Galway Metals Reports Resource Increases at its Estrades Polymetallic VMS Project in Quebec

Galway Metals Reports Resource Increases at its Estrades Polymetallic VMS Project in Quebec

(Toronto, Ontario, September 20, 2018) – Galway Metals Inc. (TSX-V: GWM) (the “Company” or “Galway”) is pleased to report an updated Mineral Resource estimate prepared by RPA Inc. on the Estrades property located in the northern Abitibi of Western Quebec, Canada. Galway is pleased to report that the resource at Estrades has grown substantially and now contains 543,051 gold equivalent ounces (AuEq oz) of Indicated Mineral Resources grading 11.3g/t AuEq, plus 520,430 AuEq oz of Inferred Mineral Resources grading 7.4 g/t AuEq. From a zinc equivalent perspective, the Estrades deposit now contains 685 million ZnEq lb of Indicated Mineral Resources grading 20.8%, plus 656 million ZnEq lb of Inferred Mineral Resources grading 13.5%. The Estrades deposit was previously mined via a 200-metre deep ramp, with production in 1990-91 totaling 174,946 tonnes grading 12.9% Zn, 6.4 g/t Au, 1.1% Cu and 172.3 g/t Ag.

Robert Hinchcliffe, President and CEO of Galway Metals, said, “We are extremely pleased with the progress made on the Estrades project since acquiring it two years ago and believe we have generated a great return on our investment of $5 million (including 100% acquisition cost plus exploration expenditures) in a challenging market. It is worth noting the project is high grade coupled with favorable infrastructure. We believe that there is plenty of upside to grow the existing resource and to find other potential deposits on our 20,000-hectare land position as these types of deposits tend to occur in clusters. The new resource estimate will provide the basis for the preparation for a PEA, which is scheduled to be completed in early 2019.”

Mike Sutton, Vice President of Exploration adds, “We believe that this resource can be significantly expanded in several areas along the 1.8-km Estrades strike length, and to depth where recent Titan geophysical surveys revealed strong anomalies extending to depths of at least 2,000 metres. Galway’s successful drilling had its biggest impact just east of the existing ramp and cross fault in a gap where Galway drilled 4 high grade holes that are open in every direction and that increase the attractiveness of the entire area to the east (refer to press releases dated July 26, 2018 and August 2, 2017). We are also optimistic about the potential of discovering other satellite volcanogenic massive sulphide (VMS) deposits along favourable felsic rhyolite horizons where the recent Titan surveys reveal high chargeability/low resistivity anomalies at the nearby Newiska South and Newiska East targets, among other areas.”

Updated Mineral Resource Estimate for the Estrades Polymetallic VMS Deposit, Quebec, Canada, by RPA Inc., September 10, 2018

Notes for the Mineral Resource Estimate are provided below.

Details of the Estrades Mineral Resource Update

For a long section of the 2018 Mineral Resource estimate, see Figure 1.  For comparative purposes, the 2016 Mineral Resource estimate is in Figure 2. The Mineral Resource update represents significant increases in tonnes and metal content, with Indicated and Inferred tonnes rising by 15% and 80%, respectively, and respective Indicated and Inferred contained metals growing by 5% and 79%, compared with the previous Estrades Mineral Resource estimate. The much larger increase of Inferred versus Indicated Mineral Resources was in-line with Company expectations because Galway’s exploration program focused on step-out drilling designed to increase the Mineral Resource rather than on infill definition drilling. Average Indicated Mineral Resource grades remain very high as measured by AuEq or ZnEq grades of 11.3 g/t or 20.8%, respectively. Inferred Mineral Resource grades are also strong at 7.4 g/t AuEq or 13.5% ZnEq. Detailed comparisons of the 2018 versus 2016 Mineral Resource Statements are provided below.

Estrades Mineral Resource Comparisons, Grades and Tonnages: September 10, 2018 vs August 12, 2016

Estrades Mineral Resource Comparisons, Ounces and Pounds: September 10, 2018 vs August 12, 2016

Note: All notes for the 2018 Mineral Resource Statement apply to the 2016 Mineral Resource Statement.

Four important observations were made by Reno Pressacco, Principal Geologist with RPA Inc. during preparation of the Mineral Resource estimate.

• “The favourable Mine Unit felsic package has been modelled along a strike length of approximately 2.6 kilometres. Available historical drill hole information indicates that the Mine Unit felsic package continues along strike both to the east and west.”
• “The thickness of the Mine Unit felsic package is increasing at depth in the western block, and in the vicinity of the Mine Fault in the eastern block.”
• “The presence of considerable talc in the deepest hole in the west block (which remains short of its target) suggests the presence of an alteration pipe. The deep TITAN conductance in the area coincides with the thickening of the Mine Unit felsic package and the location of the possible alteration pipe.”
• “The new lithology information gained from Galway’s exploration programs is also serving to highlight several locations in both the western and eastern fault blocks where Galway’s drilling is suggesting very good potential for location of additional sulphide mineralization. Additional drill targets are clearly apparent from this revised interpretation.”

Galway will conduct downhole geophysics on deep hole 21 located below the Main Zone (west of the cross fault and below the mine workings), with follow-up drilling to commence after the winter freeze in January. Galway will also expand the best high-grade new area east of the ramp and cross fault as defined by the 4 strong drill holes in the area—holes 24, 27, 32 and 48 by drilling below and to the west. This area coincides with one of the strong Titan IP/EM chargeability/resistivity anomalies as highlighted in the July 26, 2018 press release (see Figure 1 and Figure 2).  The extent of Galway’s 2019 drill program will depend on market conditions given the prolonged downturn in metal prices and the junior mine exploration resource sector.

The Estrades Mineral Resource Estimate Remains Robust at Trailing 12-Month Average Metal Prices

RPA Inc. provided a sensitivity analysis on the Base Case Mineral Resource estimate at trailing 12-month average metal prices and the US$/C$ exchange rate. The table below shows that there are negligible differences between the two estimates. Galway considers this to be a reflection of the robust, high-grade nature of the Estrades deposit. The one area where there are differences is in AuEq and ZnEq grades. Compared with the Base Case, the trailing 12-month average price scenario has higher AuEq grades as a result of applying higher zinc prices and lower ZnEq grades in response to using lower gold prices. Grades for each individual metal remained little changed, as did total tonnes.

Sensitivity Analysis, 12-Month Trailing Average Prices and Exchange Rate vs Base Case, Estrades Deposit, September 19, 2018

 Estrades, Newiska, and Casa Berardi Geology and Mineralization

Information on Geology and Mineralization can be found on the Estrades project page of our website at www.galwaymetalsinc.com along with a complete Table of Drill Results released to date.

 Notes to accompany the Mineral Resource tables:

1. CIM (2014) Definition Standards 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 Inc.
4. Mineral Resources are estimated at long-term metal prices (USD) as follows: Au $1,450/oz, Ag $21.00/oz, Zn $1.15/lb, Cu $3.50/lb and Pb $1.00/lb.
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. Metallurgical recoveries for resource estimation are: Zn 92%, Cu 90%, Pb 85%, Au 80% and Ag 70%.
8. A minimum mining width of approximately 1.5 m was used.
9. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
10. Au Eq (g/t) and Zn Eq (%) represent the in-situ metal content expressed as Au and Zn equivalents and do not provide for metal recoveries or other economic considerations.
11. Preliminary analysis indicates that no metal is dominant; however, Au and Zn are the largest contributors.
12. Numbers may not add due to rounding.

 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 (10,000 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.

Figure 1

Figure 2

 About the Company

Galway Metals is well capitalized with two 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 its 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 emulating a similar level of success.

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.