www.hartegold.com TSX: HRT | FRANKFURT: H4O | OTC: HRTFF G O L D C O R P Corporate Presentation, September, 2018
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 Figures in USD were converted at CAD/USD 0.8000 All tonnages in metric, unless otherwise noted TSX: HRT 2
COMPANY SNAPSHOT CORPORATE STRUCTURE INSTITUTIONAL SUPPORT Headquartered: Analyst Following: Toronto, Ontario, Canada Symbol: TSX: HRT FRANKFURT: H4O OTCBB: HRTFF Major Shareholders 1 : 19.9% Market Cap: 7.2% C$260 million (C$0.45 Aug 30 th ) 2.1% 0.9% Shares Outstanding: 581 million (Basic) Debt Financing For Up To US$70 Million: 643 million (Fully Diluted) US$50 million Head Office US$20 million (Toronto) TSX: HRT 3
PROJECT LOCATION 83,850 HECTARES (>200,000 ACRES) CLAIMED ON A MAJOR GREENSTONE BELT IN AN ESTABLISHED MINING REGION TSX: HRT 4
KEY MILESTONES THE NEXT 12 MONTHS ARE CATALYST RICH FOR HARTE GOLD Resource update: tripled resource Comprehensive debt financing package, up to US$70 M PEA: $425 M pre-tax NPV 5% , 60% pre-tax IRR 1 IBA signed with Pic Mobert First Nation (PMFN) Final permitting: September 2018 Commercial Production: Q4 2018 Resource Update: Q1 2019 Updated mine plan, final technical report: Q1 2019 1) 5% discount rate at gold price US$1,350/oz and CAD:USD 0.8000 TSX: HRT 5
SUGAR ZONE: THE NEXT ONTARIO GOLD MINE HARTE GOLD IS JOINING A VERY SMALL LIST OF GOLD PRODUCERS IN ONTARIO, AN AREA KNOWN FOR PROLIFIC GOLD MINE PRODUCTION Over the last 8 years, only a small fraction of gold projects in Ontario were successfully advanced to commercial production. The Sugar Zone Mine will be the next producing gold mine in the region. 2010 2012 2014 2016 2018 Changes to Sugar Zone Mine Ontario Mining Act in 2013 Rainy River Mine / Taylor Mine / Bell Creek Mine / Timmins West Mine / Young-Davidson Mine / Source: OMA, public company information TSX: HRT 6
HIGH GRADE RESOURCE SUGAR ZONE IS ONE OF THE HIGHGEST GRADE, HIGHEST RETURN DEPOSITS IN DEVELOPMENT SUGAR ZONE RESOURCE ESTIMATE 16.0 Grade Contained 1000 Category Tonnes (g/t) Au (oz) Sugar Zone Project (as at time of PEA, May 2018): Indicated 2,607,000 8.5 714,200 8.5 g/t Indicated Resource, 94 th percentile Measured + Indicated Resource Grade (g/t Au) Inferred 3,590,000 6.6 760,800 42% Project IRR, 75 th percentile 12.0 100 Project IRR (%) 75 th Percentile 25 th Percentile 8.0 10 4.0 1 0.0 0.1 Comparison of Projects Under Development Worldwide TSX: HRT Note: Data set includes worldwide FS, PFS and PEA stage projects 7 Source: SNL, public company information
LEADING GROWTH PROFILE HARTE GOLD PROVIDES SHAREHOLDERS LEADING EXPOSURE TO RESOURCE AND PRODUCTION GROWTH RESOURCE AND PRODUCTION GROWTH OF SELECTED PRODUCERS* Bubble size illustrates ounces delineated for exploration dollars spent** ` 350% Gold production increasing to >100,000 oz/yr by 2021 (PEA) 300% Resource Growth (2016 – 2018) 250% Resources tripled after 2017 drilling (138,000 m at Sugar / Middle Zones) 200% Superior resource and production growth 150% 130,000 m drilling currently underway at Sugar, Middle, Wolf an Fox zones 100% 50% Resource update targeted for early 2019 0% (50%) Only ~10% of the overall land package has been explored! (100%) (50%) 0% 50% 100% 150% 200% 250% Production Growth (2019E – 2021E) * Selected single asset producers and < 200 Koz producers ** Average resource increase divided by exploration budget for that period Source: Analyst estimates, public company information TSX: HRT 8
STRONG OPERATING MARGINS HARTE GOLD IS PROTECTED TO GOLD PRICE VOLATILITY STABLE EQUITY MARGINS AT CURRENT GOLD PRICES Figures in CAD, based on PEA Estimates Low cost operation, simple metallurgy Gold price: 1,600 C$1,600/oz Tabular ore body, steeply dipping – amenable to longhole stoping Operating Margin: C$705/oz 1,200 Widths and modelled grades confirmed through Bulk Sample and Phase I Production AISC: C$895/oz 800 Sustaining Cost: Near surface – ramp access, minimal + C$261/oz distance to mill 400 Operating costs in CAD dollars Operating Cost: C$634/oz Several opportunities under review to lower costs further! 0 Cash Operating Cost TSX: HRT 9
PHASED MINE PLAN INCREASING TO 1,400 TPD PROVIDES EARLY CASH FLOW AND LONGER TERM GROWTH Today Phase 1: 540 tpd Low risk ramp-up to commercial production (2018 - 2019) H2 2018 H2 2019 Phase 2: Existing surface and underground mining infrastructure is sufficient to support 800 tpd 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 10
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 Exploration Potential 100 Resource Growth 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 11
OPPORTUNITIES TO ENHANCE VALUE SIGNFICANT DRILLING COMPLETED IN 2018 TO SUPPORT THE FOLLOWING: PEA incorporated drilling up to Dec. 2017 Improve head grade Increase drill density to improve overall grade Infill drilling to date has returned very positive results +500,000 ounces currently not factored into mine plan Add resources to mine plan Incorporate results from Wolf Zone and Footwall Zone PEA contractor mining costs were conservative Optimize mine plan Significant potential to optimize mine plan TSX: HRT 12
OPPORTUNITIES TO ENHANCE VALUE AREAS TARGETED FOR NEAR MINE DRILLING “LOW HANGING FRUIT” Southeast Northwest TSX: HRT 13
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