Ms. Ingrid Hibbard reports

PELANGIO EXPLORATION ANNOUNCES SETTLEMENT OF OBUASI LITIGATION

Pelangio Exploration Inc. has noted that settlement agreements have been reached to resolve all outstanding litigation with respect to an action commenced in 2009 in the Ghana High Court involving the vendor of two of the four prospecting licences comprising Pelangio's Obuasi property. The two prospecting licences involved in the litigation and referenced as Kyereboso 2 licence and Kyereboso 3 licence, are hereinafter referred to as the property. The litigation related to a dispute between the property vendor's corporate history and the estate of one of its founding shareholders (the plaintiff). Pelangio was subsequently added as a co-defendant in 2012. Although no monetary consideration was claimed from Pelangio by the plaintiff in the litigation, an interlocutory injunction had been granted which had the effect of preventing all parties from selling any interest in or conducting mining on the property pending final determination of the matter.

"This settlement is a positive development for Pelangio," stated Ingrid Hibbard, president and chief executive officer. "It avoids the continued uncertainty, expense and burden associated with litigation, and removes the injunction preventing the sale of any interest in or mining of the property. We are excited to have these impediments removed and planning for the next phase of exploration at the property is under way."

Terms of settlement

The settlement provides that upon the acceptance of the settlement terms by the Ghana High Court and entry of such settlement terms as a binding consent judgment resulting in full resolution, in addition to release of all claims asserted by the plaintiff, or such claims that could have been asserted by the plaintiff, directly or indirectly in the litigation, and permanently releasing any injunction or other restrictions on the property resulting from the litigation, Pelangio will make five payments of $20,000 (U.S.) and issue Pelangio common shares having a value of $50,000 in three tranches over one year, subject to approval of the share issuances by the TSX Venture Exchange.

The consideration has been agreed upon as a compromise and final settlement of disputed claims, and payment of the amounts set forth herein and the issuance of the common shares is not an admission of liability by any party, and is not to be construed as an admission that any party engaged in any wrongful, tortious or unlawful activity.

Obuasi property

Pelangio's Obuasi property consists of four prospecting licences, including the Kyereboso 2 and 3 licences, totalling 284.4 square kilometres in area and located adjacent to AngloGold-Ashanti's giant Obuasi mine on the Ashanti belt, the most gold endowed greenstone belt in West Africa. The Obuasi mine has produced over 33 million ounces of gold since 1897, and currently hosts a resource of 24.5 million ounces of gold at an average grade of eight grams per tonne (g/t) gold (Au), including a proved and probable reserve of 7.7 million ounces of gold at an average grade of 9.3 g/t Au (source: AngloGold Ashanti mineral resource and ore reserve report, December, 2022). The geological stratigraphy which hosts the Obuasi deposits extends into Pelangio's Obuasi property, and Obuasi-style geology, alteration and mineralization has been observed in historical drilling by Pelangio at multiple prospects.

Pelangio conducted considerable work on the Obuasi property between 2007 and 2011, until the Manfo resource project became the focus, including geological and geochemical surveys, trenching, airborne geophysical surveys and 28,000 metres of diamond drilling, which was largely focused upon a handful of prospects. The two principal target areas for continued exploration, which have been delineated from Pelangio's work, include the Obuasi targets area along the extension of the Obuasi mine stratigraphy, and the NGA (north government area) targets area located along the Birimian-Tarkwaian contact structure.

With a resumption of exploration activity on the Obuasi property, one of the first prospects which will be revisited is located in the NGA target area where two Pelangio drill holes returned high-grade intercepts of 24.5 g/t Au over one metre and 11.3 g/t Au over two metres, and recent artisanal mining has sunk a series of shallow vertical shafts to explore and mine quartz veining along the principal structure. A broader exploration plan will also be developed to assess the Obuasi and NGA target areas in detail, to include geological mapping and prospecting, drill core relogging, auger drilling to refine geochemical targets, and a rework of the geophysics, geological and structural interpretations, culminating in an updated targeting exercise to direct future exploration drilling.

Qualified persons

Kevin Thomson, PGeo (Ontario, No. 0191), is a qualified person within the meaning of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mr. Thomson approved the technical data disclosed in this release.

About Pelangio Exploration Inc.

Pelangio acquires and explores world-class land packages on strategic gold belts in Ghana, West Africa, and Canada. In Ghana, the company is exploring its two 100-per-cent-owned camp-sized properties: the 100-square-kilometre Manfo property, the site of seven near-surface gold discoveries; and the 284 square km Obuasi property, located four km on strike and adjacent to AngloGold Ashanti's prolific high-grade Obuasi mine; as well as its Dankran property located adjacent to its Obuasi property.

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