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Pelangio Exploration Completes First Tranche of Private Placement FOR Gross Proceeds of $1,240,900 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

Financings

Pelangio Exploration Inc. News Release – DECEMBER 3, 2020 1

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

NEWS RELEASE

PELANGIO EXPLORATION COMPLETES FIRST TRANCHE OF

PRIVATE PLACEMENT FOR GROSS PROCEEDS OF $1,240,900

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 (December 3, 2020) – Pelangio Exploration Inc. (PX:TSX-V; OTC PINK:PGXPF) (“Pelangio” or the

“Company”) is pleased to announce that it has closed the first tranche of the non-brokered private placement

previously announced on November 16, 2020 and November 24, 2020 (the “Offering”). In this first tranche, the

Company raised aggregate gross proceeds of $1,240,900 (the “First Tranche”) by issuing 7,950,000 hard dollar units

(the “HD Units”) at a price of $0.13 per HD Unit and 1,220,000 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 $0.18 for a

period of two years from December 3, 2020 (the “Initial Closing Date”). 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 to advance

the Company’s gold exploration projects in Ghana, and for general corporate and working capital purposes.

In connection with the closing of the First Tranche, the Company paid finder’s fees to PI Financial Corp., Haywood

Securities Inc., Zuri-Invest AG., and Integral Wealth Securities Ltd., each arm’s length finders, consisting of an

aggregate of $50,778 in cash and an aggregate of 379,400 non-transferrable warrants (“Finder Warrants”). Each

Finder 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.

All securities issued in the First Tranche of the Offering, including the Finder Warrants, are subject to a statutory

hold period expiring on April 4, 2021. A second and final closing of the Offering is expected to take place on or

around December 8, 2020. The Offering remains subject to final acceptance by the TSX Venture Exchange.

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

Pelangio Exploration Inc. News Release – DECEMBER 3, 2020 2

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

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 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 additional tranches of 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.