developing the best gold project portfolio in ghana - pelangio · developing the best gold project...

DevelopingtheBestGoldProjectPortfolioinGhana

SuccessfullyExploringCamp-SizedPropertieson

WorldClassGoldBelts

OverviewThe5W’sofPelangio

Who:isPelangioExploration?

What:arePelangio’sstrengths,goals,aspirations?

Where:arePelangio’sProjectslocated?

When:arePelangio’spropertiesreadyforadvancement?

Why:investinPelangio?

2

TheTalentforSuccessManagementandDirectors

Ingrid Hibbard President,Chief ExecutiveOfficer,Director

PaulRokeby Chief FinancialOfficer

WarrenBates SeniorVicePresident,Exploration

Sam Torkornoo VicePresident,Africa

CarlNurmi Chairman

PhilipOlson Director

DavidMosher Director

IanShaw Director

KevinThomson Director

Gord Slade AdvisoryCommittee

3Who

MarketFacts,PX:TSX-V

CapitalizationinMillions@October24,2017

TradingPX:TSX-V;PGXPF:OTCPINK@October24,2017,allvaluesinCanadian$

MarketCap $11.12M

52WH/L $0.055/0.035

CurrentPrice $0.045

AverageVolume(3month)

46,000

FullyDiluted268.2M

Warrants11.7

SharesOutstanding247.1M

Options9.4M

4Who

Source:TMX&YahooFinance

ATrackRecordofDiscovery&Value

CyclicalNatureofGoldSector

Re-envisionedtheDetourLakeDeposit

FocusedonGhana

LargeLand

Packages

StrategicInvestments/Partnerships

UpsidePotential

Pelangioshareholdershaverealizedsignificantgainsupto10,000%

WestAfrica’slargestgoldproducer

Controlmorethan500sqkmofsomeoftheworld’smostprospectivegoldtrends

Favourablypositionedfordiscovery,

developmentandM&A

Prudentcashmanagementand

strategicallyamassingGhana’sbestgold

explorationportfolio

5What

Manfo- 100SqKm• Maidenresourceof 195,000ozIndicated+298,000ozInferredon3of7mineralizedareasalong9kmtrend

• Detailedinterpretationfordrilltargetsonnewlyidentified9kmmajorstructure

Obuasi- 264SqKm• High-gradeintercepts:24.5g/t Auover1m,11.28g/t Auover2m

• Evidenceof“ObuasiStyle”mineralization• Technicalreviewofanomalyinpreparationfordrilling

Akroma- 159SqKm• Largegeochemicalanomalies• Multiplesoilanomalies>1kminlength

6

Properties

Where

7

Comparisons- Timmins:Manfo:ObuasiTimmins– compare landpackagesizeandoccurrenceofminesalongrespectivefaultsandbelts

Obuasi- Under-exploredproperty(264sq km) onmajorstructure

- 136holesdrilled(with2highgradeintercepts)

Manfo- Under-exploredproperty(100sq km)onmajorstructure

- 326holesdrilled - 7discoveriesandamaidenResource- allnearsurface

Obuasi Manfo

Timmins

Ghana- RichinGoldEndowmentGoodforGold,GoodforBusiness

8

Top10goldproducingcountriesbytotalouncesandgrade

Ghana ranksinthetop10largestgoldproducers:- 8th bytotalounces- 6th bygrade

Comparedtothecountriesonthislist,Ghana issimilartothesizeofSouthernOntarioorthestateofMichigan

Where

Manfo– TheNextCompanyMakerRecentlyidentifiedunexploredmajorstructureacross

9kmoftheProperty

• 100sqkmonGhana’sprodigiousSefwiGreenstoneBelt:• 14kmfromNewmont’sflagshipAhafominewithsimilaralterationstyletoAhafoand50kmfromKinross’Chiranomine

• Discoveryof7mineralizedareasalong9kmgeochemicaltrend– maidenresourceon3zones:PokukromEast,PokukromWestandNfante West

• Resourceestimateprovidesasolidbaseandpresentsamodelforfutureexploration

• Roomtoexpandaroundtheexisting3resourceareas+additional4discoveryareas+over10additionaltargetareascurrentlyoutlined+targetgenerationover9kmofthecurrentlyexploredstructure

9Where

ManfoSefwiBelt:33GoldDeposits(22.8MillionOz)

10

Golddepositsareassociatedwithnorthtonortheasttrendingmajorfaultsthatboundeachterrain

62knowngoldoccurrencesintheSefwiBelt

4mainSefwigoldcamps:AhafoNorth(3.5Moz),AhafoSouth(11.8Moz),Bibiani(4.0M ozChirano(3.5Moz)

TheSefwiBeltisazoneofProterozoic agedvolcanic-sedimentrocks,betweentwosedimentarydominatedregions

Majorfaultsseparatevolcanicsedimentterrainfromdominantlysedimentary-intrusiveterrain

Where

ManfoLargestSefwiDepositsNearBelt-BoundingStructures

11

Tofindlargerdeposits…lookwithin1kmofmajorfaults!

