Honey Badger Exploration Announces Acquisition of Zinc and Barite Assets in Quebec, Financing and Share Consolidation - Seite 3

In 1988, metallurgical testing, conducted D. Cotnoir⁶ at the Centre de Recherches Minérales in Quebec City, returned grades of 93.5% barite and determined that, without treatment, the barite at Woodbridge met the specifications for the Oil and Gas industry. Furthermore, with with flotation and gravimetric separation, it met specifications for the glass and paint industry⁷.

⁵Bourret, P.E., 1953, Prospect de Barytine Lot 34 - Rang VI Canton de Woodbridge: Quebec Department of Mines, 3 p. (GM 02179)

⁶Cotnoir, D., 1988, Caractérisation d'échantillons de barytine: Report prepared by Centre de Recherches Minérales, Quebec City, Qc, 29p. (GM 49632)

⁷Pronovost, J.-M., 1989, Géologie et actualisation du potentiel économique de l'indice de barytine du Canton de Woodbridge : Report submitted to Florent Bédard, p.11 (GM 49632)

Acquisition Terms

To purchase the three Mineral Properties, Honey Badger will issue 8,000,000 common shares (post consolidation - please see "Share Consolidation" below) of the Company and grant a 2% net sales returns ("NSR") royalty to the property vendor, 9019-5504 Quebec Inc. The entire 2% NSR may be bought back for $1,000,000. The vendor is an arm's length party to the Company. Closing of the acquisition is subject to TSX Venture Exchange ("TSX-V") approval and other customary closing conditions.

Share Consolidation

After careful consideration, the Board has decided to consolidate the Company's shares in order to better position Honey Badger with respect to potential business transactions, including any future equity financings. The Company will proceed with a one (1) new for every five (5) old consolidation (1:5) (the "Conversion Ratio") of its common shares (the "Consolidation"), subject to the approval of the TSX-V. This follows the approval of the Consolidation by the Company's shareholders at its annual and special meeting held on May 12, 2017. There are currently 104,788,849 common shares of the Company outstanding. Post-Consolidation (and prior to issuing shares in connection with the acquisition of the Mineral Properties or the Financing - see "Financing" below) there will be approximately 20,957,770 common shares outstanding.