MD&A

Galantas Gold Corporation
01 May 2008

                           GALANTAS GOLD CORPORATION


                       MANAGEMENT DISCUSSION AND ANALYSIS

                          Year ended December 31, 2007



Dated: 01 May 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 twelve months ended  December 31, 2007.  This MD&A is to be read in
conjunction with the audited financial statements for the same period.  The MD&A
does not form part of these audited 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 April  30, 2007.


This MD&A is dated April 30, 2007.


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 189 square kilometre prospecting licence, focus on the more
       than 50 gold targets identified to date, and

•      Promote and expand on a commercial basis the Galantas(R)Irish gold
       jewellery business now that certified Irish gold from the mine has become
       available.



Reserves and Resources


References

1.        December, 2005: ACA Howe International Ltd. 'Technical Report of the
Gold Mining and Exploration Interests of the Omagh Gold Project of Galantas Gold
Corporation in Counties Tyrone and Farmanagh, Northern Ireland' (the 'Howe
Report')

2.       September 22, 2006:  Galantas Gold Corporation Press Release: 'Galantas
Develops Omagh Gold Mine...'

3.       January 22, 2007:  Galantas Gold Corporation Press Release: 'Ore
Reserve and Resource Estimate'.



Ore reserves and mineral resources lie within eight veins in a 5 square
kilometre area at the eastern end of the Company's prospecting licence which
encompasses a 20 by 6 kilometre fault-bounded inlier of Precambrian 'Daladrian'
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 meter long and
an average of 4.3 meters wide.  It has been drilled with 40 diamond drill holes
down to 137 meters and was intersected in one hole at a depth of 300 meters.
Below the average 3 meters of overburden , a 359 meters long section at the
southern end of the deposit had been 88% stripped and channel sampled in detail
in the late 1980's by Rio Tinto (212 meters) and in 1991 by Omagh Minerals
Limited (103 meters).  Results together with drilling data were used in the Howe
Report to calculate reserves and resources.  The calculations have not been
updated with surface sampling and drilling results obtained in 2006 and in 2007.
The Company is in the midst of exploration and development involving diamond
drilling, results of which will lead to a new estimate of reserves and
resources.  This new estimate and accompanying N143-101 technical report has
been commissioned and is currently being finalized and reviewed.


On the Kearney deposit, which is the initial focus of mine development, the
Company's current resource statement notes: (i) proven ore reserves of 181,480
tonnes at a grade of 7.36 grams of gold per tonne;  (ii) probable ore reserves
of 185,830 tonnes at a grade of 7.68 grams of gold per tonne; plus (iii) an
indicated resource of 1,183,680 tonnes at a grade of 7.02 grams of gold per
tonne.  These reserves and resources were calculated using a cut-off grade of
1.0 gram of gold per tonne and a cut-off width of 0.5 meters.  The reserves lie
within the 'Kearney Pit' currently being developed.  The indicated resource
extends from the bottom of the pit presently planned at 37 meters vertical depth
to a depth of 137 meters, below which depth the deposit remains open.  Note that
the reserves and resources outlined above are undergoing review the results of
which, nearing completion, will replace the current resource statement and that
review could affect the quantities and/or grades previously calculated.


Additional to the reserves and resources of the Kearney deposit, the Howe Report
noted indicated and inferred resources in other deposits within the Company's
mining licence.  At a cut of grade and width of 1.0 gram per tonne gold and .0.5
meters, these are:


Indicated Resource    Grade      Contained Gold      Inferred Resources       Grade      Contained Gold
(tonnes)              (g/t Au)   (grams Au)          (tonnes)                 (g/tAu)    (grams Au)

329,820               6.72       2,208.53            135,500                  4.68       634,643



The estimate in the Howe Report (re-iterated January 22, 2007, press release)
was carried out to the standards of the Joint Committee of the Australasian
Mining Industry Council Code (JORC).   A reconciliation to the mineral resources
and mineral reserve categories as set out in National Instrument 43-101 was
included in the Howe Report.

The Howe Report describes in section 12 a mining trial on proven reserves that
produced four selectively mined samples aggregating 101.4 tonnes grading an
average of 53.41 grams gold per tonne.  The difference between this and the
reserve grade is attributed to a) selectivity practiced in the mining trial, b)
dilution inbuilt in the original sampling, and c) naturally inhomogeneous gold
distribution.  The sustainable mining grade will be established through sampling
prior to and during the early life of the open pit.  Mineralisation is tightly
constrained in the sulphide veins that make up the Kearney and other deposits,
making them amenable to selective mining.  The processing plant has been
designed to accept ore grading up to 20 grams gold per tonne.

