Pelangio controls a number of early-stage properties in Ontario and Quebec, mostly in areas with active and historic mining activities.

Birch Lake, Ontario

Pelangio owns a 100% interest in the Birch Lake property, which comprises 28 contiguous unpatented mining claims (1,120 acres) located in the Keigat Lake area, approximately 120 kilometres northeast of Red Lake, Ontario.

The property is subject to an underlying agreement whereby Goldcorp retains a 2% NSR royalty on all of the claims. There are currently no obligations to Goldcorp other than payment of the royalty on production.

Previous work by Placer Dome delineated a gold-bearing system (High Grade Island) over a strike length of approximately 300 metres to a vertical extent of 150 metres. From 1986 to 1996, Placer Dome completed 110 drill holes totaling 19,918 metres, together with mapping, trenching, geochemical and ground geophysical surveys.

Prior to September 30, 2008, the property was subject to an option agreement between Pelangio and Trade Winds Ventures Inc., which spent approximately $1.2 million on the property during the term of the option. Trade Winds completed its most recent drilling activities on High Grade Island during winter 2005. The previous 2004 drilling program consisted of four holes, TWBL-094/095/096/097, totaling 1,102.60 metres, testing the continuity and down-dip extension of the central gold zone located on High Grade Island. Trade Winds reported multiple occurrences of visible and coarse gold, with the best assay results reported from the program being: 115.89 g/t gold over 2.90 metres (est. true width 1.86 metres) from 239.35 to 242.10 metres (TWBL-096); and 21.22 g/t gold over 2.35 metres (est. true width 1.51 metres) and 229.96 g/t gold over 2.45 metres (est. true width 1.58 metres) between 300 and 360 metres (TWBL-097).

Trade Winds 2005 drilling program consisted of three holes, TWBL-098/099/100. Coarse and visible gold was reported in holes TWBL-098 and -100, with the best results from those holes being: 14.7 g/t gold over 1.2 metres contained within a broader zone of mineralization of 4.8 g/t gold over 4.4 metres (TWBL-098); and 11.8 g/t gold over 0.5 metres and 19.7 g/t gold over 1.0 metre (TWBL-100).

Poirier Gold, West Timmins, Ontario

Pelangio owns 100% of the Poirier Gold Property, which comprises two contiguous unpatented mining claims (160 acres) located in Bristol Township, 22 kilometres west of Timmins. We are also in the process of converting these claims to leases. The property is subject to a 1% NSR payable to the vendors and a further 1% NSR payable to a third party.

The claims are contiguous with Lake Shore Gold Corp.'s Timmins Gold Project (which holds a 1.2 million ounce gold reserve at a grade of 10.4 g/t) and the Thunder Creek project. Lake Shore Gold reported a drill result of 83.40 metres grading 12.75 g/t gold in hole TC-09-68b at Thunder Creek in June 2009, which was collared within 250 metres of our property boundary. Underground drilling has continued to confirm the presence of a large gold mineralized zone at Thunder Creek, with recent results including an intersection of 11.53 g/t gold over 147 metres.

The Poirier Gold Property is located in a mafic volcanic unit approximately a kilometre to the west of the mafic, ultramafic and sedimentary contact, which dips steeply westwards towards our claim block. Subsequent to the end of the second quarter, we conducted prospecting and MMI surveying on the property, the assay results of which are pending. Quartz veining and sulfide occurrences were noted on the property during this program. We intend to continue monitoring Lake Shore Gold's exploration progress and may initiate a drill program on the property based on the information that our neighbours' results will provide.

Other Canadian Properties and Royalties

Pelangio currently owns a number of other Canadian properties, as shown in the following chart:

Notes:

(1)     Pelangio converted three claims to a lease during the third quarter of 2010.

(2)     Pelangio staked these claims during the fourth quarter of 2010.

Pelangio also owns the following royalties and carried interest in a number of Canadian properties as shown in the table below.