HARTE GOLD CORP. Management s Discussion and Analysis of Financial Condition and Results of Operations for the 6 months ended June 30, 2018

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1 Management s Discussin and Analysis f Financial Cnditin and Results f Operatins fr the 6 mnths ended June 30, 2018 The fllwing discussin f the results f peratins and financial cnditin f Harte Gld Crp. ( Harte Gld r the Cmpany ) prepared as f August 14, 2018 summarizes management s review f the factrs that affected the Cmpany s financial and perating perfrmance fr the six mnths ended June 30, 2018, and the factrs reasnably expected t impact n future peratins and results ( Management s Discussin and Analysis f Financial Cnditin and Results f Operatins r MD&A ). This MD&A is intended t supplement and cmplement the Cmpany s unaudited cndensed interim financial statements as at and fr the six mnths ended June 30, 2018 ( Unaudited Interim Financial Statements ) and the ntes theret, which were prepared in accrdance with Internatinal Financial Reprting Standards ( IFRS ). Certain infrmatin and discussin included in this MD&A cnstitutes frward-lking infrmatin, which shuld be cnsidered in view f the cautinary ntes cntained in the sectin Frward-Lking Statements at the end f this MD&A. The unaudited cndensed interim financial statements, the 2017 Audited Financial Statements and the Cmpany s Annual Infrmatin Frm are available at and at the Cmpany s website All amunts disclsed are in Canadian dllars. HIGHLIGHTS Cmpletin f eight mnths f site cnstructin withut a lst time injury. Cnfirmed cmmercial prductin in Q n schedule. Cnstructin f the mill cmplex is cmplete and ready fr pwer n. Cmmissining cmpnents f the crusher and mill cmplex has started. Full permitting fr cmmercial prductin is sufficiently advanced. Near mine drilling is well underway and expected t add significant resurce t the mine plan and imprve verall mdelled grade. 70,260 metres has been drilled fr 2018, as at the end f July. A new mineralized zne named the Fx Zne was discvered 700 metres nrthwest f the Wlf Zne. Mineralizatin at the Wlf Zne was extended significantly dwn dip. High grade areas at the Sugar Zne and Middle Zne have been expanded with infill drilling. Ftwall Zne drilling at the Middle Zne returned higher grades and widths than previusly estimated. Definitin drilling at the Upper Zne area f the Sugar Zne have returned high grade sectins, expected t imprve mdelled assumptins fr stpe prductin. Strike length frm the Sugar Zne t the Fx Zne has been extended t 5 kilmetres. Debt financing was secured with a US$70 millin financing package including Sprtt Private Resurce Lending (Cllectr), L.P. ( Sprtt ) and Appian Natural Resurces Fund ( Appian ). As at June 30, 2018, the Cmpany has drawn the US$20 millin Appian facility and US$20 millin frm the Sprtt facility. $55 millin capital expenditures has been incurred n the re prcessing facility and related surface infrastructure, with apprximately $16 millin estimated remaining csts. 1

2 Management s Discussin and Analysis f Financial Cnditin and Results f Operatins fr the 6 mnths ended June 30, 2018 OUTLOOK Cmmissining will be cmpleted ver the mnth f August. Cmmercial prductin permitting is targeted fr September. Mine site will transitin t grid pwer in September. Drilling at high pririty targets, the Eagle and Highway Znes, is expected t start in September. Declaratin f cmmercial prductin is targeted fr Q Updated Natinal Instrument ( NI ) cmpliant Mineral Resurce Estimate is targeted fr early Reprt will incrprate apprximately 130,000 metres f additinal drilling expected fr Mineral Resurces at the Sugar and Middle Znes are expected t be upgraded frm Inferred t Indicated. An initial Mineral Resurce Estimate is expected fr the Ftwall Zne area at the Middle Zne. An initial Mineral Resurce Estimate is expected fr the Wlf Zne. Updated mine plan, final technical reprt and declaratin f Mineral Reserves are targeted fr Q COMPANY OVERVIEW Harte Gld is invlved in the acquisitin and explratin f mineral resurce prperties, with a current fcus n gld prperties lcated in the Prvince f Ontari, Canada. The Cmpany was incrprated in Ontari, n January 22, 1982 and is a reprting issuer in the Prvinces f Ontari, Alberta and British Clumbia. The cmmn shares f the Cmpany are listed fr trading n the Trnt Stck Exchange under the symbl HRT and n the Frankfurt Stck Exchange under the symbl H4O. The Cmpany currently has interests in tw gld explratin prjects: the 100% wned Sugar Zne