Channel sampling of 2 vein segments aggregating 150 meters in the southern part
of the Kearney deposit was completed independently in 2006 to obtain an estimate
of the selective mining grade that could be sustained in that area.  The
results, combined with those from 124 samples taken by the Company, showed a
weighted undiluted average grade, at a cut-off grade of 3.0 grams per tonne
gold, for individual veins of 16.25 grams per tonne gold.  Detail is contained
within the press release dated September 22, 2006.

Exploration Targets

The Howe Report describes 53 targets selected from integration of geological,
geochemical and geophysical data over the Dalradian inlier.  The targets were
grouped on a priority of 1 to 10 to reflect the likelihood of their hosting
additional resources.  Eight veins around Kearney were classified as very high
priority resource augmentation targets with scores of 9 and 10.  These have high
grade channel and/or drill intercepts and have resources and/or reserves.  Eight
veins not drilled, or with lower grades, have scores of 5 to 8.  The remaining
37 targets comprise one scoring 6, six scoring 5, four scoring 4, eleven scoring
2 and seven scoring 1.

Howe considers targets scoring 3 to 8 to represent excellent opportunities for
discoveries.  Howe considered it likely that exploration will add to the
reserves and resources and that veins similar to Kearney may lie undiscovered.
Howe considered that relatively high grades and widths and continuity of the
deposits with known reserves and resources indicate the potential for
underground production in the future.

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 the press release dated June
26, 2007.  Improvements in terms of production quantity have been made since the
end of the last quarter though concentrate quality remains variable.
Inconsistencies in terms of production quantity and quality are expected to
gradually reduce.

The year saw infrastructure upgrades including, addition to access and haul
roads and process building, completion of the modified paste tailings storage
facility, water containment dam and reticulation and discharge system including
a channel diverting run-off water away from working places.

Galantas Irish Gold Limited

Galantas Irish Gold has carried out market trials wherein jewellery to the value
of $712,784 has been sold through retailers in Ireland and direct via the
Company's e-commerce enabled website www.galantas.com, $529,546 of the sales
having been made since the company entered development stage on January 1, 2003.
Manufacturing and distribution systems are operating and the retailer network
in Ireland and the UK are in place with the initial delivery of jewellery having
taken place early in 2008.  Production of Irish gold has been scheduled into the
operating plan to support regular commercial activity.

At the date of this MD&A, Goldsmith group has purchased Galantas(R) jewellery
which has been  distributed via certain shops in its large UK retail chain.
Replenishment orders from the initial shipment have begun.

Management and Staff

Overall management is exercised by two Executive Directors along with a General
Manager who is in charge of operations in Omagh where the mine, plant and
administration employs 27 people.  During the year the company welcomed Nicholas
Hardie as General Manager, Chris Attwood as Production Manager and Brent
Routledge as CFO.

Key Performance Driver

The achievement of production and cash flow from profitably mining the deposits
at Omagh.

1.2 OVERALL PERFORMANCE

After commencing site preparation in 2005 and completing the major part of plant
construction and site works in 2006, the year of 2007 saw production come
online.  Ramp up challenges in the early stages of production have been
mitigated but a consistent ore supply continues to be the focus of attention.
The plant was commissioned as noted in the press release dated June 26, 2007
with work continuing on streamlining the process with a re-grind circuit to
further increase the value of concentrate.  Work also continues on general site
enhancements around the plant.

During the year a total of 996.4 dry tonnes of concentrate were produced with
330.4 tonnes in the first quarter of 2008.

Exploration

Diamond drilling continued throughout the year with the primary focus continuing
on detailing the Kearney deposit and exploring the parallel Elkin deposit lying
500 meters to the east.  A total of 4,830 metres were drilled in 35 holes in
2007, details as tabulated:

                       Kearney          Elkins            Kerr             Total

Holes Drilled 2007          29               6               0                35

Meters                 4,377.0           453.0             0.0           4,830.0


Drilling statistics for the year are in the table below:

             Hole ID     Location   NI-GRID N     NI-GRID E    NI-GRID RL  Depth (m)      Start      Finish

