Press Releases

2008-09-10 09:14:59

Galena Capital Corp. would like to provide its shareholders and members of the Galena Network the following update:
We are aware of the challenges presented in today's capital markets, specifically for the junior resource sector. As a result the management team has implemented significant adjustments to our business model to ensure we reach our long-term target of being a legacy in Latin America, in keeping with our mission statement.
The first measure was to cut back on all expenditures in Peru other than those relating directly to the progress of our Tablachaca River placer project. Secondly, we significantly reduced our marketing expenditures for July and August during a time where so many companies tried to fight declining market caps. During the last 2 months, Galena felt that the share price reflected the poor market conditions and that there was little that could be done other than to wait it out for investors and industry people to return back from their vacations. It is management opinion that the issues in the market for most companies was and continues to be, the lack of bid support. Small to moderate selling significantly decreased companies values on a daily basis truly because the bids just were not there. Overall market sentiment is negative and confidence has certainly been lost. When the confidence returns (very likely beginning with the blue chip sector) we will see a reinvigorated junior resource market. Until then we will tactfully manage our progress and focus our efforts on positive cash flow initiatives.
Through the acquisition of Minas Vallarta and Norma Mines in the last 12 months, Galena inherited a highly skilled management team that quickly became dedicated to advancement of our projects. An additional benefit of conserving capital is to ensure all required skilled labor stay with Galena and grow so when the capital markets turn Galena can be position to be a leader in its' sector.
- Current Treasury: approximately $3,100,00 as of September 08h, 2008
- Shares Issued and Out: 27,403,379 September 08th, 2008
- Capital Spent on 2008 summer drilling activities: approximately $900,000

This update includes the latest information on the following Galena projects:
- The Maureen;
- The Maria "Silver Giant" Project;
- The Mercedes "Golden Fountain" Property; and
- The Tablachaca "Golden River" Project in Peru

Summer developments in Mexico saw the end of one drill program (Maureen property) and the initiation of two other programs (Mercedes Golden Fountain and The Maria Silver Giant properties).
Maureen Project:
Phase One drill results (released July 07, 2008 - highlights below) returned grades that have made phase II for the Maureen project a priority. The next program will concentrate on the area of hole MRE-08-07 (Hole # 7).
Additional Maureen Project results are anticipated this week September 08-12
Highlights from July 07, 2008 NR:
- MRE-08-04 assayed 0.19 gram per tonne gold and 38.89 grams per tonne silver over 8.00 metres, including 0.66 gram per tonne gold and 235.50 grams per tonne silver over 1.00 metre.
- MRE-08-06 assayed 1.98 grams per tonne gold and 326.25 grams per tonne silver over 4.30 metres, including 4.28 grams per tonne gold and 725.60 grams per tonne silver over 1.00 metre, and 3.21 grams per tonne gold and 566.40 grams per tonne silver over 1.00 metre.
- MRE-08-07 assayed 13.95 grams per tonne gold and 245.21 grams per tonne silver over 9.10 metres, including 125.63 grams per tonne gold and 2,174.80 grams per tonne silver over 1.00 metre; 0.25 gram per tonne gold and 39.80 grams per tonne silver over 1.00 metre, and also including 0.76 gram per tonne gold and 12.90 grams per tonne silver over 1.00 metre.
Maria "Silver Giant" Property:
Drilling is presently in progress on this property. The first five holes have been drilled. A total of 215 samples from the first 2 holes have been dropped off at the Guadalajara lab by Galena's "QP", Luc Rioux. We still await the results from those samples.
A computer-generated model is being created to design the next phase of exploration for the upcoming drill program. Again, we like to refer to the assays results from earlier chip samples, which make the Maria Project so interesting:

Additional Maria Project results are anticipated the week of September 15-19
Highlights from February 29, 2008 NR:
- 0.5m's length of 4.0 g/t Au; 9924 g/t Ag and 5.20% Pb
- 1.0m's length of 1.5 g/t Au; 3299 g/t Ag and 0.70% Pb
- 0.6m's length of 7.9 g/t Au; 2262 g/t Ag and 1.60% Pb
- 1.4m's length of 2.4 g/t Au; 1756 g/t Ag and 1.00% Pb
- 1.0 m's length of 1.6 g/t Au; 7432 g/t Ag and 2.20% Pb

Mercedes "Golden Fountain" Property:
There is an additional drill program being designed to determine the size and scope of this project. Based on visual mineralized soil extending off of our project area, additional acres are being staked and will be announced when our crew returns from the fields with this information. Galena's management team is developing a computer model for the phase 2 drilling program.
QP Luc Rioux, P. Geo, states: "We are excited with the Mercedes project and the possibilities contained therein."
Additional Mercedes Project results are anticipated the week of September 22-26

Tablachaca "Golden River" Project:
The Golden River project is advancing daily. Our Peruvian based management is currently waiting for the remaining permit of the four permits required to begin production. To date we are on schedule for production of approximately 3,000 to 4,000 tons / day in December 2008 with revenues commencing in January 2009.
We have scaled back the initial size of the project to preserve our treasury and in doing so, thereby reducing our initial capital expenditure cost to approximately $600,000. We anticipate a three to four month payback could be realized once operations commence.

Our fall program:
We will continue to provide updates through the fall and disseminate the data from our exploration results as it becomes available. We anticipate the lengthy turn-around time from the assay labs in Latin America to begin to decline as many of the smaller undercapitalized companies drill less meters. However, as it stands today, the delays in the labs are significant and do require patience.
Once again our management anticipates the following dates are likely for additional assay information from the labs:
- Week of September 08-12: Maureen Results
- Week of September 15-19: Maria Results
- Week of September 22-26: Mercedes Results
These dates are all subject to change dependant on the labs. We will endeavor to have the news released as soon as the assay certificates are received. Galena is very pleased to provide this update to interested parties and invites anyone with questions to contact the company or to visit the website. It should be noted under the property section on the website we have added new pictures to each of the properties.
Galena's mission statement is to aggressively build a well-financed, premiere public company run by dedicated, experienced senior management, with projects whereby production can withstand commodity fluctuations and therefore create a legacy in Mexico and South America.
Galena has been focused on meeting its target of being in positive cash flow from its Tablachaca Golden River project in Peru while advancing its top 3 Mexican projects.



For further information please visit www.GalenaCorp.com or contact Ian Pedersen (Vice President of Investor Relations) directly at (604) 638-0260.