Management Discussion and Analysis

GALANTAS GOLD CORPORATION

                       MANAGEMENT DISCUSSION AND ANALYSIS

                      Nine months ending September 30, 2008

This document constitutes management's discussion and analysis (MD&A) of the
financial and operational results of Galantas Gold Corporation (the company) for
the nine months ended September 30, 2008.  This MD&A is to be read in
conjunction with the unaudited financial statements for the same period.  The
MD&A does not form part of these unaudited financial statements.  The Company
prepares and files its financial statements in accordance with Canadian
Generally Accepted Accounting Principles (GAAP).  The currency referred to in
this document is the Canadian dollar.  The MD&A is prepared in conformance with
National Instrument 51-102F1 and was approved by the Company's Audit Committee
on November 26, 2008.

This MD&A is dated November 26, 2008.

FORWARD LOOKING STATEMENTS

The information in the MD&A contains forward looking statements, including
statements about anticipated operating and financial performance.  Such
statements are not guarantees of future performance which is subject to risks
and uncertainties only some of which are within the Company's control, and any
or all of which could cause the Company's performance to be materially different
from what directors may believe.  Given the uncertainties associated with
forward looking statements, readers are cautioned not to place undue reliance on
them.  The Company does not undertake to update any forward looking statements
contained herein.

OVERVIEW - STRATEGY - DESCRIPTION OF BUSINESS
Galantas Gold Corporation is a producing mineral resource issuer and the first
to acquire planning consent to mine gold in Ireland.  The Company's wholly owned
Ontario holding company, Cavanacaw Corporation, owns all of the shares of two
Northern Ireland companies - Omagh Minerals Limited, owner of prospecting and
mining rights, planning consent plus land, buildings and equipment; and Galantas
Irish Gold Limited, owner of rights to work, market and sell the Company's gold
production as certified Irish gold jewellery.

The Company's strategy to increase shareholder value is to:

   · Increase the production of the open pit mine and processing plant on its
     Kearney deposit,

   · Continue to explore and develop extensions to the Kearney and nearby known
     deposits so as to expand minable reserves and increase gold production in
     stages,

   · Explore its 3 prospecting licences which aggregate 653 square kilometre,
     focusing on the more than 50 gold targets identified to date, and

   · Promote and expand on a commercial basis the Galantas®Irish gold jewellery
     business now that certified Irish gold from the mine has become available.

Reserves and Resources

References

  1. May 2008 : ACA Howe International Ltd. " Technical Report on the Omagh
     Gold Project, Counties Tyrone and Fermanagh, Northern Ireland (The Updated Howe
     Report)

Ore reserves and mineral resources lie within eight veins in a 5 square
kilometre area at the eastern end of the Company's original prospecting licence
which encompasses a 20 by 6 kilometre fault-bounded inlier of Precambrian
"Dalradian" rocks and younger rocks underlain by Dalradian rocks.  The deposits
sub-outcrop beneath a few meters of glacial and recent overburden and are open
to depth and usually along the strike.  The steeply dipping Kearney deposit,
focus of the initial mine, is some 850 meters long.

A Press Release dated 12th June 2008 gave detail of a Resource and Exploration
review and contained the following disclosure  :-

"The report of the mineral resource review on the Omagh property has been
prepared by independent consultants, ACA Howe International Ltd (Howe). The
report, entitled Technical Report on the Omagh Gold Project is dated 28th May
2008 and will be published on www.sedar.com and www.galantas.com . Authors are
G. White FGS MAusIMM, J. Bennett C.Eng MIMMM and N. Holloway C.Eng MIMMM.

The resource review updates resource estimates for the Kearney deposit and the
other named veins. These are classified in accordance with CIM (Canadian
Institute of Mining, Metallurgy and Petroleum) Definition Standards on Minerals
Resources and Minerals Reserves, adopted by CIM Council on December 11, 2005.
The report was commissioned to be prepared in compliance with Canadian National
Instrument 43-101.

The reporting has been conservatively applied and there are some significant
differences with the JORC (Australian Joint Ore Reserve Committee) code (1995)
previously used to calculate resources. For instance, although the Elkins
mineralized structure has been found to be co-incident with an IP (Induced
Polarization) geophysical anomaly for the portion of its length that has been
drill tested, the portion of the anomaly that has not been drill tested has been
excluded from resource calculation. The potential Elkins extension is included
within a table of Resource Extension Targets. Previously the extension was
calculated within the JORC resource model.