           OM-DD-07-15  Kearney     371041.658   240133.834     172.335    90.00       04/01/2007  18/01/2007
           OM-DD-07-16  Kearney     371038.987   240171.424     164.641    120.00      23/01/2007  08/02/2007
           OM-DD-07-17  Kearney     371039.436   240209.819     156.025    167.30      09/02/2007  26/02/2007
           OM-DD-07-18  Kearney     371090.813   240176.967     165.296    154.60      27/02/2007  07/03/2007
           OM-DD-07-19  Kearney     370830.247   240201.226     160.405    135.00      08/03/2007  20/03/2007
           OM-DD-07-20  Elkin's       371126       240657         121      48.00       07/03/2007  14/03/2007
           OM-DD-07-21  Elkin's       371163       240669         121      50.00       15/03/2007  22/03/2007
           OM-DD-07-22  Kearney     370799.427   240171.287     163.101    102.00      21/03/2007  27/03/2007
           OM-DD-07-23  Elkin's       371219       240665         120      51.00       23/03/2007  02/04/2007
           OM-DD-07-24  Kearney     370748.620   240186.756     164.396    130.00      28/03/2007  11/04/2007
           OM-DD-07-25  Elkin's       371274       240662         121      117.00      03/04/2007  16/04/2007
           OM-DD-07-26  Kearney     370725.597   240200.950     165.404    164.20      12/04/2007  19/04/2007
           OM-DD-07-27  Elkin's       371162       240688         123      76.00       17/04/2007  23/04/2007
           OM-DD-07-28  Kearney     370674.430   240187.658     162.245    101.40      19/04/2007  25/04/2007
           OM-DD-07-29  Elkin's       371219       240700         121      111.00      25/04/2007  16/05/2007
           OM-DD-07-30  Kearney     370624.015   240186.843     160.502    116.20      23/05/2007  02/05/2007
           OM-DD-07-31  Kearney     370848.309   240200.277     160.283    143.40      03/05/2007  11/05/2007
           OM-DD-07-32  Kearney     370849.082   240149.896     162.804    110.00      15/05/2007  22/05/2007
           OM-DD-07-33  Kearney     371322.425   240114.333     159.197    120.00      18/05/2007  31/05/2007
           OM-DD-07-34  Kearney     370873.752   240175.568     160.504    167.00      23/05/2007  31/05/2007
           OM-DD-07-35  Kearney     371208.940   240168.465     162.239    153.00      01/06/2007  18/06/2007
           OM-DD-07-36  Kearney     370897.742   240170.826     160.786    140.00      31/05/2007  11/06/2007
           OM-DD-07-37  Kearney     370924.581   240172.106     161.764    131.50      12/06/2007  19/06/2007
           OM-DD-07-38  Kearney     370920.818   240117.268     166.763    104.00      20/06/2007  26/06/2007
           OM-DD-07-39  Kearney     371140.723   240110.717     174.640    99.00       26/06/2007  06/07/2007
           OM-DD-07-40  Kearney     370972.451   240172.084     163.093    125.00      26/06/2007  03/07/2007
           OM-DD-07-41  Kearney     371121.548   240220.805     158.321    281.80      04/07/2007  23/07/2007
           OM-DD-07-42  Kearney     370946.379   240135.962     165.745    68.00       10/07/2007  19/07/2007
           OM-DD-07-43  Kearney       371175       240125         177      102.00      19/07/2007  13/08/2007
           OM-DD-07-44  Kearney     371071.961   240171.770     166.883    125.00      24/07/2007  16/08/2007
           OM-DD-07-45  Kearney     370677.006   240224.458     161.361    144.15      15/08/2007  04/09/2007
           OM-DD-07-46  Kearney     371174.353   240240.587     152.793    329.00      17/08/2007  12/09/2007
           OM-DD-07-47  Kearney     371093.183   240205.683     159.934    243.00      05/09/2007  15/10/2007
           OM-DD-07-48  Kearney     371216.621   240229.354     153.194    258.50      13/09/2007  04/10/2007
           OM-DD-07-49  Kearney       371275       240250         165      252.00      16/10/2007  19/11/2007



Results of the drilling is outlined in the table following:

KEARNEY VEIN - CORE DRILLING RESULTS, DECEMBER, 2007

      Hole ID         From (m)     To (m)   True Width     Grade     Grade (g/t      Grade 
                                                (m)      (g/t gold)    silver)      (% lead)

