Pelangio Exploration Inc. · TSXV:PX
Pelangio Exploration — Shareholder Meeting (May 2013)
40 slides from Pelangio Exploration's shareholder meeting presentation, May 7, 2013
Slide 1: Pelangio
PELANGIO Ra) aN TE (=); gir @PelangioEx tsxv:px - otcbb:pgxpf www.pelangio.com
Slide 2: Cautionary Note Regarding Mineral Resource Estimates
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 reserves and that any or all of the indicated or inferred mineral resource exi
Slide 3: Manfo highlights: drill program, discoveries, maiden resource
• Completed diamond drill program (>37,000m) • Discovery of additional 2 mineralized areas (Sika and Nkansu) now 7 in total • Metallurgical testing – gold recovery 86% from sulphide and 94% from oxide • Completed geologic interpretation on 3 zones (Pokukrom East, West and Nfante West) with better un
Slide 4: Government Area soil sampling and trenching
• Soil geochemical sampling and trenching at the Government Area along the interpreted northeast-southwest trend of the mineralization to follow up on drill intersections in 2011 (24.5 g/t Au over 1 m, 11.28 g/t Au over 2 m and 6.01 g/t Au over 2 m) • New database adopted • Preparation of a comprehe
Slide 5: Soil geochemical sampling and prospecting program
• Line cutting, soil geochemical sampling, prospecting and termite mound sampling • Wider spaced soil surveys (400 m to 800 m scale) defined 10 anomalies greater than 1 km in length • Follow up 100 by 25 m scale soil survey in the centre of the western portion of the project confirmed the presence o
Slide 6: Why Ghana?
Why Ghana? ' a a as? a »® “ - A world class prospect on premier gold belts PELANGIO
Slide 7: Why Ghana: politics, geology, majors and discoveries
• Politics: stable democratic government; supportive of exploration and production • Geology: Obuasi Mine, in operation since 1897; highly prospective gold belts – Ashanti, Sefwi, Asankrangwa, Kibi and Bui • Majors: AngloGold Ashanti; Newmont; Goldfields and Kinross (acq. Red Back in 2010 for US$7.1
Slide 8: Ghana gold deposits by resource and grade
M+I Inferred Total Grade Deposit Owner Resource Resource Resource (g/t Au) (M oz) (M oz) (M oz) AngloGold Obuasi 18.90 10.92 29.82 5.35 Ashanti Ahafo Newmont 14.63 3.05 17.68 1.73 Average grade excl. Obuasi = 1.80g/t Au Tarkwa Goldfields 12.14 2.99 15.12 1.49 Damang Goldfields 7.19 2.85 10.04 1.89 A
Slide 9: Manfo property on the Sefwi Greenstone Belt
• 100 sq km on Ghana’s Sefwi Greenstone Belt • 14 km from Newmont’s flagship Ahafo mine and 50 km from Kinross’ Chirano mine • Same fault network as Chirano and Bibiani • Similar alteration style to Ahafo • 100% interest held by Pelangio (subject to 10% Gov’t interest)
Slide 10: Manfo: 9 km geochemical trend and seven discoveries
• 9 km geochemical trend, multiple structures • Seven near surface discoveries since August 2010 • 37,313 metres (178 holes) completed • Three areas at initial resource stage: Pokukrom East and West, Nfante West • 86% gold recovery from sulphide, 94% from oxide
Slide 11: Manfo: Seven Discoveries since 2010
| Manfo PELANGIO Seven Discoveries since 2010 * 9 km geochemical trend, i Manfo Property Boundary multiple structures A Legend * Seven near surface Ep) Pelangio Manfo Boundary discoveries since August 27 Mejor Faults 2010 @G > 100 ppb Au (O%} 40 to 100 ppb Au 15 to 40 ppb Au [__] Known Mineralizatio
Slide 12: Manfo: 9 km geochemical trend and seven discoveries
• 9 km geochemical trend, multiple structures • Seven near surface discoveries since August 2010 • 37,313 metres (178 holes) completed • Three areas at initial resource stage: Pokukrom East and West, Nfante West • 86% gold recovery from sulphide, 94% from oxide