The CIM / NI.43-101 resources as summarized in the report are as follows :

                       Measured                        Indicated                          Inferred
            Gold (Au)    Grade    Tonnage                Grade    Tonnage                   Grade    Tonnage
               Ozs     g/t gold     (t)         ozs    g/t gold     (t)           ozs     g/t gold     (t)
 Kearney      16,000     6.35      78,000     76,000     6.74     350,000      218,000      9.27   730,000
  Elkins                                      12,000      3.3     113,000        3,600      3.82    29,000
   Kerr                                                                          7,800      4.03    60,000
  Joshua                                                                        20,400      3.96   160,000
 Gormley                                                                        24,300      6.57   115,000
  Garry                                                                          1,600      1.27    40,000
 Prince's                                                                       12,500     38.93    10,000
 Sammy's                                                                         4,100      4.26    30,000
Kearney Nth                                                                      3,500      1.97    55,000

Total ozs     16,000                          88,000                           295,800

Two new vein discoveries are reported upon, named as McCombs vein and Eastern
Lagoon vein, though no estimate of resources have been included for these
discoveries.

The report contains estimates of potential tonnage and grade of some of the
available targets and classifies these by Resource Extension or Exploration. The
potential quantity and grade is conceptual in nature and there has been
insufficient exploration to define mineral resources in these areas. It is
uncertain if further exploration will result in the targets being delineated as
mineral resource. The exploration potential does not represent a mineral
resource, does not have demonstrated economic viability and is disclosed in
accordance with NI 43-101 Rules and Policies, Section 2.3, disclosed as
potential quantity and grade, expressed as ranges, of a potential mineral
deposit that is to be the target of future exploration. The report states,
"However, the disclosed potential quantity and grade has been determined on the
basis of reasonable extrapolation from known and defined resources and/or
favourable geochemical/geophysical signatures and float/surface sampling, the
results of which make these areas highly prospective".

Table of Exploration Potential* (The updated Howe Report)

Target Name  Potential Tonnes       Potential Grade Range
             Range (t)              (g/t Gold)
               RESOURCE EXTENSION TARGETS
             Low         High        Low        High
Kearney      400,000     600,000     4.5        9.0
Elkins       200,000     400,000     2.0        4.0
Joshua's     190,000     380,000     2.0        4.0
Kerr         180,000     360,000     2.0        4.0
Gormley      230,000     460,000     3.3        6.5
Sammy's       30,000      60,000     2.1        4.2
Prince's      20,000      40,000      19         38
Garry's       80,000     160,000     0.7        1.3
Total      1,330,000   2,460,000

                   EXPLORATION TARGETS
Peter's        4,000       13,000     4.5        9.0
"63 gram"     33,000      101,000     4.5        9.0
North of
Sammy's
Barn / East
Cousins      135,000      810,000     4.5        9.0
Cornavarrow   60,000      360,000     4.5        9.0
Burn East
Corlea Burn   60,000      360,000     4.5        9.0
Legphressy    60,000      360,000     4.5        9.0
Cousins       48,000      145,000     4.5        9.0
Total        400,000    2,149,000

TOTAL        1,730,000  4,609,000
EXPLORATION
POTENTIAL *


Initial Mining Project
The project embraces an open pit mine capable of supplying ore to a crushing-
grinding-froth flotation plant.  The plant is designed to produce a gold and
silver rich sulphide flotation concentrate for sale to a commercial smelter.
The plant was commissioned as stated in a press release dated June 26, 2007.

Galantas Irish Gold Limited
Several additional retailers have been added to the jewelry distribution network
and internet advertising trialed with some success. However, market conditions
generally in the jewelry trade are poor and retailers are cautious about the
coming Christmas season. As a consequence, most management focus has been on the
mine during the quarter.

Management and Staff
Overall management is exercised by one Executive Director along with a General
Manager who is in charge of operations in Omagh where the mine, plant and
administration employs 34 people.

Key Performance Driver
The key performance driver is the achievement of production and cash flow from
profitably mining the deposits at Omagh.

1.2   OVERALL PERFORMANCE
The removal of surplus country rock by a road contractor, at no cost, has
permitted a focus during the third quarter on the removal of till (deposits of
glacial origin) to expand the open pit and expose more ore. The increased length
of the ore vein already exposed has created space for additional equipment to
operate. To facilitate a rapid increase in ore production, a 52 tonne, large
capacity excavator and three, 40 tonne, articulated dump-trucks have been
mobilised. The extra equipment is being rented on a three month trial, with 75%
of the rental fees being available as a deposit to a potential purchase. This
arrangement gives the opportunity to trial the use of Bell trucks, for which
other operators report lower fuel consumption.

Since delivery in early October, the additional equipment has permitted till to
be removed at an increased rate, although quantities required to be moved have
proven to be greater than estimated originally. In the second week of November
2008, focus has moved to excavating waste rock to enable greater quantities of
ore to be mined. Some till remains to be moved but movement of this will be
postponed until after Northern Ireland Electricity have completed a re-routing
(now in progress) of power lines.

