Harte Gold Provides Third Quarter Update and Guidance for 2019

Press Release

Toronto – November 1, 2019 – HARTE GOLD CORP. (“Harte Gold” or the “Company”) (TSX: HRT / OTC: HRTFF / Frankfurt:

H4O) provided the following operating results for the third quarter (“Q3 2019”) ended September 30, 2019.

Highlights

• Mined tonnage increased 9% quarter over quarter. The mill is now being fed 100% run of mine (“ROM”) ore
• Stope production and sequencing was lower than expected due to continued start-up delays of the paste fill plant and lower than planned development rates
• Underground infrastructure and contractor performance issues driving the quarter are being addressed
• A temporary solution for the paste fill plant has been implemented and will continue in the short term
• Gold production was 6,069 ounces for the quarter. For the last nine months, Harte Gold produced 19,138 ounces
• Quarterly results when compared to the Feasibility Study were below target. Based on results to-date, full year 2019 guidance has been adjusted to 24,000 to 26,000 ounces at an AISC of US$2,000 to US$2,200 per ounce. Previous guidance was 39,200 ounces at an AISC of US$1,300 to US$1,350 per ounce.
• A life of mine plan for 2020 is being prepared and further guidance and will be provided when available

Operating Metrics, Q3 2019

				Q3 Comparison to Q2		Q3 Comparison to
						Feasibility Plan
		Q3		Q2		Feasibility	Q3 vs.
		September		June 30,	Q3 vs. Q2		Feasibility
						Plan
		30, 2019		2019			Plan
Ore mined (tonnes)		46,235		42,601	9%	58,100	(20%)
Ore processed (tonnes)		56,558		53,216	6%	58,100	(3%)
Average daily throughput (tpd)		628		591	6%	646	(3%)
Processed grade (g/t)		3.64		4.89	(25%)	5.96	(39%)
Recovery (%)		92%		93%	(0%)	96%	(3%)
Gold ounces produced		6,069		7,754	(22%)	10,600	(43%)

Mine Production Ramp Up Overview

• The Company is mining from areas developed at the Sugar Zone North and South ramps
• Mill feed grade decreased due to a shortage of development of higher-grade stoping areas, which resulted in a larger contribution of lower grade development ore as the primary mill feed
• Development delays and paste plant start-up issues also affected overall stope sequencing, which resulted in the Company mining off plan
• To address challenges in Q3, the following steps have been taken:
• Mine performance was addressed with the mining contractor and necessary actions are being taken to ensure adequate staffing and broader recruitment efforts
• The paste plant is expected to be operational by year-end. Critical components are being installed. The Company will provide further updates on start-up of the paste plant as they become available
• Mine infrastructure to support rock fill has been developed and will mitigate delays in operation of the paste fill plant
• Improvements are underway to expand compressed air capacity, expected to increase the rate at which stopes can be developed

Adjusted 2019 Production and Guidance

Gold production in the first nine months of 2019 was 19,138 ounces. Due to issues around mine development and stope availability in Q3, the Company expects fourth quarter production to be in the range of 5,000 to 7,000 ounces. Accordingly, full year 2019 production guidance has been adjusted from 39,200 ounces per original guidance, to 24,000 to 26,000 ounces.

While operating costs were stabilized in Q3, as a result of lower production for the year and higher costs in the first half, annual AISC guidance has been modified and is expected to be in the range of US$2,000 to US$2,200 per ounce, from original guidance of US$1,300 to US$1,350 per ounce. Further information on operating costs will be provided when the Company files its Q3 financials.

2020 Life of Mine Plan and Financial Budget

The Company is currently updating its life of mine plan and preparing a 2020 budget. The Company will provide further guidance for 2020 at that time.

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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