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 Buckingham Graphite Property, Quebec.


Buckingham Graphite Property

The Buckingham Graphite property comprises two former producing mines, located
just east of Buckingham, QC. They are located in the highly prospective Central
Metasedimentary Belt of the Grenville geological province, host to many active
graphite projects. The host rocks for both deposits are graphitic crystalline
marbles, similar to the host stratigraphy at Timcal's Lac des Iles graphite
mine, currently Canada's only producing graphite mine. The two properties cover
a total of 1,324 Ha on 22 mining claims.


The Ste-Marie deposit had small scale production in 1865, with a total reported
production of 50 tons of graphite. The mineralization is hosted in lenticular
masses and mineralized veins, within a crystalline limestone marble. The
mineralization results from carbonitization of organic matter in calcareous
sedimentary formations during the Grenvillian metamorphic event. The graphite
mineralization is typically massive.


The Dominion mine produced a reported 916 tons of graphite, between 1910 and
1919. The geological setting is very similar to the Ste-Marie deposit. Flake
graphite is reported to be the common form of graphite in the deposit.


The Company cautions that it has not verified the quality and accuracy of the
historic data reported in this news release, which predate the introduction of
National Instrument 43-101 and cautions readers not to rely upon them. The
historic information was generated from property data on the website of the
Quebec Ministere des Resources Naturelle et de la Faune. This source believed to
be reliable; however, it has not been confirmed by the company's Qualified
Person.


Chris Healey, President of Galaxy commented, "This acquisition, along with the
Sun Graphite property acquisition previously announced, will move Galaxy to a
position of leadership in the emerging electrical metals field." 


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 Buckingham Graphite
Property, Quebec from 9187-1400 Quebec Inc. 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 300,000 common shares on receipt of the
TSX Venture Exchange ("TSX-V") acceptance of the agreement, iii) and 300,000
common shares six months from TSX-V acceptance. 


The vendor 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.


Chris M. Healey P.Geo, a Qualified Person as defined by National Instrument
43-101, has reviewed and approved the technical content of this release.


CHRIS M. HEALEY

ON BEHALF OF THE BOARD

Chris M. Healey, President and CEO

We seek safe harbor.

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