Harte Gold Announces Positive Feasibility Study Results for Expansion to 1,200 tpd

Expansion to increase average annual gold production to nearly 100 koz at AISC of US$1,025/oz.

TORONTO, Jan. 20, 2021 /CNW/ - HARTE GOLD CORP. ("Harte Gold" or the "Company") (TSX: HRT) (OTC: HRTFF) (Frankfurt: H4O) is pleased to report that the Company is proceeding with an expansion of its 100% owned Sugar Zone mining operation located in Ontario, Canada, from a capacity of 800 tonnes per day ("tpd") to 1,200 tpd, based on the positive results of the Feasibility Study.

All references to non-IFRS measures are denoted and discussed at the end of the news release.  All dollar amounts are in Canadian dollars unless otherwise noted.  The life of mine ("LOM") is nine years (2021 – 2029).

Mine Design and Schedule (CNW Group/Harte Gold Corp.)

After-Tax Cash Flow, Cumulative to 2029* *Cumulative After-Tax Unlevered Cash Flow before corporate costs and hedge payments to 2029, undiscounted. Excludes reclamation costs incurred from 2030 onwards. (CNW Group/Harte Gold Corp.)

Expansion Schedule and Financial Model Summary (2021 to 2033) * *Cash flows beyond 2033 include reclamation costs of $95,000 annually, to 2039 (CNW Group/Harte Gold Corp.)

Highlights of 1,200 tpd Feasibility Study Include:

• Low-cost expansion: $21 million in expansion capital to grow throughput from 800 tpd to 1,200 tpd in Q1 2023.
• 58% increase in annual gold production: Increased throughput is expected to drive gold production to 102,000 ounces by 2023 and deliver sustainable annual gold production of 98,700 ounces from 2023 to 2027.
• Attractive cost profile: AISC¹ is expected to decline to an average of US$1,025 per ounce from 2023 to 2027.
• 166% increase in Mine Free Cash Flow²: Annual Mine Free Cash Flow is expected to increase from $36 million in 2021 to $96 million by 2023.
• Short expansion timeframe: Consistent production improvements are expected through to 2023 when 1,200 tpd steady-state is achieved.
• After-tax IRR³ of 89%: Reflects significant incremental cash flow improvement over 800 tpd scenario.
• NPV_5% of $417 million (pre-tax) and $332 million (post-tax): Adds considerable value to Harte Gold's net asset value.
• Updated resource modelling forms the basis of the Feasibility Study:
• Probable Mineral Reserve Estimate of 3.5 million tonnes at 7.2 g/t Au containing 797,000 oz Au.
• Indicated Mineral Resources of 2.8 million tonnes at 11.9 g/t Au containing 1.1 million oz Au.
• Inferred Mineral Resources of 1.9 million tonnes at 9.5 g/t Au containing 567,000 oz Au.
• Significant opportunities to further enhance value currently not factored into NPV estimates:
• Expansion of near-mine mineralization along strike, increasing overall tonnes per vertical metre.
• Expansion of mineralization at depth, extending overall mine life.
• Cost optimization, particularly related to paste backfill versus rockfill.

1.	AISC is a non-IFRS measure and reported at the project level.  Excludes corporate G&A.
2.	Defined as operating cash flow net of capital, tax and First Nations NPI, excludes corporate and hedge payments.
3.	IRR calculated on a differential project level, after-tax cash flow between 1,200 tpd expansion and operating at a steady state of 800 tpd.

Frazer Bourchier, President and CEO of Harte Gold, commented:

"We are encouraged by the robust results from the Feasibility Study to expand the Sugar Zone mine from 800 tpd to 1,200 tpd.  The study presents a transformative opportunity and showcases the tremendous potential of the Sugar Zone mine.  The Feasibility Study shows a clear pathway for Harte Gold to significantly increase its gold production, while substantially reducing costs for years to come, all of which is underpinned by a low capital requirement.  As a result of this compelling outcome, the Company has made the decision to proceed with the expansion."