The supply of additional ore has enabled increased hours of operation at the
plant. The first 5.5 day week (previously 4.5 days) was worked during the week
ending November 8th.

Although the quantity of ore has increased, the ore grade remains
variable. Grade has been lower in Quarter 4 than in Quarter 3 but
there has been an increased amount of ore available to the plant
(approximately 10,220 tonnes in quarter 3 versus approximately
6,450 tonnes for the first half of Quarter 4  - November 15th)
which has partially helped to redress the reduction in ore grade.
Froth washing has generally proved to be a low cost method for
improving concentrate grade and it has been noted that the gold
content of concentrate has generally fallen when ore grades are
lower.

During the quarter a total of 536.95 wet tones (503.11 dry tones)
of concentrate was produced yielding an estimated 1642.22 ounces
of gold, 4115.35 ounces of silver and 51.05 tonnes of lead.
These figures are preliminary at this point in time as final
assay results with Xstrata have not been exchanged.

Exploration
The third quarter has seen the carrying out of exploration field
work in each of the three license areas. Soil, deep overburden
and chip sampling programs were carried out as follow up on
several anomalies and results are awaited.

1.3 REVIEW OF FINANCIAL RESULTS

Three Months Ended September 30,2008

Net income for the three months ended September 30, 2008 amounted
to $113,170 compared to a loss of $788,481 for the corresponding
period of 2007.

Revenues from the sale of concentrate and jewelry amounted to $
1,175,104 for the three months ended September 30, 2008 which
compared to revenues of $715,080 for the corresponding period of
2007 reflecting the increased level of shipments during the
quarter. There were no shipments to the specialist processing
plant in the third quarter to supply certified Irish gold. Cost
of Sales for the quarter amounted to $619,832 compared to
$909,123 for the corresponding period of 2007. Amortization for
the three months totaled $360,520 compared to $266,449 for 2007.
This resulted in a Net Income before Other expenses and income
for the third quarter of $194,752 compared to a Loss of $460,492
for the corresponding period of 2007. Other Expenses and income
for the third quarter including a foreign exchange gain of
$389,736 amounted to $81,582 compared to $327,989 for third
quarter of 2007. Other Expenses and income are set out in Section
1.15 Other MD&A Requirements.  This has resulted in a Net Income
of $113,170 for the three months ended September 30, 2008
compared to a Net Loss of $788,481 for the corresponding period
of 2007.

Nine Months Ended September 30,2008

The Company incurred a loss of $1,745,022 for the nine months
ended September 30,2008 compared to a loss of $ 1,095,116 for the
corresponding period of 2007 when the Company commenced
production at it's mine in Ireland in July. Revenues for the nine
months ended September 30, 2008 amounted to $2,447,456 which
compared to $717,647 for the corresponding period of 2007. Cost
of Sales for the nine months amounted to $ 1,754,019 compared to
$910,415 for the corresponding period of 2007. The lower level of
costs in 2007 reflects the July 2007 production start up.
Amortization for the nine months totaled $1,057,601 compared to
$267,933 for the nine months ended September 30, 2007. This
resulted in a Loss before Other Expenses and Income $364,164 for
the nine months compared to a loss of $460,701 for the
corresponding period of 2007. Other Expenses and income for the
nine months totaled $1,380,858 compared to $634,415 for 2007.
Other Expenses and income are set out in Section 1.15 Other MD&A
Requirements.  This has resulted in a Net Loss of $1,745,022 for
the nine months ended September 30, 2008 compared to a Net Loss
of $1,095,116 for the corresponding period of 2007.

Total assets at September 30, 2008 amounted to $20,676,423, down
marginally by $85,054 from the June 30, 2008 total of
$20,761,477.

Cash at the end of the quarter was $229,279 (June 30, 2008 -
$113,195).  This increase is more or less a factor of timing and
management expects this number to fluctuate quarter to quarter as
financial obligations come due.  Accounts receivable totaled
$232,591 compared to $562,290 at June 30, 2008.  Inventory at
September 30, 2008 amounts to $1,842,161and compares to
$1,752,846 at June 30, 2008.   The non-cash item of future income
tax credit totaling $1,602,917 remains unchanged from year end.
Property plant and equipment including deferred development and
exploration costs totaled $16,769,475 compared to $16,730,229 at
June 30, 2008. Capital expenditure for the three months and nine
months to September 30, 2008 amounted to $ 399,766 and $ 749,417
respectively. Of this expenditure $343,671 was incurred on
Deferred till stripping costs involving the removal of overburden
where the underlying ore will be extracted in future periods.

