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PX.V ·

Pelangio Exploration Completes $290,000 Private Placement

Financings

Pelangio Exploration Inc.

Pelangio Exploration Inc. News Release – August 13, 2019 1

82 Richmond Street East,

Toronto, ON M5C 1P1

Tel: 905-336-3828

Fax: 905-336-3899

NEWS RELEASE

PELANGIO EXPLORATION COMPLETES $290,000 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 (August 13, 2019) – Pelangio Exploration Inc. (PX:TSX-V; OTC PINK:PGXPF) (“Pelangio” or the

“Company”) is pleased to announce that it closed the non-brokered private placement previously announced on

July 31, 2019 on August 12, 2019. The Company raised a total of $290,000 for the issuance of 1,000,000 common

shares of the Company (“Common Shares”) issued on a “flow-through” basis (the “FT Shares”) and 1,000,000

Common Shares (“HD Shares”) of the Company at a price of $0.15 per FT Share and a price of $0.14 per HD Share

(the “Private Placement”).

The Company paid finder’s fees to PI Financial, Leede Jones Gable Inc., Raymond James Ltd., and First Republic

Capital, each an arm’s length finder, consisting in the aggregate of $12,946.50 in cash and 88,142 of non-

transferrable warrants (“Finder Warrants”). Each Finder Warrant entitles the holder to purchase one Common

Share at a price of $0.20 for a period of one year from the closing date of the Private Placement. All securities

issued pursuant to the Private Placement, including the Finder Warrants, are subject to a statutory hold period

expiring December 13, 2019. The Private Placement remains subject to final acceptance by the TSX Venture

Exchange.

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

proceeds of the Private Placement raised from the sale of FT Shares will be primarily used to incur qualifying

Canadian Exploration Expenses (the “Qualifying Expenses”) on the Company’s two Timmins projects: the Dalton

property, located 1.5 kilometres south west of the historic Hollinger Gold Mine, and the Dome West property,

located 800 metres from the Dome Mine, or on its other Canadian properties. The Qualifying Expenses are to be

incurred by no later than December 31, 2020 for renunciation to investors of FT Shares in the Private Placement

effective December 31, 2019.

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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale

of the securities in any jurisdictions in which such offer, solicitation or sale would be unlawful. Any offering made

will be pursuant to available prospectus exemptions and restricted to persons to whom the securities may be sold in

accordance with the laws of such jurisdictions, and by persons permitted to sell the securities in accordance with

the laws of such jurisdictions.

About Pelangio

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

Canada, the company is focusing on 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 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.

Pelangio Exploration Inc. News Release – August 13, 2019 2

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 Private Placement 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 the receipt of final acceptance by the TSX Venture Exchange 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 receive final acceptance of the Private

Placement, our ability to conduct our exploration programs as planned, our ability to spend the proceeds of the

flow-through financing by December 31, 2020, and that the expenditure of the proceeds of the FT Shares will not be

considered Qualifying Expenses, changes in equity markets, share price volatility, vo latility of global and local

economic climate, gold price volatility, 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.