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August 02, 2017

Galway Metals Intersects 28.5% Zn over 3.3m; 18.6% Zn Over 2.7m; 22.4 g/t Au and 10.4% Zn Over 1.6m; and Deep Hole of 4.2% Zn over 17.7m

(Toronto, Ontario, August 2, 2017) - Galway Metals Inc. (TSX-V: GWM) (the "Company" or “Galway”) is pleased to announce assay results from 13 additional drill holes plus one wedge off a hole (5,962 metres) completed at its 100%-owned, 20,915 hectare, Estrades polymetallic property located in the northern Abitibi of western Quebec, Canada. The drill program was designed to expand the existing resource on the periphery of known zones at shallow depths, and to probe deeper holes close to potential high-grade hydrothermal source vents.

Drilling Highlights

  • 2.2 g/t Au, 181.0 g/t Ag and 28.5% Zn over 3.3 m (2.1m TW), plus 190.7 g/t Ag and 18.6% Zn over 2.6 m (1.7m TW), plus 5.7 g/t Au and 43.2 g/t Ag over 2.6 m (unknown TW), plus 4.7 g/t Au, 67.5 g/t Ag, 4.9% Zn, 2.1% Cu and 1.0% Pb over 1.8m (1.1m TW) in GWM-17E-27
  • 5.2 g/t Au, 198.7 g/t Ag, 15.7% Zn and 1.3% Pb over 1.5 m (0.8 m TW), plus 2.3 g/t Au, 65.7 g/t Ag and 12.6% Zn over 2.1 m (1.2 m TW) in GWM-17E-24
  • 22.4 g/t Au, 199.3 g/t Ag, 10.4% Zn and 2.0% Pb over 1.6 m (0.8 m TW), plus 2.1 g/t Au, 85.9 g/t Ag and 2.9% Zn over 1.0 m (0.5 m TW) in Hole GWM-17E-16
  • 1.1 g/t Au, 95.2 g/t Ag and 4.2% Zn over 17.7 m (including 1.7 g/t Au, 190.9 g/t Ag, 9.7% Zn and 1.3% Cu over 4.5 m, and 1.0 g/t Au, 147.6 g/t Ag and 8.3% Zn over 2.0 m) (unknown TW) in GWM-17E-08
“With zinc assays as high as 36.6%, our previous drilling returning copper up to 12.9% and gold to 72.5 g/t, and our first deep hole hitting good grades over significant widths, Estrades is producing drill results beyond our expectations. People forget that past shallow production averaged 6.4 g/t gold, 12.9% zinc, 172 g/t Ag and 1.1% Cu. Galway has had consistent drilling success across the full 1.8 km of the known deposit and has filled in the few gaps in the resource to create a pretty continuous sheet of mineralization. The deep hole was successful in drilling one of the highly conductive areas identified by the downhole I.P. geophysics undertaken earlier; we look forward to continued success with the next series of shallow and deep holes at Estrades. At Clarence Stream, we are awaiting additional drill results from the South Zone, have started drilling the Jubilee concessions 5-km west of the South Zone and are scheduled to receive the pit constrained and updated underground resource estimates by the end of September,” cites Robert Hinchcliffe, President and CEO of Galway Metals.

High Grade Zinc Holes in the West Zone
Galway intersected unusually high-grade zinc two times in Hole GWM-17E-27, plus two other mineralized intersects for a total of four in the hole. The two high-grade zinc intersects returned 28.5% Zn, 2.2 g/t Au, 181.0 g/t Ag, 0.3% Cu and 0.9% Pb over 3.3 metres (2.1m TW), and 18.6% Zn, 0.3 g/t Au, 190.7 g/t Ag, 0.5% Cu and 0.5% Pb over 2.6 metres (1.7m TW) at vertical depths of 435 metres ad 453 metres, respectively (deep zones in the hole). The other two intersects in Hole GWM-17E-27 were much shallower and returned 4.7 g/t Au, 67.5 g/t Ag, 4.9% Zn, 2.1% Cu and 1.0% Pb over 1.8 metres (1.1m TW), and a new discovery that appears to be midway, along a cross fault, of 5.7 g/t Au and 43.2 g/t Ag over 2.6 metres (unknown TW) in a massive pyrite (90%) zone similar to the other intersections (see Figure 1 ). The reason Hole GWM-17E-27 intersected mineralization four times is because the hole was designed to cross the fault, thereby piercing mineralization twice in the hole---once early in the hole and again on the other side of the fault deeper down. The two deeper intersections represent the main zone and a splay close to it. The other intersect that is midway along the cross fault is a new discovery (see Figure 2 ). The high-grade deep zinc intersections in Hole GWM-17E-27 are open below.

