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PX.V ·

Pelangio Exploration Announces Combined $1.8 Million Flow-Through and HARD Dollar Private Placement

Financings

Pelangio Exploration Inc. News Release – November 16, 2020 1

82 Richmond Street East, Toronto, ON M5C 1P1 Tel: 905-336-3828 Fax: 905-336-3899

NEWS RELEASE

PELANGIO EXPLORATION ANNOUNCES COMBINED $1.8 MILLION FLOW-THROUGH

AND HARD DOLLAR PRIVATE PLACEMENT

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT

INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR

DISSEMINATION IN THE UNITED STATES

TORONTO, Ontario (November 16, 2020) – Pelangio Exploration Inc. (PX:TSX-V; OTC PINK:PGXPF) (“Pelangio” or

the “Company”) announces a non-brokered private placement for aggregate gross proceeds of up to $1,800,000

(the “Offering’). The Offering will consist of the sale of hard dollar units (the “HD Units”) of the Company at a price

of $0.13 per HD Unit and common shares of the Company issued on a flow-through basis (the “FT Shares”) at a price

of $0.17 per FT Share.

Each HD Unit consists of one common share of the Company (a “Common Share”) and one Common Share purchase

warrant (“Warrant”). Each Warrant entitles the holder to purchase one Common Share at a price of $0.1 8 for a

period of two years from the initial closing date of the Offering, provided that if after four month s and one day

following the closing of the Offering, if the VWAP of the Common Shares on the TSX Venture Exchange (“TSX-V”) is

at or above $0.30 for a period of 15 consecutive trading days, then the Company may accelerate the expiry date of

the Warrants by disseminating a press release, and in such case the Warrants will expire on the 20th day after the

date on which such press release is disseminated.

The FT Shares will qualify as “flow-through shares” (within the meaning of the Income Tax Act (Canada)). The gross

proceeds from the sale of the FT Shares will be used to incur qualifying Canadian Exploration Expenses. Qualifying

expenses are to be incurred by no later than December 31, 2021 for renunciation to investors of FT Shares in the

Offering effective December 31, 2020. The balance of the proceeds of the Offering will be used for general corporate

and working capital purposes, and to advance the Company’s gold exploration projects.

The shares issued under the Offering will be subject to a four-month and one day hold period and will not be sold in

the United States. The Offering is subject to customary closing conditions including, but not limited to, receipt of

applicable regulatory approvals, including approval of the TSX-V.The closing of the Offering may occur in one or more

tranches, with the initial closing date of the Offering expected to occur on or around December 8, 2020 and is not

subject to receipt of a minimum amount of gross proceeds. The Company may pay to certain introducing parties in

respect of the Offering finder’s fees of up to 7% cash and non-transferable 7% warrants, subject to compliance with

applicable securities legislation and TSX-V policies.

The securities issued pursuant to the Offering will be subject to a four-month and one day hold period in accordance

with applicable Canadian securities laws and TSX-V policies.

Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX -V) accepts

responsibility for the adequacy or accuracy of this release.

Pelangio Exploration Inc. News Release – November 16, 2020 2

82 Richmond Street East, Toronto, ON M5C 1P1 Tel: 905-336-3828 Fax: 905-336-3899

About Pelangio

Pelangio acquires and explores world-class gold belt land packages Ghana, West Africa and Canada. In Ghana,

the Company is exploring its two 100% owned camp-sized properties: the 100 km2 Manfo Property, the site of

seven near-surface gold discoveries, and the 284 km2 Obuasi Property, located 4 km on strike and adjacent to

AngloGold Ashanti’s prolific high-grade Obuasi Mine, as well as the newly optioned Dankran property located

adjacent to its Obuasi property. In Canada, the Company is currently focused in Ontario on its Grenfell property,

located 10 km from Kirkland Lake, at its Dome West property, situated some 800 meters from the Dome Mine

in Timmins and is advancing its Hailstone property in Saskatchewan. See www.pelangio.com for further detail

on all Pelangio’s properties.

For additional information, please visit our website at www.pelangio.com, or contact:

Ingrid Hibbard, President and CEO

Tel: 905-336-3828 / Toll-free: 1-877-746-1632 / Email: [email protected]

Forward Looking Statements

Certain statements herein may contain forward-looking statements and forward-looking information within the

meaning of applicable securities laws. Forward-looking statements or 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

Offering generally, the proposed use of proceeds and the Company’s exploration plans. With respect to forward-

looking statements and information contained herein, we have made numerous assumptions, including assumptions

about our ability to close the Offering in a timely manner, if at all, and the state of the equity markets. Such forward-

looking statements and information are subject to risks, uncertainties and other factors which may cause the

Company’s actual results, performance or achievements, or industry results, to be materially different from any future

results, performance or achievements expressed or implied by such forward-looking statement or information. Such

risks include the ability of the Company to meet the conditions of closing, our ability to conduct our exploration

programs as planned, changes in equity markets, share price volatility, volatility of global and local economic climate,

gold price volatility, political developments in Ghana, increases in costs, exchange rate fluctuations, speculative

nature of gold exploration and other risks involved in the gold exploration industry. See the Company’s annual and

quarterly financial statements and management’s discussion and analysis for additional information on risks and

uncertainties relating to the forward-looking statement and information. There can be no assurance that a forward-

looking statement or information referenced herein will prove to be accurate, as actual results and future events

could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond

the control of the Company. Accordingly, readers should not place undue reliance on forward-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.