Galahad Metals Doubles and Closes Private Placement

OTTAWA, ONTARIO--(Marketwire - Feb. 1, 2011) - Galahad Metals Inc (TSX VENTURE:GAX) announced today that it has completed the Private Placement announced January 20, 2011.

The Company is pleased to announce that it raised a total of $822,500 through the sale of common share (not flow- through) Units ("Units"). The Company issued 5,485,000 Units which were sold at $0.15 per Unit.

Each Unit consists of one common share and one warrant to purchase a common share at $0.25 and each from the date of issue up to and including January 31, 2013.

Robin Dow, CEO, reports: "This financing should permit Galahad to complete the next phase of diamond drilling at Regcourt, which is expected to start before the end of Q1, and should carry the company through the end of Q2 and well into Q3."

Proceeds raised will be used for merging the expected down hole geophysical report into Gem-com, the interpretation of the resulting model, funding the next drilling programme at Regcourt and for working capital.

The Company will pay a Finder's Fee payable in a combination of cash and the issuance of securities of the Issuer equal to 5% ($6,900) in cash and in Units equal to 5% (117,814 units) of the proceeds in connection with proceeds received by the Corporation from the sale of Units to subscribers.

The Company is also pleased to announce that investors in prior private placements have exercised 2,030,000 warrants in the Company for cash proceeds of $203,000.

"The statements in this Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release."

For more information, please contact