Slide 13: Manfo: 9 km geochemical trend and seven discoveries
• 9 km geochemical trend, multiple structures • Seven near surface discoveries since August 2010 • 37,313 metres (178 holes) completed • Three areas at initial resource stage: Pokukrom East and West, Nfante West • 86% gold recovery from sulphide, 94% from oxide
Slide 14: Pokukrom East fault zone and mineralization
• West dipping fault zone, composed of; • Quartz-sericite-pyrite mineralization, hosted in biotitic granitoid • 80-125 m core zone , > 1 g/t, average of 2- 4g/t , 10-45 m thick developed within plunge length of 750 m, open at depth • 20,000 m completed at East Pokukrom since 2010 – Over 1/2 of drill
Slide 15: Maiden resource by SRK: parameters
• Maiden Resource by SRK • 5x5x5 m blocks • Mining Cost: $US3.25 / 3.75/t rock (oxide/fresh) • Mill Recovery: 94% / 86% • Milling: 5,000 t/day • Milling Cost: $US11.00 / 17.00/t rock • Mining Dilution: 10% • Mining Recovery: 95% • Royalty: 7.5% • Gold Price: US$1,450
Slide 16: Mineral Resource Statement, Manfo Gold Project, Ghana
Mineral Resource Statement* Manfo Gold Project, Ghana SRK Consulting, May 2013 Indicated Inferred Category Cut-off Quantity Grade Contained Quantity Grade Contained (000’ Au Au (000’ Au Au (Au gpt) tonnes) (gpt) (000’ oz) tonnes) (gpt) (000’ oz) Inside Pit: Laterite/Oxide 0.40 49 0.96 2 458 1.07 16
Slide 17: Block model and pit-constrained resources
• 0.5 gpt block model • In pit resources contained within pit shells • Out of pit resources are above pit bottom
Slide 18: 1.0 g/t block model, mineralization below pit
• 1.0 g/t block model • Mineralization below pit not considered in this estimate • 125 m depth (PW), 225 m depth (PE)
Slide 19: Potential for resource expansion
• Potential for resource expansion • Five shallow targets identified peripheral to pit
Slide 20: Additional structures east and west of main structure
• 9 km geochemical trend, multiple structures • Also additional structures East and West of the main structure
Slide 21: Manfo Target Areas from Mag, Geochem, IP
) Manfo Target Areas from Mag, Geochem, IP PELANGIO Ervue N A Legend €3 Target Areas es IP Target Areas 4 Au Soil Anomaly e Pelangio Manfo Boundary manfo_northeast_comp201 3target-from-mag-geochem.mxd
Slide 22: Manfo Conceptual Pits
| Manfo PELANGIO Conceptual Pits Legend 9] Pelangio Manfo Boundary OG conceptual Pits we?” Major Faults 7” Other Structures 7 Map Extent Manto Property Boundary nan_som ees jn.28.2013:meg.wodareas.und TJ 7 Manfo Property Boundary / i } / t / / i/ if { a if / / | {i / f f / i ff aa, a / / va f Pokukr
Slide 23: Planned RC and RAB drilling
• RC Drilling down strike or beneath known gold mineralization from drillholes and trenches. 35 holes (5,000m) • RAB drilling Phase 1 - geophysical/geochemical targets - Main Trend • RAB drilling Phase 2 - off Main Trend • RC drilling Phase 2 from results of earlier RAB and RC
Slide 24: 2013 drilling program and resource study
• Resource study completed (2nd quarter) • RC drilling down strike or beneath known gold mineralization from drillholes and trenches. April-June 2013. 35 holes (5,000 m) • RAB geophysical/ geochemical targets - 10,000 m Main Trend • RAB drilling Phase 2 - off Main Trend - 10,000 m • RC drilling Phas
Slide 25: RC and RAB drilling plans
• RC Drilling down strike or beneath known gold mineralization from drill- holes and trenches. 35 holes (5,000m) • RAB drilling phase 1 - geophysical/geochemical targets - Main Trend • RAB drilling Phase 2 - off Main Trend • RC drilling Phase 2 from results of earlier RAB and RC
Slide 26: RC and RAB drilling plans
