Pelangio Exploration Letter to Investors

TORONTO, Ontario (January 5, 2012) - Pelangio Exploration Inc. (PX:TSX-V; PGXPF:OTC) ("Pelangio" or the "Company") is pleased to release the following letter to investors from Ingrid Hibbard, President and Chief Executive Officer of the Company:

Dear Investors,

I trust that the holidays treated you well and I would like to take this opportunity to provide a summary of our accomplishments during 2011 and our outlook for 2012.

Pelangio had a very successful 2011 on the exploration and property acquisition fronts, though the year was marked by extreme market volatility.  During 2011, we completed 108 diamond drill holes totaling 22,637 metres on our Manfo property, which allowed us to greatly expand the known gold zones at Pokukrom East, Pokukrom West and Nfante West.  The Pokukrom East zone, in particular, now measures an open strike of over 850 metres and has been intersected at over 275 metres depth.  Our most recent drill results indicate that both the grades and widths intersected at Pokukrom East are increasing at depth.  Recent significant results include:

• 1.17 g/t gold over 62 metres, including 2.61 g/t gold over 22 metres;
• 1.20 g/t gold over 55 metres, including 2.50 g/t gold over 14 metres;
• 1.12 g/t gold over 82 metres, including 3.12 g/t gold over 14 metres;
• 2.24 g/t gold over 19 metres;
• 1.00 g/t gold over 60 metres; and
• 1.20 g/t gold over 54 metres, including 3.26 g/t gold over 13 metres.

Other key successes at Manfo during 2011 include: identifying a higher grade footwall zone along approximately 400 metres of strike and a new hanging wall zone at Pokukrom East, intersecting the high grade Pokukrom West zone in fresh rock to up to 125 metres depth (11.06 g/t gold over 9 metres; 5.79 g/t gold over 8 metres and 7.00 g/t gold over 4 metres), extending the strike length at Nfante West to 280 metres and making the fifth independent discovery on the property at Nfante Central.

Our work on Manfo to date has demonstrated the property's potential to host another of Ghana's great gold deposits.  With five new near surface discoveries, including significant bulk tonnage results at Pokukrom East, high grade results at Pokukrom West and over 90% of the property left to explore, we intend to take further steps to realize that potential during 2012.

We will be ramping up to three rigs at Manfo early this year and expect to drill up to 13,000 metres on the property during the next four months.  Our primary near term goal is to complete an initial resource estimate on the property that will include the Pokukrom East and Pokukrom West zones.  We have also commenced metallurgical testing, an essential component as we advance the project, which should be completed during the second quarter.  As importantly, however, we are intent on demonstrating the Manfo property's further resource potential by discovering new gold zones.  We conducted extensive geophysical (magnetics, radiometrics and induced polarization) and geochemical surveying during 2011.  Once all results have been received and interpreted, this surveying will be used to develop drill ready targets that we hope will result in many more new discoveries on the property in the gold-rich Sefwi Belt of Ghana during 2012.

On our Obuasi property, we completed 44 diamond drill holes totaling 9,710 metres during 2011.  While we are still awaiting final assay results from holes drilled late in the year, results to date indicate that the program successfully identified areas hosting high grade gold, with intersections at the Government Area targets grading up to 24.5 g/t gold over 1.0 metre (with visible gold), 11.28 g/t gold over 2.0 metres (with visible gold) and 6.01 g/t over 2.0 metres.  Particularly encouraging has been the intersection of significant widths (five to eight metres) of arsenopyrite associated with laminated quartz veins hosting visible gold.  Arsenopyrite is an important indicator mineral associated with high grade gold on the adjoining property at the world-class Obuasi mine.  We have intersected these arsenopyrite zones in areas identified as prospective by our pre-drilling exploration techniques.  Alteration, structure and lithologies associated with large gold deposits in the Ashanti Belt have been identified at the Government Area targets, and we are excited to further evaluate these promising areas later in 2012.

On the property acquisition front, 2011 was a great success, as we exercised our options to acquire 100% interests in both the Manfo and Obuasi properties, solidifying our land positions on Ghana's prolific Sefwi and Ashanti gold belts.  In June 2011, we acquired an option on the 160 km2 Akroma property, which brought our total land position in Ghana to approximately 550 km2.  Akroma is an early stage exploration property, but we expect to conduct geochemical surveying and prospecting there during early 2012 and potentially develop drill ready targets by later in the year.  With our strong local presence and reputation in the country, we also expect to see many other opportunities to acquire further exploration properties in Ghana during 2012.

Following our recently completed $8 million public offering, we are in a strong financial position entering 2012 and well positioned to take advantage of market improvements or weather any continued market instability.

I wish you the best in the coming year and hope that 2012 proves to be prosperous for all.

Best Regards,

Ingrid Hibbard

President and
Chief Executive Officer

Note:  For greater detail on any aspects of this press release, please refer to the Company's 2011 press releases dated: January 24th, February 1st, March 4th, March 22nd, May 5th, May 24th, July 11th, July 21st, September 1st, September 8th, October 31st and November 21st.

Quality Assurance/Quality Control and Qualified Person

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 compounds in 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 one duplicate every 20 samples and one standard or blank alternating every 20 samples.  In addition, ALS Chemex inserted one preparation blank and a certified reference sample for every 20 samples, and ran one duplicate analysis every 20 samples.

Selective samples from Government Area drilling where visible gold was present were subsequently sent for follow-up metallic screening analysis, in which a 1000 gram pulp was analyzed. The screening of samples produced two size fractions - less than 75 micrometres (um) and greater than 75 um. These fractions were then analyzed independently by fire assay and atomic absorption.

The exploration programs at the Manfo and Obuasi Properties are overseen by Warren Bates, P. Geo. (Ontario), a Qualified Person within the meaning of National Instrument 43-101.  Mr. Bates has verified and approved the data disclosed in this release, including the sampling, analytical and test data underlying the information.

About Pelangio

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.  Drilling is currently underway on two 100%-owned camp-sized properties: the company-making 100 km2 Manfo Property, the site of five recent near-surface, high grade and bulk tonnage, gold discoveries, and the potentially game-changing 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. 

For additional information, please visit our website at , follow us on Twitter @PelangioEx or contact:

Ingrid Hibbard, President & CEO or
Brendan Cahill, Vice President Corporate Development
Tel: [phone] / Toll-free: 1-877-746-1632 / Email: [e-mail]
- or -
Martti Kangas, Principal
Proconsul Capital
Tel: [phone] / Email: [e-mail]

Forward Looking Statements

Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws and such statements and information may be based on numerous assumptions. Forward-looking statements and information include statements regarding the Company's exploration plans and exploration results with respect to the Manfo Property and the Obuasi Property, and are subject to forward-looking 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. Accordingly, readers should not place undue reliance on forward-looking statements or information.  See the Company's annual information form, 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. The Company undertakes 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.