Current liabilities at $5,866,440were in line with June 30, 2008
liabilities of $6,016,736 and include accounts payable, external
debt financing facilities, loans from a related party and
deferred revenue. The debt financing will be retired within the
terms of the financing arrangements. Deferred revenue of $749,321
reflects the shipments from June through to September and should
continue to increase quarter over quarter as shipments increase.
This does not negatively affect the company's cash position but
is merely a timing issue. Non current loans from related parties
and external financing facilities total $764,155 which compares
to $917,942 at June30, 2008.

1.4 RESULTS OF OPERATIONS
The Company's core business is gold mining with the majority of
its revenue derived mainly from the sale of gold, silver, lead
concentrate and small amounts of gold jewelry.   Production has
shown signs of further improvement during the third quarter with
a total of 22 containers shipped compared to 18 containers
shipped in the second quarter of 2008.  In terms of dry tonnage
shipped the third quarter was 503.1 tonnes compared to the second
quarter of 390.0 tonnes.

1.5 SUMMARY OF QUARTERLY RESULTS

Revenues and net financial results in Canadian dollars for the
third quarter of 2008 and for the seven preceding quarters are
summarized:

                                                                Net Profit(Loss) per share
 Quarter Ended       Total Revenue       Net Profit(Loss)       & per share diluted
September 30, 2008       1,175,104               113,170                    0.00
June 30,2008               650,565              (712,273)                   0.00
March 31, 2008             621,787            (1,145,919)                  (0.01)
December 31, 2007          (63,505)           (1,070,540)                   0.00
September 30, 2007         715,080              (788,481)                   0.00
June 30, 2007                1,212              (135,118)                   0.00
March 31, 2007               1,355              (171,517)                   0.00
December 31, 2006           15,363               188,323                    0.00


There were 22 shipments during the quarter to Falconbridge with
no shipments going to the specialty refiner for the production of
Galantas Irish Gold.



1.6 LIQUIDITY
The Company had a cash balance of $229,279 at September 30, 2008
compared with a cash balance of $113,195 at the end of the prior
quarter and $21,308 at December 31, 2007.

As at September 30, 2008 the Company's working capital was in a
deficit of $3,321,519 which compared with a deficit of $3,347,515
at end of the prior quarter and $1,499,218 at December 31, 2007.
This deficit is expected to persist throughout the remainder of
2008 but to gradually reduce as cash from operations, both from
the sale of concentrates and jewelry increases.  Ore supply
continues to be a challenge with management focusing heavily on
the development of the pit which is making slow but steady
progress.  Additional working capital may be required in the
short term.

Additional Related Party loans received during the three months
and nine months ended September 30 2008 amounted to $266,003 and
$1,480,355 respectively. Repayments on the financing facility
were $164,090 during the quarter and $372,005 during the nine
months ended September 30, 2008.

To date the company has been able to draw upon additional cash
resources as loans from the President of the company for working
capital and finance of plant and equipment.. Subsequent to
September 30, 2008 the President and Chief Executive Officer
agreed to lend up to a total of £500,000 to the Company for a
period of six months.

The consolidated financial statements have been prepared on a
going concern basis as discussed in Note 1 of the September 30,
2008 consolidated financial statements.

1.7 CAPITAL RESOURCES
As at September 30, 2008, the Company had capital requirements to
repay, under existing arrangements.

 a) Accounts payable and accrued liabilities incurred in the
normal course of business.

 b) Three £ financing facilities with Barclays Lease Finance. The
amounts outstanding on these facilities    at September 30, 2008
were $74,730, $61,875 and $224,444 totaling $361,049.

 c) A May 2007 term loan of £250,000 for working capital use at
an interest rate of 7.50% from Allied Irish Banks which  is
repayable over 3 years. The amount outstanding on this loan at
September 30, 2008 amounted to $294,566.

 d)Welsh Gold plc., a company controlled the President, and the
President personally is due $1,741,116 (£922,788) of which
$739,312 (£391,781) is  due over a period of 3 years This UK£
loan bears interest at base rate plus 2%.   A portion of this
loan, $507,137 (£268,050) is secured with a second charge against
the land in Omagh.  At September 30, 2008, interest of
$105,173was accrued and included in accounts payable and accrued
liabilities.

 e) The Company also obtained a loan facility from G&F Phelps,
a company controlled by a director of the Company, in the amount
of $1,222,005 (£647,660) for the financing of mining equipment
and working capital purposes.  The term loan is for a period of
4.25 years at 4.04% flat with monthly interest payments of
$17,464 and is secured by all equipment owned by the Company's
wholly-owned subsidiary  Omagh Minerals.

The company has no further commitments other than an employment
contract with its 1 executive director.

1.8 OFF-BALANCE SHEET ARRANGEMENTS

The Company has no off-balance sheet transactions.