Mr. Bourchier added "I am confident in the team's ability to execute on this expansion and to leverage the work completed in 2020 to strengthen and stabilize our operations, which provides a solid foundation for continued growth.  Starting with our stated guidance of 60,000 to 65,000 ounces of gold production for 2021, the Company will now embark on an attractive production growth profile that will maximize the value of this ore body for all shareholders."

Feasibility Study Summary – Expansion to 1,200 tpd by Q1 2023
	Unit	2021	2023	LOM Average	LOM Total
		Throughput: 800 tpd	Throughput: 1,200 tpd	2023 to 2027	2021 to 2029
Macro Assumptions
Gold Price^1	US$/oz Au	1,938	1,782	1,677	1,709
USD:CAD		0.76	0.76	0.76	0.76
Production
Tonnes Processed	K Tonnes	292	438	435	3,454
Grade	g/t Au	7.1	7.7	7.5	7.2
Recovery	%	94.0%	94.4%	94.4%	94.3%
Gold Recovered	oz Au	62,458	102,261	98,743	751,601
Cost Metrics
Cash Cost – Before Royalties^2	US$/oz Au	823	651	684	737
Cash Cost – Net of Royalties^2	US$/oz Au	898	721	749	804
Mine Site AISC^2	US$/oz Au	1,430	1,002	1,025	1,132
Capital
Mine Development	$ millions	26	21	23	199
Sustaining Capital	$ millions	18	17	12	126
Expansion Capital^3	$ millions	3	2	-	21
Cash Flow
Net Revenues^4	$ millions	149	225	204	1,582
Mine EBITDA^5	$ millions	84	140	119	878
Mine Free Cash Flow^6	$ millions	36	96	80	512
NPV and IRR
Pre-Tax NPV5%	$ millions				417
After-Tax NPV5%	$ millions				332
IRR vs. 800 tpd^7					89%

1.	Analyst consensus gold price estimates.
2.	Cash Cost and AISC are non-IFRS measures and reported at the project level.  AISC excludes corporate G&A.
3.	Expansion capital is $3 million in 2021, $16 million in 2022 and $2 million in 2023.
4.	Revenues after transportation and refining charges, excludes hedge payments.
5.	Net revenues less production costs, excludes hedge payments, interest, tax, capital and corporate costs.
6.	Operating cash flow net of capital, tax and NPI, excludes corporate costs and hedge payments.
7.	IRR is calculated on a differential after-tax cash flow basis between 1,200 tpd expansion and operating at 800 tpd.

Strategic Priorities and Liquidity Management

The expansion of the Sugar Zone mine to 1,200 tpd will provide shareholders with the best value-maximizing alternative, compared to operating at 800 tpd.  In making the decision to proceed with expansion, the Company considered several factors including liquidity management during the expansion period.

As at December 31, 2020, the Company had a cash balance of approximately $8.5 million.  Cash on hand, together with cash generated from operations, is expected to be sufficient to fund the working capital requirements as well as planned sustaining capital investment activities through 2021, but the Company may not have sufficient liquidity to fully cover scheduled senior debt principal repayments in 2021. The Company is in continued discussions with BNP regarding the deferral of principal repayments due during 2021. In the event that such principal repayments are not deferred, the Company will likely need to seek funding in order to make the required principal repayments.

Mineral Resource Estimate

The Mineral Resource estimate presented in the following table is dated September 30, 2020 and the Mineral Resource ounces are inclusive of Mineral Reserve ounces.

The Mineral Resource estimate was prepared using Leapfrog software for the wireframing and grade estimation. The wireframes were created in Leapfrog Geo using the vein modeling tool, guided by the geological interpretation corresponding to each domain. The Mineral Resource grade estimate was carried out using Leapfrog Edge. Grade was estimated by ordinary kriging or inverse distance squared using a 2D estimation approach. The Mineral Resource estimate was verified and validated by means of nearest neighbour and inverse distance methods, previous resource estimates, swathplot comparisons of estimates, reconciliation to production and visual inspections.  The Mineral Resource estimate does not include any external dilution.

