www.hartegold.com TSX: HRT FRANKFURT: H4O OTC: HRTFF Corporate Presentation May 2019 1
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 to 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 All tonnages in metric, unless otherwise noted 2
COMPANY SNAPSHOT Corporate Structure Institutional Support Headquartered Analyst Following Toronto, Ontario, Canada Cantor Fitzgerald Buy Haywood Capital Mkts Buy Symbol TSX: HRT Major Shareholders* FRANKFURT: H4O Appian Natural Res. 19.9% OTCBB: HRTFF Orion Mine Finance 7.2% Management 6.1% Market Cap C$150 million (C$0.27/share) Senior Debt Financing: US$72.5 M BNP Paribas Bank Shares Outstanding Head Office Term Loan US$52.5 M (Toronto) 599 million (Basic) Revolving Facility US$20.0 M 674 million (Fully Diluted) Grade Contained M tonnes (g/t) Au (oz) Indicated 4.2 8.12 1,108,000 * As at Q1 2019, source: Bloomberg Inferred 2.9 5.88 558,000 3
PROJECT LOCATION Located on a Major Greenstone Belt in an Established Mining Region 4
INVESTMENT HIGHLIGHTS Newest Producer, Significant Near Term Upside District Scale The Newest, High Grade Exploration Potential Canadian Gold Producer • Commercial production declared in January 2019 • Resource more than tripled since 2016 • Feasibility Study: March 2019 • 1.1 m oz Indicated – 55% increase from 2018 • 65 Koz / year at 800 tpd • 83,850 hectare land package, 30 Km strike potential • Low cost expansion to +95 Koz/yr • Many property wide targets identified – over 90% of the property is unexplored MIDDL E ZONE WOL F ZONE 5
2018 ACHIEVEMENTS – SUGAR ZONE MINE Asset is de-risked from a development perspective Declared Commercial Production First Gold Pour IBA signed with Pic Mobert FN Footwall Zone discovery at the Sugar, Middle and Middle Zone Wolf zones converging at depth Production Permits Received US$70 million 2018 – A big year for Harte Gold 2018 – A big year for Harte Gold comprehensive debt financing announced Resource Update: Tripled Resource Q1 Q2 Q3 Q4 6 6
NEAR MINE RESOURCE POTENTIAL Feasibility mine plan makes up a small portion of overall resource mineralization 7
Q1 2019 RESULTS Achieving Feasibility Plan for April Mined Ore Tonnage – Achieved Plan In April Diluted Mined Grade – Achieved or Exceeded Plan 8.00 18,000 ROM Grade (Tonnes) ROM Ore Tonnes 13,500 6.00 9,000 4.00 4,500 2.00 0 January February March April January February March April Actual Target Actual Target Processed Ore – Exceeding Plan, Without Stockpiles Recoveries – Achieving Plan 100% 18,000 Processed Ore (Tonnes) 90% Mill Recovery 13,500 80% 9,000 70% 4,500 60% 50% 0 January February March April January February March April Actual Target Surface Stockpile Mined Ore Target 8
OUTLOOK FOR 2019 AND BEYOND Stabilized throughput, higher grade = higher production, lower costs Feasibility Study Plan FY 2019 FY 2020 Production Throughput (tpd) 581 800 Ore Tonnage (tonnes) 209,200 303,614 Diluted Head Grade (g/t) 6.18 6.98 Mill Recovery 95.5% 95.5% Gold Production (oz) 39,200 65,078 Operating Cost (US$/oz) Operating Cash Cost 800 - 825 615 AISC Cash Cost 1,300 - 1,350 913 9
FEASIBILITY STUDY: VALUE OPPORTUNITY Expansion to 1,200 tpd throughput by 2022 120 800 tpd "Base Case" Expansion to 1,200 tpd Expansion Case: 95,000 oz/yr 100 Feasibility Study Production (koz Au) 80 “Base Case” Annual: 65,000 oz/yr 60 40 20 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 10
ENHANCED BALANCE SHEET Sustainable, long-term capital structure, financing risk removed US$72.5 Million Senior Debt Financing Package Low interest rate, LIBOR + 2.875% to 3.875% Removes refinancing risk / overhang Partnership with a leading global financial institution , BNP Paribas No repayment until March 2020 Flexible repayment schedule, Term Loan and Revolving Credit Facility 11
NEAR MINE EXPLORATION Objectives for 2019 OBJECTIVES: 1 Focused drilling – target highest value areas! 2 Downhole IP – proven to be a valuable tool for generating targets 3 Convergence at depth – continue to prove our understanding of the deposit 12 12
PROPERTY-WIDE EXPLORATION Objectives for 2019 OBJECTIVES: 1 Extend mineralization on strike and down dip of existing deposits 2 Discover mineralized trends adjacent to Sugar and Middle 3 Second pass exploration of defined target areas 13 13
KEY TAKEAWAYS Commercial production Feasibility Production: 61,000 ounces achieved annually over LOM Operations are stabilized, simple Feasibility Study: several value mine design , excellent continuity opportunities identified Resource update completed, Property wide exploration underway – only 10% of the land package has Feasibility Study underway to declare reserves been explored! 14 14
APPENDIX ONTARIO’S NEWEST HIGH GRADE GOLD PRODUCER
EXPERIENCED MANAGEMENT TEAM Stephen G. Roman Roger J. Emdin Rein Lehari George Flach Chairman, President & CEO; BA Vice President, Operations; Chief Financial Officer; Independent Consultant; P.Eng. CPA, CA B.Sc. P.Geo. 35+ years 30+ years 30+ years 30+ years Discovered Gold Eagle, sold Senior management and Previously Partner, Discovered / developed to Goldcorp ($1.5B) operating experience PricewaterhouseCoopers gold projects in West Africa Verena Minerals / Belo Sun – Experience with large Business valuation, M&A, 20Moz Gold Fields Tarkwa, Volta Grande, Black Fox, Gabriel Resources Limited operating mines including corporate finance 4Moz Bogosu and 2Moz Glencore’s Nickel Rim Benso mines in Ghana PDAC “Bill Dennis Award” South Mine winner, Prospector of the 2Moz Goulagou mine in Chairman CEMI – Center Year, 2016 Burkino Faso for Excellence in Mining Innovation 16
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