1.9 RELATED PARTY TRANSACTIONS

The Company was charged $15,108 and $49,781 for the three and
nine months ended September 30, 2008,respectively ($14,202 and
$33,546 for the three and nine months ended September 30,
2007,respectively)for accounting and corporate secretarial
services by companies associated to an officer of the Company
.Accounts payable includes $41,585 (September 30, 2007 - $32,976)
owing to these companies.

Director fees of $9,000 and $27,000 ($4,500 and $23,000 for the
three and nine months ended September30, 2007, respectively) were
paid or accrued during the three and nine months ended September
30, 2008, respectively.

Included in due to related party is $1,741,116 (922,788 GBP)
owing to a director and companies controlled by a director of the
Company. $507,137 (268,781 GBP) of the loan is secured against a
second charge on the land owned by Omagh and the balance of the
loan is unsecured. The loans bear interest at base rate plus 2%.
$739,312 (391,781 GBP) is due over a period of 3 years. At
September 30, 2008, interest of $105,173 (55,742 GBP) was accrued
and included in accounts payable and accrued liabilities.

Also, included in due to related party, the Company obtained a
loan facility from G&F Phelps, a company controlled by a director
of the Company, in the amount of $1,222,005 (647,660 GBP) for the
financing of mining equipment. $778,607 (412,660 GBP) of the term
loan is for a period of 4.25 years interest bearing at4.04% flat
with monthly payments of $16,591 (8,793 GBP) and is secured by
all equipment owned by the Company's wholly-owned subsidiary
Omagh Minerals Limited.

Transactions with related parties were in the normal course of
operations and were measured at the exchange amounts.


1.10   FOURTH QUARTER

Not applicable to Quarterly MD&A.

1.11   PROPOSED TRANSACTIONS

The Company presently has no planned or proposed business or
asset acquisitions or dispositions.

1.12   CRITICAL ACCOUNTING ESTIMATES

Galantas did not rely on any critical accounting estimates during
the quarter

1.13   CHANGES IN ACCOUNTING POLICIES INCLUDING INITIAL
ADOPTION

During the nine months ended September 30, 2008 Galantas adopted
the following new accounting policies.

Property, Plant and Equipment

Deferred Till Stripping Costs

Till stripping costs involving the removal of overburden rock are
capitalized where the underlying ore will be extracted in future
periods. The Company defers these till stripping costs and
amortizes them on a unit of production basis as the underlying
ore is extracted.

Capital Disclosures and Financial Instruments - Disclosures and
Presentation

On December 1, 2006, the Canadian Institute of Chartered
Accountants (the "CICA") issued three new accounting standards:
Capital Disclosures (Handbook Section 1535), Financial
Instruments - Disclosures (Handbook Section 3862), and Financial
Instruments - Presentation (Handbook Section 3863). These new
standards became effective for the Company on January 1, 2008.

Capital Disclosures

Handbook Section 1535 specifies the disclosure of (i) an entity's
objectives, policies and processes for managing capital; (ii)
quantitative data about what the entity regards as capital; (iii)
whether the entity has complied with any capital requirements;
and (iv) if it has not complied, the consequences of such
noncompliance. The Company has included disclosures recommended
by the new Handbook section in Note 4 to these unaudited interim
consolidated financial statements.

Financial Instruments

Handbook Sections 3862 and 3863 replace Handbook Section 3861,
Financial Instruments - Disclosure and Presentation, revising and
enhancing its disclosure requirements, and carrying forward
unchanged its presentation requirements. These new sections place
increased emphasis on disclosures about the nature and extent of
risks arising from financial instruments and how the entity
manages those risks. The Company has included disclosures
recommended by the new Handbook sections in Note 5(b) to these
unaudited interim consolidated financial statements.

Inventories

Effective January 1, 2008, the Company adopted the new
recommendations of the CICA Handbook Section 3031, Inventories.
The "revised inventories" section brings the CICA standard in
line with International Financial Reporting Standards and allows
for the upward revaluation of inventory that was previously
written down to net realizable value due to a change in
circumstances.  The adoption of this standard had no impact on
the Company's financial results.

Overburden removal costs (CICA EIC-160)

CICA Emerging Issues Committee Abstract 160 ("EIC-160"),
"Stripping Costs Incurred in the Production Phase of a Mining
Operation", requires stripping costs to be accounted for as
variable production costs to be included in the costs of
inventory produced, unless the stripping activity can be shown to
be a betterment of the mineral property, in which case the
stripping costs would be capitalized. Betterment occurs when
stripping activity increases future output of the mine by
providing access to additional sources of reserves. Capitalized
stripping costs would be amortized on a unit-of-production basis
over the proven and probable reserves to which they relate.