Mineral Resource Estimate as at September 30, 2020
Classification	Zone	Tonnes	Grade	Ounces Au
		kt	g/t Au	koz
Indicated	Sugar	1,315	15.53	657
	Middle	1,326	8.95	381
	Wolf	162	6.13	32
	Total	2,803	11.87	1,070
Inferred	Sugar	891	10.98	314
	Middle	844	8.21	223
	Wolf	132	7.04	29
	Total	1,866	9.45	567

Notes to the Mineral Resource estimate:
1.	The stated Mineral Resources comply with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and are classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's "CIM Definition Standards – For Mineral Resources and Mineral Reserves" (the "CIM Definition Standards").
2.	Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.
3.	The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
4.	The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
5.	The Mineral Resource estimate was prepared by Mr. Vincent Cardin-Tremblay (P.Geo), former VP Geological Services for the Company. Mr. Cardin-Tremblay is a QP as defined by NI 43-101.
6.	Mineral Resources have been estimated as of September 30, 2020 using a gold price assumption of US$1,600 per ounce Au.
7.	A resource cut-off grade of 3.0 g/t Au has been estimated based on operating cost projections and applicable metallurgical recovery. The cut-off grade was used in combination with a minimum mining width factor of 1.8m to define the resource.
8.	Numbers may not add due to rounding.

Mineral Reserve Estimate

The Mineral Reserve estimate presented in the following table is current to December 31, 2020. The Mineral Reserve estimate was prepared using the resource model discussed above under "Mineral Resource Estimate". The Deswik stope optimizer software was used to evaluate the resource block model and identify economic longhole stoping blocks above a 3.5 g/t Au marginal cut-off grade and Deswik mine design software was used to refine these optimized blocks into mineable stope shapes. The optimization/design process included planned dilution based on geotechnical characteristics and historic experience in the orebody. Decline and lateral, ore and waste development were designed to efficiently access the stoping blocks. The stope shapes were further evaluated on a level to level basis to ensure that the mined material met the 5.0 g/t Au cut-off grade and marginal stopes with grades down to a 3.5 g/t Au cut-off grade were added to the design where development was already planned to access stopes above the 5.0 g/t Au cut-off and these marginal stopes were tested for economic viability before inclusion in the reserve.  An ore development cut-off grade of 1.5 g/t Au was used, which accounts for cost to process the incremental ore material.  Unplanned dilution and ore recovery estimates were applied to the stope tonnage estimates prior to reporting, the minimum mining width for the Mineral Reserve estimate was considered to be 1.8 metres and an additional factor for unplanned dilution was added which ensured that the minimum diluted width in the reserve shapes was 2.1 metres.

Mineral Reserve Estimate as of December 31, 2020
Classification	Zone	Tonnes	Grade	Ounces Au
		kt	g/t Au	koz
Probable	Sugar	1,994	7.59	487
	Middle	1,460	6.62	311
	Total	3,454	7.18	797

Notes to the Mineral Reserve estimate:
1.	The stated Mineral Reserves comply with the requirements of NI 43-101 and are classified in accordance with the CIM Definition Standards. Mineral Reserve estimates reflect the Company's reasonable expectation that all necessary permits and approvals will be obtained and maintained.
2.	Mineral Reserves are the economic portion of the Indicated Mineral Resources. Mineral Reserve estimates include mining dilution at grades assumed to be zero.
3.	The 2020 Mineral Reserve estimate was prepared under the supervision of Mr. Chris McCann (P.Eng), Director of Technical Services for the Company. Mr. McCann is a QP as defined by NI 43-101.
4.	The Mineral Reserves were estimated as of December 31, 2020 using a gold price assumption of US$1,450 per ounce Au.
5.	A mining cut-off grade of 5.0 g/t Au has been estimated based on operating cost projections, sustaining capital development cost, mining dilution and recovery, royalty payment requirements and applicable metallurgical recovery.
6.	Numbers may not add due to rounding.

Economic Analysis

The Feasibility Study was based on analyst consensus forward price estimates incorporating 31 broker estimates and a fixed USD:CAD conversion rate of 0.76.

