66,333 ounces at all-in sustaining cost1 (“AISC”) of $805/oz
• The AGM delivered its best financial performance since commercial production was announced in April 2016.
• Gold sales of 67,820 ounces at an average realized price of $1,542/oz, generating record gold sales proceeds of $104.6 million
• Strong cash flow generation with operating cash flow of $37.0 million, and free cash flow1 of $27.0 million
• As at March 31, 2020, the JV had cash of $55.6 million, $9.6 million in gold receivables and $0.5 million in gold on hand
• Revolving credit facility of $30 million drawn down as a proactive measure in response to current economic uncertainty
• Filed 43-101 technical report with updated Mineral Resource and Mineral Reserve Estimate
• Precautionary measures in place in response to the COVID-19 global pandemic
Q1 2020 Quarterly Highlights for Galiano Gold Inc.
• Net income after tax of $21.8 million and Adjusted EBITDA1 of $21.9 million
• At March 31, 2020, Galiano had cash and receivables of $53.7 million
• Continued returning capital to shareholders through the normal course issuer bid (“NCIB”) program with 2,431,409 common shares repurchased and cancelled for $2.0 million
• Appointed Paul N. Wright as Chairman of the Board of Directors as of May 5, 2020
• Appointed Judith Mosely to the Board of Directors as of January 1, 2020
• Appointed Todd Romaine as Executive Vice President, Sustainability as of May 1, 2020
• Appointed Paul Klipfel as Senior Vice President, Exploration as of April 20, 2020
“We delivered an exceptional quarter in the context of a very challenging global backdrop,” said Greg McCunn, Chief Executive Officer. “With record production and gold sales proceeds we continued to execute
2
on our strategy of generating free cash flow at the Asanko Gold Mine and returning capital with distributions to the joint venture partners totalling $45 million during the quarter.”
“During the quarter the team delivered on an important milestone with the completion of the life of mine plan and the updated Mineral Resource and Mineral Reserve estimate for the Asanko Gold Mine providing a baseline on which we are working to optimize. Included in the optimization is our cost initiative to drive down our all-in sustaining costs by $100/oz. Another key focus area where we see potential to drive value is within exploration and I am pleased to announce that Paul Klipfel has joined us as our newly appointed Vice President, Exploration. The focus on exploration in the short-term is on replacing depletion and during 2020 we have a $10 million program underway with 4 drill rigs currently turning on-site. We expect to have approximately 36,000 metres drilled by early August at near-mine targets which will form our updated reserve and resource estimate for year-end. We expect to see a sustained exploration effort in the medium term.
“During the quarter and subsequent to quarter-end we have also undertaken some changes to the board with the addition of Judith Mosely and our newly appointed Chairman Paul Wright. We have also recently appointed Todd Romaine as our EVP, Sustainability. With sustainability a key focus area, we are pleased to enhance our capability across the Environmental, Social and Governance spheres. We also received shareholder support at our Annual General and Special Meeting to change the Company’s name and effective May 5, 2020 we began trading as Galiano Gold. This provides us a clear distinction between the corporate level entity and the Asanko Gold Mine whilst maintaining our vision to create a sustainable business capable of long-term value creation for all our stakeholders.”
3
Asanko Gold Mine - Summary of Q1 2020 Operational and Financial Results (100%)
AGM (100% Basis before any impairment adjustments) Q1 2020
Q4 2019 Q1 2019
Ore mined (‘000t) 1,911 1,405 1,505
Waste mined (‘000t) 7,051 4,956 6,584
Total mined (‘000t) 8,962 6,361 8,089
Strip ratio (W:O) 3.7 3.5 4.4
Average gold grade mined (g/t) 1.6 1.6 1.4
Mining cost2 ($/t mined) 3.89 4.86 4.48
Ore milled (‘000t) 1,400 1,460 1,224
Average mill head grade (g/t) 1.6 1.5 1.6
Average recovery rate (%) 94 94 93
Processing cost ($/t treated) 11.13 10.83 11.93
Gold production (oz) 66,333 66,112 60,425
Gold sales (oz) 67,820 66,095 53,421
Average realized gold price ($/oz) 1,542 1,465 1,292
Operating cash costs1 ($/oz) 599 790 878
Total cash costs1 ($/oz) 676 863 943
All-in sustaining costs1 ($/oz) 805 969 1,123
All-in sustaining margin1 ($/oz) 737 496 169
All-in sustaining margin1 ($m) 50.0 32.8 9.0
Revenue ($m) 104.8 97.1 67.0
Income (loss) from mine operations ($m) 48.4 9.1 (11.9)
Cash provided by operating activities 37.0 45.4 8.8

2 For the three months ended March 31, 2019, mining cost per tonne excluded a provision for a one-time contract termination fee.
