Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020

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Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
Targeting a Large, High-Grade
Gold Discovery in Nevada

                                           Corporate Presentation

                                                      October 2020
TSXV: DHR OTC:DCHRF        Frankfurt:4GW
www.discoveryharbour.com
Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
Disclaimers                                                                                       TSX.V: DHR
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FORWARD LOOKING STATEMENTS
This presentation by Discovery Harbour Resources Corp. (the “Company”) contains forward-looking
statements, including, in particular, statements about the Company’s plans, strategies and prospects.

These statements have been based on the Company’s current assumptions, expectations and projections
about future events. Although the Company believes that the expectations reflected in these forward-looking
statements are reasonable, the Company can give no assurance that these expectations will prove to be
correct or that results anticipated in the forward-looking statements will be achieved.

These forward-looking statements include risks and uncertainties. These risks and uncertainties include,
among other things, market conditions, industry uncertainty and other factors.

QUALIFIED PERSON
Mark Fields, P.Geo., is the Qualified Person for Discovery Harbour as defined in NI 43-101 and has reviewed
and approved the technical contents of this presentation.
Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
KEEPING IT SIMPLE: WHY DISCOVERY HARBOUR?                                                             TSX.V: DHR
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 High grade gold in Nevada
    Caldera epithermal gold project in Nevada has numerous high grade gold results In historical
     shallow drill holes, surface samples and old workings.

 Never drilled deep to epithermal boiling zone
    Deepest historical drill hole only 194 meters, average historical drill hole
Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
Discovery Harbour Resources (DHR.V) - Overview                                    TSX.V: DHR
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           Excellent Share Structure        Targeting a Large, High-Grade, Gold
                                                    Discovery in Nevada

Shares Outstanding          94.3M
Warrants (1) (2)             78.4M
Options                       5.5M
Fully Diluted               178.2M

1.   77.4M @ $0.100
2.   37%-owned by insiders & institutions
Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
Richard Gilliam - Director & Strategic Investor      TSX.V: DHR
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Richard Gilliam, Director (16%)
 • Founder of Cumberland Resources, sold to
   Massey Energy for US$960M in 2010.
 • Built Cumberland Resources into major
   producer.
 • Cumberland employed 1,200 people at sale to
   Massey Energy.
 • Has been a director and major shareholder of
   Discovery Harbour since it went public in 2013.
Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
Institutional Ownership - 19%                                                          TSX.V: DHR
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              • Palisades Goldcorp is Canada's new resource focused merchant bank.
                Palisades' management team has a demonstrated track record of making
                money and is backed by many of the industry's most notable financiers.
                With junior resource equities valued at generational lows, management
                believes the sector is on the cusp of a major bull market move. Palisades is
                positioning itself with significant stakes in undervalued companies and
                assets with the goal of generating superior returns.
                                                                    Richard Gilliam
                                                                    37.4%
                                                                    Other Insiders
                                                                    2.2%
              • AlphaNorth Asset Management is a Toronto based investment manager.
                AlphaNorth believes that superior long term equity returns are achievable by
                exploiting inefficiencies in the Canadian small cap universe through careful
                security selection. The firm combines technical analysis with both a bottom-
                up and top-down strategy in the selection of investments offering the best
                reward versus risk opportunities.
Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
Leadership                                                                                                                        TSX.V: DHR
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     Track Record of Success: Exploration to Production/M&A
              Pine Valley Coal               Cumberland Resources sells                          Geodex Minerals forms JV, then
              constructs first new           company to Massey Energy                            sells remaining 30% stake to Hunter-
              metallurgical coal             for US$960M                                         Dickenson’s Northcliff Resources
              mine in northeast BC
  2005        in 25 years            2010                                       2010-12

                                                         Geologist, oversaw sale of Geodex Mineral’s key asset to Northcliff Resources
Mark Fields               President & CEO, Director      (Hunter Dickinson). Developed and built metallurgical coal mine with Pine Valley
                                                         Coal; recipient of EA Scholz award in 2012.

                                                         Mining entrepreneur. Founded and sold Cumberland Resources to Massey Energy
Richard Gilliam           Director                       for US $960 Million.

Andrew
                          Director                       Corporate and securities lawyer with extensive public company experience.
Hancharyk
                                                         25 years of experience working with resource companies in various capacities as
Jason Cubitt              Director                       founder, finance agent and institutional investor.