• RC Drilling down strike or beneath known gold mineralization from drill- holes and trenches • RAB drilling phase 1 - geophysical/geochemical targets - Main Trend • RAB drilling Phase 2 - off Main Trend • RC drilling Phase 2 from results of earlier RAB and RC
Slide 27: Akroma: north of Sefwi belt
• North of Sefwi belt • 160 sq km in 2 areas, Block A and B • Next sedimentary belt to north • Geochemical targets developed 2012 • 4,000m RAB/RC program planned to test geochemical anomalies • Infill soil geochem program - Block A South
Slide 28: Obuasi property beside Obuasi Mine
• 100% interest (subject to 10% gov’t interest) • 290 sq km, beside the largest vein hosted gold deposit in the world (Obuasi Mine) • 30 M oz produced since 1897 • 9.4 M oz reserve remaining in a resource totaling 19.6 M oz M+1 and 12.2 M oz inferred
Slide 29: Obuasi Regional Geology, Mines and Exploration Targets
| Obuasi _ Regional Geology, Mines and Exploration Targets PELANGIO bervueio Legend
Slide 30: Obuasi North Government Area
| Obuasi North Government Area PELANGIO bervueio
Slide 31: Arsenic anomaly and visible gold in core
• Substantial arsenic anomaly coupled with visible gold in core affirm that Obuasi style system is clearly present in North Government Area • Eight drill-ready targets
Slide 32: Two km trend of anomalous gold grab samples
• Two km trend of grab samples returning anomalous gold values • Pronounced gold mineralization on structural complexities
Slide 33: Events and Catalysts
Events and Catalysts • Maiden Resource Estimate o Three resource areas – Pokukrom East and West and Nfante West o Indicated - 3.973 Million Tonnes at 1.52g/t Au : 195,000 Gold Oz o Inferred – 9.666 Million Tonnes at 0.96 g/t Au : 298,000 Gold Oz • Four additional discovery areas and over ten promisi
Slide 34: Events and Catalysts
Events and Catalysts • New compact Grasshopper RC/RAB/Air core rig being constructed for lower cost ($15-40/m ), rapid sampling of targets to 200m depth • Anticipated arrival in Ghana in Summer 2013
Slide 35: The Talent for Success
The Talent for Success Ingrid Hibbard, President and CEO Paul Rokeby, CFO Warren Bates, P. Geo., SVP Exploration
Slide 36: The Talent for Success
The Talent for Success Carl Nurmi – C.A. (lead director) David Mosher – B.Sc. (Geo.) Philip Olson – P.Geo. Arthur (Gord) Slade Peter Crossgrove – M.B.A. Ingrid Hibbard – LL.B. Ian Shaw – C.A. (former CFO of Pelangio Mines) Thor Eaton Director of Excellon Resources and Nordex Explosives
Slide 37: Why invest in Pelangio?
Why invest in Pelangio? A Track Record of Success – Wealth Generation: 10,000% return since 2003 Camp-size Properties on World Class Gold Belts – Ghana: centuries of production in a mining friendly jurisdiction – Manfo (100 sq km), Obuasi (290 sq km) and Akroma (160 sq km) Successful Exploration in
Slide 38: Pelangio in the Communities
Pelangio in the Communities PELANGIO Drilling in an environmentally and socially Water Wells responsible manner Roads and Bridges Materials for Schools
Slide 39: Share Capitalization
Share Capitalization Pelangio Exploration Inc. (PX:TSXV; PGXPF:OTCBB) Current Price (as at May 6th, 2013 ): $0.09 Share Price – 52wk H/L: $0.375/ $0.08 Issued and Outstanding: 174.8M Options: 8.8M Warrants ($0.60) exp. 12/13: 10.2M Broker Options ($0.40/share; ½ $0.60 warrants): 1.4M Fully Diluted:
Slide 40: Contact
Contact/Coverage Pelangio Exploration Inc. (PX:TSXV; PGXPF:OTCBB) 440 Harrop Drive, 2nd Floor Milton, Ontario Contact L9T 3H2 Tel: (905) 875-3828 Fax: (905) 875-3829 Email: info@pelangio.com www.pelangio.com Twitter: @PelangioEx 59
Pelangio Exploration — Shareholder Meeting (May 2013) on 6ix