TARGA ACQUIRES OPTIONS FOR TWO GOLD-SILVER PROJECTS IN THE PROLIFIC EPITHERMAL GOLD-SILVER REGION OF SANTA CRUZ, ARGENTINA

Executive Summary

• Targa Exploration Corp. entered into option agreements to acquire up to an 80% interest in two early‑stage gold‑silver projects (El Zanjon and Venidero) in Santa Cruz, Argentina.
• The options require completion of feasibility studies supported by ≥2 million AuEq oz resources, drilling commitments of 23,000 m per project, and cash/share payments; additional milestones trigger further cash expenditures up to US$5 M/ CAD$5 M.
• Successful exercise will create an 80‑20 joint venture (or 50‑50 if only the 51% option is exercised) and expand Targa’s portfolio beyond its Opinaca project, providing year‑round exploration exposure in a prolific epithermal district.

Key Details

• Projects Covered
• El Zanjon: 34,521 ha; located 30 km south of AngloGold’s Cerro Vanguardia mine; existing 2% NSR (½ can be repurchased for CAD$1 M).

• Venidero: 10,736 ha; located 60 km south of Newmont’s Cerro Negro mine; existing 0.5% NSR (repurchasable for US$1 M).

• Option Structure – El Zanjon

• Up to 80% interest (subject to existing royalties) upon:
  • Completion of a feasibility study with ≥2 million AuEq oz resource and economically viable mine plan within 12 years of Acceptance Date.
  • Cash & share payments as outlined in the agreement.
  • Drilling of 23,000 m on the project.
• If the 80% option is not exercised, a 51% interest can be earned after drilling 50,000 m and making required payments; failure to exercise the 80% option reduces Targa’s stake to 50% (joint‑venture becomes 50‑50).

• Additional cash expenditures of $5 M triggered if feasibility study not completed by specified anniversaries.

• Option Structure – Venidero

• Mirrors El Zanjon terms: up to 80% interest contingent on a feasibility study, cash/share payments, and 23,000 m drilling.
• Same fallback 51% pathway after 50,000 m of drilling.

• Additional $5 M cash outlay if feasibility not completed by the 10th anniversary.

• Joint‑Venture Arrangements

• Upon exercising the 80% option:
  • El Zanjon – Targa (80%) / Aegis (20%).
  • Venidero – Targa (80%) / Mineral Proximo Argentina S.A. (20%).

• Dilution clause triggers automatic acquisition of any partner’s interest reduced to ≤10% in exchange for a 2% NSR.

• Strategic Rationale

• Adds two high‑potential epithermal gold‑silver projects to Targa’s portfolio, diversifying geographically (southern hemisphere) and providing continuous news flow.
• Projects sit within the Deseado Massif, a world‑renowned district with multiple Tier 1 discoveries.

• Early surface assays show up to 4.45 g/t Au at Venidero; geophysical work indicates structural continuity with nearby producing mines.

• Planned Exploration

• Maiden drill program slated for 2026 on both projects, preceded by IP surveys and geological mapping.
• Targeting replication of structural settings observed at Cerro Vanguardia (El Zanjon) and Cerro Negro (Venidero).

Notable Quotes

“Since turning Targa's focus to making high‑potential gold discoveries we have been looking for additional projects to add to our portfolio alongside the Opinaca gold project,” – Cameron Tymstra, CEO
“We have the right team in place to finance and explore our portfolio and the Optioned Projects complement our flagship Opinaca gold project… Planning is now underway for our first phases of work on the El Zanjon and Venidero projects.” – Cameron Tymstra, CEO