                          Vice President,                Chartered Financial Analyst, former analyst with Salman Partners, extensive capital
Rodney Stevens                                           markets experience.
                          Interim CFO, Director
Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
Media Coverage                                              TSX.V: DHR
                                                                   8

Newsletter Writer Recommendations By:
Greg McCoach
Brien Lundin
Gwen Preston

Mark Fields, President & CEO, and Rodney Stevens, Vice
President and Director, interviewing with newsletter writers
Greg McCoach and Gwen Preston

https://youtu.be/mxPAHi618_U

https://www.youtube.com/watch?v=1R4K55TxTnw
https://www.youtube.com/watch?v=mxPAHi618_U
Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
The Caldera Property - Overview                                                                                                 TSX.V: DHR
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Large land package, covering 6.5km of previously drilled near-surface vein mineralization

                                                  THE CALDERA PROPERTY

                        66km WNW of Tonopah, Nevada; at the intersection of two major gold trends (Walker Lane and
Location                Northumberland); surrounded by large epithermal gold deposits: Round Mountain (18M oz Au) Tonopah
                        (8M oz Au), Northumberland (4M oz Au), Paradise Peak (1.2M oz Au)
Large Land Package      30 km2, 6.5km strike length of previously drilled shallow mineralization on seven zones
                        Untested epithermal gold potential at depth with extensive near-surface shallow historical drilling;
Stage (pre-discovery)
                        Previous operators were searching for a large near surface, low-grade bulk-tonnage deposit
Target                  Large, high-grade, low sulphidation epithermal gold deposit at depth
                        Option to acquire 100% interest, subject to annual advance royalty payments and a 2% retained royalty
                        Title transfer upon having completed US$400,000 in advance royalty payments (paid $175,000 to date)
Ownership
                        Future advanced royalty payments: US$50,000 November 2020, US$50,000 May 2021, US$125,000
                        November 2021, US$150,000 November 2022 and thereafter (CPI adjusted)
Targeting a Large, High-Grade Gold Discovery in Nevada - Corporate Presentation October 2020
The Caldera Project – Historic Work                                                                                TSX.V: DHR
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Significant data collected on the Caldera Gold Project:
• Extensive historical database                          • 1,365 historical soil samples (mapped)
• 804 rock chip samples (mapped)                         • 142 drill holes (mapped)
• Geological mapping                                     • 15,072 meters drilled; average length only 113m
• Understanding of orientation of structures (WNW)       • Average vertical depth less than 100m
• Previous focus was discovery of shallow gold deposit   • Deepest vertical drill hole 194m, only 3 holes >160m
                                                           vertical depth