Hole GWM-17E-24, 130 metres above the high zinc grades encountered in Hole GWM-17E-27, intersected similar-looking massive sphalerite twice (just as occurred in Hole GWM-17E-27---once shallow, northwest of the fault, and again deeper, southeast of the fault) that returned 2.3 g/t Au, 65.7 g/t Ag, 12.6% Zn, 0.8% Cu and 0.3% Pb over 2.1 metres (1.2m TW), and 5.2 g/t Au, 198.7 g/t Ag, 15.7% Zn, 0.4% Cu and 1.3% Pb over 1.5 metres (0.8m TW). Holes GWM-17E-25 and GWM-17E-26 failed to penetrate the fault and only intersected the deposit once, with GWM-17E-25 returning 1.4% Cu over 7.4 metres (5.0m TW) and GWM-17E-26 having 0.8 g/t Au, 38.3 g/t Ag, 2.5% Zn and 1.6% Cu over 3.0 metres (1.7m TW).

High Grade Gold-Zinc Hole Opens up East
Galway intersected 22.4 g/t Au, 199.3 g/t Ag, 10.4% Zn and 2.0% Pb over 1.6 metres (0.8m TW), in Hole GWM-17E-16. The intersection is located in an interpreted waste area according to the resource estimate, and is open below (see Figure 1).

Deep Hole in West Zone Intersects 17.7 Metres of Massive Sulphides
GWM-17E-08 intersected massive pyrite and chalcopyrite-sphalerite in a talc- and quartz-rich zone that returned 17.7 metres of 1.1 g/t Au, 95.2 g/t Ag, 4.2% Zn, 0.6% Cu and 0.3% Pb, including 4.5 metres of 1.7 g/t Au, 190.9 g/t Ag, 9.7% Zn, 1.3% Cu and 0.5% Pb, and including 2.0 metres of 1.0 g/t Au, 147.6 g/t Ag, 8.3% Zn, 0.2% Cu and 0.6% Pb at a vertical depth of 760 metres. The true width is unknown as it may be folded/dragged into a cross fault. The hole was designed to test the down-plunge extension of the best mineralization identified on the property to date---below the former mine under the Main Zone. This hole did not deviate to the west and to depth like most of the other holes and instead stayed straight (see Figure 2). Thus, mineralization was intersected further east and higher up than expected. The zone is in a talc-chlorite-sericite schistose rhyolite tuff with 25% late, low-angle quartz veining. The closest holes west and above also contain high zinc values (e.g. 5.7m (4.7m TW) of 1.5 g/t Au and 8.9% Zn in hole H-072 located 210 metres above).

IP and TITAN Surveys Guiding Source Vent Exploration
The Company has received results from a paired downhole induced polarization (IP) program below the workings, with the goal of locating copper-rich source vents. The results show “very strong chargeability” responses in the vicinity of Hole GWM-17E-08 and also to the west of Hole H-116 (the Main Zone), as well as below high copper values in historic holes EME-07 in the Central Zone and EME-02 in the East Zone (see Figure 1). Geophysics down Hole GWM-17E-08 is now under way. In addition, data from a 2007 TITAN MT survey across four lines in the mine area is being studied to determine if reprocessing, using advances in the past 10 years, can enhance the deep targeting for source vents.

Hole 19AW Fills in Resource Gap at Depth
Galway intersected 1.8 g/t Au, 70.9 g/t Ag and 6.1% Zn over 1.9 metres (1.4m TW) in Hole GWM-17E-19AW1 at a vertical depth of 568m. The intersection is located in a large gap in the resource estimate, and is open above and below. Historic Hole H-154 (105m east and above, also within the gap and not in the resource), grades 1.8 g/t Au and 7.6% Zn over 1.9 metres (1.9 m TW) (see Figure 1).

Most of the holes in the current program have intersected massive sulphide horizons with varying amounts of sphalerite (zinc), chalcopyrite (copper), and pyrite (iron), along with other zones of remobilized chalcopyrite in quartz veining. Zonation of the deposit into copper- and zinc-rich areas is readily apparent. However high-grade gold areas appear less distinct. Due to excessive deviation to the west, holes GWM-17E-02 and GWM-17E-03 appear to have just missed a steeply plunging, high-grade gold zone as seen in Hole GWM-17E-01 (72.5 g/t Au, 29.4 g/t Ag and 0.7% Zn over 1.6 metres (1.0m TW) and historic holes H-227, which returned 50.1 g/t Au, 59.3 g/t Ag, 3.4% Zn, 1.2% Cu and 0.3% Pb over 0.6 metres (0.5m TW) and H-087, which intersected 3.9 g/t Au, 6.4 g/t Ag, 3.6% Zn and 0.8% Cu over 3.7 metres (2.8m TW) in the extreme east. Holes 10 and 12 were drilled in a gap in the resource, with Hole 12 returning low values similar to previously reported Hole 9.

