TORONTO, ONTARIO--(Marketwired - May 7, 2013) - Pelangio Exploration Inc. (News - Market indicators)(OTCQB:PGXPF) ("Pelangio" or the "Company") is very pleased to announce the preparation of an initial mineral resource statement for the Company's Manfo Property ("Manfo" or the "Property"). Mineral resources have been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Estimation of Mineral Resource and Reserves Best Practices Guidelines and are reported in accordance with Canadian Securities Administrators' National Instrument 43-101 ("NI 43-101") by SRK Consulting (Canada) Inc. ("SRK"). The announcement of the first resource statement for Manfo constitutes an important milestone in the long-term exploration strategy for Pelangio's gold properties in Ghana.

Highlights 

The results of the initial gold resource indicate:

• 40% of the estimated Gold Resource is in the Indicated category;
• Pittable Mineral Resource reported at cut-off grades of 0.40 grams of gold per tonne ("gpt") for oxide material and of 0.50 grams of gold per tonne ("gpt") for transitional / fresh material in relation to a conceptual pit shell:
  • Indicated Resource of 3.973 million tonnes at 1.52 gpt gold, and
  • Inferred Resource of 9.666 million tonnes at 0.96 gpt gold; and
• Gold mineralization remains open along strike and at depth as suggested by the out-of-pit resources.

To view images illustrating the conceptual pits, gold mineralization and drilling on the Manfo Property, see: http://www.pelangio.com/Projects/Ghana/Manfo/Resource%20Estimate-PressReleaseSlides.aspx.

Commentary

Ingrid Hibbard, President and CEO of Pelangio Exploration, noted that, "We are pleased with the results of our first resource estimation at Manfo, following our initial period of target identification and follow-up drilling. Since acquiring the property as a grassroots project in August 2010, we have been successful in the discovery of seven areas of gold mineralization, three of which are included in this resource estimate and remain open along strike and at depth. The in-depth analysis that underlies the resource estimation, particularly the geologic modelling coupled with geostatistical analysis, and the development of a block model, will assist in the prioritization of known and prospective targets for ongoing exploration over the entire Manfo Property. 

Ten additional targets have been identified along and parallel to the nine kilometre long structural corridor that is a continuation of the fault system hosting the Chirano Mine (Kinross Gold) and the Bibiani Mine (Nobel Mineral Resources), - deposits with multi-million ounces of gold in past production, reserves and resources. The location, only 14 kilometres from Newmont's African flagship Ahafo Mine, which has a similar alteration style and setting to our Manfo resource, emphasizes Manfo's potential in an outstanding area of large gold deposits in Ghana's gold-rich Sefwi Belt and indicates the importance of future exploration on the Manfo targets and discoveries that are early-on in their evaluation. With three resource areas that remain open, several recent discoveries and ten more target areas along the nine kilometre trend, we are well positioned to expand upon our resource base."

2013 Exploration Program

In preparation for a Rotary Air Blast (RAB) drilling program on portions of the main trend down strike from the known mineralization and a Reverse Circulation (RC) drilling program in the target areas adjacent to the existing resources at Pokukrom East and West as well as at the Nkansu and Sika North discovery areas, Pelangio is conducting an exploration program of geochemical sampling, trenching and mechanized auger drilling. To date, Pelangio's delineation costs have been approximately US$12.50 per ounce of gold resource. In order to reduce drilling costs, the RAB and RC programs will be completed with the cost effective and low environmental impact Grasshopper Rig, which is currently being shipped to Ghana by Pelangio.

Technical Description

Gold mineralization at Manfo is hosted in sericite and hematite altered granitoid rocks adjacent to a set of brittle-ductile faults. Within geologically modeled alteration envelopes, gold mineralization occurs in strongly altered zones adjacent to the brittle-ductile faults, and in fracture-controlled zones preferentially developed in certain horizons within the granitoid rocks in the hanging wall of the faults. Based on current exploration drilling density, three zones were selected for resource modelling. The bulk of the gold mineralization occurs in the Pokukrom East Zone that was sampled by drilling on sections spaced at fifty metres. Two smaller, less well-defined zones exist to the south (Nfante West Zone) and west (Pokukrom West Zone) of the main zone.

The Manfo Property database contains 178 surface Diamond boreholes. The drillhole data includes collar location, down-hole survey, rock codes and 36,606 sample intervals assayed for gold. The mineral resource statement utilizes a total of 135 boreholes with 27,897 metres of drilling. Data used for mineral resource estimation purposes was verified by SRK.

The mineral resources reported herein have been estimated using a geostatistical block modelling approach derived from borehole data. All zones were estimated using a traditional wireframe interpretation constructed from a sectional interpretation of the drilling data. The block model was set on a grid of 5 by 5 by 5 metres, rotated by 30 degrees clockwise such that the block model is oriented subparallel to the general strike of the mineralization. Gold grades were estimated by ordinary kriging and compared with an inverse distance algorithm (power of two) as a secondary estimator using the same estimation parameters.

Two block models were created to cover the Pokukrom and Nfante zones of gold mineralization at the Manfo Property. Two estimation passes were used to populate the block model with gold grades within the alteration zones and third estimation pass was considered for the gold grades constrained by mineralization wireframes. The first, second and third estimation passes considered full, twice and three times variogram ranges.