OM-DD-07-26             93.40      93.70       0.30        11.28        12.06         0.03
and                    113.40      114.95      1.55         2.40          <5          0.06
OM-DD-07-28             48.20      49.92       1.72        12.27         8.64         0.74
and                     80.70      84.55       3.85         9.94         3.18         <.01
OM-DD-07-30             82.05      83.25       1.20         6.92         4.73         0.51
OM-DD-07-31            125.75      125.90      0.15        20.16        192.19       19.86
and                    134.60      134.75      0.15        62.96        68.00         3.00
OM-DD-07-32             44.70      47.15       2.45         3.90         5.06         0.42
OM-DD-07-33             38.50      39.60       0.78         4.73         6.41         0.21
including               38.85      39.60       0.53         5.56          <5          0.10
OM-DD-07-34             65.45      65.60       0.11        26.88         6.00         0.05
and                     91.25      91.85       0.42         3.47        13.38         0.03
and                     98.40      98.50       0.07         5.60         2.50         0.05
and                    113.25      113.40      0.11         7.92         7.00         0.05
OM-DD-07-35            130.20      130.40      0.14         1.56         2.50         0.05
OM-DD-07-36             85.70      86.15       0.32         1.27         2.50         0.05
and                     89.8       90.39       0.42         6.32         15.2         0.25
including               89.90      90.00       0.07        13.28        23.67         0.09
and                    107.95      108.65      0.49        23.65        10.71         0.05
including              108.35      108.45      0.07        165.12       59.91         <.01
OM-DD-07-37             62.60      62.75       0.11         3.01         2.50         0.05
and                     68.80      71.50       1.91         3.72         5.07         0.22
including               69.20      69.30       0.07        37.12        28.72         0.82
and                     73.00      73.30       0.21         7.09        16.00         1.11
and                     93.15      93.60       0.32        15.28        20.11         2.26
including               93.40      93.50       0.07        26.88        30.22         1.72
and                    111.10      111.40      0.21         7.99         2.50         0.05
OM-DD-07-38             51.85      52.00       0.11         4.95         2.50         0.05
and                     86.40      87.35       0.67         2.50         0.00         0.05
and                     98.10      98.80       0.49         1.59         2.50         0.05
OM-DD-07-39             29.15      29.40       0.18         7.76        18.00         1.63
and                     42.00      44.00       1.41         1.89         2.50         0.02
and                     94.40      94.75       0.25         2.27         2.50         0.05
OM-DD-07-40             81.95      82.30       0.25         2.31         2.50         0.89
and                     84.90      89.00       2.90        18.88        41.56         0.74
including               85.20      85.45       0.18        89.60        66.82         0.01
and                     95.40      96.90       1.06         3.21         4.97         0.03
OM-DD-07-41            125.35      125.45      0.07         3.34         2.50         0.05
and                    150.00      151.33      0.94         8.66         7.67         0.08
and                    176.00      176.50      0.35         3.48         2.50         0.05
and                    180.60      180.75      0.11         4.10         2.50         0.05
and                    185.30      185.90      0.42         8.16         2.50         0.05
and                    217.25      220.80      2.51         7.90        29.97         1.04
including              218.45      218.85      0.28        22.08        17.98         0.34
and                    224.40      229.49      3.60        22.29        158.23        2.30
including              224.40      224.90      0.35        68.16        458.80        4.06
and                    237.15      237.32      0.12         2.79         2.50         0.05
and                    248.55      248.70      0.11        18.20        14.00         2.07
and                    251.05      251.80      0.53         5.82        16.60         0.36
and                    280.95      281.05      0.07         4.04         2.50         0.05
OM-DD-07-42             26.80      29.05       1.59         3.90         7.02         0.95
and                     34.10      35.00       0.64         2.07         6.00         0.94
OM-DD-07-43             53.95      54.65       0.49        18.13        16.95         0.07
OM-DD-07-44             98.64      98.76       0.08        16.58        14.49         0.78
OM-DD-07-45             41.70      41.87       0.12         1.98          <5          <.01
and                     83.27      83.50       0.16        58.57         5.44         <.01
OM-DD-07-47            175.09      177.94      2.02        18.18        111.39        2.09
including              175.09      176.84      1.24        29.09        179.35        3.39
and                    208.77      211.68      1.77         7.77         4.90         0.34
including              210.47      210.71      0.17        42.08        25.60         0.16
OM-DD-07-46             57.22      57.38       0.11        33.92         5.00         <.01
and                    164.38      166.46      1.45         5.20         6.81         0.40
including              165.07      165.55      0.33        14.40        18.00         1.29
OM-DD-07-48            162.74      168.76      4.21         5.95         3.99         0.02
including              162.74      166.31      2.50         8.95         6.73         0.03
OM-DD-07-49            187.15      187.41      0.18         1.94         3.94         0.01


ELKINS VEIN - CORE DRILLING RESULTS, DECEMBER, 2007

      Hole ID         From (m)     To (m)   True Width     Grade     Grade (g/t      Grade 
                                                (m)      (g/t gold)    silver)      (% lead)

OM-DD-07-25             29.50      29.76       0.26        17.60        19.26         2.58
and                     50.90      51.22       0.32         3.23          <5          <.01
OM-DD-07-27             26.62      26.79       0.17         2.61          <5          <.01
and                     39.30      39.70       0.40         4.24          <5          <.01
OM-DD-7-29              52.40      54.10       1.70        11.36         3.13         0.10
including               53.95      54.10       0.15        101.76       35.58         0.29



