Ms. Ingrid Hibbard of Pelangio Exploration reports

EXPLORATION UNDERWAY AT PELANGIO'S DORMAA PROJECT

Pelangio Exploration Inc. joint venture partner Roscan Minerals Corp. has provided the initial payment of $150,000 to finance exploration expenditures pursuant to the option and joint venture agreement dated Nov. 7, 2016, and amended Feb. 14, 2017, pursuant to which the parties established an earn-in arrangement to jointly advance the Dormaa project in Ghana, West Africa.

To earn its 50-per-cent interest, Roscan shall:

• Finance an aggregate of $2-million in exploration expenditures as follows:
  • $150,000 by March 5, 2017 (received);
  • $150,000 by May 4, 2017;
  • $700,000 by Dec. 5, 2017;
  • $1-million by Dec. 5, 2018;
• Pay to Pelangio an aggregate of $160,000 as follows:
  • $10,000 on Nov. 7, 2016 (paid);
  • $50,000 on Dec. 5, 2017;
  • $100,000 by Dec. 5, 2018.

"We are very pleased to resume exploration on the Dormaa property with receipt of this $150,000 payment. These funds, along with the second payment due May 4, 2017, will provide for expanded gold-in-soil geochemical surveys, prospecting, and approximately 3,000 metres of reverse circulation and air core or rotary air blast drilling to be completed by Pelangio," stated Ingrid Hibbard, president and chief executive officer. "This program was designed to follow up on the large gold-in-soil anomalies on the property, which appear to be the source of substantial, unregulated artisanal and mechanized alluvial operations carried out around the property during 2014 and 2015."

About the Dormaa project

The Dormaa project is an 86.44-square-kilometre concession governed by a prospecting licence in the Brong-Ahafo region of Ghana, West Africa. Pelangio, through its indirectly held, wholly owned subsidiary Pelangio Ahafo (G) Ltd. (Pelangio Ghana), owns a 100-per-cent interest in the Dormaa project.

The Dormaa project was originally acquired based on primary regional stream sediment data. Subsequently, Pelangio completed stream sediment surveys into the secondary and tertiary drainages, followed by soil sampling on an 800-metre-by-100-metre grid and assayed using the bulk leach extractable gold (BLEG) method.

Follow-up closer-spaced soil surveys of 400-metre-by-50-metre and 100-metre-by-25-metre spacing were completed on the northern portion of the Dormaa project, covering about 33 per cent and 7 per cent, respectively (by area), of the property area. These soil surveys identified 13 significant gold-in-soil anomalies, which range in size from 300 metres by 50 metres to 1,200 metres by 100 metres.

In the southern 60 per cent of the property, 800-metre-by-100-metre soil sampling revealed eight significant anomalies, which range in size from 800 metres by 100 metres up to 4,000 metres by 500 metres. Three of these anomalies, including the largest, are contourable at the 98th percentile, at approximately 175 parts per billion. A 20-square-kilometre follow-up geochemical program of 200-metre-by-50-metre soil sampling is recommended for this area.

The soil sampling program was carried out between 2011 and 2013 under the supervision of Warren Bates, PGeo. Assaying was carried out by Chemex Labs Inc. at its Kumasi, Ghana, location. All certificates and results are available. One- to two-kilogram samples were supplied, and in all cases the entire sample was subjected to the leaching process. Internal blanks and sample duplicates were included in the sample stream. Standards were not included in the sample stream because of the difficulty of obtaining such a large (one to two kilograms) reliable standard at the time.

Newly released satellite imagery indicates that substantial, unregulated artisanal and mechanized alluvial operations surrounding the property were carried out during 2014-2015. These alluvial operations appear to be sourced by large gold-in-soil anomalies on the Dormaa project.

Based on a preliminary work plan approved by the parties for the first year following the effective date, expenditures of approximately $300,000 are planned to be made for expanded gold-in-soil geochemical surveys, prospecting, and approximately 3,000 metres of reverse circulation and air core or rotary air blast drilling, to be completed by Pelangio Ghana at the Dormaa project.

Mr. Bates is a qualified person as defined by National Instrument 43-101, and has reviewed and approved the technical contents of this press release.

We seek Safe Harbor.