SRK is satisfied that the geological modelling honours the current geological information and knowledge. The location of the samples and the assay data are sufficiently reliable to support resource evaluation and do not present a risk to resource classification. The mineral resource model is largely based on geological knowledge derived from boreholes drilled on sections spaced at 50 metres apart. The geological information is sufficiently dense to allow modelling with reasonable confidence the boundaries of the gold mineralization for the Pokukrom zones, while for the Nfante West Zone, the geological continuity can only be inferred at the current drill spacing within the meaning of the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2011).

SRK considers that modeled gold mineralization exhibiting good reporting grade continuity informed by adequately spaced, reliable sampling data and estimated during the first estimation pass within a conceptual pit shell can be classified in the Indicated category within the meaning of the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2011). For those blocks, SRK considers that the level of confidence is sufficient to allow appropriate application of technical and economic parameters to support mine planning and to allow evaluation of the economic viability of the deposit. Those blocks located in the Pokukrom zones can be appropriately classified as Indicated. Conversely, blocks estimated during the second pass and all those blocks located in domains where the geological and gold mineralization continuity can only be inferred should be classified in the Inferred category because the confidence in the estimates is insufficient to allow for the meaningful application of technical and economic parameters or to enable an evaluation of economic viability. SRK considers that portions of the Manfo gold mineralization are amenable for open pit extraction, with "reasonable prospects" for economic extraction by an open pit assessed using a pit optimizer. The Manfo project is at a relatively early stage of exploration. The gold mineralization delineated by drilling is not completely closed off by drilling. For this reason, SRK considers that the gold mineralization located outside a conceptual pit shell but above the bottom of the pit shell may eventually be shown to be amenable for open pit extraction. Accordingly all blocks located outside the conceptual pit shell were reclassified as Inferred. Open Pit Mineral Resources reported at cut-offs of 0.40 gpt for oxide material and at 0.50 gpt for transitional and fresh material.

The mineral resource estimation work was completed by Dorota El-Rassi, P. Eng. (APEO #100012348) and Blair Hrabi (APGO #1723) under the supervision of Glen Cole, P.Geo. (APGO #1416) of SRK. Ms. El-Rassi, Mr. Hrabi and Mr. Cole, are all independent Qualified Persons as this is defined in National Instrument 43-101. Mr. Hrabi has inspected the Manfo gold project from May 15 to 22, 2012. SRK's Technical Report is expected to be filed on SEDAR within the prescribed 45 days following the date of issuance of this news release. Mr. Glen Cole reviewed the content of this news release.

Pelangio's Senior VP Exploration is Warren Bates, P.Geo., a Qualified Person as defined by National Instrument 43-101 who has reviewed the technical content of this press release.

About Pelangio Exploration Inc.

Pelangio successfully acquires and explores camp-sized land packages in world-class gold belts, while using innovative corporate restructuring to maximize shareholder value. The Company primarily operates in Ghana, West Africa, an English-speaking, common law jurisdiction that is consistently ranked amongst the most favourable mining jurisdictions in Africa. The Company is exploring three 100%-owned camp-sized properties: the 100 km² Manfo Property, the site of seven recent near-surface gold discoveries, the 290 km² Obuasi Property, located four kilometres on strike and adjacent to AngloGold Ashanti's prolific, high-grade Obuasi Mine, which has produced over 30 million ounces of gold since 1897, and the early-stage 160 km² Akroma Property.

For additional information, please visit our website at www.pelangio.com, follow us on Twitter @PelangioEx.

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 exist or is or will be economically or legally feasible to mine. In addition, investors should not assume that any of the references herein to adjacent properties (based on public information) is necessarily indicative of the mineralization on the Manfo property or that further exploration on the Manfo property will prove to be successful.

The disclosure herein uses mineral resource classification terms that comply with reporting standards in Canada and the disclosure of mineral resource estimates are made in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects that are considered material to the issuer. 

All resource estimates contained herein are based on the definitions adopted by CIM and recognized under NI 43-101. These standards differ significantly from the mineral reserve disclosure requirements of the U.S. Securities and Exchange Commission set out in Industry Guide 7. Consequently, resource information contained in this press release is not comparable to similar information that would generally be disclosed by U.S. companies in accordance with the rules of the SEC. The SEC's Industry Guide 7 does not recognize mineral resources and US. companies are generally not permitted to disclose mineral resources in documents they file with the SEC. Investors are specifically cautioned not to assume that any part or all of the mineral resources disclosed above will ever be converted into SEC defined mineral reserves. Further, "inferred mineral resources" have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. In accordance with Canadian rules estimates of inferred mineral resources generally cannot form the basis of an economic analysis.

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 mineral resource estimate, the timing of exploration programs and filing of technical reports and the Company's exploration plans and exploration results with respect to the Obuasi Property and the Manfo Property. With respect to forward-looking statements and information contained herein, we have made numerous assumptions, including assumptions about gold price, cut-off grades, metallurgical recoveries, operating and other costs and technical assumptions used in the estimate. 

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 discrepancies between actual and estimated mineral resources, subjectivity of estimating mineral resources and the reliance on available data and assumptions and judgments used in the interpretation of such data, speculative and uncertain nature of gold exploration, exploration costs, capital requirements and the ability to obtain financing, volatility of global and local economic climate, share price volatility, estimate 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 the Company's annual information form and 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 assume that any of the indicated or inferred resource will ever be upgraded to a higher category or to mineral reserves and any or all exist or is economically or legally feasible to mine or 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.

To view the figures accompanying this press release, please visit the following link:

http://file.marketwire.com/release/871868.pdf