1.3 FULL YEAR FINANCIAL RESULTS



Revenue Recognition

The policy regarding revenue recognition reflects both the nature of our
contract with Falconbridge and the first year of operations.  Hence, shipments
in the fourth quarter were not reflected as revenue as they involved future
price of metals not yet determinable as of year end.  Based on the variability
of the gold/silver/lead content we were not able to accurately determine within
a comfortable margin the final revenue figure.  As the mine was still in start
up conditions the Third Quarter sales fully recognized at the time is
permissible as revenue since the final invoices were satisfied before year end
and cash received.  Going forward with the mine now producing to a greater level
of consistency of concentrate we will be able to estimate to within an
acceptable margin the final sale of a container and record the revenue in full. 
Subsequent to year end the deferred revenue has been fully recognized in the
amount of $201,743 as cash has been received.  This policy does not affect the
company's cash position or contract with Falconbridge.

Recognition of revenue from the sale of concentrate amounted to $619,434 with
the remaining $34,708 in sales from jewellery.   This reflects the plant being
commissioned mid year and continued ramp up of operations.   Previously the sale
of concentrate was offset against deferred development costs and amounted to
$372,051 in the first half of 2007. As anticipated given the continuing
production delays, jewellery sales were nominal for the year as new supply of
certified Irish gold did not become available until early in 2008.   Subsequent
to year end a large delivery was fulfilled with Goldsmiths and replenishment
orders are starting to materialize.  During the year there were six (6)
concentrate shipments to a specialist processing plant to supply certified Irish
gold.  This gold is currently with the manufacturer and in the process of being
made in to new jewellery.

The company entered into production, albeit at a low rate, at the beginning of
the 3rd quarter and incurred a loss of $2,165,656 for the year (2006 - loss
$995,250).  The higher loss this year over last year reflects both the expensing
of development costs previously capitalized along with the amortization of those
costs.  Comprehensive loss from January1, 2003 amounted to $5,062,132.

At December 31, 2007, total assets were $20,314,311, up $4,755,033 from the
prior year mainly due to an increase in trade receivable from the sale of
concentrate, plus fabrication of additional jewellery and purchase of plant &
equipment.   Development expense previously deferred in the amount of
$10,539,905 has been included in Property, Plant & Equipment consistent with the
site entering into production.  Exploration costs are still being incurred as
part of the ongoing program of mine development.

Cash at the end of the year was $21,308 (2006 - $234,909), reflecting the longer
than anticipated ramp up of the operation using additional working capital. 
Accounts receivable totaled $578,831 at the end of the year, as compared with
$397,953 at the end of 2006 reflecting the increase in production of 
concentrate for sale to Falconbridge/Xstrata. Inventory at $1,033,596 represents
 shipments of concentrate in the fourth quarter, finished jewellery products,
unworked gold and broken ore, up significantly from 2006 due to the finished
jewellery.  As stated there was a significant delivery of finished jewellery to
Goldsmiths in the first quarter of 2008.  The non-cash item of future income tax
credit of $1,602,917 increased due to the loss incurred which management
anticipates will be recoverable.

Liabilities at $3,373,843 were up over the prior year from $1,753,207 largely
due to the debt financing secured from a related party midway through the year
and accounts payable reflecting the use of working capital.  These debt
financing will be retired within terms and suppliers are appraised of the
company's cash position and are being paid as funds are generated from
operations.  The mine is producing and shipments of concentrate are increasing. 
Deferred revenue of $201,743 reflects the shipments from October through to
December and as stated the cash has subsequently been collected.



Expenses

Development costs are now expense d as the plant entered into production at the
beginning of the third  quarter.  Cost of operations was $1,708,248 compared to
$17,188 in the prior year due primarily to the increase in the cost of sales to
generate concentrate and the amortization of development costs. Management
expects the cost of sales to increase during the upcoming year but as more ore
is exposed  for processing sales of concentrate are anticipated to more than
offset the costs.  Included in the cost of sales are the manufacturing costs of
$109,313 for finished jewellery sold during the year.  Specific items showing
material variances year over year were:

•         Operating expenses increased substantially to $760,027 compared to
          $124,989 as the mill entered into production mid year and the plant 
          expenses are no longer deferred.  The largest  increase derived from 
          wages of $311,895 (2006 - $32,518) and professional and consultancy 
          fees of $201,978 (2006 - $21,710).

•         The foreign exchange loss of $42,598 is a decrease from the prior year
          loss of $76,248 and reflects the effect of floating currencies.