Table 1: Drill Result Highlights

Hole From
(m)
To
(m)
Intercept
(m)
TW
(m)
Au Eq*
(g/t)
Zn Eq*
(%)
Au
(g/t)
Ag
(g/t)
Zn
(%)
Cu
(%)
Pb
(%)
Type**
GWM-17E-08 804.60 822.25 17.7 10.8 1.1 95.2 4.2 0.6 0.3 MSS
including 804.60 806.65 2.0 15.2 1.0 147.6 8.3 0.2 0.6 MSS
including 811.25 815.80 4.5 22.3 1.7 190.9 9.7 1.3 0.5 MSS
GWM-17E-27 499.75 503.08 3.3 2.1 39.1 2.2 181.0 28.5 0.3 0.9 MSS
including 502.00 503.08 1.1 0.7 50.5 4.8 145.5 36.6 0.2 0.7 MSS
521.25 523.90 2.6 1.7 26.2 0.3 190.7 18.6 0.5 0.5 MSS
including 521.25 523.00 1.8 1.1 34.0 0.4 222.8 25.0 0.6 0.6 MSS
295.60 298.25 2.6 6.3 5.7 43.2 MSS
82.60 84.40 1.8 1.1 12.3 4.7 67.5 4.9 2.1 1.0 MSS
GWM-17E-24 71.65 73.70 2.1 1.2 21.3 2.3 65.7 12.6 0.8 0.3 MSS
411.40 412.85 1.5 0.8 17.9 32.9 5.2 198.7 15.7 0.4 1.3 MSS
GWM-17E-16 279.00 280.55 1.6 0.8 31.9 22.4 199.3 10.4   2.0 MSS
275.00 276.00 1.0 0.5 5.2 9.6 2.1 85.9 2.9   0.6 DSS
GWM-17E-12 215.20 218.10 2.7 1.7   4.7 0.4 68.2 2.1     SMS
GWM-17E-15 200.80 204.40 3.6 2.5 5.5 10.2 2.0 45.9 3.6 0.4 0.5 SMS
including 203.35 204.40 1.1 0.7 15.9 29.2 6.5 123.6 9.6 1.0 1.5 SMS
GWM-17E-19AW1 707.15 709.00 1.9 1.4 6.6 12.2 1.8 70.9 6.1 0.3 MSS
including 707.15 707.70 0.5 0.4 13.0 23.9 5.0 88.1 10.5 0.4 0.7 MSS
GWM-17E-25 57.00 64.35 7.4 5.0 1.4 DSS
including 63.35 64.35 1.0 0.7 6.8 2.6   2.8 1.6 MSS
GWM-17E-26 91.80 94.80 3.0 1.7 9.9 0.8 38.3 2.5 1.6 SMS

Notes:
* Au (Eq g/t) and Zn (Eq %) represent the in-situ metal content expressed as Au and Zn equivalents.
Equivalents are not provided when the underlying Au and/or Zn metal content is below 25% of the intersect value.
Preliminary analysis indicates that no metal is dominant; however, Au and Zn are the largest contributors to the Estrades resource.
Equivalencies are calculated using the following metal prices (US$) and exchange rate (US$/C$) provided by RPA:
Au $1,450/oz, Ag $21.00/oz, Zn $1.15/lb, Cu $3.50/lb, Pb $1.00/lb, US$0.80/C$1.00.
** MSS = massive sulphide, SMS = semi-massive sulphide DSS = disseminated and stringer sulphides.
Holes were not drilled in sequential numerical order. If true width (TW) is not specified, the orientation of the zone is unknown at this time.
Holes GWM-17E-03, GWM-17E-10, and GWM-17E-19A did not intersect significant assays, although SMS was intersected in holes 10 and 19A;
hole 19 was stopped due to deviation---will be continued later; hole GWM-17E-25 was lost in the main fault; hole GWM-17E-26 did not intersect the
target due to excessive deviation (did not cross the fault). Holes GWM-17E-17, 18, and 20-23 have not yet been drilled.

