Pelangio Exploration Inc. - QwikReport

PELANGIO EXPLORATION INC. : http://www.pelangio.com/ : QwikReport

Ghana

Pelangio controls three early-stage gold exploration concessions totaling 290 square kilometres on strike and adjacent to AngloGold Ashanti's world-class Obuasi gold mine, in Ghana, West Africa. The Obuasi mine has produced over 30 million ounces of gold since 1897 and hosts a further 30 million ounces in reserves and resources. Through prospecting, mapping, aerial surveying and drilling, Pelangio has confirmed to date that at least 15 kilometres of the structure that hosts gold mineralization at the Obuasi mine traverses Pelangio's concessions, with the potential for significantly further extensions to be recognized in the near future. Pelangio's aim is to focus on the extension of the mine trend closest to the Obuasi mine, with the goal of hitting near-surface Obuasi style gold mineralization.

About Ghana

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Ghana - a stable, established, democratic system

Ghana is Africa's second-largest gold producing country after South Africa
Close to 60 million ounces of gold have been mined in Ghana over the last century
Gold reserves and resources are estimated at well over 100 million ounces
Mining industry contributes approximately 40% of Ghana's gross export earnings
Government entitled to a free carried equity interest of 10% in mineral ventures with the option of purchasing an additional 20% at a fair market price.
Government retains a 5% net smelter royalty on production.
Some of the world's most senior gold producers have made large investments in Ghana:
- AngloGold Ashanti operates two producing mines: Obuasi and Iduapriem
- Gold Fields operates the Tarkwa and Damang mines
- Golden Star Resources operates the Bogoso/Prestea and Wassa mines
- Newmont started operations at the Ahafo mine in 2006 and is developing the Akyem project

Exploration Team in Ghana

Led by Warren Bates, SVP Exploration of Pelangio, our exploration team in Ghana has significant experience and depth. Sam Torkornoo, B.Sc., MBA, our Exploration Manager, has been working with us since 2006.

Sam Torkornoo, Exploration Manager	Ben Pullinger, Project Geologist

Edmund Agyei Efa, Geologist	Forson Karikari, Geologist

Our geologists are supported by a team of over 15 geotechnicians.

In Memoriam

Chris Pegg was a key player in Pelangio's initial exploration of the Obuasi Property, from its acquisition in 2006 until January 2010 when, tragically, he passed away in his sleep at the far too young age of 54. Chris had over 30 years of international experience specializing in Pre-Cambrian gold deposits and had been working in Africa since 1992. He spent 17 years of his career with Lac Minerals and was awarded an NSR royalty in the Williams gold mine for his work leading to its discovery.

His love of geology was evident to all who met him, and he held a special place in his heart for Ghana. He will be missed by his family and his friends in Canada, Ghana and everywhere else there are interesting rocks to be found.

Contact Pelangio for information on donating to a charitable trust for the education of Ghanaian youth in Chris' memory.

Ownership

Obuasi Property, Ghana

In November 2005, Pelangio acquired options on a major land position adjacent to AngloGold Ashanti's Obuasi gold mine in southwest Ghana, West Africa. The optioned property now comprises three land packages acquired from two private Ghanaian corporations. Each land package is subject to a 2% net smelter return and a 10% interest held by the government of Ghana. These land holdings, known as the Obuasi property, cover approximately 290 square kilometres and are located within the prolific 300-kilometre long Ashanti Gold Belt. The Obuasi property consists of three mineral concessions, the Meduma and Kyereboso 2 and 3 concessions.

On March 3, 2008, Pelangio made the final payments, totaling US$150,000 and 1,500,000 common shares, required to acquire a 51% interest in the Obuasi property.

To acquire the remaining 49% of the Obuasi property (subject to the Ghanaian government's 10% carried interest) Pelangio must pay a total of US$2.25 million and issue a total of six million common shares to the vendors. Pelangio has issued the six million common shares required and has paid US$1.5 million of the cash portion of the remaining payments. The final payment of US$750,000 will be made on or before June 19, 2011.

Exploration History

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Minimal surface exploration work was carried out on the property prior to the involvement of Randgold Resources Limited ("Randgold") in 2004. On the Kyereboso No.2 and No.3 concessions, Randgold completed reconnaissance geological mapping, prospecting, soil sampling and trenching to investigate the projected strike extension of the main trend of the Obuasi mine onto the property. In 1991-92, at the Meduma concession, Centracor Mining Ltd. carried out ground geophysical surveys, soil sampling, and trenching, and completed seven shallow drill holes. The best reported assays were 1.7 g/t gold over 6 metres and 1.5 g/t gold over 4 metres. Subsequent work on the Meduma concession was minimal.

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This page was created on Fri Sep 10, 2010 at 3:33:34 PM Pacific Time.