Surge Exploration Closes Transaction to Acquire a 60% Interest in Ontario Cobalt Properties from LiCo Energy Metals

Suite 1220 ‐ 789 W Pender Street

Vancouver, BC V6C 1H2

Telephone: (778) 945‐2656

NEWS RELEASE

Surge Exploration Closes Transaction to Acquire a 60% Interest

in Ontario Cobalt Properties from LiCo Energy Metals

Vancouver, BC – June 11, 2018 – Surge Exploration Inc. (the "Company" or “Surge”) (TSXV: SUR,

OTCQB:SURJF) announces that further to its news release dated May 8, 2018 and further to the

conditional acceptance from the TSX Venture Exchange dated May 23, 2018 accepting the terms of

an option agreement with LiCo Energy Metals Inc. (“LiCo”) dated May 7, 2018 (the Agreement”),

whereby the Company may earn an undivided 60% interest in the Glencore Buck Property and the

Teledyne Cobalt Property, located in Cobalt, Ontario, the transaction has now closed. The

transaction is subject to final TSX Venture Exchange (Exchange) approval.

Terms of the Option:

Purchase Price – The Company will pay LiCo the sum of $240,000 and issue 1,000,000 fully paid and

non‐assessable common shares in the capital of Surge upon Exchange approval. In addition, Surge

shall incur an aggregate of $1,536,000 in Exploration Expenditures on the Property on or before two

years from the date of the Agreement.

Joint Venture – Upon the Company having exercised the Option, Surge will have earned an

undivided 60% interest in the Property, and the parties will enter into a Commercially Reasonable

and Definitive Joint Venture Agreement.

A cash finder’s fee totaling $100,000 is payable on behalf of the transaction. $42,000 will be paid on

closing and the balance is payable in stages as the Company incurs exploration expenditures on the

Cobalt properties.

All shares issued in connection with the transaction will be subject to a four month and a day hold

period expiring on October 12, 2018 in accordance with applicable securities laws.

In connection with the Company has filed two 43‐101 technical reports on the Cobalt Properties as

set out below. The 43‐101 reports are available on SEDAR at www.SEDAR.com as well as the

Company’s website at www.surgeexploration.com:

Glencore Bucke Property

NI 43-101 Technical Report on the Glencore Bucke Property – Larder Lake Mining Division, Northeastern

Ontario” dated May 8, 2018 for its Glencore Bucke Project located in Cobalt, Ontario.

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Teledyne Cobalt Property

NI 43-101 Technical Report on the Teledyne Cobalt Project – Larder Lake Mining Division, Northeastern

Ontario” dated May 8, 2018 for its Teledyne Cobalt Project, located in Cobalt Ontario.

About the Ontario Cobalt Properties:

Glencore Bucke Cobalt Project (Cobalt, Ontario):

LiCo Energy Metals Inc. purchased a 100% interest from Glencore Canada Corporation (subsidiary

of Glencore plc) in the Glencore Bucke Property, situated in Bucke Township, 6 km east‐northeast

of Cobalt, Ontario, subject to a back‐in provision, production royalty and off‐take agreement.

Strategically, the Glencore Bucke Property consists of 16.2 hectares and sits along the west

boundary of LiCo’s Teledyne Cobalt Project. The Property covers the southern extension of the #3

vein that was historically mined on the neighbouring Cobalt Contact Property located to the north

of the Glencore Bucke Property. Diamond drilling in 1981 on the Glencore Bucke Property

delineated two zones of mineralization measuring 150 m and 70 m in length. During the fall of

2017, LiCo completed 21 diamond drill holes totaling 1,900 m. This drill program, along with the

Phase 1 diamond drilling program completed on the Teledyne Cobalt Property, satisfied LiCo’s flow‐

through financing obligations. The exploration program at the Glencore Bucke Property also

satisfied our contractual obligations to Glencore plc. whereby LiCo was to incur $250,000 of

exploration expenditures on the Property within six months of the approval date (see News Release

dated September 5th, 2017).

Teledyne Cobalt Project (Cobalt, Ontario):

LiCo Energy Metals Inc. has recently exercised its option to earn 100% ownership, subject to a

royalty, in the Teledyne Project located near Cobalt. Ontario. The Property adjoins the south and

west boundaries of claims that hosted the Agaunico Mine. From 1905 through to 1961, the

Agaunico Mine produced a total of 4,350,000 lbs. of cobalt and 980,000 oz. of silver. A significant

portion of the cobalt that was produced at the Agaunico Mine located along structures that extended

southward onto the Teledyne property. LiCo recently completed a total of 11 diamond drill holes

totaling 2,200 m in the fall of 2017. The drilling has confirmed cobalt mineralization present on the

Property which is consistent with historical grades as reported historically by Cunningham‐Dunlop

(1979) and Bressee (1981), disclosed in earlier news releases. These reports are available in the

public domain through MNDM’s AFRI database.

Qualified Person

The technical content of this news release and the 43‐101 technical reports have been reviewed and

approved by Joerg Kleinboeck, P.Geo., an independent consulting geologist and a qualified person as

defined in NI 43‐101.

About Surge Exploration Inc. https://surgeexploration.com/

The Company is a Canadian‐based mineral exploration company which has been active in the

resource sector in British Columbia and elsewhere in Canada. The Company has an exploration

office in Santiago, Chile to review mineral exploration opportunities in Chile and elsewhere in South

America.

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Hedge Hog Property, British Columbia

The Company has an option to earn an undivided 60% interest seven mineral tenure covering 2,418

hectares (5,972 acres) located approximately 80 km northeast of the town of Quesnel, BC and 20

km north of the historic gold mining towns of Wells and Barkerville.

On Behalf of the Board of

Directors

“Gordon Jung”

Gordon Jung

CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture

Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward‐looking statements which include, but are not limited to, comments that involve future

events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments

that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property

titles, availability of funds, and others are forward‐looking. Forward‐looking statements are not guarantees of future

performance and actual results may vary materially from those statements. General business conditions are factors that could

cause actual results to vary materially from forward‐looking statements.