Macroeconomic Assumptions ("Base Case")
	Unit	2021	2022	2023	2024	2025+
Gold Price	US$/oz	$1,938	$1,871	$1,782	$1,735	$1,624
USD:CAD		0.76	0.76	0.76	0.76	0.76

The Feasibility Study returned a pre-tax NPV_5% of $417 million and an after-tax NPV_5% of $332 million.  An after-tax IRR of 89% was calculated based on the return of incremental after-tax cash flows between 1,200 tpd and at 800 tpd throughput.

NPV and IRR are summarized in the following table using Base Case and flat gold price estimates:

NPV5% and IRR at Varying Gold Price
		US$1,600	US$1,700	Base Case	US$1,800	US$1,900
Pre-Tax NPV5%	$ millions	$329	$402	$417	$476	$549
After-Tax NPV5%	$ millions	$267	$321	$332	$371	$420
IRR^1		76%	86%	89%	95%	105%
1.	IRR calculated on a differential after-tax cash flow between 1,200 tpd expansion and operating at 800 tpd

The economic model was subjected to a sensitivity analysis to determine the effects of changing metals prices, production costs, capital costs and sustaining capital.  The NPV is most sensitive to gold price, FX and mine costs.

After-Tax NPV5% Sensitivity (C$M)
	-10%	-5%	Base Case	5%	10%
Gold Price	$245	$289	$332	$375	$417
USD:CAD	$426	$377	$332	$291	$254
Mine Costs	$354	$343	$332	$321	$310
Expansion Capital	$334	$333	$332	$331	$331
Sustaining Capital	$340	$336	$332	$328	$324

Overview of 1,200 TPD Expansion

Mining

The Feasibility Study examined an expansion whereby the existing infrastructure and mine development could be leveraged to increase overall mine production.  The Company is currently developing to the Middle Zone and expects initial access to this zone by mid-2021.  Once the Middle Zone is sufficiently developed, the Company will have the flexibility to be mining concurrently from three independent zones: Sugar Zone North, Sugar Zone South and Middle Zone.  These three zones combined can provide enough stoping areas to support 1,200 tpd mine production.

Development will continue via ramp access and an overall top-down mining approach will be used over the LOM.

Long-hole stoping will continue to be the primary mining method, however additional equipment (presented in Capital section below) is required to accommodate the increased tonnage rate and increase in number of concurrent working faces. 

Process Plant

To support increased mine production, an expansion of infrastructure is required, including an expansion of the throughput capacity of the existing process plant facilities (presented in Capital section below).

On completion of the expansion, mill recoveries are expected to increase to 94.4% as a result of upgrades to and expansion of the flotation concentrate circuit.

Paste Backfill

To date, the Company has utilized unconsolidated rockfill to backfill mined stopes.  A detailed analysis and design of the paste backfill plant and underground distribution system was included in the scope of the Feasibility Study to support increased production rates, increased pillar recovery and better geotechnical consolidation at depth.

While the existing paste plant is currently being utilized to support the dry stack portion of tailings deposition, the Company will undertake construction work for underground paste distribution starting in 2022 with the expectation of commissioning underground paste backfill in 2023.  Material changes to the paste plant include substitution of the current ceramic disk filter with a traditional cloth disk filter, increasing filtration capacity from 650 tpd to 1,200 tpd.  The larger filter will require lower maintenance and will provide more continuous filter cake production.

Tailings Management

An additional lift of the existing Tailings Management Facility ("North TMF") is recommended for 2021 to accommodate continued deposition at 800 tpd.  The North TMF will be utilized through mid-2025 for filtered dry-stack and hydraulic tails deposition.  To support continued operation, a second tailings impoundment area, the South TMF, will be required.  Construction of the South TMF will begin in 2024 with commissioning targeted for mid-2025.

Gold Production Schedule

The following table outlines plant throughput, grade, recovery and gold production forecasted over the LOM.

