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PX.V ·

Pelangio Exploration Announces Combined $840,000 Flow-Through and HARD Dollar Private Placement

Financings

Pelangio Exploration Inc.

Pelangio Exploration Inc. News Release – May 7, 2020 1

82 Richmond Street East,

Toronto, ON M5C 1P1

Tel: 905-336-3828

Fax: 905-336-3899

NEWS RELEASE

PELANGIO EXPLORATION ANNOUNCES COMBINED $840,000 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 (May 7, 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 $840,000 (the

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

$0.12 per HD Unit and common shares of the Company issued on a flow-through basis (the “FT Shares”) at a price

of $0.14 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 $0.18 for a

period of two years from the initial closing date of the Offering. 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 for the development

of the Company’s mining 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 Venture Exchange.

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 before June 1, 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 Venture Exchange

policies. Closing is subject to customary closing conditions including but not limited to, receipt of all necessary

regulatory approvals, including approval of the TSX Venture Exchange.

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 Venture Exchange policies.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Pelangio

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

the company is focusing on the 6.7 km2 Grenfell property located approximately 10 km from the Macassa Mine in

Kirkland Lake, the Dome West property located 800 metres from the Dome Mine in Timmins, the 25 km2 Birch Lake

Property located in the Red Lake Mining District and the Dalton Property located 1.5 km from the Hollinger Mine in

Timmins. In Ghana, the Company is focusing on two 100% owned camp -sized properties: the 100 km2 Manfo

Property, the site of seven recent near-surface gold discoveries, and the 284 km2 Obuasi Property, located 4 km on

Pelangio Exploration Inc. News Release – May 7, 2020 2

strike and adjacent to AngloGold Ashanti’s prolific high-grade Obuasi Mine. Ghana is an English speaking, common

law jurisdiction that is consistently ranked amongst the most favourable mining jurisdictions in Africa.

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.