Mr. Jon Ward reports

TARGA ENTERS INTO AGREEMENT TO ACQUIRE PAN CANADIAN LITHIUM

Targa Exploration Corp. has agreed to acquire 100 per cent of the issued and outstanding shares of Pan Canadian Lithium Corp. pursuant to a share exchange agreement dated May 10, 2023.

Pan Canadian Lithium holds the mining claims to highly prospective lithium projects located in Saskatchewan and Ontario, Canada. The claims cover a total of 49,248 hectares and were identified using regional lake sediment samples obtained from provincial geochemical data that were highly anomalous with lithium pathfinder elements. Targa believes that the projects display significant potential for lithium-bearing pegmatites.

Highlights:

• Targa is acquiring a portfolio of lithium exploration projects in world-class mining jurisdictions totalling 49,248 hectares (ha).
• Pan Canadian Lithium holds two projects in Saskatchewan never before explored for lithium, including the district-scale White Metal project, with local known lithium occurrences.
• Pan Canadian Lithium also holds two projects in Ontario with year-round road access and local rail line, located in the same geological belt as other known lithium deposits.

Jon Ward, chief executive officer and president of Targa, commented: "We are very excited to enter into this agreement with Pan Canadian Lithium to further expand the company's Canadian portfolio of lithium projects. Targa will now have prospective lithium projects in Quebec, Manitoba, Saskatchewan and Ontario. Located in mining-friendly jurisdictions, these underexplored claims have indications to be highly prospective for lithium. As we continue to develop our exploration plans for 2023, we look forward to investigating the Pan Canadian Lithium projects. I am also delighted to welcome Cameron Tymstra to the Targa executive team as the incoming CEO. Cameron is an accomplished and highly respected mining professional with a depth of experience and possesses the operational, technical, financial and management skills to lead the development of Targa's highly prospective lithium assets."

The projects

Pan Canadian Lithium owns a 100-per-cent interest in four exploration projects with two located in each of the provinces of Saskatchewan and Ontario.

White Metal project

The White Metal project, located 40 kilometres (km) north of Stony Rapids in Northern Saskatchewan consists of eight contiguous mineral concessions totalling 38,765 ha. The claims cover the highest concentration in Saskatchewan of regional lake sediment samples from the Geological Survey of Canada dataset that are anomalous for cesium, rubidium and tantalum, elements considered pathfinders for lithium mineralization. Several noted pegmatites from the Saskatchewan Mineral Deposit Index are also located on or adjacent to the White Metal project with anomalous lithium concentrations up to 271 parts per million (ppm).

With historical exploration activities in the region primarily focused on uranium, White Metal represents a district-scale opportunity to explore for lithium mineralization in a mining-friendly jurisdiction.

Prince Albert project

The Prince Albert project, located in northeastern Saskatchewan, covers 2,895 ha of prospective geology, including a band of metasediments and metavolcanic rocks in close proximity to a granite intrusion. Boulders with lithium contents over 3,400 ppm have been found several kilometres to the southwest by other explorers, potentially in the downice glacial direction from Prince Albert. The Prince Albert project is adjacent to other active lithium exploration projects held by Acme Lithium and ALX Resources.

Slim Jim and Sky Lake projects

The Slim Jim and Sky Lake projects are located in the Quetico subprovince in Northwestern Ontario. The Quetico subprovince is host to several known lithium pegmatite deposits and occurrences, most notably the Georgia Lake and Jackpot deposits and the Wisa Lake and Hearst/Lowther occurrences.

Both the Slim Jim and Sky Lake projects have good local infrastructure with year-round road access from the nearby provincial highway and are near a rail line. The projects are approximately 115 km northeast of Marathon, Ont., and 60 km east of the community of Longlac.

The Slim Jim project covers 4,746 ha of mostly metasediments along the boundary of a muscovite-bearing granite intrusive with noted pegmatite. Local lake sediment samples across the Slim Jim project have elevated values of lithium, cesium, rubidium and tantalum. The majority of the Slim Jim project area has never been mapped in detail and lies within the four-kilometre Goldilocks zone for LCT-type pegmatite emplacement around the parental granite. Several faults also run through the Slim Jim project and could present favourable pathways for pegmatite intrusion.

The Sky Lake project is located about 16 km east of Slim Jim and is 2,842 ha in size. The Sky Lake project is centred on a cluster of lake sediment samples with anomalous lithium, cesium, rubidium and tantalum and has a fault structure running north-south through the project. A muscovite-bearing peraluminous granite unit is exposed just south of the Sky Lake claim boundary and beryliferous and tourmaline/garnet-bearing pegmatites have been observed approximately six km north of the Sky Lake project. Sky Lake is also covered with a network of logging roads, making for easy access and low-cost future exploration work.

Acquisition agreement

Pursuant to the acquisition agreement, the company will issue 5,766,666 common shares in the capital of the company to the shareholders of Pan Canadian Lithium. Upon completion of the acquisition and other transactions previously announced by the company, the vendors will own approximately 9.9 per cent of the issued and outstanding shares in the capital of the company, on a non-diluted basis.

The consideration shares will be subject to a four-month hold period pursuant to applicable Canadian securities laws. The acquisition is subject to standard closing conditions for transaction of this nature. Subject to the satisfaction of the closing conditions, the acquisition is expected to close on or about May 19, 2023.

All parties to the acquisition are arm's length to the company. No finder's fee is payable in respect of the acquisition.

At closing of the acquisition, Targa will also acquire Pan Canadian's positive cash position of approximately $240,000.

Incoming chief executive officer

Upon closing of the acquisition, Mr. Tymstra, currently the chief executive officer of Pan Canadian Lithium, will join the Targa management team as chief executive officer. Mr. Tymstra is currently president and CEO of Tarachi Gold Corp., a Mexico-focused gold exploration company, and has worked in mining and mineral exploration throughout the Americas for the last 15 years. He holds a degree in mineral engineering from the University of Toronto and a master's degree in mining management from the South Dakota School of Mines.

Mr. Ward will continue working on the Targa management team following closing of the acquisition in his new role as vice-president of corporate development and will remain a director on Targa's board.

Mr. Tymstra, CEO of Pan Canadian Lithium, commented: "On behalf of Pan Canadian Lithium shareholders, we are very pleased to be combining our portfolio of lithium exploration assets with Targa's exciting projects in Quebec and Manitoba. I am eager to be joining the executive team at Targa and looking forward to working with Mr. Ward and the rest of the team as we explore our newly combined assets this year."

About Targa Exploration Corp.

Targa Exploration is a Canadian exploration company engaged in the acquisition, exploration and development of mineral properties with headquarters in Vancouver, B.C.

Technical information

The scientific and technical content of this news release has been reviewed and approved by Lorne Warner, PGeo, who is a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

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