Mine Operating Plan
	Units	2021	2022	2023	2024	2025	2026	2027	2028	2029
Tonnes Processed	K t	292	292	438	438	438	432	428	416	280
Mill Throughput	tpd	800	800	1,200	1,197	1,200	1,183	1,174	1,136	768
Grade	g/t Au	7.1	8.1	7.7	6.9	7.0	8.7	7.1	5.4	6.6
Recovery	%	94.0%	94.0%	94.4%	94.4%	94.4%	94.4%	94.4%	94.4%	94.4%
Gold Recovered	oz Au	62,458	71,812	102,261	92,136	93,239	114,085	91,997	67,570	56,044

 Operating Costs

From 2023 to 2027, cash costs are expected to average US$749 per ounce Au, including royalties, (representing a 17% decrease from 2021 estimates) and all-in sustaining costs US$1,025 per ounce Au (representing a 28% decrease from 2021 estimates).

On a per tonne of ore processed, site operating costs for 2021 are expected to total $221 per tonne, broken down into mining, processing and site G&A.

The largest mining cost activity component includes longhole stoping, ore development, haulage and backfill.  Labour is a critical cost component across all mining cost areas.  Total unit mining costs are expected to remain flat through expansion.  Unit haulage and backfill costs are expected to increase as operations continue deeper in the mine.  This increase in unit costs is offset by economies of scale.

Processing costs are largely comprised of labour, power and plant consumables and decrease 22% on a per unit basis following expansion. 

Site G&A is comprised of site administration, services and camp accommodations.  Following expansion, site G&A is expected to decrease 25% as a large portion of site costs are fixed and will benefit with scale.  The breakdown of unit operating costs over the LOM is summarized as follows:

Site Operating Cost Breakdown
	2021 (800 tpd)	2023-2027 Avg. (1,200 tpd)	Total LOM
	C$/t Ore	C$/t Ore	C$M
Mining	120	120	420
Processing	43	34	122
Site G&A	58	43	163
Total Operating Costs	221	197	704

Capital Costs

A total of $346 million is expected to be spent on capital over the LOM and includes expansion capital, mine development capital and sustaining capital.

Life-Of-Mine Capital (C$M)
		Total
Expansion Capital		21
Mine Development		199
Sustaining Capital		126
Total Capital		346

Expansion Capital

The expansion capital of $21.1 million will be incurred from mid-2021 to Q1 2023.  Expansion capital is comprised of process plant expansion ($16.3 million), mine equipment ($4.6 million) and permitting ($0.1 million).

Mill expansion capital includes:

• replacing secondary cone crusher with a larger unit;
• the addition of a second ball mill;
• two additional rougher flotation cells;
• one new cleaner flotation cell; and
• an additional tailings thickener.

Mine equipment includes the purchase of additional equipment to accommodate increased tonnage and working faces.  Key equipment includes:

• one additional 30 tonne haul truck;
• three additional LHD loaders; and
• ancillary equipment.

Permitting capital includes consultant costs for amendments to existing permits and other miscellaneous costs. Expansion capital expenditures start in mid-2021 with the bulk of the expenditures occurring in 2022.

Expansion Capital By Year (C$M)
Figures may not add due to rounding	2021	2022	2023	LOM
Mill Expansion	2.4	14.0	0.0	16.3
Mine Equipment	0.0	2.3	2.3	4.6
Permitting	0.1	0.0	0.0	0.1
Total	2.5	16.3	2.3	21.1

Mine Development Capital

A total of $199 million will be spent on underground development, including 34,200 metres of ramp and lateral waste development over the LOM.  Development costs average $23 million annually, with unit rates ranging from approximately $5,100 per metre to $6,000 per metre as depth increases.

Sustaining Capital

A total of $126 million will be spent on sustaining capital over the LOM on the following:

• Underground Capital: Paste distribution, mine ventilation, underground shops and infrastructure.
• Tailings and Water Management: Expansion of the North TMF, construction of the South TMF and water management.
• Mine Equipment Maintenance: Overhaul and major component replacement of the equipment fleet.
• Underground Electrical: Distribution of electrical equipment for ventilation, drilling and dewatering.
• Paste Backfill: Substitution of the existing ceramic disk filtration system with a cloth disk filter providing 1,200 tpd capacity, underground distribution system with positive displacement pump on surface, and installation of paste booster station for the Middle Zone.
• Reclamation / Closure Costs: Incurred at the end of mine life.
• Other: Project management and indirect costs.