Table 2: Galway Metals’ Mineral Resource Statement, Clarence Stream and Estrades

Deposit Class Tonnes Au Eq
(g/t)
Zn Eq
(%)
Au
(g/t)
Ag
(g/t)
Zn
(%)
Cu
(%)
Pb
(%)
Clarence Stream Indicated 822,000 6.71   6.90        
Estrades Indicated 1,300,000 12.37 22.75 3.89 137.9 7.95 1.12 0.65
Total, Indicated 2,122,000 10.25   4.98        
Clarence Stream Inferred 1,226,000 6.34   6.34        
Estrades Inferred 1,219,000 7.42 13.64 1.54 68.6 4.31 1.46 0.26
Total, Inferred 2,445,000 6.87   3.95        

Deposit Class Au Eq
(oz)
Zn Eq
(000 lb)
Au
(oz)
Ag
(oz)
Zn
(000 lb)
Cu
(000 lb)
Pb
(000 lb)
Clarence Stream Indicated 182,000   182,000        
Estrades Indicated 517,078 651,967 162,666 5,762,325 227,950 32,057 18,552
Total Indicated 699,078   344,666 5,762,325 227,950 32,057 18,552
Clarence Stream Inferred 250,000   250,000        
Estrades Inferred 289,994 365,645 60,131 2,685,915 115,544 39,126 7,084
Total Inferred 539,994   310,131 2,685,915 115,544 39,126 7,084

Clarence Stream Notes

  1. CIM Definitions were followed for mineral resources.
  2. Mineral Resources were estimated using a US$1,000/oz gold price and assumed operating costs provided by RPA.
  3. Mineral Resources are based on a cutoff grade of 3.0 grams per tonne (g/t) gold (Au).
  4. Wireframes at 3.0 g/t Au and a minimum thickness of two metres were used to constrain the grade interpolation.
  5. High gold grades were cut to 30 g/t Au prior to compositing. Uncut grades are listed for comparative purposes.
  6. Several blocks less than 3.0 g/t Au were included to expand the lenses to the two metre minimum thickness.
  7. Au (Eq g/t) represents the in-situ metal content expressed as Au equivalents.
  8. Metallurgical recoveries for Au at Clarence Stream are estimated at 90%.
  9. Au Eq (g/t) and Zn Eq (%) applied long term metal price and exchange rate estimates from RPA for Clarence Stream and Estrades.
  10. The Clarence Stream Mineral Resource Statement is current as of December 16, 2016.

Estrades Notes:

  1. CIM definitions were followed for Mineral Resources.
  2. No Mineral Reserves are present.
  3. All metal prices, the US$/CDN$ exchange rate and cut-off grade were provided by RPA.
  4. Mineral Resources are estimated at long-term metal prices (USD) as follows: Zn $1.15/lb, Cu $3.50/lb, Pb $1.00/lb, Au $1,450/oz, and Ag $21.00/oz.
  5. Mineral Resources are estimated using an average long-term foreign exchange rate of US$0.80 per CDN$1.00.
  6. Mineral Resources are estimated at a cut-off grade of CDN$140/tonne NSR, which included provisions for metallurgical recoveries, freight, mining, milling, refining and G&A costs, smelter payables for each metal and applicable royalty payments.
  7. A minimum mining width of approximately 1.5 m was used.
  8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  9. Numbers may not add due to rounding.

Estrades, Newiska, and Casa Berardi Geology and Mineralization
The Estrades area is in the NW Abitibi Subprovince, with generally east-west striking and vertically dipping volcanics. The mineralization is of a classic Archean age of the syngenetic exhalative type, hosted in a rhyolite felsic schist and/or brecciated or felsic tuff. Alteration is typically a pervasive sericite with local chlorite. Regional metamorphism is of greenschist facies. Pyrite is the dominant sulphide, although sphalerite is common, as is chalcopyrite and galena. RPA found that 2 mineralized horizons appear to be kept separate by a Key Marker Horizon; the two layers traceable along the entire strike length. To the west, the Main Zone is mineralized for > 400 m horizontally, extends > 850 m below surface, has an average width of 3.8 m, and is the location of all production to date. The Central Zone has a strike length of 500 m, is drilled to 550m, and has an average width of 2.0 m, while the East Zone lies 100 m east of the Central Zone, is > 700 m horizontal, is drilled to 750 m in depth, and is 1.0 m to 2.5 m in width. A fault separates the Main Zone from the Central and East Zones, and strikes 338o and dips 65o SW, with a 210 m offset. Mineralization that has been identified in the deepest drill hole (Hole H-281AW) is located under the mine, and intersected sulphide mineralization 900 m below surface, returning 3.3% Zn, 0.5% Cu, 1.1 g/t Au and 38.7 g/t Ag over 1.9 m. The Estrades deposit is covered by glacial silt, clays and sandy gravels of variable thickness. The Newiska Block, located SE of Estrades, has > 300m of sericite-chlorite alteration in rhyolite, with chalcopyrite-sphalerite stringer mineralization. The Casa Berardi geology and mineralization consists of a major regional deformation zone, the Casa-Berardi Break, that is 2 km north of the Estrades Unit within sediments. The Casa Berardi Break is a 4m wide graphitic fault, with injections of quartz-carbonate veining in sandstone, siltstone, greywacke and argillite +BIF, where the sediments are sericitized and carbonatized. The fault contains up to 20% ankerite and locally, pyrite, arsenopyrite-bearing smoky to dark quartz veins containing pyrite and arsenopyrite.