General standard of financial statement presentation

In June 2007, the CICA amended Handbook Section 1400, Going
Concern, to assess an entity's ability to continue as a going
concern and disclose any material uncertainties that cast doubt
on its ability to continue as a going concern. Section 1400 is
effective for interim and annual reporting periods beginning on
or after January 1, 2008. The application of this new standard
had no impact on the Company's unaudited interim consolidated
financial statements as at and for the three and nine months
ended September 30, 2008.

Future accounting changes

IFRS implementation plan

The AcSB has confirmed that IFRS will replace current Canadian
GAAP for publicly accountable enterprises, effective for fiscal
years beginning on or after January 1, 2011. Accordingly,
Galantas Gold Corporation will report interim and annual
financial statements in accordance with IFRS beginning with the
quarter ended March 31, 2011.

The Company has commenced the development of an IFRS
implementation plan to prepare for this transition, and is
currently in the process of identifying the key accounting policy
changes that may be required. Once the potential accounting
policy changes have been identified, other elements of the plan
will be addressed including the implication on information
technology, internal controls, contractual arrangements and
employee training.

Goodwill and Intangible Assets

In November 2007, the CICA approved Handbook Section 3064,
"Goodwill and Intangible Assets" which replaces the existing
Handbook Sections 3062, "Goodwill and Other Intangible Assets"
and 3450 "Research and Development Costs". This standard is
effective for interim and annual financial statements relating to
fiscal years beginning on or after January 1, 2009, with earlier
application encouraged. The standard provides guidance on the
recognition, measurement and disclosure requirements for goodwill
and intangible assets. The Company is currently assessing the
impact of this new accounting standard on its consolidated
financial statements.

1.14   FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS
The Company's current financial instruments consist of cash and
cash equivalents, accounts receivable, accounts payable and
accrued liabilities. The carrying values approximate the fair
values of these financial instruments due to the short-term
maturity of these items.

1.15   OTHER MD&A REQUIREMENTS

Additional Disclosure for Venture Issuers without Significant
Revenue or Exploration Disclosure of Outstanding Share Data

Other Operating  Expenses and (Income) for the Quarters ended
September 30,2008 and September 30,2007 are detailed below:

Expense Account           Quarter Ended September 30 2008  Quarter Ended September 30 2007
Other operating expenses             225,284                             290,427
Accounting & corporate                33,029                              13,423
Legal & audit                         26,713                               5,306
Stock based compensation             105,859                              24,015
Shareholder communication              8,525                              46,328
Transfer agent                         2,240                               3,443
General Office                         6,602                               7,208
Bank interest and charges             63,066                              21,112
Foreign exchange (gain) loss        (389,736)                            (82,662)
Interest (income)                          0                                (611)

Total                                $81,582                            $327,989


Other operating expenses are a combination of both various
expenses at the mine including administration, professional fees,
insurance, shipping and royalty together with the ongoing
expenses of the Company's jewelry business. The decrease in Other
operating expenses from $290,427 in Quarter 3 2007 to $ 225,284
in Quarter3 2008 is due to certain Other operating expenses for
the six months to June 2008 now being reclassified to Cost of
sales which has the effect of reducing the reported costs in the
third quarter.

Accounting and corporate and legal and audit costs have both
increased during the current quarter when compared to the
corresponding period of 2007 due primarily to a part of these
costs being incorrectly classified in the first six months and
now being included in the three months costs to September
30,2008.

Stock based compensation has increased by $81,844 to $105,859 in
the current quarter which reflects the increased level of stock
options issued during the period and the vesting of options
granted in previous periods.

Shareholder communication costs at $8,525 for the quarter are
well below those of the corresponding 2007 quarter when there was
a much higher level of shareholder communication.

Transfer agents fees and general office expenses for the quarter
are in line with those of the corresponding 2007 quarter.

Bank interest and charges have increased from $21,112 in the
third quarter of 2007 to $63,066 in the third quarter of 2008 due
to the increased debt required to finance the operations needs
for capital equipment and working capital.

There was a foreign exchange gain of $389,736 for the 2008 third
quarter compared to a gain of $ 82,662 for the corresponding
quarter of 2007. The gain in the third quarter of 2008 was mainly
due to the weakness of the UK£ against the Canadian dollar at the
end of the quarter which reduced the Company's net £ liabilities
in Canadian dollar terms giving rise to a foreign exchange gain.

