Harfang Exploration Inc. (TSX-V:HAR) (“Harfang” or the “Company”) is a mineral exploration company focused on some of the world’s most prolific mineral exploration areas in Eeyou Istchee James Bay, Québec, and northeastern Ontario. The Company benefits from a strong and experienced management team, which oversees a portfolio of highly exciting projects combined with a strong balance sheet.

About Harfang

Harfang’s primary objective is to create maximum value for shareholders by strategically and responsibly advancing our exploration assets in Ontario and Québec, while at the same time ensuring our business priorities are aligned with social and environmental best practices. Harfang boasts a strong portfolio of exploration properties with the dual mandate of exploring for high-grade gold, and critical and strategic minerals “CSM” such as lithium, nickel, copper, cobalt and platinum group elements. Harfang is discovery-focused, but will also create shareholder value with option and joint venture agreements to lower risk, and create value with royalty generation.

What are the factors that make Harfang stand out from other exploration companies?

Harfang’s leadership team is uniquely qualified based on our long-term, successful industry experience in all aspects of exploration including, but not limited to, the discovery of economic ore deposits both in remote areas (Eeyou Istchee James Bay, Québec / northeastern Ontario) and major mining camps (Timmins), experience in exploration for all types of metal deposits, operations in remote areas, strong social license with Indigenous groups and communities in the areas in which we operate, combining modern science with proven exploration methods, and access to capital markets.

Harfang successfully completed a merger with LaSalle Exploration Corp. in April 2022. This merger was fully supported by shareholders including the Québec institutional funds who were shareholders of both companies. The mandate created by the merger was in part to diversify into CSM. Harfang’s objective is to unlock the mineral endowment of its high-grade gold projects through a sustained systematic and technically based exploration effort on its core high-grade gold properties, and to create shareholder value by diversifying into CSM through partnerships.

This article highlights Harfang’s core projects in the exciting Eeyou Istchee James Bay region of Québec and our strong financial position to carry out our business plan.

Lake Menarik and Menarik East

The Lake Menarik property is one of Harfang’s premier gold exploration projects that was recently consolidated by purchasing some key central claims, increasing the project area to 15,627 hectares. This important step cleared the way for the Company to conduct an aggressive and first-ever systematic exploration program including diamond drilling. The project area is located 45 km south of the Radisson locality in the Eeyou Istchee James Bay. The claims, located close to powerlines, are easily accessible by all-terrain and utility task vehicles, boats, and air access. Lake Menarik is noteworthy for high-grade gold occurrences in a variety of rock types including volcanic and sedimentary rocks and associated intrusions. The bedrock geology is typical of the major gold mining camps in Québec and Ontario. Multiple high-grade showings have been documented by previous workers and more recently discovered by Harfang including grab samples up to 1,918 g/t Au, channel samples up to 12.46 g/t Au and 25.5 g/t Ag over 3.60 m. Only 17 shallow drill holes have been completed historically, but these include wide intersections of gold returning a drill intersection of 0.89 g/t Au over 68.25 m in one hole. The Menarik East property, contiguous to the east, targets both high-grade gold and also critical and strategic minerals such as nickel, copper, chromium, cobalt, platinum and palladium.

Geologically it contains a mafic-ultramafic complex within which previous workers have outlined an historic, non-compliant with NI 43-101 mineral resource estimate of 6.34 Mt @ 7.73% Cr₂O₃, 398 ppb Pd, and 105 ppb Pt, and, 1.06 Mt @ 0.38% Ni and 0.15% Cu. Semi-massive to massive sulphides have also been discovered by prospecting and drilling with results including 1.88% Ni, 0.35% Cu over 4.5 metres in drilling, and up to 0.75% Ni, 2.24 g/t Pd, 0.13 g/t Pt, 0.60 g/t Au, 1.62% Cu and 0.15% Co in grab sampling. High-grade gold, silver and significant base metal values have also been returned in grab sampling including up to 57.6 g/t Au, 858 g/t Ag, 2.49% Zn and 2.24% Pb. Harfang intends to conduct additional prospecting and detailed mapping in the coming field season, with a drilling campaign anticipated during winter 2023.

Serpent-Radisson

Another exciting project to watch is the Serpent-Radisson property located 50 kilometres to the south of the Menarik project. The property benefitted from the merger with LaSalle earlier this year, is vast in size being greater than 50,000 hectares, comparable to the entire Val-d’Or mining camp. The Company has discovered more than 50 gold showings since 2017 with up to 340 g/t Au in grab samples, 7.78 g/t Au over 6.15 m in channel samples, and 1.64 g/t Au over 22.40 m and 4.09 g/t Au over 8.00 m in drill holes. The most recently completed field campaign identified new high-grade gold occurrences including 26.3 g/t Au, 14.1 g/t Au, 10.5 g/t Au in outcrops, and a 2.2 km² gold-in-soil geochemical anomaly defined by 65 soil samples with up to 2.27 g/t Au, an exceptionally high result for a soil sample. The majority of the high-grade gold occurrences are distributed along structural corridors exceeding 20 km in strike length.

Given the property size, Harfang recognized that other areas have potential for copper-gold-silver mineralization as well as CSM, and furthermore, the Company recently reported the discovery of anomalous lithium, cesium, and tantalum mineralization from initial prospecting in previously unexplored areas. The Company is currently evaluating technical data from the recently completed field work in anticipation of generating additional drill targets with the overall objective to continually expand the known gold mineralization and make new discoveries throughout the property.

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Share Structure/Fundamentals

Harfang’s post-merger share structure is excellent and is shown below. The company has 63.35 M shares fully diluted including 3.07 M warrants ($1.19-$1.32) and 2.55 M options ($0.54-$0.94). Well known and strongly supportive Québec Institutions hold roughly 21% while other groups own a total of 18%; these include Pan American Silver, Osisko Development, and Crescat. The float, estimated at 43%, represents an excellent opportunity for investors. A tight float will provide a chance to see wider variations in the stock price. As of Q2 ending July 31, 2022, the Company has robust working capital of $9.4 M and no debt.

The stock price is traded at around $0.20 close to its 52-week low of $0.18 and representing an $11.8 M market capitalization. What makes us say the company is strongly undervalued is its 52-week high is at $0.64, and out of the market cap, $9.4 M is accounted for the cash position.

Bottom Line

Harfang Exploration Inc. (TSX-V:HAR) stands out from other exploration companies due to a robust cash position of $9 M and a highly prospective portfolio of assets in Québec and northeastern Ontario, top-tier jurisdictions in Canada. The Company is managed by an experienced team of industry professionals with a proven track record of success.

For more information, visit www.harfangexploration.com or contact Ian Campbell, President and Chief Executive Officer at 1-647-680-3820 or icampbell@harfangexploration.com.

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