Sustaining Capital (C$ Millions)
	LOM Total
Underground Capital	31
Tailings and Water Management	27
Mine Equipment Maintenance	18
Underground Electrical	14
Paste Backfill	15
Reclamation / Closure Costs	8
Other	11
Total Sustaining Capital	126

Royalties

Production at the Sugar Zone mine is subject to two net smelter return ("NSR") royalties.  Each NSR is 2.0%, for a combined total of 4.0%.

Taxes

Given existing tax pools, the Sugar Zone mine is expected to pay minimal tax for the next two years (2021 and 2022).  Over the LOM, the effective combined federal and Ontario mining tax rate is expected to average approximately 21%.

Permitting

Permitting will commence in the first quarter of 2021 and is expected to be completed within an 18-month timeframe.  The Sugar Zone mine is situated in a well-known mining jurisdiction where Harte Gold has successfully operated since 2017.  The Company also benefits from a strong relationship with its proximal First Nations and government agencies.

The expansion can be implemented with amendments to the closure plan, amendments to existing operating permits and a construction permit that is issued following an engineering review, all of which are granted by provincial governmental agencies. There is no requirement for any federal permits or new environmental assessment. 

Opportunities to Further Enhance Value

The Company has identified several opportunities to further enhance the economics of the Sugar Zone mining operation and will continue to evaluate these opportunities over the remainder of 2021 and into 2022:

• Step-out and infill drilling along strike at Sugar Zone South, Middle Zone and Wolf Zone to add additional sources of ore feed, increasing overall ounces per vertical metre;
• Infill drilling of Inferred Resources at depth to extend mine life; and
• Complete a trade-off analysis of continuing solely with rockfill as a primary backfill method, instead of paste backfill, with the potential of further reducing operating and capital costs.

Consultant Contributions

The Feasibility Study was consolidated by Harte Gold's technical team in collaboration with the following third-party consulting firms in their respective areas of expertise:

• WOOD PLC: Tailings management
• Paterson & Cooke: Paste backfill
• Halyard Inc.: Process plant and metallurgy
• Deswik: Mine design and scheduling
• Jodouin Mine Ventilation: Underground ventilation
• Environmental Applications Group: Environmental, permitting, and mine closure
• Stantec: Underground mining cost estimation

NI 43-101 Technical Report

An updated NI 43-101 technical report for the Sugar Zone mine reflecting the Feasibility Study will be filed on SEDAR (www.sedar.com) by March 5, 2021.

Conference Call and Analyst Update

The Company will host a technical briefing for shareholders, analysts and investors on January 21, 2021 at 10:00 AM ET to present the Feasibility Study results.  Access to the conference call and webcast is as follows:

Telephone access:

Toronto Local and International	647-427-7450
Toll-free (North America)	1-888-231-8191
Conference ID	8644876

Webcast access:

Via Harte Gold's website at www.hartegold.com (details on home page) or the following link: https://produceredition.webcasts.com/starthere.jsp?ei=1419006&tp_key=60cb47b240

A replay of the conference call and webcast will be available until 11:59 pm on February 28, 2021, and can be accessed using the following dial-in number:

Local	416-849-0833
Toll-free (North America)	1-855-859-2056
Replay code	8644876

Technical Information

Scientific and technical information contained in this news release was reviewed and approved by Chris McCann, P. Eng., who is a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

The Mineral Reserve estimate was prepared under the supervision of Mr. Chris McCann (P.Eng), Director of Technical Services for the Company. Mr. McCann is a QP as defined by NI 43-101.

The Mineral Resource estimate was prepared by Mr. Vincent Cardin-Tremblay (P.Geo), former VP Geological Services for the Company. Mr. Cardin-Tremblay is a QP as defined by NI 43-101.

About Harte Gold Corp.

Harte Gold holds a 100% interest in the Sugar Zone mine located in White River, Canada. The Sugar Zone Mine entered commercial production in 2019. Production guidance is 60,000 to 65,000 oz Au for 2021. The Company has further potential through exploration at the Sugar Zone Property, which encompasses 79,335 hectares covering a significant greenstone belt. Harte Gold trades on the TSX under the symbol "HRT", on the OTC under the symbol "HRTFF" and on the Frankfurt Exchange under the symbol "H4O".

