DevelopingtheBestGoldProjectPortfolioinGhana
SuccessfullyExploringCamp-SizedPropertieson
WorldClassGoldBelts
OverviewThe5W’sofPelangio
Who:isPelangioExploration?
What:arePelangio’sstrengths,goals,aspirations?
Where:arePelangio’sProjectslocated?
When:arePelangio’spropertiesreadyforadvancement?
Why:investinPelangio?
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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
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Properties
Where
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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
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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
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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
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ManfoPhase1DrillingUnderway!
TargetBeltBoundingStructuresandExistingMineralizedStructures
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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
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ManfoNkansuArea- 2014RCDrilling
Nkansu – discoverymadewithlittlegeochemicalresponseduetolateriticcover
2014drillingestablishedcontinuityalong250mto125mdepthinsoutherntarget
SomehighergradesshowinginSGRC-327onnorthwestend
3zonesdevelopingatNkansu
17Where
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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
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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
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
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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:[email protected]
Tel:905-336-3828
www.pelangio.com 29
