Harte Gold Closes $6.9 Million Bought Deal Offering Including Full Exercise of the Underwriters’ Option, Drilling of High Priority Targets to Commence

Press Release

Toronto – October 2, 2019 – HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt: H4O) is pleased to announce it has closed the previously announced bought deal financing (the “Offering”) and has restarted its regional exploration program, which includes drilling high priority targets at the north end of the Sugar Zone Property.

Financing Closed Fully Subscribed

Pursuant to the Offering, the Company issued an aggregate of 23,000,000 common shares that qualify as “flow-through shares” (the “Flow-Through Shares”) within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the “Tax Act”), including 3,000,000 Flow-Through Shares issued upon the exercise in full by the Underwriter (as defined below) of the underwriter’s option, at a price of $0.30 per Flow-Through Share for aggregate gross proceeds to the Company of $6,900,000.

Echelon Wealth Partners Inc. (the “Underwriter”) acted as sole underwriter and bookrunner on the Offering. In consideration for their services, the Underwriter received a cash commission 5% of the gross proceeds of the Offering, and broker warrants (“Broker Warrants”) equal to 5% of the number of Flow-Through Shares sold in the Offering, provided that such commission was reduced to 3% in respect of Flow-Through Shares sold to purchasers on the “President’s List”. The Broker Warrants are exercisable for one common share of the Company at an exercise price of $0.30 per share until April 2, 2021.

In addition, ANR Investments B.V. (“Appian”) has exercised its participation right granted pursuant to a prior financing in respect of the issuance of the Broker Warrants, and were granted an aggregate of 393,054 common share purchase warrants with the same exercise price and expiry date as the Broker Warrants (the “Appian Warrants”). The exercise of the Appian Warrants is subject to the receipt of by Harte of disinterested shareholder approval.

The gross proceeds from the issuance of the Flow-Through Shares will be used for “Canadian exploration” expenses, and will qualify as “flow-through mining expenditures”, as those terms are defined in the Tax Act.

Regional Exploration Program To Commence

The Company has identified several high priority targets for drilling at the TNT Zone, an area consisting of highly altered mafic volcanics and significant sulphide presence. Surface sampling completed in the summer returned anomalous gold and base metal values occurring along a strike length in excess of 10 km, an area which includes the TNT Zone to the south. One rig is currently being mobilized and the drill program can be expanded to include additional rigs pending further results. Drill targets are accessible by road and drilling is expected to start by middle of October.

The Company is also completing VLF surveying at the TNT Zone and Flat Lake areas to further refine high priority targets.

VLF surveying will be followed up with diamond drilling once the information is available.

The Company will continue its downhole IP program in areas between the Wolf and Fox Zones to identify drill targets for testing down dip extension and convergence of both zones. Downhole geophysics has been a highly successful tool used in the past, which led to the extension of mineralization at the Sugar Zone down dip and definition of the Sugar and Middle Zone convergence area.

About Appian Natural Resources Fund

Appian Natural Resources Fund is a metals and mining private equity fund providing long-term capital to both private and public mining companies. The advisor to Appian Natural Resources Fund, Appian Capital Advisory LLP, is a leading investment advisor in the metals and mining industry, with worldwide experience across South America, North America and Africa and a track record of successfully supporting companies achieve their development targets.

About Harte Gold Corp.

Harte Gold is Ontario’s newest gold producer through its wholly owned Sugar Zone Mine in White River Ontario. Using a 3 g/t gold cut-off, the NI 43-101 compliant Mineral Resource Estimate dated February 19, 2019 contains an Indicated Mineral Resource of 4,243,000 tonnes grading 8.12 g/t Au with 1,108,000 ounces contained gold and an Inferred Mineral Resource of 2,954,000 tonnes, grading 5.88 g/t Au with 558,000 ounces contained gold.

A NI 43-101 compliant Feasibility Study was completed on the Sugar Zone Mine effective February 15, 2019 calculating total Reserves of 3,879,000 tonnes grading 7.1 g/t Au with 890,000 ounces of gold. Exploration continues on the Sugar Zone Property, which encompasses 79,335 hectares covering a significant greenstone belt.

For further information, please contact:

Stephen G. Roman
Chairman and Interim CEO
Tel: 416-368-0999
Email: sgr@hartegold.com

Shawn Howarth
Vice President, Corporate Development
Tel: 416-368-0999
E-mail: sh@hartegold.com

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