GXY

Galaxy Capital Corp. (TSX VENTURE:GXY) (the "Company" or "Galaxy") is pleased to
announce that it has signed an agreement to acquire a 100-per-cent interest in
the Sun Graphite Property located along the St. Lawrence River North Shore in
southern Quebec.


A summary of the property is as follows:



--  Large 4,200 hectare claim block, multiple target areas and anomalies the
    longest of which is 3 kilometres, trench and drill ready.

--  Identified by Outokumpu Mines Inc. in exploration for base metal
    mineralization, ground work confirmed graphite. 

--  Road accessible



The Sun Graphite Property consists of one large contiguous block of 76 claims
totaling approximately 4,200 hectares located 125 km northwest of the city of
Baie-Comeau, Quebec. Access to the property is excellent with road access via
the main lumber haul road which originates in Baie-Comeau and Labrieville. 


The Sun Property was originally explored by Outokumpu Mines Inc. in 1998
exploring for base metal mineralization. An advanced helicopter borne
geophysical program consisting of 2600 km of flight path in the region was
performed. The airborne program located multiple electro-magnetic (EM) anomalies
in the area, outside or coinciding with magnetic anomalies. In a 15 km long
trend, there are multiple target anomalies and off-set structures, the longest
of which is 3 km long.


This helicopter borne geophysical survey was followed by ground exploration on
about half of the major conductors only. The program was abandoned midway when
it was concluded that all anomalies visited were related to graphite
mineralization and that the base metal sulphides of interest were nearly absent.
Some of the graphite occurrences seem to be associated to the contact (shear
zone) between the different geological units.


Galaxy plans to mount an aggressive exploration campaign on the property
commencing with a complete compilation of historic geologic work followed by
surface work, trenching and diamond drilling. The exploration target is multiple
crystalline flake graphite deposits similar to other graphite deposits and mines
in Quebec such as Focus Metals Inc.'s Lac Knife Deposit and Timcal Graphite and
Carbon's Lac des Iles Mine. 


The geology of the property is primarily on the contact zone between the Lac de
la Blache anorthositic complex and the cataclastic gabbro suite and a variably
magnetic sequence of cataclastic gabbro interlayered with paragneiss. 


The Company cautions that it has not verified the quality and accuracy of the
historic sampling results reported in this news release which predates the
introduction of National Instrument 43-101 and cautions readers not to rely upon
them. The historic figures were generated from sources believed to be reliable;
however, they have not been confirmed. Although the sampling results are
relevant, they have not been verified.


Graphite Market

Global consumption of natural graphite has increased from approx. 600,000 in
2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by
approximately 5% per year since 2000 due to the ongoing modernization of China,
India and other emerging economies, resulting in strong demand from traditional
end uses such as the steel and automotive industries. Graphite also has many
important new applications such as lithium ion batteries, fuel cells and nuclear
and solar power that have the potential to create significant incremental demand
growth. There is roughly 20 times more graphite required by weight to produce a
lithium-ion battery than there is lithium. Demand for graphite is expected to
rise as electric vehicles and lithium battery technology are adopted as well as
increasing uses in new technology applications.


Natural graphite comes in several forms: flake, amorphous and lump. Of the 1.2
million tonnes of graphite produced annually, approximately 40% is of the most
desirable flake type. China, which produces about 73% of the world's graphite,
is seeing production and export growth leveling and export taxes and a licensing
system have been instituted. A recent European Commission study regarding the
criticality of 41 different materials to the European economy included graphite
among the 14 materials high in both economic importance and supply risk
(Critical Raw Materials for the EU, July 2010). Graphite prices have been
increasing in recent months and over the last couple of years prices for large
flake, high purity graphite (+80 mesh, 94-97%C) have more than doubled.


Terms 

Galaxy has an option to earn a 100-per-cent interest in the Sun Graphite
Property from Zimtu Capital Corp. and three of their prospecting partners by
making the following payments and issuing the following common shares to the
vendors: i) $15,000 upon signing the letter agreement (paid), ii) $15,000 and
1,000,000 common shares on receipt of the TSX Venture Exchange ("TSX-V")
acceptance of the agreement, iii) $30,000 and 500,000 common shares fourteen
months from TSX-V acceptance, iv) $40,000 and 500,000 common shares 24 months
from TSX-V acceptance. During the period which is 12 months from the date of
TSX-V acceptance, Galaxy Capital Corp. will complete a minimum of C$150,000 of
exploration on the Property. The vendors will retain a 2-per-cent net milling
royalty on the property, 1% of which can be purchased by Galaxy for C$1,000,000.


Jean-Sebastien Lavallee (OGQ #773), geologist, a Qualified Person as defined by
National Instrument 43-101, has reviewed and approved the technical content of
this release.


RAHOUL SHARAN

ON BEHALF OF THE BOARD

Rahoul Sharan, President and CEO

For further information, please visit the website at www.sedar.com to view the
Company's profile.


We seek safe harbor.

(TSXV:GXY)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

(TSXV:GXY)
Historical Stock Chart
Von Jun 2023 bis Jun 2024