• During the quarter, the Company aligned its health and safety reporting standards with those of the International Council on Mining & Metals (“ICMM”). During Q1, there was one lost time injury (“LTI”) and four total recordable injuries (“TRI”) reported resulting in an LTI frequency rate (“LTIFR”) of 0.51 per million employee hours worked and a TRI frequency rate (“TRIFR”) of 2.02 per million employee hours worked.
• Record gold production of 66,333 ounces during the three months ended March 31, 2020
• During Q1 2020, the AGM sold 67,820 ounces of gold at an average realized gold price of $1,542/oz. Revenues totalled $104.8 million, an increase of $37.8 million from Q1 2019. The increase in sales proceeds was a function of higher sales volumes and higher averaged realized gold prices in Q1 2020.
• The AGM incurred operating cash costs per ounce1, total cash costs per ounce1 and AISC of $599, $676 and $805/oz, respectively, in Q1 2020. The reduction in total cash costs per ounce and AISC from Q1 2019 was primarily due to the impact of higher gold sales volumes which had the effect of decreasing fixed costs on a per unit basis, a reduction in ore transportation costs associated with trucking ore from Esaase to the process plant and a $41/oz decrease in deferred stripping costs.
4
• Total cost of sales (including depreciation and depletion and royalties) amounted to $56.4 million in Q1 2020, a decrease of $22.5 million from Q1 2019. The decrease in cost of sales was primarily due to a reduction in depreciation and depletion expense following the impairment recorded in Q4 2019 which had the effect of lowering the mineral properties, plant and equipment (“MPP&E”) depreciable asset cost base. In addition, operating cash costs decreased as a result of a reduction in NRV adjustments to stockpiles. Cost of sales for Q1 2019 also included an accrual for a one-time mining contractor services agreement termination fee. These factors were partly offset by an increase in gold ounces sold in Q1 2020 compared to Q1 2019.
• Strong cash flow generation with operating cash flow of $37.0 million ($56.5 million before working capital adjustments), and free cash flow of $27.0 million. This compares to $8.8 million of operating cash flow and negative $5.2 million of free cash flow during Q1 2019. The improvement in free cash flow was mainly from the increase in income from operations partly offset by an unfavorable change in non-cash working capital.
• Working capital investments during the quarter included investments in strategic supply chain interventions with respect to the ongoing COVID-19 pandemic bolstering supplies of key reagents, critical spares and diesel.
• As at March 31, 2020, the JV had cash of $55.6 million (including the funds from the fully drawn $30.0 million revolving line of credit), $9.6 million in receivables from gold sales and $0.5 million in gold on hand.
Galiano Gold Inc. – Summary Q1 2020 Financial Results Consolidated Q1 2020
Q4 2019 Q1 2019
Net income (loss) ($m) 21.8 (21.2) (5.3)
Net income (loss) per share $0.10 ($0.09) ($0.02)
Adjusted net income (loss)1 ($m) 21.8 0.9 (5.3)
Adjusted net income (loss) per share1 $0.10 $0.00 ($0.02)
Adjusted EBITDA1 ($m) 21.9 12.6 1.2

• The Company reported net income after tax of $21.8 million in Q1 2020 compared to a net loss of $5.3 million in Q1 2019. The improvement in earnings during Q1 2020 was predominantly the result of an increase in the Company’s 45% interest in the net earnings of the JV which totaled $20.5 million for the quarter.