Prperty, lcated 60 km east f the Heml area gld mines and nrtheast f the twn f White River and the Stughtn-Abitibi Prperty (frmerly Stughtn-Prcupine), lcated 110 km east f Timmins and 50 km nrth-east f Kirkland Lake held as t 100% fr the majrity f the claims and 90% fr the remaining claims. A Mineral Resurce Estimate dated February 15, 2018 cntains an Indicated Mineral Resurce Estimate f 2,607,000 tnnes grading 8.52 g/t fr 714,200 unces f cntained gld and an Inferred Mineral Resurce Estimate f 3,590,000 tnnes, grading 6.59 g/t fr 760,800 unces f cntained gld, using a 3.0 g/t Au cut-ff. The Cmpany als cmpleted a Preliminary Ecnmic Assessment with an effective date f March 31, 2018, utlining 80,700 unces f annual average gld prductin at an All-In Sustaining Cash Cst ( AISC ) f US$708/z Au ver an 11 year mine life. The Cmpany s explratin activities are fcused n the Sugar Zne Prperty which cmprises apprximately 83,850 hectares as f the current date. The freging include fur (4) mining leases ver 1,467 hectares, n which include the Sugar and Middle Zne depsits are lcated. The remaining area cmprises unpatented mining claims. Explratin wrk n the Stughtn-Abitibi Prperty has been limited in recent years as the Cmpany fcused n the Sugar Zne Prperty. 2

3 Management s Discussin and Analysis f Financial Cnditin and Results f Operatins fr the 6 mnths ended June 30, 2018 SURFACE CONSTRUCTION AND COMMISSIONING Cnstructin f the crushing spread and mill cmplex is finished. Minimal piping and instrumentatin wrk remains and will be cmpleted during August. Ple installatin t site is cmplete and electrical wiring is underway. Delivery f a 13.8 kv transfrmer fr undergrund mining is targeted fr end f August. The Cmpany will temprarily use 600 vlt generatrs t cntinue undergrund develpment. The Cmpany plans t energize the site with grid pwer in September. The majrity f cmmissining can be accmplished ahead f final permitting and energizing f the pwer line. The fllwing will be cmpleted during the mnth f August: Full cmmissining f the crushing system fr stckpiling re ahead f the mill feed Testing f interlcks and cmmunicatin systems Pwer-up f mtrs and running the plant with recirculating water Testing f all systems fr leaks and any ther peratinal issues A temprary 4 kv generatr has been mbilized t site t supprt mill cmmissining activities. Fr further infrmatin n cnstructin and cmmissining, please see press release dated August 8, PERMITTING Permit applicatins are significantly advanced with n material issues raised by the respective Ministries t date (see press release dated August 8, 2018). Harte Gld signed an IBA (Impact Benefits Agreement) with Pic Mbert First Natin, wh are prximal t the Prject (see press release dated May 2, 2018). Pic Mbert and Pic River First Natin are situated in the same watershed as the Prject and have cnfirmed n utstanding cncerns related t the Prject. The Ontari Gvernment is engaged in lw level cnsultatin with three ther First Natin Bands, which have asserted abriginal and/r treaty rights in the vicinity f the Prject. These First Natin Bands are situated utside the Prject watershed and their assertins are ppsed by the tw prximal First Natin Bands. Harte Gld has supprted the Crwn s effrts by prviding infrmatin regarding the Prject at several meetings. Harte Gld anticipates this prcess will cme t a clse by the end f August. EXPLORATION Near Mine Explratin Six drill rigs are currently active. Tw drill rigs are at the Sugar Zne, tw at the Middle Zne, ne at the Wlf Zne and ne at the Fx Zne. The Fx Zne is a newly discvered area f mineralizatin that appears t be increasing with depth. The Cmpany will cntinue t drill dwn dip t test the extent f mineralizatin at this zne. Wlf Zne mineralizatin cntinues t expand dwn dip. The high grade zne is nw defined as apprximately 200 metres alng strike by 800 metres dwn dip and remains pen at depth. The cmpany will cntinue t drill at 100 metre spacings t test dwn dip extensin f this area. Sugar Zne infill drilling belw the Indicated Resurces utline has returned several high grade intersectins that is expected t increase mdelled grade belw the Sugar Zne Nrth Ramp. The Cmpany expects t upgrade significant amunt f Inferred Mineral Resurces at the Sugar Zne t the Indicated Mineral Resurces categry. The Sugar Zne remains pen at depth. Middle Zne infill drilling has been successful in expanding: The high grade mineralized zne at the nrth end f the ramp; and 3

