Activities and Cashflow Report For Quarter Ended 31 December 2022

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) reports on its activities for the quarter ended 31 December 2022 (the “Quarter”), primarily focused on construction of its 60%- owned Abra Base Metals Mine (“Abra” or the “Project”) located in the Gascoyne region of Western Australia.

HIGHLIGHTS:

• Abra Project construction completed on time in December 2022. Project construction expenditure within 1% of budget.
• Ore commissioning commenced and first concentrate produced in January 2023.
• Focus now on completing plant commissioning and ramping up production.
• Underground development achieved a record 1,122m advance during the Quarter with the decline reaching 1,268mRL. (282m vertical below the surface and 45m below top of the orebody).
• Cash balance at Quarter-end A$41.0M.

Abra comprises a granted Mining Lease, M52/0776 and surrounding Exploration Licence E52/1455, together with several co-located General Purpose and Miscellaneous Leases. The Project is 100% owned by Abra Mining Pty Limited (“AMPL” the Abra Project joint-venture entity), which in turn is 60% owned by Galena, with the remainder owned by Toho Zinc Co., Ltd. (“Toho”) of Japan.

Abra is fully permitted, and construction of the processing plant and surface infrastructure was completed in December 2022. First production of its lead-silver concentrate occurred in January 2023 with first product shipment scheduled for the March 2023 quarter.

Project construction / development

Abra Project construction works were completed by the end of the Quarter and ore commissioning commenced with first ore feed into the plant and first concentrate produced as part of the plant commissioning process in early January 2023 (see Galena ASX announcements of 10 January 2023 and 13 January 2023). Abra construction completed within 1% of forecast construction costs.

Operational Readiness

By the end of the quarter 90% of the operational staff have been employed along with both internal and external maintenance service providers. All site critical spares have been identified and procured. Site reagents and other consumables have been established.

Underground power, ventilation, and the installation of the second egress (ladderways) have enabled multiple ore headings to be operational and the primary pumping station will be completed in the March quarter.

The site assay laboratory was nearing completion by the end of the quarter and final commissioning in January is expected to significantly improve assay turn around and controls.

Applications are being lodged for regulatory approvals, licences or permits as they are required for completion of construction, commissioning and commencement of operations.

Underground mining – During the Quarter, 1,122 metres of development was completed and at Quarter-end total development reached 3,592 metres consisting of 1,978 metres of decline development and 1,614 metres of lateral development. The decline reached 1,268mRL, 45 metres below the top of the Abra orebody and 282 metres vertically below the surface.

During December, several ore drives commenced on the 1,280 and 1,300mRL levels which will deliver the required ore for plant commissioning in January 2023. At the end of the Quarter, a total of 26,000t of ore had been stockpiled on the ROM pad in preparation for ore processing commissioning and the commencement of concentrate production.

During the quarter a total of 75 (10,777m) underground diamond holes were completed for grade control and mine planning purposes. Mine planning and scheduling work was completed with this information in preparation for the production activities in 2023.

On 24 December 2022, the primary ventilation fan motor failed, and alternative ventilation fans were installed to resume underground work. Five days of mining activities were lost during this time and this delay is not expected to delay the plant processing commissioning during January 2023.

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