•         Stock based compensation at $429,262 was up reflecting management's
          decision to reward key staff based on company performance over the 
          long term.

•         Bank charges and interest for the year were $64,307 compared to
          $14,293 the year before and are expected to remain at this level until
          the debt, which was acquired for plant & equipment and working 
          capital, is retired.

Fourth Quarter

Revenue for the fourth quarter reflects only jewellery sales of $19,289, the
revenue from concentrate of  has been recorded as deferred revenue.   There has
been an adjustment for the Third quarter revenue of $ 82,794.  There were 16
shipments during this period with 13 destined for Falconbridge and 3 for the
specialty refiner to provide certified Galantas Irish Gold for the manufacture
of jewellery.  Shipments were down for the quarter compared to the third quarter
(total of 20) due to the shortages of ore to feed the plant.  Steps were taken
in late October to remove significant amounts of the overburden and expose more
of the Keanery ore vein.   This project encompassed most of the fourth quarter
and first quarter of 2008 (2008 Q1 shipments totaling 15).  With the pit more
fully developed it is expected that shipments will increase in the second
quarter of 2008 and beyond.

Cost of sales for the period was $529,900 reflecting the fixed nature of plant
costs and digging operations.  Management anticipates that these costs will
remain relatively static while concentrate volumes improve leading to profitable
margins.

Operating expenses of $1,131,986 were mainly driven by stock options ($344,152)
granted and professional fees which are more one-time expenses and subject to
management discretion.  As a result of these expenses and the revenue adjustment
the loss for the period was $1,070,540.

There were other significant developments beyond the pit which included
extension of the rock storage area, completion of both the eastern and western
water storage lagoons in October and completion of tailings cell #2 in November.

1.4 RESULTS OF OPERATIONS

The Company's core business is gold mining, and hitherto, its revenue has
derived mainly from the sale of gold, silver and lead concentrates and small
amounts of gold jewellery.  Sales in the jewellery business remained minimal
during the year reflecting the depleted stock of certified Irish gold from the
mine.  However, production increased allowing six (6) containers of concentrate
to be processed at the specialist processing facility with the gold delivered to
Italy for the manufacture of jewellery for inventory stock which subsequent to
year end was delivered to Goldsmiths and other retailers.

There were 48 shipments during the year of which 6 were directed towards a
specialist refiner to support the jewellery business.  Dry tonnage shipped was
996.4t and of that total 123.4 tonnes were shipped for specialist processing and
returned certified Irish gold as feedstock for the Galantas jewellery business.

The Company has a relationship with UK Goldsmiths Group PLC whereby this quality
retailer is expected to feature Galantas(R) products in a number of stores in
its large UK chain.  First deliveries occurred in the early part of 2008, though
stock was accumulated for this order in the last quarter of 2007.

1.5 SUMMARY OF QUARTERLY RESULTS

Revenues and net financial results in Canadian dollars for the fourth quarter of
2007 and for the seven preceding quarters are summarized:

Quarter Ended                    Total Revenue        Net Profit (Loss)          Net Profit (Loss) per share
                                                                                 & per share diluted
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
September 30, 2006                   15,673                   (238,654)                     0.00
June 30, 2006                        11,047                   (420,215)                     0.00
March 31, 2006                       3,845                    (524,704)                     0.00



Shipments during the quarter were as follows:  first quarter:  2, second
quarter: 10, third quarter: 20 and the fourth quarter: 16.  The fourth quarter
experienced lower shipments as there began major development on overburden
removal to expose more of the ore vein.

1.6 LIQUIDITY

As at December 31st, 2007, the Company's working capital was in a deficit of
$1,499,218 which compared with a deficit of $806,140 at end of the prior year. 
This deficit is expected to persist throughout the 2008 but gradually reduce as
the cash from operations, both from the sale of concentrates and jewellery,
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.

To date the company has been able to draw upon additional cash resources from
the President of the company for working capital and finance of plant and
equipment.

1.7 CAPITAL RESOURCES

As at December 31st, 2007, the Company had capital requirements to repay, under
existing agreements with Barclays Lease Finance three financing facilities of
$160,949, $156,448 and $290,314 totaling $607,711.

A term loan of $419,909 (£250,000) for working capital use at an interest rate
of 7.50% was taken from Allied Irish Banks in May, it is repayable over 3 years
at a monthly payment of $16,637 (£7,743).

In addition, Welsh Gold plc., a company controlled the President is due
$716,713. The loan is unsecured and bears interest at base rate plus 2% with no
specific terms of repayment.  At December 31, 2007, interest of $14,871 was
accrued and included n accounts payable and accrued liabilities.

