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ASX ANNOUNCEMENT

15 March 2022

ASX: G1A

ABRA CONSTRUCTION 52% COMPLETE

GALENA MINING LTD. ("Galena" or the "Company") (ASX: G1A) is pleased to announce that the construction progress at its Abra Base Metals Mine ("Abra" or the "Project") has reached 52% complete on 28 February 2022. Construction milestones achieved during the month include the raise drilling of the first 4.5-meter diameter primary ventilation shaft (80m) and the commencement of the civil works associated with the LNG/Solar power station.

Managing Director, Tony James commented, "It's a great milestone to go past the 50% mark for the overall construction progress at Abra. Steady progress has been made in the processing plant construction with a total of 766m3 of concrete poured project to date.

Underground development has reached 880m since commencement against a plan of 815m. By the end of February, the decline has reached 1,422mRL which is 128m below the surface and 109m above the orebody. The successful drilling of the first 4.5m primary ventilation shaft also represents a critical reduction in mining risk as the mine will be able to establish the first leg of the ventilation following installation of the primary ventilation fan that was acquired in 2019."

Figure 1 - Long section showing the completed mine development location by 28th

February.

GALENA MINING LTD.

CORPORATE OFFICE: LEVEL 2, 1100 HAY ST, WEST PERTH WA 6005 (TEL 08 6183 3200)

WEBSITE: www.galenamining.com.au/ TWITTER: @GalenaMiningASX

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Update on Abra Project progress

Overall project progress remains on track in the key areas of mining and processing. In bulk earthworks the Tailings Storage Facility (TSF) work stopped whilst a technical review is being completed on how best to utilise the underground waste available to build the TSF walls. The construction work will be completed in the cooler months of the year well prior to plant commissioning. The remaining non-processing infrastructure which is not production critical is being finalised prior to the completion of that work. This includes some buildings and the new drill-core processing and storage facility.

Abra Project Construction Progress At 28 February 2022 (Percentage Spent By Category)

Remaining

% Actual

% Planned

Project

Capex

Accommodation Camp - $14.7M

100%

$0.1M

100%

Bulk Earthworks - $15.0M

80%

$3.0M

92%

Process Plant EPC - $81.9M

48%

$42.9M

58%

Non-Process Infrastructure - $6.0M

62%

$2.3M

85%

Mining Pre-Production - $48.2M

39%

$29.4M

34%

Other Pre-Production - $12.3M1

57%

62%

$5.3M

Owner's Costs & Contingencies - $53.3M2

46%

53%

$29.0M

Total Project Capex - $231.4M3

52%

$112.0M

58%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Notes: (1) Includes water supply & recovery, vehicles & mobile equipment, initial fills & spare parts, shire road maintenance, paste fill plant acquisition and construction indirect costs. (2) Includes employee & contractor, flights, accommodation, fuel, site management and general & administration costs as well as additional owner's contingencies on the remaining project capex. (3) Total project capex includes expenditure from the commencement of the project in July 2019 through to planned practical completion of the process plant in January 2023. As at 28 February 2022, the total remaining project capex was $112.0M.

Figure 2 - Shows the progress of the various Abra construction packages.

Abra has been advised of five new delivery times for the overseas equipment deliveries. The new delivery times are not expected to alter the plant construction program with work programs being modified to accommodate the changes. During January the manufacturer of the Mill equipment reported that one of the girth gear halves was damaged during the tooth cutting machining process. To ensure the girth gear is made correctly with no inherent defects the supplier decided to re-cast a new gear and start over. The original three shipments for the mill equipment were then changed to include a 4th shipment for the new girth gear and pinion. Shipments 1 (sole plates), 2 (lube system), and 3 (shell, gearbox, and motor) are all proceeding as originally planned. The girth gear and pinion are now scheduled to arrive on

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the 7th of July completing the mill shipments. None of these changes are expected to cause any delays in the processing plant building schedule.

Description

Manufacturer

Source

Order

Completion

Forecast On

Country

Date

Date

Site Date

Jaw Crushers

Metso Outotec

China

19 Aug 21

10 Jan 22

17 Mar 221

Cone Crushers

Metso Outotec

Finland

19 Aug 21

16 Mar 22

27 Apr 22

Flotation Cells

Metso Outotec

China

18 Aug 21

01 Jul 22

12 Aug 22

Thickener

Metso Outotec

China

18 Aug 21

31 Mar 22

12 May 222

Slurry Analyser

Metso Outotec

Finland

18 Aug 21

10 Jan 22

30 Apr 223

Grinding Mill

CITIC HIC

China

23 Jul 21

30 Jun 22

07 Jul 224

Filter

Ishigaki

Japan

26 Jul 21

28 Apr 22

09 Jun 225

Regrind Mill

Glencore

Germany

23 Sep 21

29 Jun 22

03 Aug 22

LNG Storage Tanks

AMG Cryogenics

China

15 Jun 21

28 Apr 22

05 Jul 22

Table Notes - (1) Jaw crusher originally scheduled to arrive on site on 21st February has landed in Perth on weekend of 12th March. (2) Thickener originally scheduled to arrive on site on 27th April has been delayed waiting for electrical components and is now scheduled to arrive on site on 12th May. (3) Slurry analyser is in shipping and now due in Perth in early April. (4) Girth gear issue at the factory has forced the shipping schedule for the mill equipment to have 4 shipments now instead of 3 shipments. The new 4th shipment containing the girth gear and pinion is now scheduled to arrive on 7th July. (5) Filter is progressing ahead of schedule and is now expected on the 9th of June ahead of the originally planned 12th July.

Table 1 - Key equipment order and delivery schedule from overseas suppliers.

Figure 3 - February progress on crusher concrete and 2nd lift formwork in the foreground

and the mill concrete formwork in the background.

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Figure 4 - Crusher chutes and bins on site ready for installation.

Figure 5 - Concentrate shed foundations.

Figure 6 - Mill area foundations.

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Figure 7 - ROM bin fabrication in Perth.

Figure 8 - 1st of 3, LNG tank shipping from Shanghai.

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Galena Mining Ltd. published this content on 14 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2022 22:29:03 UTC.