Review by Qualified Person, Quality Control and Reports
In compliance with National Instrument 43-101, Mr. Mike Sutton, P.Geo. is the Qualified Person responsible for the accuracy of this news release. Mr Reno Pressacco, P. Geo, is the Qualified Person responsible for preparation and disclosure of the Estrades Mineral Resource estimate, and is independent of Galway. The drill core is sawn in half with one half of the core sample shipped to Swastika Laboratories situated in Swastika, ON, which has accreditation of ISO/IEC 17025. The other half of the core is retained for future assay verification. Other QA/QC measures includes the insertion of certified reference standards (gold and polymetallics) and blanks into the sample stream, and the regular re-assaying of pulps and rejects at alternate certified labs. Gold analysis is conducted by fire assay using atomic absorption or gravimetric finish for samples greater than 10 g/Mt gold. Other Metals (Ag, Cu, Pb, Zn, Co, As) have full acid digestion and analyzed by AAS; with over limits (5000 PPM) analyzed by AAS using method dilutions, and the Silver (Ag) over limits (> 200 ppm) analyzed by fire assay (FA) & gravimetric finish. The laboratory re-assays at least 10% of all samples and additional checks may be run on anomalous values.

Table 3: Drill Hole Coordinates

Hole ID Azimuth Dip Northing Easting Hole Length (m)
Galway Metals Drilling
GWM-17E-03 314 -67 5494924 655858 454
GWM-17E-08 204 -49 5495170 654348 945
GMW-17E-10 347 -50 5494900 655300 150
GWM-17E-12 13 -58 5494833 655365 270
GWM-17E-15 11 -52 5494746 655180 252
GWM-17E-16 17 -69 5494746 655180 420
GWM-17E-19 341 -69 5494557 655421 219
GMW-17E-19A 335 -72 5494557 655421 852
GWM-17E-19AW1 337 -62 5494557 655421 505
GWM-17E-24 149 -59 5494966 654430 306
GWM-17E-25 169 -51 5494966 654430 467
GMW-17E-26 169 -61 5494966 654430 600
GWM-17E-27 146 -63 5494966 654430 522
TOTAL 5962
Historical Drilling
H-116 349 64.5 5494429 654166 832
H-154 349 -64 5494557 655420 656
H-072 351 -65 5494540 654347 723

About the Company
Galway Metals is well capitalized with two gold projects in Canada, Clarence Stream, an emerging gold district in New Brunswick, and Estrades, the former producing, high-grade VMS mine in Quebec. The Company began trading on January 4, 2013, after the successful spinout to existing shareholders from Galway Resources following the completion of the US$340 million sale of that company. With substantially the same management team and Board of Directors, Galway Metals is keenly intent on creating similar value as it had with Galway Resources.

Should you have any questions and for further information, please contact (toll free):

Galway Metals Inc.
Robert Hinchcliffe
President & Chief Executive Officer
1-800-771-0680
www.galwaymetalsinc.com

CAUTIONARY STATEMENT: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

This news release contains forward-looking information, which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements made herein with respect to, among other things, the Company’s objectives, goals or future plans, potential corporate and/or property acquisitions, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations, and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, exploration results being less favourable than anticipated, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, risks associated with the defence of legal proceedings and other risks involved in the mineral exploration and development industry, as well as those risks set out in the Company’s public disclosure documents filed on SEDAR. Although the Company believes that management’s assumptions used to develop the forward-looking information in this news release are reasonable, including that, among other things, the Company will be able to identify and execute on opportunities to acquire mineral properties, exploration results will be consistent with management’s expectations, financing will be available to the Company on favourable terms when required, commodity prices and foreign exchange rates will remain relatively stable, and the Company will be successful in the outcome of legal proceedings, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information contained herein, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.



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