4 Management s Discussin and Analysis f Financial Cnditin and Results f Operatins fr the 6 mnths ended June 30, 2018 The Ftwall Zne, an area f mineralizatin discvered apprximately 50 metres int the ftwall f the Middle Zne and that was previusly encuntered ff the Sugar Zne. Definitin drilling f the Upper Zne thrugh undergrund wrkings f the Sugar Zne has returned high grade intersectins and will imprve the Cmpany s understanding f grade cntrl during stpe prductin. The Upper Zne is ne f the first areas that will be targeted in the Sugar Zne mine plan. Lngitudinal Prjectin Dwnhle IP Survey Abitibi Gephysics has cmpleted a fur hle dwnhle IP survey at the Middle-Wlf Zne area. The results have been cmpiled and are currently being interpreted by the Cmpany. Prperty Wide Explratin The Cmpany is waiting fr drill permitting fr high pririty targets Eagle Zne t the west and the Highway Zne at the suth end f the prperty. Drilling is expected t start in September. RESULTS OF OPERATIONS The Unaudited Interim Financial Statements have been prepared in accrdance with Internatinal Financial Reprting Standards ( IFRS ) and its interpretatins adpted by the Internatinal Accunting Standards Bard ( IASB ). Results f Operatins 3 Mnths Ended June 30, Mnths Ended June 30, Mnths Ended June 30, Mnths Ended June 30, 2017 Net Incme (Lss) $ (702,894) $ (858,538) $ (4,254,563) $ 3,069,551 Incme / (Lss) per weighted average share (0.001) (0.002) (0.007) During the 6 mnths ended June 30, 2018, the Cmpany recrded a lss f $4,254,563, cmpared t a net incme f $3,069,551 during the 6 mnths ended June 30, During the 3 mnths ended June 30, 4

5 Management s Discussin and Analysis f Financial Cnditin and Results f Operatins fr the 6 mnths ended June 30, , the Cmpany recrded net lss f $702,894 cmpared t a net lss f $858,538 fr the 3 mnths ended June 30, The Cmpany s plicy is t capitalize all explratin and evaluatin expenditures until a prperty becmes a prducing mine r circumstances lead the Cmpany t cnclude that there has been an impairment in value. Revenues generated during a bulk sample advanced explratin prgram are credited t the explratin and evaluatin asset n the balance sheet. Accrdingly, the results f peratins reflect the Cmpany s crprate expenses that are nt capitalized t explratin and evaluatin prjects. The fllwing summarizes the majr cmpnents f crprate expenses: Expenses 3 Mnths Ended June 30, Mnths Ended June 30, Mnths Ended June 30, Mnths Ended June 30, 2017 Stck-based cmpensatin $ 192,135 $ 217,544 $ 4,465,241 $ 366,989 Office and general 211, , , ,764 Management and cnsulting 175, , , ,500 Prfessinal fees 39, ,412 53, ,835 Sharehlder infrmatin 90,423 72, , ,568 Prmtin and travel 49,950 34,360 87, ,343 Interest expense 5, ,380 16, ,313 Flw-thrugh share premium - - (1,173,838) (4,680,385) Stck-based cmpensatin awards f 16,140,000 ptins were made in 2018, including 1,400,000 that were capitalized t explratin and evaluatin expenditures, cmpared t 1,400,000 ptins in The number f emplyees and ther ffice expenditures has increased in 2018 alng with the increased crprate activities in supprt f the mine develpment and prcessing facility cnstructin. FINANCIAL CONDITION The Cmpany s financial psitin at June 30, 2018 and December 31, 2017 is summarized as fllws: Financial Psitin June 30, 2018 December 31, 2017 Current assets $ 29,440,577 $ 26,581,330 Lng term assets 161,138, ,337,026 Ttal assets $ 190,579,261 $ 133,918,356 Current liabilities $ 41,005,952 $ 20,675,563 Lng term liabilities 28,932,430 6,227,354 Ttal liabilities 69,938,382 26,902,917 Sharehlders' equity 120,640, ,015,439 Ttal liabilities & sharehlders' equity $ 190,579,261 $ 133,918,356 Fr the 6 mnth perid ended June 30, 2018, the Cmpany s cash and cash equivalent psitin increased t $25,709,203 frm $24,789,164 at December 31, Cash was used t fund explratin, csts related t the mill cnstructin and general crprate expenses. Remaining current assets largely cmprise the HST. 5