Cautionary note regarding forward-looking information:

This news release includes "forward-looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.  Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Specific forward-looking statements in this press release include, but are not limited to, the expansion increasing average annual gold production to nearly 100 koz at AISC of US$1,025/oz; $21 million in expansion capital to grow throughput from 800 tpd to 1,200 tpd by 2023; the expansion increasing annual gold production by 58%; gold production of 102,000 ounces by 2023 and sustainable annual gold production of 98,7000 ounces from 2023 to 2027; AISC of US$1,025 per ounce from 2023 to 2027; Mine Free Cash increasing from $36 million in 2021 to $96 million by 2023; consistent production improvements being expected through to 2023 steady-state; an after-tax IRR of 89%; an NPV_5% of $417 million (pre-tax) and $332 million (post-tax); opportunities to further enhance value; gold production, cost metrics, capital, cash flow, NPV and IRR over the LOM; cash on hand, together with cash generated from operations, being expected to be sufficient to fund the working capital requirements as well as planned sustaining capital investment activities through 2021; the Company may not having sufficient liquidity to fully cover scheduled senior debt principal repayments in 2021; the Company likely needing to seek funding in order to make the required principal repayments to BNP in 2021 if such principal repayments are not deferred; accessing the Middle Zone by mid-2021 and then having the flexibility to mine from three independent zones to support 1,200 tpd mine production; development continuing via ramp access and an overall top-down mining approach being used over the LOM; the expansion of infrastructure required, including an expansion of the existing process plant; mill recoveries increasing to 94.4%; construction work for underground paste distribution starting in 2022 with the commissioning in 2023; an additional lift of the North TMF in 2021; the North TMF being utilized through mid-2025 and construction of the South TMF beginning in 2024 with commissioning targeted for mid-2025; plant throughput, grade, recovery and gold production forecasted over the LOM; cash costs averaging US$749 per ounce Au (including royalties) and AISC US$1,025 per ounce Au, from 2023 to 2027; site operating costs of $221 per tonne for 2021; unit operating costs over the LOM; $346 million being spent on capital over the LOM; expansion capital totaling $21 million; $199 million being spent on underground development; $126 million being spent on sustaining capital over the LOM; the effective tax rate for the Sugar Zone mine over the LOM averaging approximately 21%,; permitting commencing in the first quarter of 2021 and being completed within an 18-month timeframe; the Company continuing to evaluate opportunities over the remainder of 2021 and into 2022; the filing of an updated NI 43-101 technical report by March 5, 2021 the Company hosting a technical briefing for shareholders, analysts and investors on January 21, 2021; gold production of 60,000 to 65,000 oz for 2021; and further potential through exploration at the Sugar Zone Property. Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such risks and uncertainties include, but are not limited to, there being no events of default or breaches of key financing agreements, including agreements with BNP Paribas and Appian; the Company being able to attract and retain qualified candidates to join the Company's management team and board of directors, risks associated with the mining industry, including operational risks in exploration, development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of the Company to obtain all permits, agreements, consents or authorizations required for its operations and activities; and health, safety and environmental risks, the risk of commodity price and foreign exchange rate fluctuations, the ability of Harte Gold to fund the capital and operating expenses necessary to achieve the business objectives of Harte Gold, the uncertainty associated with commercial negotiations and negotiating with contractors and other parties and risks associated with international business activities, as well as other risks and uncertainties which are more fully described in the Company's Annual Information Form dated March 25, 2020, and in other filings of the Company with securities and regulatory authorities which are available on SEDAR at www.sedar.com.

Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of the Company should not place undue reliance on these forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors are not exhaustive.  The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements are expressly qualified by this cautionary statement. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

SOURCE Harte Gold Corp.

please visit www.hartegold.com or contact: Shawn Howarth, Vice President, Corporate Development and Investor Relations, Tel: [phone], E-mail: [email protected]