Gold Drilling Hits 2.6 g/t Over 48 Meters as Higher-Grade Intervals Reach 22.4 g/t

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) reported assay results from 14 diamond drill holes completed at the Southwest Deposit within its 100%-owned Clarence Stream Gold Project in New Brunswick, Canada, including an intersection of 2.6 g/t gold over 48.0 meters.

Clarence Stream extends over an approximately 65-kilometer trend of gold showings and anomalies. The project hosts an updated Mineral Resource Estimate containing 27.2 million tonnes grading 1.62 g/t gold for 1.42 million ounces of gold in the Indicated category and 28.5 million tonnes grading 1.40 g/t gold for 1.29 million ounces in the Inferred category. The supporting NI 43-101 technical report for the updated Mineral Resource Estimate will be filed on SEDAR+ within the prescribed filing period.

Hole BL-323 returned 2.6 g/t gold over 48.0 meters, including 21.3 g/t gold over 2.0 meters and 9.9 g/t gold over 3.0 meters. The hole also returned 0.7 g/t gold over 21.0 meters. Hole BL-322 intersected 1.7 g/t gold over 31.0 meters, including 4.3 g/t gold over 5.0 meters and 14.0 g/t gold over 1.0 meter.

The company said BL-322 and BL-323 intersected mineralized intervals that were broader than those represented by the current resource model in the area while remaining within the 2026 Mineral Resource pit shell. The drilling provided additional definition between previously drilled sections.

Approximately 100 meters west, holes BL-312 through BL-316 were drilled to infill an approximately 50-meter gap between two existing drill sections. Hole BL-316 returned 5.3 g/t gold over 5.0 meters, including 22.4 g/t gold over 1.0 meter, while Hole BL-313 intersected 3.1 g/t gold over 8.0 meters, including 18.1 g/t gold over 1.0 meter. Galway said the results provided additional information on the continuity of mineralization between the two previously drilled sections and further defined mineralized zones in that portion of the Southwest Deposit.

Farther west, holes BL-295 through BL-302 were drilled primarily to infill areas near the current pit shell boundary and the contact with the Sorrel Ridge Granite. According to the company, the drilling provided additional geological information where previous drilling was more widely spaced and helped better define the distribution of mineralization toward the western extent of the Southwest Deposit.

"These drill results continue to demonstrate the strength and continuity of the Southwest Deposit following our recently announced updated Mineral Resource Estimate," President and CEO Rob Hinchcliffe said. "The infill drilling successfully intersected broad zones of gold mineralization with several higher-grade intervals, further strengthening one of the project's most important deposits."

Gold Regains Momentum as Mining Economics Stay in Focus

As of August 6 at 6:08 a.m. EDT, JMBullion reported a gold spot price of US$4,283.44 per ounce, up US$28.60, or 0.67%. The source stated that "Gold spot price can fluctuate by the second, driven by investment supply and demand, and other factors."

Barron's reported on August 5 that gold had declined more than 5% in 2026 following a 65% gain in the prior year, while the metal had recently held above US$4,000 and posted a modest gain in July that ended a four-month losing streak. The report described gold and gold mining equities as hedges against periods of macroeconomic uncertainty, including elevated inflation and geopolitical tensions. BCA Research analysts Noah Weisberger and Rishabh Shah wrote that gold miners "are a valuable hedge against macro risks that would likely be damaging for equities."

The Barron's report also examined operating conditions across the gold mining sector. Chris Mancini, portfolio co-manager of the Gabelli Gold Fund, said, "Precious metals miners are generating substantial amounts of free cash flow given profit margins of over US$2,000 per ounce, and are returning this cash to shareholders through buybacks and dividends." Weisberger and Shah also wrote that "Capex is more disciplined, margins are high and rising," while describing the sector's exposure as largely independent of developments surrounding artificial intelligence.

Reuters reported on August 5 that gold had advanced for a fourth consecutive session and reached its highest level in seven weeks, supported by weaker oil prices, a softer U.S. dollar, and lower Treasury yields. IG market analyst Tony Sycamore said, "The sharp rally came on building optimism that a diplomatic breakthrough in the Middle East is close to being finalized." He said the resulting pressure on oil prices had reduced the perceived need for central banks to raise interest rates, providing support for gold.

