Mr. Cameron Tymstra reports

TARGA ANNOUNCES CLOSE OF FIRST TRANCHE OF ITS NON-BROKERED PRIVATE PLACEMENT

Targa Exploration Corp. has closed the first tranche of its previously announced non-brokered private placement for gross proceeds of $1,330,300.

In connection with the completion of the first tranche of the offering, the company issued 1,641,750 hard-dollar units of the company at a price of 40 cents per hard-dollar unit and 1,403,333 Quebec super-flow-through units of the company at a price of 48 cents per super-flow-through unit for aggregate gross proceeds of $1,330,300. Each offered unit consists of one common share of the company and one-half of a common share purchase warrant. Each warrant will entitle the holder thereof to acquire one additional common share of the company at a price of 70 cents until the date which is 24 months following the date hereof. Each super-flow-through unit was issued as a flow-through share as defined in Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Quebec Tax Act with respect to purchasers in Quebec.

The securities issued pursuant to the initial tranche of the offering will be restricted from trading until Dec. 16, 2023. A total of $32,086 cash was paid and a total of 63,375 finder warrants were issued for finders' fees. The finder warrants will expire on Aug. 15, 2025, and have an exercise price of 70 cents.

Closing of the final tranche of the offering is anticipated to occur on or about Aug. 31, 2023, and is subject to customary closing conditions. The company expects to receive aggregate gross proceeds of up to $3.9-million from the private placement. In connection with the offering, the company may pay finders' fees to eligible finders. All securities issued in connection with the offering will be subject to a statutory hold period of four months and a day. Additional details regarding the offering can be found in the company's news release dated June 29, 2023.

The net proceeds of the offering will be used for exploration of the company's lithium projects and for working capital purposes. The gross proceeds from the issuance of the super-flow-through units will be used to incur eligible Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures. The company has agreed to renounce such qualifying expenditures with an effective date of no later than Dec. 31, 2023, in an aggregate amount of not less than the total amount of the gross proceeds raised from the issuance of super-flow-through units.

About Targa Exploration Corp.

Targa Exploration is a Canadian lithium exploration company engaged in the acquisition, exploration and development of lithium mineral properties with headquarters in Vancouver, B.C. Targa's lithium project portfolio consists of 10 projects in the provinces of Quebec, Ontario, Manitoba and Saskatchewan and covers over 275,000 hectares of prospective ground, most of which has never been explored previously for lithium.

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