6 Management s Discussin and Analysis f Financial Cnditin and Results f Operatins fr the 6 mnths ended June 30, 2018 Lng term assets cmprise the restricted cash ($1,721,281) fr clsure csts and capitalized explratin and evaluatin expenditures. The balance f explratin and evaluatin expenditures increased by $53,280,899 t $156,839,323 in the first half f 2018 mstly due t csts f cnstructing the mill and surface infrastructure, as well as sme explratin and develpment activities. The increase in current liabilities resulted primarily frm the Appian subrdinated debt entered int n May 11, 2018 LIQUIDITY AND CAPITAL RESOURCES The Cmpany had a wrking capital surplus f $14,332,500 at June 30, 2018 (wrking capital surplus f $7,277,938 at December 31, 2017) excluding the liabilities fr flw-thrugh share premiums and debt. During the 6 mnths ended June 30, 2018, $56,669,188 was spent n explratin and evaluatin csts fr the Sugar Zne Prperty, excluding nn-cash items ($31,557,897 during the 3 mnths ended June 30, 2018). During the 6 mnths ended June 30, 2018, the Cmpany realized prceeds f $2.1 millin as a result f the exercise warrants and stck ptins. In Q1 2018, the Cmpany cmpleted the final tranche f its December 2017 equity raise fr prceeds f $7.6 millin ($24.8 millin clsed in December). Subsequently, the Cmpany cmpleted tw debt financings. On May 11, 2018, the Appian debt facility f US $20 millin was clsed and drawn dwn in its entirety. On June 1, 2018, the Sprtt debt facility f US $50 millin was clsed, with an initial draw dwn f US $20 millin. The remaining US $30 millin Sprtt financing is available fr draw dwn, subject t certain cnditins precedent, including receipt f cmmercial permits. Cmbined with existing cash and near cash assets, such funding is believed t be sufficient t bring the mining peratins int cmmercial prductin. SUMMARY OF QUARTERLY RESULTS Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Ttal Revenue $ 48,882 $ 12,557 $ 38,709 $ 86,806 $ 50,229 $ 62,513 $ 18,918 $ 4,711 Net Incme / (Lss) (702,894) (3,557,368) (4,417,044) (700,735) (858,538) 3,928,089 (1,725,729) (484,952) Incme / (Lss) per Share - basic and fully diluted (0.001) (0.006) (0.010) (0.001) (0.002) (0.005) (0.001) Results f peratins can vary significantly by quarter, as a result f a number f factrs. The Cmpany s level f activity and expenditures during a specific quarter are influenced by the level f wrking capital, the availability f external financing, the time required t gather, analyze and reprt n gelgical data related t its prperties and the number f persnnel required t advance each prject. Overall, expenses have generally increased in 2018 ver the prir year as a result f increased activities and persnnel in supprt f mine develpment and prcessing facility cnstructin activities. The timing and amunt f stck ptin grants affects the quarters. Additinally, Q1 results are generally impacted as a result f the renuncement f explratin expenditures and the related recgnitin f any premiums realized n the issuance f flw-thrugh shares. 6

7 Management s Discussin and Analysis f Financial Cnditin and Results f Operatins fr the 6 mnths ended June 30, 2018 RELATED PARTY TRANSACTIONS Management services by the Cmpany s fficers are prvided n a cntract basis, either directly r thrugh crprate entities related t such fficers. Additinally, the Cmpany shares its premises and the csts f certain supprt persnnel with related cmpanies, and reimburses these related cmpanies fr its share. These transactins were in the nrmal curse f peratins and were measured at the exchange amunt, which is the amunt f cnsideratin established and agreed t by the related parties. FINANCIAL INSTRUMENTS As at June 30, 2018, the Cmpany s financial instruments are cmprised f cash and cash equivalents, receivables, accunts payable and accrued liabilities and lans payable. The carrying value f receivables, accunts payable and accrued liabilities apprximate their fair values due t the relatively shrt perids t maturity f these financial instruments. The Cmpany s cash and cash equivalents are held thrugh a Canadian chartered bank. The Cmpany s current plicy is t invest excess cash in a mney market fund administered by the brkerage subsidiary f a Canadian chartered bank r in shrt term depsit instruments f a Canadian chartered bank. As described in the ntes t the financial statements, the lans payable included bth a liability and equity cmpnent. As such, they have been accunted fr as a cmpund financial instrument. RISKS AND UNCERTAINTIES The explratin and develpment f mineral prperties invlves a high degree f risk, and the successful achievement f a prfitable peratin cannt be assured. Many explratin prgrams d nt result in the discvery f mineralizatin; mrever, mineralizatin discvered may nt be f sufficient quantity r quality t be prfitably mined. Csts f finding and evaluating an re bdy are substantial, and may take several years t cmplete. The Cmpany must vercme many risks assciated with an early stage explratin prperty. Outstanding items t be cmpleted include, but are nt limited t, identificatin and quantificatin f a cmmercially viable re bdy, cnfirmatin f the Cmpany s