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Pelangio Exploration Intersects 2.24 G/T Gold Over 19 Metres at Pokukrom East

Pelangio Exploration Inc. has announced results from 21 additional diamond drill holes totaling 4,627 metres on the Manfo Property in Ghana. Highlights of the results reported today include:

Pokukrom East Gold Zone

  • 1.06 grams per tonne (g/t) gold over 22 metres in SPDD-156 from surface;
  • 1.00 g/t gold over 60 metres in SPDD-157 from 163 metres down-hole;
  • 2.48 g/t gold over 9 metres in SPDD-159 from surface;
  • 2.47 g/t gold over 9 metres in SPDD-164 from 123 metres down-hole;
  • 2.24 g/t gold over 19 metres in SPDD-166 from 263 metres down-hole, confirming the zone to 277 metres depth;
  • 1.03 g/t gold over 23 metres in SPDD-172 from surface.

Nfante East Gold Zone

  • 1.07 g/t gold over 19 metres in SFDD-150 from 48 metres down-hole;

"Infill drilling at Pokukrom East continues to confirm a consistent bulk tonnage gold zone from section to section and down dip extension beyond 250 metres depth," stated Warren Bates, Senior Vice President Exploration. "We continue to encounter higher grades (2+ g/t) along the footwall of the mineralization, as seen in SPDD-166, and excellent potential for the zone to continue to depth beyond the northern end of the defined geochemical anomaly. We are now well on our way to drilling out Pokukrom East on 50 metre centres as we move towards an initial resource by mid next year."

Geological Setting

The following table summarizes significant assay results reported herein:

1 Intervals are core length. Unless otherwise indicated, a cut-off grade of 0.2 g/t gold was used in calculating intervals with allowance for up to five metres of internal dilution.

The Pokukrom East geochemical anomaly is approximately 1,200 metres in length. To date, Pelangio has confirmed a gold zone at Pokukrom East measuring 850 metres in strike that is open along strike and at depth. Gold mineralization is generally associated with a sericite-pyrite altered metagranitoid hosted shear, with higher grade zones of quartz-pyrite veining. Lower grade mineralization occurs in hematite altered metagranitoid, which is a peripheral alteration to the sericite hosted mineralization. The results announced today from Pokukrom East are step-back or infill holes on or between previously drilled sections.

Drilling Plan at Pokukrom East to date

SPDD-159 was drilled on section 49250 in front of SPDD-143 (0.58 g/t gold over 57 metres including 1.11 g/t gold over 16 metres) and successfully intersected the oxidized portion of the zone near surface.

SPDD-161 was a step-back hole drilled on section 49350 behind SPDD-087 (0.55 g/t gold over 44 metres). The hole intersected zones of anomalous hematite hosted gold mineralization, likely representing the periphery of the mineralized zone on the section.

SPDD-164 and -166 were drilled as step-back holes from the same collar on section 49450 behind SPDD-106 (0.84 g/t gold over 29 metres and 3.47 g/t gold over 13 metres). Both holes intersected wide zones of hematite altered rock and confirmed a higher grade (2+ g/t) footwall zone, with -166 confirming this higher grade zone to 277 metres depth, which represents the deepest interval yet encountered on the Manfo Property.

SPDD-168 was drilled on section 49500 from the same collar as, and behind, SPDD-107 (1.37 g/t gold over 57 metres including 3.53 g/t gold over 11 metres). The hole was highly anomalous, intersecting 0.42 g/t gold over 83 metres, dominated by hematite altered rock. Further drilling is required to determine whether the hole was drilled on the periphery or in a lower grade area of the zone.

SPDD-156 was drilled on section 49550 in front of -086 (0.60 g/t gold over 57 metres) and successfully intersected the oxidized mineralized zone near surface.

SPDD-157 was a step-back hole on section 49650 behind SPDD-110 (2.14 g/t gold over 16 metres). Significantly, SPDD-157 intersected broader and more consistent sericite hosted mineralization than the other holes drilled on the section, in addition to confirming the zone to 170 metres depth on the section.

SPDD-170 and -172 were infill holes on section 49850. SPDD-170 was drilled from the same collar as SPDD-127 (1.53 g/t gold over 42 metres), which was terminated in mineralization, to infill the section. SPDD-172 was drilled between SPDD-128 (1.59 g/t gold over 16 metres) and SPDD-089 (1.03 g/t gold over 46 metres) and appears to have intersected the main Pokukrom East zone (also encountered in SPDD-089, -127 and -170 on the section).

At Nfante East, SFDD-150 was drilled on section 45800, 100 metres north of and on strike with the discovery hole on the target, SFDD-094 (0.87 g/t gold over 38 metres). The drill hole returned 15 metres at 0.62 g/t gold in oxide mineralization from surface to 15 metres down-hole and a second hematite altered zone from 48 metres to 67 metres down-hole of 1.06 g/t gold over 19 metres. Further drilling is required at Nfante East to locate higher grade sericite-style mineralization as intersected at Pokukrom East.

Drilling at the Nfante West and Nfante Central zones returned mainly anomalous results, with the exception of SFDD-171 at Nfante West, which returned 0.91 g/t gold over 19 metres from 123 metres down-hole. The Company plans to further review geophysical and geochemical information prior to planning further infill and step-out holes on these two targets.

Drilling Progress and Exploration Outlook

Including the 21 holes totaling 4,627 metres reported today, Pelangio has completed 99 drill holes totaling 19,541 metres (including two holes abandoned for 134 metres) in its second phase program on the Manfo Property, of which 78 drill holes have been reported. Further assay results will be released in due course.

Pelangio's exploration focus on the Manfo Property is to identify near-surface, drill ready targets through geochemical sampling and to test and extend such targets with drilling and geophysical surveying. The Company's aim during 2011 is to discover and delineate as many gold mineralized zones on the Manfo Property as possible.

Quality Assurance/Quality Control

The drill holes reported in this press release were drilled using HQ (63.5 mm) and NQ (47.6 mm) sized diamond drill bits. Company security is provided at the drill site. Contractors working for Pelangio conducted all logging and sampling. The core was logged, marked up for sampling using standard lengths of one metre, then divided into equal halves using a diamond saw. One half of the core was left in the original core box and stored in a secure location at the Pelangio compound in Tepa, Ghana. The other half was sampled, placed into sealed bags and securely stored at the site until it was shipped to the ALS Chemex laboratory in Kumasi, Ghana. The core was dried and crushed by ALS Chemex and a 150 gram pulp was prepared from the coarse crushed material. ALS Chemex conducted routine gold analysis using a 50 gram charge and fire assaying with atomic absorption finish. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream at the rate of one per every 20 samples. In addition, ALS Chemex inserted one preparation blank and a certified reference sample in for every 20 samples, and ran one duplicate analysis every 20 samples.


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