Analyst Presentation May 3, 2018 G O L D C O R P
FORWARD LOOKING STATEMENTS This presentation contains forward-looking information under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to completion of any financings; Harte Gold’s development potential and timetable of its operating, development and exploration assets; Harte Gold’s ability t o raise additional funds necessary; the future price of gold; the estimation of mineral reserves and mineral resources; conclusions of economic evaluation; the realization of mineral reserve estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental and permitting risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Harte Gold to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Harte Gold and in its public documents filed on SEDAR from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Harte Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Harte Gold does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Harte Gold’s annual and interim MD&As. All figures in CAD, unless otherwise noted Figures in USD were converted at CAD/USD 0.8000 All tonnages in metric, unless otherwise noted TSX: HRT 2
Summary STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL
MILESTONES FOR 2018 HARTE GOLD HAS DELIVERED ON ALL TARGETS TO-DATE Resource update: tripled resource Comprehensive debt financing package for up to US$70 million PEA: $425 million pre-tax NPV 5% at US$1,350/oz, 60% pre-tax IRR 1 IBA signed with Pic Mobert First Nation (PMFN) Full permitting expected: June 2018 Production starting: July 2018 1) 5% discount rate at gold price US$1,350/oz and CAD:USD 0.8000 TSX: HRT 4
FULLY FUNDED TO PRODUCTION COMPREHENSIVE FINANCING PACKAGE FOR UP TO US$70 MILLION Sprott Facility Up to US$50 million under a senior secured credit facility Appian Subordinated Loan US$20 million loan, subordinated to Sprott facility Benefits Flexible principal and interest schedule supports ramp-up of operations Sufficient liquidity to protect against unforeseen downturn in commodity prices No equity commitment No hedging, no cashflow sweeps and no debt service reserve account No off-take or royalty No commitment to draw full US$70 million TSX: HRT 5
PHASED MINE PLAN INCREASING TO 1,400 TPD PROVIDES EARLY CASH FLOW AND LONGER TERM GROWTH Today Phase 1: Low risk ramp-up to commercial production 540 tpd (2018 - 2019) H2 2018 H2 2019 Phase 2: Existing surface and underground mining infrastructure is sufficient 800 tpd to support increased throughput (2020) H1 2021 Phase 3: Throughput increased by adding second ball mill and leach circuit 1,400 tpd Expansion to the Middle Zone allows for multiple stoping areas (2021+) TSX: HRT 6
SIMPLE MINE DESIGN CONTINUOUS AND TABULAR ORE BODY SUPPORTS SIMPLE MINE DESIGN AND EXTRACTION Lower Zone Ore Face Sugar Zone Stope Design Length: 50 m 8 Meter Width 15 m level interval (floor to floor) Planned dilution: 11.6% Unplanned dilution factored into the model: 26% Steeply dipping ore, 65-70 ° Middle Zone Stope Design Opened Longhole Stope Length: 30 m 20 m level interval (floor to floor) Planned dilution: 12.4% Unplanned dilution factored into the model: 16% Viewing stope along strike. Bulk sample and mining to-date has Clean break, minimal dilution shown significantly less dilution TSX: HRT 7
PRODUCTION PROFILE TO +100,000 Oz/Year SCALABLE MINE PLAN DESIGNED TO MATCH UNDERGROUND DEVELOPMENT Throughput and Grade 600 10.0 Throughput (ktpa) Grade (g/t Au) 450 7.5 300 5.0 150 2.5 0.0 2018 2020 2022 2024 2026 2028 Phase 1 & 2 (800 tpd) Phase 3 (1,400 tpd) Diluted Head Grade Production Forecast 140 Production (koz Au) 120 100 80 60 40 20 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Phase 1 & 2 (800 tpd) Phase 3 (1,400 tpd) TSX: HRT 8
