Analyst Note By Éric Lemieux, MSc, P.Geo Mining & Exploration Analytics [email protected] March 27, 2015 Midland Exploration Inc. (MD-V) Midland Expands the Éléonore Project Event: Midland expands its position in the Éléonore sector; setting stage for an active summer 2015 exploration program. Impact: Slightly Positive. Midland has commenced an exploration program and increased its 100% owned James Bay Éléonore Gold project. Strategic land positioning highlights Midland’s great capacity to generate projects. Analysis • On March 26, 2015, Midland disclosed that it had commenced an exploration program on its wholly owned Éléonore project Recall Midland has assembled strategic positions in the James Bay area, the Abitibi, the Appalachians, the Grenville as well as in Northern Québec (Labrador Trough) based on solid geological analysis and astute claims staking. Midland has a portfolio of 20 projects (~5,500 claims) in the Province of Québec targeting gold, base metals (Cu, Zn), rare-earths (HREE's), and platinum group elements (PGE's). Midland applies superbly the prospector generator/partnership model and has a $4.M exploration budget in 2015 with ~10,000m of diamond drilling planned. www.peartreesecurities.com This document has been prepared for general information purposes only and should not be considered a solicitation to purchase or sell securities. Any opinions or analysis herein reflect the views of the Analyst as at the date appearing above, and are subject to change without notice. The information contained in this document is derived from sources we deem to be reliable, but cannot be guaranteed. PearTree Securities Inc. (“PT Securities”) and/or its affiliates and/or any of their respective officers, directors, and representatives (collectively “PearTree”), shall not be held liable for any loss or damage resulting from the use of the information or the implementation of the recommendations contained herein. PT Securities is registered as an Exempt Market Dealer. PT Securities is a subsidiary of PearTree Financial Services Ltd., an unregistered firm that consults to charities on tax and other matters related to a flow through share donation program. Peartree may, in exchange for remuneration, participate in the financing of companies mentioned in this document. Peartree and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell these stocks on the market or otherwise. • James Bay Area - Trying to find another Roberto. The Éléonore Gold project is located approximately 30km southwest from Goldcorp Inc.’s Roberto zone of the Éléonore deposit and encompasses the Midland Éléonore Centre and West properties. It is now composed of 327 claims covering 172 km2 in a geological environment similar to the World-class Éléonore deposit (see Exhibit 3 in the February 26, 2015 Analyst Note). Midland has commenced an exploration program that includes ground geophysics (40km IP and magnetic surveys) and has added 61 new map designated claims (covering 30,7km2) to its 100% owned James Bay Éléonore Gold project (see Exhibit 1 and 2). Prospecting work has been conducted by Midland from 2009 to 2014 on the Éléonore Centre property and has identified several gold showings associated with quartz-tourmaline pyrite bearing veinlets occurring in sheared metasediments, felsic and mafic metavolcanics which returned up to 18.8 g/t Au from selected grab sampling. • We believe a N-S gold-bearing disseminated to semi-massive mineralized system is being defined. Initial results suggest that a potential N-S auriferous hydrothermal system is present on the Éléonore Centre property with quartz-tourmaline veins over a plurimetric area. Indeed a 2010 airborne geophysical survey (AeroTEM II) defined a series of parallel NE conductors associated with sulfide bearing Éléonore-type sediments, a 2011 soil geochemistry survey permitted to delineate a series of As-Cu-Sb anomalies clustered along a N-S-trending axis, a 2013 ground induced polarisation (“IP”) survey identified many N-S trending IP anomalies, a 2014 airborne high definition magnetic survey also identified the presence of an important N-S oriented structure associated with several gold showings and soil anomalies. We expect Midland to conduct considerable trenching in summer 2015. • New strategic land position. The recent addition of 61 new map designated claims in the Causabiscau sector is to the NW of the Anataca-Wabamisk project of Osisko Royalties (OR-T) (Virginia Mines) and highlights Midland’s capacity to generate projects. We highlight that Virginia Mines Inc. (previously VGQ-T and a Top Pick) has been active in this area with its Anatacau-Wabamisk project where high gold values in metric to plurimetric thicknesses have been delineated by mechanical stripping, channel sampling, geological mapping and prospecting and diamond drilling (Mustang Vein, and the Interceptor, Challenger, Trailblazer and Powerline veins) (see Febraury 18, 2015 and October 31, 2014 Analyst Notes). We believe the area could attract potential quality partners. www.peartreesecurities.com ~ 30 ~ www.peartreesecurities.com
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