G O L D C O R P High Grade Gold Mine Development and District Scale Exploration Corporate Presentation September 2017 TSX: HRT / Frankfurt: H4O OTC: HRTFF
FORWARD LOOKING STATEMENTS This presentation has been prepared by the Company and includes information from sources believed by management to be reliable. No representation or warranty, expressed or implied, is made as to the accuracy of the information set forth herein. The information contained herein is as of the date hereof and is subject to change, completion or amendment without notice. This presentation contains forward looking statements, estimates, and projections with respect to the anticipated future performance of the company that may be deemed to be “forward -looking statements. ” These statements, estimates, and projections reflect various assumptions made by the company concerning anticipated results, which may or may not prove to be correct. All statements contained in the presentation that address operating performance, future direction, management and control of the company, events or developments that are expected to occur in the future (including statements related to earnings, expectations, sales of assets, capital expenditures, or statements expressing general optimism about future operating results) are forward looking statements. Actual results could differ materially from those reflected in the forward looking statements contained herein as a result of a variety of factors, many of which are beyond the Company’s control. 2 TSX: HRT
COMPANY SNAPSHOT CORPORATE STRUCTURE INSTITUTIONAL SUPPORT Headquartered: Analyst Following: Toronto, Ontario, Canada Symbol: HRT:TSX H4O:FRANKFURT OTC: HRTFF Major Shareholder: (19%) Market Cap: C$308 million (C$0.62 Sep 20 th ) 52-Week Share Price: Shares Outstanding: 497 million (Basic) $0.90 4.5 Share Price (C$) 553 million (Fully Diluted) Head Office Volume (Millions) (Toronto) $0.60 3.0 Cash Position: C$35 million $0.30 1.5 $0.00 0.0 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 3 TSX: HRT
EXPERIENCED MANAGEMENT TEAM Stephen G. Roman Rein Lehari George Flach Roger J. Emdin Chairman, President & CEO; Chief Financial Officer; Vice President Exploration; B Vice President, Projects; BA CPA, CA Sc. P.Geo. P.Eng. 35+ years 30+ years 30+ years 30+ years Discovered Gold Eagle, Previously Partner, Discovered / developed Senior management and sold to Goldcorp ($1.5B) PricewaterhouseCoopers gold projects in West operating experience Africa Verena Minerals / Belo Sun Business valuation, M&A, Experience with large – Volta Grande, Black Fox, corporate finance 20Moz Gold Fields operating mines including Gabriel Resources Limited Tarkwa, 4Moz Bogosu Glencore’s Nickel Rim and 2Moz Benso mines in Mine PDAC “Bill Dennis Award” Ghana winner, Prospector of the Chairman CEMI – Center Year, 2016 2Moz Goulagou mine in for Excellence in Mining Burkino Faso Innovation 4 TSX: HRT
EXPERIENCED MANAGEMENT TEAM (Cont’d) Tim Campbell Shawn Howarth Steve Ball Bob Kusins Vice President & Secretary; Vice President, Corporate General Manager, Sugar Resource Geologist; BA Hons. Development; MBA, B.Eng. Zone Mine; P.Eng. P.Geo. 20+ years 15+ years 30+ years 35+ years Government relations, Experience in corporate Technical, operations, Experience as an community consultation finance, corporate human resources, underground mine strategy and valuations corporate affairs and geologist, geological First Nations, permitting project management database management, Formerly an investment geological modelling and Corporate finance, go- banker with Standard Formerly Mine Manager resource estimation public transactions Chartered Bank at Vale’s narrow vein Coleman Mine and Previously Chief Regulatory compliance Voisey’s Bay underground geologist at Barrick’s Hemlo Mine 5 TSX: HRT
DISTRICT SCALE POTENTIAL ON A SIGNIFICANT GREENSTONE BELT, HISTORICALLY PROLIFIC GOLD MINING REGION SUGAR ZONE SURROUNDED BY PRODUCING ASSETS GEOGRAPHIC LOCATION Approx. Distance Company Asset Status to Harte (Km) Barrick Hemlo Operating 60 Richmont* Island Gold Operating 80 Wesdome Eagle River Operating 80 Wesdome Mishi Operating 80 Goldcorp Borden Gold Exploration 100 Source: Cantor Fitzgerald * Alamos Gold announced a proposed acquisition of Richmont Mines (Sep 11 th , 2017) 6 TSX: HRT