FIRST QUARTILE CASH COST PRODUCER AISC CASH COST OF US$708/OZ OVER LIFE OF MINE AISC Curve Illustrating Sugar Zone Vs. Other Selected High Grade Canadian Underground Mines Eagle River, Wesdome Sugar Zone, Harte Gold* Macassa, Kirkland Lake $3,000 Island Gold, Alamos Hope Bay, TMAC Hemlo, Barrick $2,500 AISC (US$/oz) Seabee, SSR $2,000 $1,500 $1,000 $500 0% 25% 50% 75% 100% Cumulative Production Source: SNL Market Intelligence, 2017 gold production ranked all in sustaining costs * Projected positioning based on LOM all in sustaining costs relative to current producers TSX: HRT 9
OPPORTUNITIES TO ENHANCE PROJECT VALUE SEVERAL OPPORTUNTIIES NOT CAPTURED IN THE PEA $750 mining dilution, lower mineable mining costs resource by ? +500,000 Pre-Tax NPV 5% ($ Millions) $600 ounces ? head grade: 7.0 – 8.0 g/t ? ? $425 $450 ? $344 $300 $150 US$1,250/oz US$1,350/oz Improve Head Upgrade Mine Plan Exploration Sugar Zone Gold Price Gold Price Grade Resources Optimization Upside NPV Potential PEA Pre-Tax NPV 5% Opportunities To Further Enhance Value TSX: HRT 10
ADDING ADDITIONAL RESOURCE TO MINE PLAN 534,000 OUNCES OF MINERAL RESOURCE NOT INCLUDED IN PEA MINE PLAN 0 m 250 m 500 m 750 m 1,000 m TSX: HRT 11
MINE DESIGN – GRADE DISTRIBUTION MINE DESIGN ILLUSTRATED BY GRADE Sugar Zone South Ramp Sugar Zone North Ramp Middle Zone Ramp Infill Drilling Underway TSX: HRT 12
Resource and Mine Plan STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL
RESOURCE ESTIMATE (FEBRUARY 2018) 1.5 Moz Au INDICATED AND INFERRED RESOURCE Mineral Resource Estimate at 3.0 g/t Au Cut-Off Resource Modelling Category Grade Contained Zone Tonnes (g/t Au) Au (ounces) Includes drilling up to December 6, 2017 Sugar Zone 2,148,000 8.6 594,700 Indicated Middle Zone 460,000 8.1 119,500 1.8m minimum width Total Ind. 2,607,000 8.5 714,200 Sugar Zone 1,802,000 6.4 369,300 Indicator Modified Ordinary Kriging Inferred Middle Zone 1,788,000 6.8 391,500 Total Inf. 3,590,000 6.6 760,800 Block size 2x4x1.5m Mineral Resource Classification Sugar Zone Cut-Off Grade Middle Zone 3 g/t Au cut-off Variography / Grade Capping Grade capping ► Lower Zone: 75 g/t Au ► Upper Zone: 20 g/t Au ► Middle Zone: 47 g/t Au Variograms show continuity out to 75m Legend: Yellow = Indicated Mineral Resources, TSX: HRT Grey = Inferred Mineral Resources. Scale in metres 14
PEA MINEABLE RESOURCE ESTIMATE 934,000 OUNCES OF POTENTIALLY MINEABLE RESOURCE FACTORED INTO PEA MINE PLAN Potentially Mineable Mineralization for Mine Planning Potentially mineable resource: 941,000 Diluted Category Contained ounces at a diluted grade of 6.5 g/t Zone Tonnes Grade Au (ounces) (g/t Au) Sugar Zone 2,057,000 7.2 474,000 Varying cut-off grades: Indicated Middle Zone 451,000 6.8 98,000 Total Ind. 2,508,000 7.1 571,000 ► 3.5 g/t Au for stopes Sugar Zone 731,000 6.0 141,000 Inferred Middle Zone 1,260,000 5.6 228,000 Total Inf. 1,991,000 5.8 370,000 ► 1.4 g/t Au for low grade development Resource Classification and Mine Plan Illustration 534,000 ounces of Mineral Resources not Sugar Zone Middle Zone included in the PEA mine plan Areas excluded: ► Inferred Resources below the Sugar Zone North Ramp ► Middle Zone ramp at ~750 metres Infill drilling is underway in these areas, with an expectation that grade will improve Infill Drilling Underway TSX: HRT 15
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