• The Company continued to return capital to shareholders through its normal course issuer bid (“NCIB”) program. During Q1 2020, the Company repurchased and cancelled a total of 2,431,409 common shares under the NCIB program for $2.0 million (average acquisition price of $0.83 per share).
• During the quarter, the Company received the $22.5 million in distributions from the JV. These payments were recorded as redemptions of the previously recognized preference shares.
• As at March 31, 2020, the Company had cash on hand of $50.6 million and $3.1 million in receivables for a gross liquidity position of $53.7 million and no debt.
• Adjusted EBITDA1 for Q1 2020 amounted to $21.9 million, compared to $1.2 million in Q1 2019. The increase in Adjusted EBITDA1 was primarily a result of the increase in the AGM’s net earnings.

• Cash used in operating activities in Q1 2020 was $0.8 million, compared to cash used in operating activities of $1.6 million in Q1 2019. The decrease in cash used in operations was partly due cash inflows associated with working capital changes during Q1 2020, along with a reduction in cash general and administrative expenses.
2020 Outlook
The Asanko Gold Mine is on track to meet 2020 guidance of 225,000 – 245,000 ounces at AISC of $1,000 – $1,100/oz. It is expected that AISC will increase in Q2 and Q3 2020 as construction of the next lift on the Tailings Storage Facility is completed.
Guidance Q1 2020 (Actual) FY 2020 (Forecast)
Gold Production (oz)
66,333
225,000 – 245,000
AISC ($/oz)
805
1,000 – 1,100
Appointment of Todd Romaine as Executive Vice President, Sustainability
The Company is pleased to announce that Todd Romaine has been appointed Executive Vice President of Sustainability. Todd has over 20 years’ experience in the environmental, social and community aspects of the extractive sector as well as public and aboriginal governments. Most recently he worked as the Chief Sustainability Officer for Danakali Limited, an Australian junior potash mining company that is developing a 200-year Sulphate of Potash deposit in Eritrea. Prior to this role, Todd was the Vice President, Corporate Social Responsibility & Government Relations at Nevsun Resources Ltd, a Canadian mid-tier mining company and played a central role developing leading edge CSR initiatives to establish social license and responsible operations in challenging jurisdictions. Previously, he worked in senior management roles at Enbridge Pipelines Inc., Inuvialuit Regional Corporation and the Government of Nunavut. Todd holds designations with the Canadian Institute of Planners, International Right of Way Association and has a Master’s of International Relations, a Master’s of Leadership, a Bachelor of Science in Environmental Planning, and a Bachelor of Arts in Environmental Studies.
Appointment of Paul Klipfel as Senior Vice President, Exploration The Company is pleased to announce that Paul Klipfel has been appointed Vice President in Exploration. Paul has 40 years of exploration experience in a wide variety of geologic settings and deposit types. Most of his work for the past 13 years has been in Ghana and other countries of West Africa. He was an original mapper on the Esaase project for Keegan Resources and has been a consultant to many companies over the past 17 years in West Africa, North and South America, Australia, and Asia. He also served as President for Abzu Gold and as Chief Geologist / COO for Ashanti Gold. Dr. Klipfel holds a Ph.D. in Economic Geology from Colorado School of Mines and M.S. degrees in Mineral Economics from Colorado School of Mines and Geology from University of Idaho.
COVID-19 Update
The JV has taken precautionary measures in response to the COVID-19 global pandemic to protect the health and safety of its employees and the operating and financial well-being of the AGM. There are no known or presumptive cases of COVID-19 with employees of Galiano or at the AGM. The Company’s offices in Vancouver, Johannesburg and Accra are observing local regulations. The AGM continues to operate with strict hygiene, monitoring and social distancing protocols in place in accordance with the Ghanaian Ministry of Health guidelines. The AGM has continued to build its supply chain and now holds eight to nine months of key reagents, consumables and critical spares and three months of diesel supply.

see & read more on
https://s24.q4cdn.com/325379252/files/doc_financials/2020/q1/20200507_NR_Financial-Q1-Results_FINAL.pdf