Largestdepositsarelocateddirectlyonorwithin1kmofbelt-boundingfaults(Subika,Kenyase,Apensu,Awonsu,Yamfo,Akwaaba andBibiani Deposits)

7majordepositsaccountfor2/3ofallmineableouncesinthebelt

Majorfaultsarewellmappedwithregionalmagneticmaps

Largerdepositsshowhighergradesapproximating2g/t

Smallerdepositslocatedfrom1to3kmawayfrombelt-boundingstructures

Where

ManfoThreeResourceAreas

Newlyidentified9kmunexploredmajorstructuralzonetotheeastofcurrentareaofexploration

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9kmgeochemicaltrend,multiplestructures

3areasatinitialresourcestage:PokukromEastandWest,NfanteWest

9nearsurfacediscoveriessinceAugust2010(3atNkansu)

ReceivedmaidenresourceestimatefromSRKof195,000ozIndicatedand298,000ozInferredin2013

Improvedexplorationmodelfortheproject

Where

ManfoMajorBeltBoundingStructureandTargets

$2MillionMulti-phaseDrillProgramPlanned

Phase1underway

13

ManfoPhase1DrillingUnderway!

TargetBeltBoundingStructuresandExistingMineralizedStructures

14

TheMainFocus:

• PokukromEast(hostofthemaidenResourceEstimate)- followupontwodrillsections,oneofwhichintersected35mat1.13g/tAu

• Nkansu – followuponpreviouslydrilledsections,oneofwhichintersected49.5mat1.18g/tAu

• Reconnaissance – drillingofnewtargetsprimarilyidentifiedwithintheeasterntrendonsevenkilometersofbeltboundingstructure

TheProgramConsistsof:

• 5RCholestotaling685metresattheNkansu andPokukromEastareas

• 88ACholestotalingsome3,520m

MapPlanindicating5RCholesand15ACdrillfences

ManfoPokukromPitShellsandBlockModelLookingEast

+1.0g/t blockmodelshown

Mineralizationbelowpitnot tabulatedinthisestimate

175mdepthispitbottom

Metallurgicaltesting- goldrecovery86%fromsulphide and94%fromoxide 15Where

16

ManfoNkansuArea- 2014RCDrilling

Nkansu – discoverymadewithlittlegeochemicalresponseduetolateriticcover

2014drillingestablishedcontinuityalong250mto125mdepthinsoutherntarget

SomehighergradesshowinginSGRC-327onnorthwestend

3zonesdevelopingatNkansu

17Where

18

AkromaPropertyExploration– AddingValue

19

NorthofSefwibelt

159sqkmin2areas:Dormaa andWamfi

Nextsedimentarybelttonorth

Geochemicaltargetsdeveloped2012

Infillsoilgeochem program–Dormaa

5,000mRC/RABprogramplannedtotestgeochemicalanomalies

DormaaWamfi

Where

DORMAAPROPERTYOPTIONEDTOROSCANMINERALSCORPORATION

AkromaExploration

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ThegeochemicalanomaliesareatleastasgoodaswhatwesawatManfo

10anomaliesgreaterthan1kminlength

Oncloserspacedsoilprogram,twosignificantanomalies2.5kmand3.2kmlong

Where

AkromaDormaaOptionAgreement– PelangioasOperator• Roscanmayearnan50%interestintheDormaaPropertybyfundingan

aggregateof$2,000,000inexplorationexpenditures• Inaddition,RoscanwillpayPelangioanaggregateof$160,000• Fundstobeusedforexpandedgold-in-soilgeochemicalsurveys,prospecting,

andapproximately3,000metresofRC,ACorRABdrilling

21

FUND PAY

AMOUNT DUEDATE AMOUNT DUEDATE

$150,000 by March5,2017(received)

$150,000 byMay4,2017 $10,000 on November7,2016(paid)

$700,000 byDecember5,2017,and $50,000 by December5,2017,and

$1,000,000 byDecember5,2018 $100,000 byDecember5,2018

ObuasiRegionalGeology,MinesandExplorationTargets

Nexttolargestvein-hosteddepositinworld

Hardrocktargetsalongmainstructure,Tikal-BuraandattheBirimiancontactinNorthGovernmentArea(NGA)

StronggoldarsenicanomalismatNGAareainBirimianargillites

ScreeandrockchipanomalyatTikal-Bura

22Where

ObuasiPits

ObuasiNorthGovernmentTarget

Substantialanomaly,coupledwithvisiblegoldincore,affirmsthatObuasistylesystemisclearlypresentinNorthGovernmentArea

8RCandAirCoredrillreadytargetsover1500mofanomalismtotest23

Where

PG11-NGT-1211m@24.5g/tPG11-NGT-1222m@11.28g/t

PG11-NGT-1192m@3.06g/t

CanadianPropertiesBirchLake- RedLakeDistrict

24Where

BIRCHLAKEPROPERTYOPTIONEDTOPACTONGOLDINC.(FORMERLYNOKA

EXPLORATIONINC.)

