Mr. Rick Breger reports

HARFANG RECEIVES NOTICE FROM LI-FT POWER OF ADVANCEMENT TO SECOND OPTION AT PONTAX, QUEBEC

Harfang Exploration Inc. has received notice from Li-FT Power Ltd. of its decision to proceed with the second option in respect of the Pontax property, located in Eeyou Istchee James Bay, Quebec.

This notice is pursuant to an option agreement signed between Harfang and LI-FT dated July 20, 2022. LI-FT previously exercised the first option and acquired an initial 51-per-cent interest in Pontax by paying Harfang an aggregate of $100,000 over a three-year period and incurring $1.65-million in exploration expenditures over the same three-year period. LI-FT has elected to accept the grant of the second option to acquire an additional 19-per-cent interest, for an aggregate 70-per-cent interest. According to the agreement LI-FT may exercise the second option by:

• Paying Harfang an additional $50,000 in cash and/or common shares, at LI-FT's discretion;
• Incurring an additional $3.35-million in exploration expenditures prior to the third anniversary of the exercise of the first option.

Rick Breger, president and chief executive officer of Harfang, said: "We are pleased that LI-FT has elected to proceed with the second option and will continue to move Pontax forward. To date, Francis and the entire LI-FT team have been great partners and we look forward to continuing the success. At Pontax, LI-FT has done an exceptional job of defining a 25 km by 10 km area of high spodumene grain counts in glacial sediments, highlighting the strong potential of the project."

Agreement terms and conditions

The company has settled the $50,000 payment by receiving 14,044 common shares of LI-FT at a deemed price, in accordance with the agreement, of $3.56 per share. The consideration shares are subject to a statutory hold period in accordance with applicable securities laws.

Pursuant to the terms of the agreement, if LI-FT satisfactorily exercises the second option, Harfang can either convert its remaining 30-per-cent participating interest into a 2.5-per-cent net smelter returns royalty or form a joint venture to further explore Pontax.

About Harfang Exploration Inc.

Harfang Exploration is a mineral exploration company focused on discovering ore deposits in Quebec and Ontario. The company is run by a team of enthusiastic industry professionals with varied experience and a proven record. The company holds a portfolio of prospective projects, maintains a strong financial position and is dedicated to best practices by engaging with all stakeholders and prioritizing environmental responsibility.

We seek Safe Harbor.