Jiu Valley - Romania
Coalbed Methane Project

Galaxy's wholly owned subsidiary, Pannonian International, Ltd., holds a 25% interest in a concession in the Jiu Valley Basin of Romania in the heart of Romania's historic coal mining district. Approximately 13,000 acres are considered to be prospective for coalbed methane production. The acreage contains up to 18 coal seams, with a cumulative thickness up to 170 feet at depths of 985 to 3,280 feet. The main target seam averages 22 meters in thickness in the concession area.

Casing has been set on the first test well (Lupeni South-1) on the property. Core analysis indicates the potential presence of coalbed methane in multiple horizons. After analysis is complete, Galaxy will be able to determine if it can expect potential gas production or recoverable reserves from the project.

Pannonian has applied for a concession for an additional 120,000 acres in Romania known as the Anina Block. The application is presently pending.