Other Operating  Expenses and (Income) for the nine months ended
September 30,2008 and September 30,2007 are detailed as follows:

                           Nine months ended       Nine months ended
Expense Account           September 30, 2008      September 30, 2007
Other operating expenses        800,560                  349,592
Accounting & corporate           62,058                   26,737
Legal & audit                    55,659                   55,354
Stock based compensation        354,567                   85,110
Shareholder communication        76,668                  172,873
Transfer agent                   14,899                   19,638
General Office                   31,940                   31,951
Consulting fees                   6,186                    5,489
Bank interest and charges       190,958                   25,678
Foreign exchange (gain) loss   (212,342)                (137,207)
Interest (income)                  (295)                    (800)

Total                        $1,380,858                 $634,415


Other operating expenses are a combination of both various
expenses at the mine including administration, professional fees,
insurance, shipping and royalty together with the expenses of the
Company's jewelry business. The increase in Other operating
expenses from $349,592 for the nine months to September 2007 to $
800,560 for the corresponding period in 2008 is reflective of the
increased level of activity at Galantas during the period.

Accounting and corporate expenses for the nine months to
September 2008 are $62,058 compared to $26,737 for the
corresponding period of 2007 due a combination of the increased
accounting services at the mine in 2008 and an under provision
for these costs in 2007.

Legal and audit fees for the nine months at $55,659 are in line
with those incurred in the nine months to September 30,2007.

Stock based compensation has increased by $269,457 to $354,567
for the nine months which reflects the increased level of stock
options issued during the period and the vesting of options
granted in previous periods.

Shareholder communication costs at $76,668 for the nine months
are well below those of $172,873 for the corresponding period of
2007 when there was a much higher level of shareholder
communication.

Transfer agents fees for the nine months at $14,899 are $4,739
below those for the corresponding period of 2007.

General office expenses at $ 31,940 are in line with general
office expenses for the nine months to September 30, 2007.

Bank interest and charges have increased from $25,678 in the nine
months of 2007 to $190,958 for the nine months ended September
30, 2008 due to the increased debt required to finance the
operations needs for capital equipment and working capital.

There was a foreign exchange gain of $212,342 for the nine months
to September 2008 compared to a gain of $ 137,207for the
corresponding period of 2007. This gain was mainly due to the
weakness of the UK£ against the Canadian dollar at the end of the
quarter which reduced the Companies net £ liabilities in Canadian
dollar terms giving rise to the foreign exchange gain for the
nine months.


Disclosure of Outstanding Share Data

Share Capital

The Company is authorized to issue in series an unlimited number
of common and preference shares.  At the end of September 30
2008, a total of 175,675,855 shares had been issued.

As of September 30, 2008, there were no warrants outstanding. A
total of 24,404,000 warrants expired during the quarter ended
September 30, 2008.

Stock Based Compensation

On February 20, 2008, 250,000 stock options were granted to an
employee of the Company to purchase common shares at a price of
$0.16 per share until February 20, 2013.  The options vest one-
third upon grant, one-third at the first anniversary and one-
third on the second anniversary of grant.  The fair value
attributed to these options was $32,250 and will be expensed on
the statement of loss and credited to the contributed surplus as
they vest.  Included in the stock based compensation for the 3
and 9 months ended June 30, 2008 is $4,001 and $17,440
respectively to the vested portion of these stock options.

As at of September 30, 2008, 9,150,000 options were outstanding,
as follows:

Exercisable Options     Number of Options     Exercise Price (4)    Expiry Date
      200,000                200,000                0.10           May 13, 2010
      500,000                500,000                0.26          June 14, 2011
      333,333                500,000                0.23          June 15, 2012
    2,566,667              7,700,000                0.14      December 24, 2012
       83,333                250,000                0.16      February 20, 2013

TRENDS AFFECTING THE COMPANY'S BUSINESS
Gold prices measured in US$ have declined from a peak in March.
Sterling has weakened markedly against the US$ from late July
2008.The average monthly sterling gold price has oscillated in a
band between £441 per ounce and £491 per ounce since January
2008, with daily prices exceeding these bands. Many of the costs
of mining are incurred in sterling whilst sales are mostly
received in US dollars. The weaker sterling value has had a
positive impact on mine economics. The recent declines in fuel
oil price have also reduced costs.

Difficulties in the Western credit markets have impacted on all
companies entering into banking credit arrangements and these may
affect the ability of the company to raise funds for capital
expenditure.

In Northern Ireland, the widely acknowledged political agreement
has consolidated the positive financial effects of peace and
stability in the province.

RISKS AND UNCERTAINTIES
Galantas operates in a sector - early stage mineral production
and exploration - which carries inherent risks only some of which
are within management's ability to reduce or remove.  The main
sector risk is always metal price.  The Company's other business,
high value Irish gold jewelry, is dependent upon the mine
consistently being able to supply reliable certified Irish gold.

