Pelangio Exploration Inc.
TSX VENTURE : PX

Pelangio Exploration Inc.

November 23, 2009 09:00 ET

Pelangio Exploration Acquires Option to Repurchase Royalty on the Poirier Gold Property in West Timmins, Ontario

TORONTO, ONTARIO--(Marketwire - Nov. 23, 2009) - Pelangio Exploration Inc. (TSX VENTURE:PX) ("Pelangio" or the "Company") is pleased to announce that it has acquired an option to repurchase a 0.5% net smelter royalty (the "NSR") on the Company's 100%-owned Poirier Gold property (the "Property") in West Timmins, Ontario. The Company paid the optionor $10,000 for a one year option to repurchase the NSR upon payment of a further $40,000. The Property is located adjacent to and contiguous with Lake Shore Gold Corp.'s Timmins Mine Project and Thunder Creek properties (the following link illustrates the Property's location in the West Timmins camp: http://media3.marketwire.com/docs/PX1123_Map.jpg)

"Thunder Creek is one of the most prospective properties in Canada right now and our Poirier Gold property is the closest thing to it," stated Ingrid Hibbard, President and Chief Executive Officer of Pelangio. "This option reflects our commitment to maximizing shareholder value in creative ways, though our exploration focus remains on the Obuasi property in Ghana, where our ongoing program contemplates over 30,000 metres of drilling by the end of 2010."

Exercise of Warrants

Pelangio is also pleased to announce that it has received $2,170,000 from the exercise of all of its outstanding $0.20 common share purchase warrants (the "Warrants"), which were issued in the Company's February 2009 private placement financing. The Warrants were initially scheduled to expiry on February 27, 2011, but the expiration date was accelerated to November 22, 2009 upon the occurrence of certain events. Following the exercises, the Company's net working capital stands at $8 million and the Company continues to hold 100,000 shares of Detour Gold Corporation.

About Pelangio

Pelangio is a fully financed gold exploration company active in two of the top-ranked mining jurisdictions in the world, Canada and Ghana. The Company's primary goal is to discover Obuasi Mine-style gold ore shoots on its 290 km2 property located on strike and adjacent to AngloGold Ashanti's Obuasi Mine, which has produced 30 M oz of gold since 1897 and holds current reserves and resources of 37 M oz (9.7 M oz reserve in a global resource comprising: 24.5 M oz measured and indicated; 12.5 M oz inferred - as further described in AngloGold Ashanti's Mineral Resource and Ore Reserve Report 2008).

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

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. With respect to forward-looking statements and information contained herein, we have made numerous assumptions. Forward-looking statements and information include statements regarding our exploration plans and exploration results with respect to our Obuasi property, and are subject to forward-looking risks, uncertainties and other factors which may cause our 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 gold price volatility, changes in equity markets, political developments in Ghana, increases in costs, exchange rate fluctuations and other risks involved in the gold exploration industry. See our 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.

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.

Contact Information

  • Pelangio Exploration Inc.
    Ingrid Hibbard
    President & CEO
    905-875-3828 or Toll Free: 1-877-746-1632
    or
    Pelangio Exploration Inc.
    Brendan Cahill
    VP Corporate Development
    905-875-3828 or Toll Free: 1-877-746-1632
    info@pelangio.com
    www.pelangio.com