ExplorationExpenditures PAY/ISSUE

AMOUNT DUEDATE AMOUNT DUEDATE

$1,300,000 overfouryears $375,000 overfouryears4.5 Mshares overfouryears

TheTimeisNowTheCycleHasTurned

• Lastcyclewere-envisionedandmonetizedDetourGold

• Nowwehavethreecamp-sizeprojects

Success

•7mineralizedareas•Developedresourceonthreeofthem

•Completedresourcestudy

•NewObuasidiscovery

Discovery • Newlyidentified9kmmajorstructureatManfo

• Explorationprogramsdesigned

• Drillrigcommissionedandreadytogo

Positioning

• Followup:• onresourceareaandadditionalzones

• 9kmmajorstructure

Advance

25When

PlannedExplorationDrillProgramsReadyWithTargets

26

Manfo Targetbeltboundingstructuresandexistingmineralizedstructures

2stageexplorationprogramofRC,ACanddiamond

drilling

Obuasi Targetsubstantialanomalywithvisiblegold

incore

RC/ACdrilling- 8drillreadytargets

over1500m

Akroma Targetmultiplegeochemicalanomalies

5,000mRC/RABprogramfunded

byRoscan

When

WhyInvestinPelangio?

Exceptionalleveragetorisinggoldprice

Positionedforpositivecyclereturn

CampsizelandpositionsandstreamofprojectsatvariousstagesinGhana– worldclassminingjurisdiction

Manfo- emergingsignificantprojectinanareaofgiantdeposits– potentialforadditionaldiscoveries

Successfulteam…sevendiscoveries- maidenresourceatManfo,andre-envisionedtheDetourLakeDeposit

27Why

Disclaimer

Cautionary Note Regarding Mineral Resource Estimates

Investors should not assume that any of the indicated or inferred resource disclosed herein will ever be upgraded to a higher category of mineral resource or to mineral reservesand that any or all of the indicated or inferred mineral resource exist or is or will be economically or legally feasible to mine. In addition, investors should not assume that any ofthe references herein to adjacent properties (based on public information) is necessarily indicative of the mineralization on the Manfo property or that further exploration on theManfo property will prove to be successful.

The disclosure herein uses mineral resource classification terms that comply with reporting standards in Canada and the disclosure of mineral resource estimates are made inaccordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. NI 43-101 is a rule developed by the Canadian Securities Administrators thatestablishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects that are considered material to the issuer.

The exploration programs in Ghana are overseen by Warren Bates, P. Geo.(APGO #0211), a Qualified Person as defined by the Canadian Securities Administrators’ National Instrument 43-101.Mr. Bates has verified and approved the data disclosed in this presentation.

All resource estimates contained herein are based on the definitions adopted by CIM and recognized under NI 43-101. These standards differ significantly from the mineralreserve disclosure requirements of the U.S. Securities and Exchange Commission set out in Industry Guide 7. Consequently, resource information contained in this press releaseis not comparable to similar information that would generally be disclosed by U.S. companies in accordance with the rules of the SEC. The SEC’s Industry Guide 7 does notrecognize mineral resources and US. companies are generally not permitted to disclose mineral resources in documents they file with the SEC. Investors are specificallycautioned not to assume that any part or all of the mineral resources disclosed above will ever be converted into SEC defined mineral reserves. Further, “inferred mineralresources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. In accordance with Canadian rules estimates ofinferred mineral resources generally cannot form the basis of an economic analysis.

Forward Looking Statements

Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statementsor information appear in a number of places and can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases or statements that certain actions, events or results“may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information include statements regarding the mineral resource estimate,the timing of exploration programs and filing of technical reports and the Company’s exploration plans and exploration results with respect to the Obuasi Property, includingalluvial exploration and bulk sampling, and the Manfo Property. With respect to forward-looking statements and information contained herein, we have made numerousassumptions, including assumptions about gold price, cut-off grades, metallurgical recoveries, operating and other costs and technical assumptions used in the estimate. Suchforward-looking statements and information are subject to risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements, orindustry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Suchrisks include discrepancies between actual and estimated mineral resources, subjectivity of estimating mineral resources and the reliance on available data and assumptions andjudgments used in the interpretation of such data, speculative and uncertain nature of gold exploration, exploration costs, capital requirements and the ability to obtain financing,volatility of global and local economic climate, share price volatility, estimate gold price volatility, changes in equity markets, political developments in Ghana, increases in costs,exchange rate fluctuations and other risks involved in the gold exploration industry. See the Company’s annual information form and annual and quarterly financial statementsand management’s discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statement and information. There can be noassurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from thoseanticipated in such statements or information. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not assume that any of the indicatedor inferred resource will ever be upgraded to a higher category or to mineral reserves and any or all exist or is economically or legally feasible to mine or place undue reliance onforward-looking statements or information. We undertake no obligation to reissue or update any forward-looking statements or information except as required by law. All forward-looking statements and information herein are qualified by this cautionary statement.

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CONTACTIngridHibbard,President&CEO

PelangioExplorationInc.Email:info@pelangio.com

Tel:905-336-3828

www.pelangio.com 29