The Company has assessed the risks surrounding its business.  It
has concluded that most if not all of the risks are standard to
the industry and none of them so profound as to inhibit pursuit
of the Company's strategy.  The main risks identified and
considered are:

1.   Ore Reserves   Tonnage and grade of ore may be lower than
     anticipated.  The Kearney deposit along strike and to depth has
     been proven within the confines of the initial open pit and
     indicated well beyond.  Nevertheless, the ore is variable in
     detail and it has proved difficult to mine at a consistent grade
     and supply the plant with sufficient ore regularly and although
     the issue is being addressed, this may persist into the future.

2.   Mineral Processing   Generally the plant performs in line
     with the prior technical guidance. Alterations and modifications
     to equipment and operating practices have been made and have
     resulted in improvements in comminution and concentrate quality.
     However, there is no certainty that the improvements will persist
     and were these not to do so there would be a risk to cash flow
     and budget.

3.   Environmental   The project was subject to one of Ireland's
     lengthiest public enquiries whereat its design and operating
     fundamentals were challenged and defended to the satisfaction of
     the independent assessors and industry experts representing
     regulators and the Company.  In operation, the facilities are
     subject to self monitoring and monitoring by regulators.

4.   Permitting   The Company has permission to carry out its
     activities.  Overall consents were granted in 2000 after an
     exhaustive public inquiry and fulfillment of more than 30 pre-
     conditions which attached to the provisional consent granted in
     1995. In all jurisdictions, regulatory provisions are subject to
     change and the Company may be faced with additional constraints
     in the future. The Company will require to  make additional
     applications for permitting in order to make additional ore
     available for mining.

5.   Title   The Company owns the land in secure freehold on
     which the project is located.  Precious metal licenses and mining
     licenses have been granted to the Company by the Crown Estate and
     renewed as required since the mid - 1990's when initially
     granted.  Licenses and Leases are subject in the usual way to
     minimum performance requirements which are set at a level so as
     not to inhibit development.  There is a dialogue ongoing with the
     Northern Ireland Development of Enterprise Trade and Industry
     (DETI) concerning a license to extract base metals which occur
     with the gold and silver in the quartz-sulphide veins and which
     may be recovered as a by-product of gold and silver.  The license
     if applicable may require a fee payable to owners of surface
     rights.  In the case of the Company's planned mine, since the
     owner is the Company itself, it is thought unlikely that there
     will be a material impact.

6.   Political   Northern Ireland has achieved a stable political
     status conducive to business as is evidenced by the relatively
     large amounts of inward investment that the province has enjoyed
     over the past decade.  The mine is well removed from areas of
     potential urban disturbance.

7.   Financial   The risk is that additional funds, if required,
     may not be available. Delay and difficulties in bringing the
     production up to capacity has resulted in a cash shortage.
     Management continues to actively pursue additional working
     capital and has implemented an aggressive ore extraction program.
     Until such funds are secured and the mine produces at an
     increased capacity there is the uncertainty of continued
     operation.

8.   Revenue   The Company has contracted sale of its concentrate
     to Falconbridge.  While the payment terms are specific, there is
     risk that unit income may fall short of forecast.  This could be
     due to a number of factors including failure of the concentrate
     to be within the specification contracted as regards both value
     elements and penalty elements and failure to produce concentrate
     of consistent quantity.

9.   Currency Fluctuations/Bullion Price   Most of the costs to
     the company are incurred in British Pounds Sterling.  Gold price
     expressed in Sterling is within approximately 15% of 5 year
     highs. There is risk that gold prices and the value of sterling
     against the US dollar may reverse current trends and reduce
     Sterling income.  Results are published in Canadian dollars and
     there is therefore a currency risk.  The Company's policy is to
     not sell forward its bullion.

10.  Construction and Development   Most construction costs have
     been incurred and are therefore known and reflected in the
     accounts. Future development risk is attached to development of
     the orebody, such as till stripping, where quantities are only
     estimated and subject to adverse variance.

11.  Personnel   Notwithstanding the relatively small scale of
     the Kearney mine, a level of expertise is required in the mine,
     plant and ancillary activities including geology and accounting.
     With the world experiencing a high level of minerals industry
     activity, the Company foresees difficulties in recruiting
     additional qualified people.  The general shortage of skilled
     people may well prevail for some time to come and the risk is
     that costs, operations, future expansion and indeed excellence
     may be impacted negatively.


Enquiries:
Galantas Gold Corporation
Jack Gunter P.Eng - Chairman
Roland Phelps C.Eng - President and CEO
Email : [e-mail]
Website : www.galantas.com
Telephone : [phone]

Blomfield Corporate Finance Limited
Nick Harriss
Telephone : [phone]

Lewis Charles Securities Limited
Kealan Doyle & Nicholas Nicolaides
Telephone : [phone]


-END-