The Manfo Property comprises three contiguous concessions named Subriso, Sempekrom and Twabidi, respectively. In August 2011, Pelangio acquired 100% of each of the concessions pursuant to the terms of applicable option agreements by completing cash payments totalling US$435,000, completing US$2 million in work expenditures and granting the option or a 2.5% net smelter royalty (“NSR”) on the Manfo Property, subject to Pelangio’s right to repurchase 1% of the NSR for a payment of US$4,000,000.

Additionally, Pelangio (or its successor or permitted assign) will pay the Optionor a discovery bonus totaling the sum of (i) US$1,000,000 plus (ii) US$1.00 per ounce of proven and probable gold reserve set out in the first positive feasibility study published or released in respect of the Manfo Property.