Galileo Exploration Announces Shares FOR Debt Transactions

GALILEO EXPLORATION ANNOUNCES SHARES FOR DEBT TRANSACTIONS

VANCOUVER, British Columbia, August 13, 2020 -- Galileo Exploration Ltd. (the "Company"

or "Galileo") (TSXV:GXL) is pleased to announce that it has entered into shares for debt

agreements to satisfy an aggregate of $ 535,350.21 of the Company 's outstanding debts. The

Company has reached agreements with certain of its creditors who have provided services to the

Company to extinguish, or partially extinguish, certain of the Company 's outstanding debts

owing to them in exchange for the issuance of common shares in the capital of the Company

("Shares"). The creditors include certain related parties of the Company, includi ng John

Kanderka, Galileo 's Chief Executive Officer and a Director , Wes Adams, Galileo 's Chief

Financial Officer and a Director, Marc Blythe, a Director and John Adams, a holder of greater

than 10% of the issued and outstanding Shares (collectively, the "Related Parties"). Every other

creditor is an arm's length party who has provided consulting services to the Company.

An aggregate of 10,707,005 Shares at a deemed price of $0.0 5 per Share are proposed to be

issued to the creditors which includes an aggre gate of 9,288,493 Shares to be issued to the

Related Parties. An aggregate of 2,015,535 Shares are proposed to be issued to John Kanderka,

representing $100,776.75 in full satisfaction of the amount owing for services rendered in his

capacity as the Chief Executive Officer and for expenses paid on behalf of the Company . An

aggregate of 3,927,473 Shares are proposed to be issued to the Wes Adams, representing

$196,373.63 in partial satisfaction of the amount owing for services rendered in his capacity as

the Chief Financial Officer, for loans extended to the Company and for expenses paid on behalf

of the Company . An aggregate of 797,540 Shares are proposed to be issued to Marc Blythe ,

representing $39,877.02 in full satisfaction for expenses paid on behalf of the Company. An

aggregate of 2,547,945 Shares are proposed to be issued to John Adams, representing

$127,397.26 in full satisfaction of loans extended to the Company.

The Company determined to satisfy the indebtedness with Shares in order to preserve its cash for

development of its business. Issuance of t he Shares is subject to approval by the TSX Venture

Exchange (the "Exchange"). The Shares issued pursuant to the shares for debt agreements will

be subject to a four month plus one day hold period pursuant to applicable securities legislation.

The shares for debt transactions involving the Related Parties will constitute a "related party

transaction" under Multilateral Instrument 61 -101 - Protection of Minority Securityholders in

Special Transactions ("MI 61-101"). The Company intends to rely on the exemptions from the

valuation and the minority approval requirements of MI 61- 101 provided for in subsections

5.5(b) and 5.7(1)(e) of MI 61- 101, respectively, as, respectively, the Company is not l isted on a

specified exchange and the Company is experiencing serious financial difficulty . The

participation by the Related Parties in the shares for debt transactions has been approved by

directors of the Company who are independent in connection with su ch transactions. A material

change report will be filed less than 21 days before the closing date of the transactions

contemplated by this news release. The Company believes this shorter period is reasonable and

necessary in the circumstances as the Compan y wishes to improve its financial position by

reducing its liabilities as soon as possible.

Contact:

John Kanderka, Chief Executive Officer

Galileo Exploration, Ltd.

410-325 Howe Street

Vancouver, BC V6C 1Z7

Tel: (403) 861-6329

FORWARD-LOOKING STATEMENTS

This news release contains "forward -looking statements" within the meaning of Canadian

securities legislation. These include, without limitation, statements with respect to: the

completion of the satisfaction of certain debts of the Company for shares. Such forward‑looking

statements or information are based on a number of assumptions, which may prove to be

incorrect. Assumptions have been made regarding, among other things: the approval of the

Exchange of the shares for debt transactions.

The actual r esults could differ materially from those anticipated in these forward -looking

statements as a result of risk factors including: denial of acceptance of the Company's filing of a

shares for debt application by the Exchange; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's

management on the date the statements are made. The assumptions used in the preparation of

such statements, although considered reasonable at the time of pre paration, may prove to be

imprecise and, as such, readers are cautioned not to place undue reliance on these forward -

looking statements, which speak only as of the date the statements were made. The Company

undertakes no obligation to update or revise any forward -looking statements included in this

news release if these beliefs, estimates and opinions or other circumstances should change,

except as otherwise required by applicable law.

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 or accuracy

of this release.