Galileo Share Placing and Share Exchange

4 July 2012

                            Galileo Resources Plc                             

                         ("Galileo" or the "Company")                          

                   Galileo Share Placing and Share Exchange                    

The Board of Galileo Resources Plc ("Galileo"), the AIM-quoted emerging African
Rare Earth exploration company, is pleased to announce that the Company has
entered into a Share Exchange Agreement (the "Exchange Agreement") with
prospective AIM-quoted Praetorian Resources Limited ("Praetorian") and a
subscription agreement with Praetorian for a placing of 2.5 million Galileo
ordinary shares for cash ("Subscription Agreement").

Highlights of Exchange and Subscription Agreements include:

  * Galileo agrees to exchange five million of its ordinary shares of GBP0.05
    each at a strike price of GBP0.40 ("Exchange Shares") for four million
    Praetorian ordinary shares of nil par value which are expected to represent
    9.98% of Praetorian's issued share capital on Admission (falling to 8.57% 
    on admission of a further 6,566,020 Praetorian ordinary shares that are
    conditional on shareholder consents) (with Subscription Shares of nil par
    value attached on 1 for 2 basis) at a price GBP0.50 ("Share Exchange").
   
  * Praetorian agrees to subscribe, for cash, for 2.5 million Galileo ordinary
    shares of par value GBP0.05 at GBP0.40 to raise GBP1 million (the "Issue").
   
The issue of Galileo Exchange Shares is conditional, inter alia, on the
`Admission of the entire issued and to be issued Ordinary Shares and
Subscription Shares of Praetorian to trading on AIM becoming effective in
accordance with the AIM rules ("Admission"). The Company expects this to be
around 9 July 2012.

The new Galileo ordinary shares are expected to be admitted to AIM on 10 July
2012. On the issue to Praetorian of the aggregate 7,500,000 new Galileo
ordinary shares in respect of the above Agreements, the Company's issued share
capital will be 83,057,183 and Praetorian's shareholding in the Company will be
9.03%.

The Share Exchange and the Issue will provide Galileo with an aggregate of GBP3
million of additional cash and marketable securities to provide additional
working capital for the development of the Company's Glenover Rare Earth
Project ("Glenover").

Praetorian is a newly formed natural resource focused investment holding
company incorporated in Guernsey. The company's investment strategy is focused
on investing in mining and energy stocks with depressed valuations arising,
inter alia, during cyclic economic downturns. By arranging share exchanges the
intent is to provide its investee companies with an additional means of raising
capital in current market conditions. Praetorian is expected, on admission of
its shares to AIM, to have GBP5.5 million in cash and to have made investments
in resource companies totalling GBP17.3 million.

Praetorian's admission document will be available at www.praetorian.com.

Colin Bird, Chairman and Chief Executive Officer of Galileo Resources,
commented: "We are pleased that Praetorian, a new resource focused investment
holding company has selected Galileo as part of its core of investments. The
Praetorian management comprises industry specialists both in corporate finance
and resource stock selection. We are pleased to take part in this placing in
Praetorian with the firm belief in Praetorian's underlying investment model."

Details of the Subscription Shares include:

The holder of Praetorian Subscription Shares of no par value will have the
right, inter alia, to convert into Praetorian ordinary shares of nil par value
on the basis of one Praetorian ordinary share for every one Subscription Share
held, at the price of GBP0.70 per ordinary share, payable in full on
subscription. The expiry date for conversion is the last business day in July
2015.

On Admission, the Subscription Shares will become fully detached from the
Ordinary Shares and trade separately on AIM.

The Subscription Shareholder will not be entitled to any right of participation
in the profits of Praetorian.

A copy of this announcement will be available on the Company's website
www.galileoresources.com

For further information, please contact:

Colin Bird                                              Tel [phone]
Chairman & CEO

Andrew Sarosi                                           Tel [phone]
Technical 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