The Company also obtained a loan facility from G&F Phelps, a company controlled
by a director of the Company, in the amount of $807,638 (£412,060) for the
financing of mining equipment.  The term loan is for a period of 4.25 years at
4.04% flat with monthly interest payments of $18,949 and is secured by all
equipment owned by the Company's wholly-owned subsidiary  Omagh Minerals.

The company has no further commitments other than employment contracts with its
2 executive directors.

1.8 OFF-BALANCE SHEET ARRANGEMENTS

The Company has no off-balance sheet transactions.

1.9 RELATED PARTY TRANSACTIONS

The Company was charged $54,463 (2006 - $45,296) for accounting and corporate
secretarial services by companies associated to the corporate secretary of the
Company.  Accounts payable include $52,385 (2006 - $5,568) owing to these
companies.  The services provided are ongoing and include book-keeping for the
Canadian companies.

During the period, the Company paid or accrued to management in salary $278,436
(2006 - $250,800).  The portion capitalized to deferred development costs was
$128,922 (2006 - $250,800) and $149,514 (2006 - nil) was expensed to the
statement of loss as operating expenses.    The amounts pursuant to ongoing
executive contracts with the  Executive Chairman and the President & CEO.

Directors fees of $28,750 (2006 - $25,250) were paid or accrued during the
period.

Included due to related party is $190,159 (£97,020) owing to a director of the
company.  The loan is unsecured and non-interest bearing with no specific terms
of repayment.

CUMULATIVE RESULTS OF OPERATIONS AND DEFICIT

Since development commenced on January 1, 2003, the Company has had sales of
$1,148,620.  Expenses in the same period have amounted to $5,709,526 creating an
overall loss of $6,127,432.  The deficit increased to $13,959,943 at the end of
the period, up from $11,794,287 at the beginning of the year.

SHARE CAPITAL

The Company is authorized to issue in series an unlimited number of common and
preference shares.  At the end of December 2007, a total of 175,675,855 shares
had been issued.

As of December 31, 2007, a total of 24,404,000 warrants were outstanding with
expiry dates and exercise price noted in the following table:

        Number of Warrants                  Exercise Price ($)                      Expiry Date

            14,000,000                             0.32                            July 26, 2008
             1,300,000                             0.25                            July 26, 2008
             5,284,000                             0.45                          September 2, 2008
             3,820,000                             0.32                          September 4, 2008



STOCK BASED COMPENSATION

On December 24, 2007, 7,700,000 stock options were granted to employees,
directors and officers of the Company to purchase common shares at a price of
$0.14 per share until December 24, 2012.  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 $793,000 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 2007 is $271,938 related
to the vested portion of these stock options.

As at the end of December 31, 2007, 10,550,000 options were outstanding, as 
follows:

    Exercisable Options         Number of Options          Exercise Price (4)            Expiry Date

         1,400,000                  1,400,000                     0.15                  April 10, 2008
          166,667                    250,000                      0.26                  July 31, 2008
          200,000                    200,000                      0.10                   May 13, 2010
          333,333                    500,000                      0.26                  June 14, 2011
          166,667                    500,000                      0.23                  June 15, 2012

         2,566,667                  7,700,000                     0.14                December 24, 2012



OTHER MD&A REQUIREMENTS

Deferred exploration costs for the current and prior year are tabulated:

Expense Account                                    2007                                2006
Wages                                             48,196                              63,096
Drilling                                          854,207                             180,665
Laboratory                                        79,057                              23,587



With the mine being commissioned at the beginning of the third quarter only
those costs associated with exploration of future veins are capitalized.  All
development costs have been recorded as assets and are no longer capitalized. 
These costs are now captured under Expenses on the Statement of Loss and are as
follows:


Expense Account                                    2007                   2006
Accounting & corporate                            46,579                 39,055
Bank charges & interest                           64,307                 14,293
Foreign exchange loss                             42,598                 76,248
Legal & audit                                     109,024                223,749
Operating expenses                                760,027                124,989
Shareholder communication                         203,110                568,121
Stock based compensation                          429,262                192,327
Transfer agent                                    22,892                 25,202
General Office                                    50,785                 59,954



The variance in the foreign exchange compared to the prior year reflects the
nature of dealing in foreign currency.  The company is paid in US dollars for
the sale of concentrate to Falconbridge and primarily conducts its business in
pounds sterling.

Operating expenses are primarily represented by wages $311,895, insurance
$59,551, travel $63,797  and professional fess $115,314.  This reflects the
business no longer capitalizing these expenses as it is now in production.

