Positive Results At The Grenfell Gold Project

TORONTO - Pelangio Exploration Inc. has received and reviewed all assay results from the phase 2 drill program completed in the fall of 2020 on its Grenfell gold project, located near Kirkland Lake, Ontario. The drill program successfully intercepted gold in both higher-grade narrow vein intersections and a series of new gold bearing intercepts. These results indicate continued success from the phase 1 drilling program completed in the spring of 2020.

Highlights of Phase 2 Drill Program: Hole JS2013 intersected a new vein (No.1 HW Vein) in the hanging wall of the No.1 Vein which returned 10.95 g/t Gold ("Au") over 3 meters ("m") including a higher grade intercept of 23.4 g/t Au over 1m; Hole JS2013 targeted the No.1/No.6 Vein intersection as mapped on the 76m level historical workings: The hole returned 11.4 g/t Au over 0.6m approximately 10m above the projected intersection; The hole also returned 1.16 g/t Au over 7.5m in the hanging wall of the No.1 Vein; Hole JS2014 returned two new significant zones of mineralization approximately 50m below the historical No.1 Vein sill drift workings (76m level). These new mineralized zones assayed 1.45 g/t Au over 9m and 1.76 g/t over 4.5m including some higher grade intercepts of 4.02 g/t Au over 1.1m and 3.46 g/t Au over 1.5m respectively; and Hole JS2011 targeted the up dip projection of No.1 Vein and returned a mineralized intercept in the hanging wall of the No.1 Vein which assayed 1.26 g/t Au over 6.8m including 4.91 g/t Au over 1.5m.

Ingrid Hibbard, President and CEO, said, "These results are extremely encouraging and continue to demonstrate excellent potential and captivate our attention at Grenfell. The recent results complement our initial work in the spring of 2020 which returned some impressive high grade results of 314 g/t gold over 1.74 meters (uncut). Our team will be modeling the new exploration data to continue to refine our understanding of the mineralization and the geometry of the zones in anticipation of the next round of drilling."

The Grenfell property is comprised of 38 mining cells and 8 leased claims covering an area of approximately 6.7 square kilometers and is located 10 kilometers northwest of the Town of Kirkland Lake Ontario.

The recent drill program consisted of five holes totaling 540m. Two holes JS2013 and JS2014 targeted the No.6/No.1 vein intersection proximal to the 250 foot (76m) level historical workings and also further evaluated the depth extension of No.6 and No.1 Veins. Two holes JS2009 and JS2010 targeted the historical Shea Vein and Central targets respectively, also just above the 76m level workings. The Shea Vein and Central Target represented two NW trending target zones; these targets were drill tested due to their similar orientation to the No.6 Vein known to be associated with significant gold mineralization as demonstrated by Pelangio in early 2020. Hole JS2011 targeted the up dip extension of the No.1 Vein above the 76m level, as only extremely limited historical drilling had previously tested the up dip extent of this No.1 Vein. Historical chip sampling of the No.1 Vein on the 76m level sill drift returned 0.2 oz/ton gold over a width of three feet over 180 feet of strike length.

Holes JS2009 and JS2010: A single hole (JS2009) successfully intersected the Shea Vein target and returned 1.51 g/t Au over 1.8m. Historical data shows this vein has a strike length of approximately 65m; thus, limited drill testing has been completed on this system. Gold mineralization on the Shea Vein is present in a quartz vein hosted within a gabbro unit with minor leucoxenes. A single hole (JS2010) was completed on the Central Target. No significant results were obtained and an explanation for approximately 60m of underground drifting on the 76m level on the Central target remains unknown.

Hole JS2011: Hole JS2011 targeted the up dip extension of the No.1 Vein; slightly anomalous gold was noted in the target area of the up dip projection, however a broader zone of mineralization was noted in the hanging wall of the No.1 Vein which returned 1.26 g/t Au over 6.8m including a higher grade intercept of 4.91 g/t Au over 1.5m. The mineralized zone in JS2011 is hosted in a mafic volcanic unit with minor quartz stringers; the better value of 4.91 g/t Au over 1.5m is adjacent to a fault zone.

Holes JS2013 and JS2014: Holes JS2013 and JS2014 demonstrated there is potential for new zones of mineralization and additional high-grade narrow vein mineralization. This is shown by the new higher grade intercept in JS2013 which returned 10.95 g/t Au over 3m and the additional mineralized intercepts in Hole JS2014 which returned 1.45 g/t Au over 9m and 1.76 g/t over 4.50m. All of these zones described are located in the hanging wall of the No.1 Vein which has very few holes along its entire 54m (180 foot) strike length. The higher grade intercept of 10.95 g/t Au over 3m in hole JS2013 is associated with stringers of quartz within a gabbro unit with minor leucoxene alteration. The intercepts in JS2014 are hosted in a locally bleached gabbro unit with leucoxene alteration, and some pyrite mineralization generally less than 1%.

Work to date at Grenfell by Pelangio has demonstrated the potential for both narrow vein high-grade mineralization and a number of new zones of near surface lower grade gold mineralization associated with the No.6 and No.1 Vein systems. The geometry and relationship of these mineralized zones is not adequately understood at this time. The Company intends to input all pertinent historical data and recently acquired drill data into a geological model to assist in a better understanding of the mineralized zones. Pelangio will also review and prioritize a number of significant geophysical anomalies with coincident geochemical anomalies which remain to be drill tested. The combination of these efforts will better define priority target areas for further drilling.