Award of PEA of Glenover RE Project

For immediate release                                          16 August 2012

                             Galileo Resources Plc                             

                         ("Galileo" or the "Company")                          

    Award of Preliminary Economic Assessment of Glenover Rare Earth Project    

The Board of Galileo Resources Plc ("Galileo"), the AIM-quoted emerging African
Rare Earth exploration company, is pleased to announce that its joint venture
company Glenover Phosphate (Pty) Ltd ("Glenover") has awarded a contract for a
compliant preliminary economic assessment ("PEA") of its Glenover Rare Earth
Project ("Glenover Project or the Project") to UK-based GBM Minerals
Engineering Consultants Limited ("GBM").

Highlights

  * Glenover commissions a compliant preliminary economic assessment of its 
    Glenover Project on the back of the recently announced resource estimate 
    for the Project
   
  * Quotations for the PEA received from four highly regarded industry
    consultants
   
  * GBM awarded contract on basis of minerals experience, price, delivery,
    study and project management capability and referee due diligence
   
  * Fast track completion of PEA anticipated in early 2013
   
Colin Bird, Chairman and Chief Executive Officer of Galileo Resources,
commented: "We are pleased with our Project's results and as such we are moving
rapidly to process the Project's development to production. The Project's
rare-earth-bearing stockpiles, ease of access and position provides us with a
strategic time advantage over our competitors."

Technical Sign-Off

Andrew Sarosi, Technical Director of Galileo, who holds a B.Sc. Metallurgy and
M.Sc. Engineering, University of Witwatersrand and is a member of The Institute
of Materials, Minerals and Mining, is a 'qualified person' as defined under the
AIM Rules for Companies and a competent person under the reporting standards.
The technical parts of this announcement have been prepared under Andrew
Sarosi's supervision and he has personally approved the release of this
announcement.

Editor's Note:

Galileo, is a natural resource exploration company. Its flagship project is the
Glenover RE project, 100% held by Glenover Phosphate (Pty) Ltd, a joint venture
with Fer-Min-Ore (Pty) Ltd and Black Economic Empowered entities. This property
produced phosphate for many years. Phosphate however, is now subordinated to
Rare Earths (REs), which the recent independently commissioned compliant
resource estimate has shown to be present in the stockpiles from the previous
operation and in the defunct open pit.

One of the current key benefits of this project for a medium-sized rare earth
operation is that the costs and associated risks of mining the stockpiles and
the resource in the defunct open pit should substantially be reduced.

The concession is of considerable size and hosts several RE mineralisation
types. Following the issue of the compliant resource statement, the Company is
undertaking a preliminary economic assessment with a view to advancing the
project to feasiblity and eventual development and proving up a mineable RE
resource.

Galileo currently has a 31.66% interest in Glenover and has the option, by way
of additional staged payments, as set out in the Company's Admission Document,
to earn up to a maximum interest of 73.73%. The operator is Glenover.

The Company also has a number of Iron Ore and Manganese exploration projects in
the Cape Province, all of which are in proximity either to current operations
or discoveries that are not currently being processed.

Galileo has rights to joint venture in an aggregate producing quarry close to
Mthata in the Eastern Cape. The directors believe that the quarry is well
positioned to supply construction aggregate for the significant potential
infrastructure programme being undertaken by the local government.

For further information, please contact:

Colin Bird Tel [phone]
Chairman & CEO

Andrew Sarosi Tel [phone]
Technical & Finance Director

Beaumont Cornish Limited, Tel [phone]
Nominated Advisor and Broker

Roland Cornish/James Biddle
Shore Capital Stockbrokers Limited Tel [phone]

Joint Broker
Jerry Keen/Toby Gibbs

Bishopsgate Communications Tel [phone]
Nick Rome/Anna Michniewicz/Ivana Petkova