Pelangio Exploration Announces Settlement of Obuasi Litigation - Seite 2

The consideration has been agreed upon as a compromise and final settlement of disputed claims and payment of the amounts set forth herein and the issuance of the Common Shares is not an admission of liability by any party and is not to be construed as an admission that any party engaged in any wrongful, tortious, or unlawful activity.

Obuasi Property

Pelangio's Obuasi Property consists of 4 prospecting licenses, including the Kyereboso 2 and 3 licenses, totaling 284.4 square kilometers in area and located adjacent to AngloGold-Ashanti's giant Obuasi Mine on the Ashanti Belt, the most gold endowed greenstone belt in West Africa. The Obuasi mine has produced over 33 million ounces of gold since 1897 and currently hosts a resource of 24.5 million ounces of gold at an average grade of 8.0 g/t Au including a Proved and Probable Reserve of 7.7 million ounces of gold at an average grade of 9.3 g/t Au. (Source: AngloGold Ashanti Mineral Resource and Ore Reserve Report December 2022). The geological stratigraphy which hosts the Obuasi deposits extends into Pelangio's Obuasi Property and Obuasi-style geology, alteration and mineralization has been observed in historical drilling by Pelangio at multiple prospects.

Pelangio conducted considerable work on the Obuasi Property between 2007 and 2011 until the Manfo Resource Project became the focus, including geological and geochemical surveys, trenching, airborne geophysical surveys and 28,000 meters of diamond drilling which was largely focussed upon a handful of prospects. The two principal target areas for continued exploration which have been delineated from Pelangio's work include the ‘Obuasi Targets Area' along the extension of the Obuasi Mine stratigraphy, and the ‘NGA (North Government Area) Targets Area' located along the Birimian-Tarkwaian contact structure. Refer to Figure 1.

With a resumption of exploration activity on the Obuasi Property, one of the first prospects which will be revisited is located in the NGA Target Area where two Pelangio drill holes returned high-grade intercepts of 24.5 g/t Au over 1 meter and 11.3 g/t Au over 2 meters, and recent artisanal mining has sunk a series of shallow vertical shafts to explore and mine quartz veining along the principal structure. A broader exploration plan will also be developed to assess the Obuasi and NGA Target Areas in detail to include geological mapping and prospecting, drill core relogging, auger drilling to refine geochemical targets, and a rework of the geophysics, geological and structural interpretations culminating in an updated targeting exercise to direct future exploration drilling.