The Reuters report also noted that expectations for a September U.S. rate increase had declined to 55% from 67% two days earlier. Benchmark U.S. 10-year Treasury yields had fallen, while the U.S. dollar index had also come under pressure. Reuters noted that gold had tended to perform better in lower interest-rate environments because the metal yielded no interest.

Red Cloud Maintained Buy Rating Following Clarence Stream Resource Update

Red Cloud Securities analyst Ron Stewart maintained a BUY rating on Galway Metals with a CA$2.20 per share target price in a July 14 research note following the updated Mineral Resource Estimate for the Clarence Stream project.

Stewart reported that the updated estimate increased the project's total gold resource to 2.7 million ounces, an increase of 450,000 ounces, or 20%, from the 2022 estimate. Indicated gold ounces increased 54% to 1.42 million ounces and represented 52% of the resource, compared with 41% previously. The updated estimate incorporated 342 holes totaling approximately 70,000 meters of drilling completed since the 2022 estimate.

According to Stewart, the average Indicated grade decreased to 1.62 grams per tonne gold from 2.3 grams per tonne gold as the gold price used for the estimate increased to US$3,250 per ounce from US$1,650 per ounce in 2022. He said the change more than doubled Indicated tonnage to 27.2 million tonnes.

The analyst reported that optimized open-pit shells contained 2.37 million ounces of gold, or 88% of the total resource, while underground resources contained the remaining 331,000 ounces. Indicated contained antimony doubled to approximately 19,500 tonnes, while the Inferred antimony resource increased to approximately 3,100 tonnes.

Stewart also cited metallurgical testing that produced antimony recoveries of up to approximately 84% in a flotation concentrate alongside gold extraction rates ranging from 85% to 98%.

"All three deposits remain open," Stewart wrote. He noted that drilling had extended mineralization at the North deposit by approximately 430 meters beyond the previous pit shell and that 12 high-priority geochemical and geophysical targets had been identified across the project's 65-kilometer trend.

Stewart also noted that Galway was reviewing proposals to contract a Preliminary Economic Assessment for Clarence Stream. He reiterated Red Cloud's BUY rating and CA$2.20 per share target price.

Four Drill Rigs, Metallurgical Work, and PEA Studies Advance at Clarence Stream

Galway's July corporate presentation identified several ongoing work programs and milestones at Clarence Stream. Four drill rigs were operating at the project, with the drilling directed toward resource growth, resource conversion, and new discoveries. Two rigs were operating at the South Deposit and focused on adding gold ounces. A third rig was drilling along a 6-kilometer corridor between the South and Southwest deposits for a new discovery, while a fourth rig was targeting a new discovery between anomalies 3 and 4.

The company's 2026-2027 project work also included oriented core drilling to support geological, structural, and geotechnical modeling. Galway planned to continue infill drilling to upgrade Mineral Resource classification and pursue new gold discoveries through district-scale exploration.

Engineering and economic work included pit optimization across all three deposits, development of scoping-level pit designs, preliminary life-of-mine scheduling and economic modeling, and initiation of a Preliminary Economic Assessment. Galway was targeting the first quarter of 2027 for completion of the PEA.

Metallurgical and rock characterization work included additional testing to optimize gold and antimony recoveries. The company also planned waste and ore characterization to support mine planning and environmental studies, along with comminution and rock characterization studies to support the PEA.

A metallurgical optimization program was underway. Galway reported that metallurgical testing had indicated gold recoveries of up to 98% at the Southwest Deposit, which holds more than 60% of the project's gold ounces. The presentation also stated that the company had recently achieved recoveries of up to 98% for gold and 88% for antimony. The optimization program included work on the project's approximately 50 million-pound antimony resource.

Ownership and Share Structure¹

Insiders hold 7.31% of Galway, including 6.62% held by CEO Rob Hinchcliffe. Institutional ownership totals 18.52%, led by Van Eck Associates Corp. at 4.45%, Caisse de dépôt et placement du Québec at 3.33%, and Mackenzie Investments at 3.27%. The remainder of the shares are held by retail investors.

Galway has 125.76 million shares outstanding and a market capitalization of CA$90.11 million. The company's 52-week trading range is CA$0.32 to CA$1.01 per share.