Galleon Gold Announces Upsize of Previously Announced Bought Deal Private Placement to $27M

/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Oct. 19, 2026 /CNW/ -- Galleon Gold Corp. (TSXV: GGO) (FSE: 3H90) (the "Company" or "Galleon Gold") is pleased to announce that, due to strong investor demand, it has entered into an amended agreement with ATB Cormark Capital Markets ("ATB Cormark"), as lead underwriter and sole bookrunner, on behalf of itself and a syndicate of underwriters (collectively, the "Underwriters"), to increase the size of its previously announced bought deal private placement from approximately $20 million to approximately $27 million. Under the amended terms, the Underwriters have agreed to purchase, on a bought-deal basis: (i) 4,717,000 common shares to be issued as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act") (the "FT Shares") at a price of $1.59 per FT Share (the "FT Offering Price") for aggregate gross proceeds of approximately $7.5 million; and (ii) 17,410,700 common shares (the "HD Shares") at a price of $1.12 per HD Share (the "HD Offering Price"), for aggregate gross proceeds of approximately $19.5 million (as amended, the "Bought Deal Offering"). The size of the Bought Deal Offering was increased from the previously announced 11,160,700 HD Shares. All amounts are in Canadian dollars.

The Company intends to use the gross proceeds from the sale of FT Shares to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Tax Act that will qualify as "flow-through mining expenditures" as defined in subsection 127(9) of the Tax Act and as eligible expenditures for purposes of the Ontario focused flow-through share tax credit on the West Cache Gold Project (the "Project") in Timmins, Ontario. Such expenditures will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2026 and will be incurred no later than December 31, 2027. The net proceeds from the sale of HD Shares and the Non-Brokered Offering will be used for advancement of the Project and for working capital and general corporate purposes.

The Bought Deal Offering and the previously announced non-brokered offering (the "Offerings") are expected to close concurrently on or about November 3, 2026 (the "Closing Date"), or on such other date as may be agreed to by the Company and ATB Cormark with respect to the Bought Deal Offering, and by the Company and Pan American with respect to the Non-Brokered Offering, in each case subject to compliance with applicable securities laws. Notwithstanding the foregoing, the closing of the sale of the FT Shares must occur no later than the 45th day following the date of this news release, failing which the FT Share portion of the Bought Deal Offering shall not proceed.  The completion of each of the Offerings is subject to certain customary closing conditions, including receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange. The completion of the Non-Brokered Offering is conditional on the completion of the Bought Deal Offering. The Bought Deal Offering is not conditional on the completion of the Non-Brokered Offering.

Bought Deal Offering

The Company has granted the Underwriters an option (the "Over-Allotment Option") to purchase additional HD Shares at the HD Offering Price for additional gross proceeds of up to $3,000,000. The Over-Allotment Option shall be exercisable, in whole or in part, at the sole discretion of ATB Cormark at any time prior to the Closing Date.

The Bought Deal Offering will be completed in reliance on a combination of prospectus exemptions. The FT Shares will be offered pursuant to Part 5A of National Instrument 45-106 – Prospectus Exemptions ("NI 45-106"), as amended by OSC Rule 45-513 – Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the "Listed Issuer Financing Exemption"), to purchasers in each of the provinces of Canada and will not be subject to a hold period pursuant to applicable Canadian securities laws.

The HD Shares will be offered (i) on a private placement basis in the United States pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and in certain other jurisdictions outside of Canada and the United States, in each case in reliance on OSC Rule 72-503 – Distributions Outside Canada, provided that no prospectus filing or comparable obligation, ongoing reporting requirement or requisite regulatory or governmental approval arises in such other jurisdictions, and (ii) solely in the case of HD Shares issued upon exercise of the Over-Allotment Option, to purchasers resident in each of the provinces of Canada pursuant to the Listed Issuer Financing Exemption. The HD Shares will not be subject to a hold period under applicable Canadian securities laws.