COMPANY STRATEGY “THREE LEGS ON THE STOOL” 1 2 3 Mine Development and Immediate Resource Regional Exploration on Commercial Production Expansion Through District Scale Land Near Mine Exploration Package Strike Length: 3 Km Property Size: 80,000 Ha Target Production: Q2 2018 Resource Target: ~3 million oz Exploration Budget: $15 million Phase 1 Target Production*: 540 tpd Update NI 43-101: Q1 2018 Additional Near-mine Targets Construction Begins: July 2017 MIDDLE ZONE WOLF ZONE MINING PORTAL SITE OVERVIEW NEAR-MINE TARGETS * Preliminary management mine plan estimates 7 TSX: HRT
Grade (g/t) 10.00 12.00 VALUE PROPOSITION 0.00 2.00 4.00 6.00 8.00 TOP QUARTILE GRADE AMONG DEVELOPMENT-STAGE PROJECTS Source: Analyst estimates, public company information Dalradian Pure Gold Lion One Harte Gold Continental Lundin Gold QUARTILE 1 IDM Galway K92 Osisko (Windfall) Maritime Golden Reign Gowest Gold Rubicon Sabina Satori Auryn Rockhaven INV Metals Condor Gold Eastmain Calibre Mining Algold Goldquest QUARTILE 2 Probe Barkerville Marathon Treasury NovaGold Sarama Orca Gold Red Pine Nighthawk 8 Amarilo California Midas Atlantic Falco First Mining Columbus West African Granada Gold QUARTILE 3 Aurvista Meadow Bay Skeena Resources Gabriel Belo Sun Timberline Lupaka Pinecrest Sandspring Eurosun Ascot Lydian Freegold Exeter Orezone Victoria ITH NewCastle QUARTILE 4 Gold Standard Lumina Almaden Otis TriMetals Atacama TSX: HRT Chesapeake West Kirkland Teras Pilot Corvus Euromax
VALUE PROPOSITION COMPARISON TO RICHMONT MINES Harte Gold (Sugar Zone - Analyst Targets) (Island Gold) On September 11 th , Alamos Gold 0.6 (Sugar Zone) Resource (M oz) 1.8 (AGI) announced the acquisition of Resource Target: 2 to 3 Richmont Mines (RCI) for $933 million Comparison Grade (g/t) +9.0 9.4 based on previous close 540 (Phase 1) 900 Throughput (tpd) Harte Gold’s Sugar Zone project Production compares well to RCI’s Island Gold 50+ (2018) 90 Production (000 oz) Comparison Mine $700 $725 - $765 AISC (US$/oz) Sugar Zone has the added benefit of significant exploration potential 80,000 7,900 Land Package (Ha) Exploration Potential Compelling value opportunity for Near-mine: Middle & Wolf Exploration Targets Below 1,000 m new investors seeking the next near- Property-wide: 5+ term producer within the region $308 $933 (Acquisition) Market Cap (M C$) Valuation $566 $717 Analyst NAV (M C$) Comparison 0.6x 1.3x Implied P / NAV 9 TSX: HRT
SUMMARY OF ACHIEVEMENTS IN 2016 / 2017 THE LAST 12 MONTHS HAVE BEEN HIGHLY PRODUCTIVE $15 million, +85,000 meter drill program with 8 rigs currently active 70,000 tonne bulk sample program completed with Barrick’s Hemlo Mine Resource Development Property-wide airborne geophysical program completed Expanded land position by over 100%, covering 80,000 hectares Strategic / financial partner: Appian Capital Advisory LLP Capital Raised over $50 million in total capital for development of the Sugar Zone project Markets Coverage initiated from three institutions 109 employees and contractors currently working at the Harte Gold site Commercial / Corporate Commercial production permits, supporting Phase 1 production Achievements Recipient of the NWOPA “Developer of the Year” award 10 TSX: HRT
RELATIVE PERFORMANCE HARTE GOLD HAS OUTPERFORMED INDICES AND PEERS 250% 200% 150% 110% 100% 50% 41% GDXJ Dev’t 7% Peers 1 0% -5% TSX -50% Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Notes: 1) Includes selected TSX-listed, high grade, development-stage gold companies with assets in the Americas 11 TSX: HRT
GROWING INSTITUTIONAL FOLLOWING CONSENSUS TARGET PRICE: ~50% PREMIUM TO CURRENT MARKET PRICE INITIATED RECOMMENDATION / ANALYST RESOURCE INSTITUTION ANALYST QUOTE ESTIMATE COVERAGE TARGET PRICE Resource Potential “In our view, HRT is “pricing in” a resource Mike Buy August estimate of ~2 MMoz, which we believe is a 3 M oz Kozak C$1.10 / share 2016 very conservative “base case”. As all three zones continue to expand… we believe the share price will reach much higher levels”. Project Economics “Based on our expectations for the upcoming Pierre April Buy technical report and mine plan, as well as our 1 M oz Vaillancourt 2017 C$1.00 / share long-term outlook for the Sugar Zone deposit, the project has strong economics”. Exploration Upside Michael May Outperform “We think key geological features related to 1.1 M oz (DCF) high grade indicate the potential for expansion Gray 2017 C$0.90 / share 5 M oz (Potential) of existing deposits and point to the discovery of multiple deposits”. Consensus: C$1.00 / share 3 M oz 12 TSX: HRT
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