Stock based compensation reflects the granting of 8,200,000 share option on June
15 and December 24, 2007 of which $381,062 was expensed this year.

The other expenses show a decline in spending as management is focusing very
heavily on production only related items and requires less professional
services.



Changes in Accounting Policies Including Initial Adoption

The Company adopted Accounting Guideline 11 - Enterprises in the Development
Stage - as of January 1, 2006.  The Company has adopted the new accounting
standards relating to Capital Disclosures and Financial Instruments -
Disclosures and Presentation, effective January 1, 2007.

TRENDS AFFECTING THE COMPANY'S BUSINESS

Metal prices remain strong  after the long period of weakness which ended
approximately three years ago.  The sustained price recovery is attributable
largely to increased metal consumption in the Far East, most notably China and
India, both of which are experiencing raid growth in their economies.  Thus, the
fundamentals of the metal business are once again favourable for capitalizing
new mines and investors have returned to the mineral resource sector.

For junior resource companies like Galantas, there has been selective
enhancement in market valuation and it has been possible to raise money from the
public for mining and exploration ventures.  The recent market correction has
introduced significant uncertainties and careful management of the Company's
cash continues to be the guiding principle for Galantas.

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 jewellery, 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 this may persist
into the future.  The Company has commissioned an independent re-assessment of
it reserves and resources and a report is anticipated in mid 2008.

2.      Mineral Processing   Ore from the Kearney deposit has been subjected to
metallurgical trial including pilot plant studies in reputable laboratories by
the Company.  The previous owner, Rio Tinto, did mineralogical and bench scale
metallurgical studies.  The flow sheet is simple and the equipment in the plant
is industry standard. Nevertheless, scale-up to sustainable commercial
production may introduce unforeseen technical problems.  Efforts to foresee such
problems and ameliorate them have been made and an internal metallurgical audit
assisted by independent professionals was carried out in advance of
commissioning and production.  The study concluded that, 'The process selected
is in accordance with the results of test work and would be expected to produce
satisfactory results technically but there are mechanical and electrical
concerns regarding the capability of the facility to maintain a high degree of
operating time'.  This is primarily due to lack of spare capacity, particularly
of pumps.  Management considered that this situation is manageable with the
addition of extra pump capacity which has been implemented.  A number of
modifications to equipment and operating practices have been made and have
resulted in improvements in comminution section throughput.  External
consultants were engaged to assist in commissioning.  While marked improvement
was noticed subsequent to the end of the year, its continuation cannot yet be
guaranteed.  Therefore there is continued risk to 2008 cash flow and to the
capital 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
will be subject to self monitoring and strict independent monitoring.  One of
managements priorities has been to establish and maintain a culture of
environmental care on the site with the object of preventing accidents.

4.      Permitting   The Company has comprehensive 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.  Remaining consents required - building
regulations, archaeological supervision of excavation which is mandatory
throughout Ireland, compliance with IPPC regulations - relate to operating
procedures and are being addressed with the relevant authorities as the project
develops.  Nevertheless, as in all jurisdictions, regulatory provisions are
subject to change and the Company may be faced with additional constraints in
the future.

5.      Title   The Company owns the land in secure freehold on which the
project is located.  Precious metal licences and mining licences have been
granted to the Company by the Crown Estate and renewed as required since the mid
- 1990's when initially granted.  Licences 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 licence 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
licence 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.  In spite of recent private placements, the Company still may not
have sufficient capital to enable the Kearney mine to be brought to full
production.  The delay in bringing the production up to capacity has  resulted
in a cash shortage.  Management continues to actively pursue additional working
capital and has implemented a very 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 and may stay such or remain on a rising
trend.  There is risk that this trend may reverse and reduce Sterling income. 
Inflation is widely viewed as a threat in the United Kingdom and elsewhere and
this is cause for concern.  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   The project has taken longer to build which
has increased costs and deferred cash revenue.  This risk is particularly acute
for a new and relatively small project such as Galantas is building in Northern
Ireland where there is no mining history.  One is mindful that there has already
been serious slippage from schedule and it cannot be ruled out that further
slippage may occur given that there are uncertainties connected with factors
such as the detail of environmental compliance measures, geological conditions,
contractor performance, materials availability and actual outturn costs.

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                      Telephone: [phone]

Roland Phelps, President and CEO               E-mail: [e-mail]

Jack Gunter, Chairman                          Website: www.galantas.com



Blomfield Corporate Finance Ltd.               Telephone: [phone]

Nick Harriss



Lewis Charles Securities Limited               Telephone: [phone]

Kealan Doyle




                      This information is provided by RNS
            The company news service from the London Stock Exchange   D

MSCFKDKQDBKKDPK