Pelangio Exploration Announces Settlement of Obuasi Litigation

TORONTO, ON / ACCESSWIRE / July 11, 2023 / Pelangio Exploration Inc. (TSX-V:PX)(OTC PINK:PGXPF) ("Pelangio" or the "Company") is pleased to announce that settlement agreements have been reached to resolve all outstanding litigation with respect to an action commenced in 2009 in the Ghana High Court involving the vendor of two of the four prospecting licenses comprising Pelangio's Obuasi property. The two prospecting licenses involved in the litigation and referenced as Kyereboso 2 License and Kyereboso 3 License in the attached Figure 1 are hereinafter referred to as the "Property". The litigation related to a dispute between the Property vendor's corporate history and the estate of one of its founding shareholders (the "Plaintiff). Pelangio was subsequently added as a co-defendant in 2012. Although no monetary consideration was claimed from Pelangio by the Plaintiff in the litigation, an interlocutory injunction had been granted which had the effect of preventing all parties from selling any interest in or conducting mining on the Property pending final determination of the matter.

"This settlement is a positive development for Pelangio," stated Ingrid Hibbard President and CEO. "It avoids the continued uncertainty, expense, and burden associated with litigation and removes the injunction preventing the sale of any interest in or mining of the Property. We are excited to have these impediments removed and planning for the next phase of exploration at the Property is underway."

Terms of Settlement

The settlement provides that upon the acceptance of the settlement terms by the Ghana High Court and entry of such settlement terms as a binding consent judgment resulting in full resolution in addition to release of all claims asserted by the Plaintiff, or such claims that could have been asserted by the Plaintiff, directly or indirectly in the litigation and permanently releasing any injunction or other restrictions on the Property resulting from the litigation, Pelangio will make five payments of US$20,000 and issue Pelangio common shares having a value of CDN$50,000 in three tranches over one year, subject to approval of the share issuances by the TSXV.