interest in the underlying claims and leases, cmpletin f a feasibility study, funding f all csts t a cmmercial perating venture, cmpletin f the permitting prcess, detailed engineering and prcurement f a prcessing plant, and cnstructing a facility t supprt the mining activity. Cnstructin and peratinal risks including, but nt limited t, equipment and plant perfrmance, metallurgical, envirnmental, cst estimatin accuracy, and wrkfrce perfrmance and dependability will all affect the prfitability f an perating prperty. External financing, primarily thrugh the issuance f cmmn shares, will be required t fund the Cmpany s activities. There can be n assurance that the Cmpany will be able t raise the requisite financing in the future. OUTSTANDING SHARE DATA AS OF AUGUST 14, 2018 Issued and utstanding cmmn shares 581,342,825 Share purchase warrants 16,153,845 Optins 46,440,000 Fully Diluted shares 643,936,670 MANAGEMENT S RESPONSIBILITY FOR FINANCIAL REPORTING Our management is respnsible fr establishing and maintaining adequate internal cntrl ver financial reprting. Any system f internal cntrl ver financial reprting, n matter hw well designed, has inherent limitatins. Therefre, even thse systems determined t be effective can prvide nly reasnable 7

8 Management s Discussin and Analysis f Financial Cnditin and Results f Operatins fr the 6 mnths ended June 30, 2018 assurance with respect t financial statement preparatin and presentatin. There have been n material changes in the Cmpany s internal cntrl ver financial reprting during the quarter ended June 30, 2018 that have materially affected, r are reasnably likely t materially affect, internal cntrl ver financial reprting. CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This MD&A includes "frward-lking statements", within the meaning f applicable securities legislatin, which are based n the pinins and estimates f Management and are subject t a variety f risks and uncertainties and ther factrs that culd cause actual events r results t differ materially frm thse prjected in the frward-lking statements. Frward-lking statements are ften, but nt always, identified by the use f wrds such as "seek", "anticipate", "budget", "plan", "cntinue", "estimate", "expect", "frecast", "may", "will", "prject", "predict", "ptential", "targeting", "intend", "culd", "might", "shuld", "believe" and similar wrds suggesting future utcmes r statements regarding an utlk. Such risks and uncertainties include, but are nt limited t, risks assciated with the mining industry, including peratinal risks in explratin, develpment and prductin; delays r changes in plans with respect t explratin r develpment prjects r capital expenditures; the uncertainty f reserve estimates; the uncertainty f estimates and prjectins in relatin t prductin, csts and expenses; the uncertainty surrunding the ability f the Cmpany t btain all permits, cnsents r authrizatins required fr its peratins and activities; and health, safety and envirnmental risks, the risk f cmmdity price and freign exchange rate fluctuatins, the ability f Harte Gld t fund the capital and perating expenses necessary t achieve the business bjectives f Harte Gld, the uncertainty assciated with cmmercial negtiatins and negtiating with freign gvernments and risks assciated with internatinal business activities, as well as thse risks described in public disclsure dcuments filed by the Cmpany. Due t the risks, uncertainties and assumptins inherent in frward-lking statements, prspective investrs in securities f the Cmpany shuld nt place undue reliance n these frward-lking statements. Statements in relatin t "reserves" r resurces are deemed t be frward-lking statements, as they invlve the implied assessment, based n certain estimates and assumptins, that the reserves r resurces described may be prfitably prduced in the future. Readers are cautined that the freging list f risks, uncertainties and ther factrs are nt exhaustive. The frward-lking statements cntained in this press release are made as f the date heref and the Cmpany undertakes n bligatin t update publicly r revise any frward-lking statements r in any ther dcuments filed with Canadian securities regulatry authrities, whether as a result f new infrmatin, future events r therwise, except in accrdance with applicable securities laws. The frwardlking statements are expressly qualified by this cautinary statement. August 14, 2018 Stephen G. Rman Stephen G. Rman Chairman, President and CEO Rein A. Lehari Rein A. Lehari Chief Financial Officer 8