HispanicBusiness

To view images illustrating the conceptual pits, gold mineralization and drilling on the Manfo Property, see: http://www.pelangio.com/Projects/Ghana/Manfo/Resource%20Estimate-PressReleaseSlides.aspx.

Commentary

Ingrid Hibbard, President and CEO of Pelangio Exploration, noted that, "We are pleased with the results of our first resource estimation at Manfo, following our initial period of target identification and follow-up drilling. Since acquiring the property as a grassroots project in August 2010, we have been successful in the discovery of seven areas of gold mineralization, three of which are included in this resource estimate and remain open along strike and at depth. The in-depth analysis that underlies the resource estimation, particularly the geologic modelling coupled with geostatistical analysis, and the development of a block model, will assist in the prioritization of known and prospective targets for ongoing exploration over the entire Manfo Property.

Ten additional targets have been identified along and parallel to the nine kilometre long structural corridor that is a continuation of the fault system hosting the Chirano Mine (Kinross Gold) and the Bibiani Mine (Nobel Mineral Resources), - deposits with multi-million ounces of gold in past production, reserves and resources. The location, only 14 kilometres from Newmont's African flagship Ahafo Mine, which has a similar alteration style and setting to our Manfo resource, emphasizes Manfo's potential in an outstanding area of large gold deposits in Ghana's gold-rich Sefwi Belt and indicates the importance of future exploration on the Manfo targets and discoveries that are early-on in their evaluation. With three resource areas that remain open, several recent discoveries and ten more target areas along the nine kilometre trend, we are well positioned to expand upon our resource base."

2013 Exploration Program

In preparation for a Rotary Air Blast (RAB) drilling program on portions of the main trend down strike from the known mineralization and a Reverse Circulation (RC) drilling program in the target areas adjacent to the existing resources at Pokukrom East and West as well as at the Nkansu and Sika North discovery areas, Pelangio is conducting an exploration program of geochemical sampling, trenching and mechanized auger drilling. To date, Pelangio's delineation costs have been approximately US$12.50 per ounce of gold resource. In order to reduce drilling costs, the RAB and RC programs will be completed with the cost effective and low environmental impact Grasshopper Rig, which is currently being shipped to Ghana by Pelangio.

Technical Description

Gold mineralization at Manfo is hosted in sericite and hematite altered granitoid rocks adjacent to a set of brittle-ductile faults. Within geologically modeled alteration envelopes, gold mineralization occurs in strongly altered zones adjacent to the brittle-ductile faults, and in fracture-controlled zones preferentially developed in certain horizons within the granitoid rocks in the hanging wall of the faults. Based on current exploration drilling density, three zones were selected for resource modelling. The bulk of the gold mineralization occurs in the Pokukrom East Zone that was sampled by drilling on sections spaced at fifty metres. Two smaller, less well-defined zones exist to the south (Nfante West Zone) and west (Pokukrom West Zone) of the main zone.