            Old prospect pit at Faustus Target Area                                   Veinlets in rock sample in
          Rock chip sample in pit assayed 48.9 g/t Au                                    Gemina Target Area
The Caldera Property – High Grade Gold                                                                                                TSX.V: DHR
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                 Historical Drilling Highlights                                                   • High grade results spread along 6.5 km strike length
Target   Area      Drill Hole   Grade
                                (g/t gold)
                                             Interval Length
                                             Feet (Metres)
                                                               Interval Depth
                                                               Feet (Metres)                      • Average vertical depth: less than 100 meters
7        Adara     CD07-2       2.75         10 ft (3.0m)      65-75 ft (19.8-22.9m)              • Drilling focused on finding near surface
9,10     Adara     CD07-3       0.99         20 ft (6.1m)      250-270 ft (76.2-82.3m)
7, 9     Adara     GW-10        8.33         25 ft (7.6m)      85-110 ft (25.9-33.5m)               bulk tonnage deposits
4        Adara     GW-5         0.69         5 ft (1.5m)       170-175 ft and (51.8-53.3m)
                                37.92        10 ft (3.0m)      335-345 ft        (102.1-105.2m)   • Never drilled below 200 meters vertical depth
11       Barak     GKL-10       0.68         10 ft (3.0m)      50-55 ft and     (15.2-16.8m)
                                0.68         25 ft (7.6m)      105-130 ft and   (32.0-39.6m)
                                1.13         5 ft (1.5m)       220-225 ft and   (67.1-68.6m)
                                0.75         5 ft (1.5m)       330-335 ft       (100.6-102.1m)
3        Adara     GKL-16       0.48         40 ft (12.2m)     260-300 ft and   (79.2-91.4m)        Many High
                                1.44         20 ft (6.1m)      340-360 ft       (103.6-109.7m)
4        Adara     EMC-14       4.11         20 ft (6.1 m)     45-65 ft (13.7-19.8m)
                                                                                                    Grade Rock
3        Adara     EMC-8        22.4         7 ft (2.2m)       144-151 ft (43.5-45.7m)              Samples from
                                                               (EOH, Ended in Mineralization)
3, 4     Adara     CD07-24                   5 ft (1.5m)       75-80 ft (22.9-24.4m)
                                                                                                    Surface
                                9.03
27       Faustus   EG-17        4.45         25 ft (7.6m)      110-135 ft (33.5-41.1m)
24       Faustus   EG-26        7.36         20 ft (6.1m)      70-90 ft (21.3-27.4m)
24       Faustus   EG-33        5.14         10 ft (3.0m)      30-40 ft (9.1-12.2m)
25       Electra   EG-36        2.33         20 ft (6.1m)      215-235 ft (65.5-71.6m)
29       Gemina    CLV-1        0.96         20 ft (6.1m)      55-75 ft (16.8-22.9m)
13, 14   Gemina    CLV-2        0.58         55 ft (16.8m)     40-95 ft (12.2-29.0m)
13       Gemina    GKL-35       1.09         35 ft (10.7m)     280-315 ft (85.3-96.0m)
22       Calista   GN97-3       2.74         10 ft (3.0m)      145-155 ft (44.2-47.2m)
21       Calista   GN97-4       3.19         5 ft (1.5m)       150-155 ft (45.7-47.2m)
19       Darius    GN97-10      6.16         5 ft (1.5m)       440-445 ft (134.1-135.6m)
Selected Historical Drill Holes, Gold-in-Soil                        TSX.V:
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                                            • Historical drill holes with
                                              intercepts greater than 5 grams-
                                              meter.
                                            • Discovery Harbour completed
                                              718 detailed soils in early 2020,
                                              merged historical soil data to
                                              provide more comprehensive soil
                                              database.
                                            • North to northwest structural
                                              controls evident in structural
                                              mapping, soil sampling, surface
                                              rock samples, magnetic data.
Conclusions From Discovery Harbour & Historic Work                               TSX.V:
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Checks all boxes for a potentially large, high-    Right location. Poised for Discovery.
grade, preserved low sulphidation epithermal
gold deposit:
 Exceptionally high grade rock chip and
  drilling in vein mineralization
 Historical shallow drilling along 6.5km of
  structures indicates the presence of a
  potentially large deposit
 Near-surface drilling results, without the
  presence of any base metals, likely
  intercepted the low-grade silica cap of an
  epithermal gold deposit at depth
 Surface characteristics support interpretation
  that epithermal system preserved
 8 areas with 33 targets mapped, ranked and
  described
Low Sulphidation Epithermal Gold Deposit Model                         TSX.V: DHR
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Never Drilled to Epithermal Gold Boiling Zone
Low sulphidation gold deposits can host bonanza
grades in the boiling zone, multi-million ounce mines             A B
(e.g. Midas, Sleeper, Comstock, McLaughlin, Hishikari,
Gosowong, El Penon,Cerro Blanco, Shovelnose)
• All previous drilling was near surface, targeting a low grade
  bulk tonnage deposit;
• Average vertical depth of holes:
Caldera Site Visits                             TSX.V:
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                 Mark Fields, President & CEO
                 Mark Baknes and Alan Morris,
                 Consulting Geologists
Selected Drilling Sites                                                            TSX.V: DHR
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10 Drill Sites Selected from 33 Targets      DRILL TARGETS
                                          • Targets evaluated using multiple data sets
                                          • 10 sites (A through J) chosen in 5 separate
                                            mineralized areas (Barak, Adara, Gemina,
                                            Darius &Faustus)

                                            PERMITTING
                                          • Exploration Plan of Operations submitted to
                                            USFS.

                                            DRILL
                                          • Planning for Fall drill program, drill holes to 300
                                            to 500 meters depth
Highlights of 10 Drill Sites                                                                                                                   TSX.V: DHR
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Drill Sites           Highlights
Structure A, B & C
        A          Strong continuous structure characterized by strong alteration, numerous old workings with rock samples including
                   assays of 8.2, 4.9, 15.6, 3.3 and 8.2 grams/tonne (“g/t”) gold with a high silver ratio, historical drilling consistently
                   intersected low grade mineralization indicative that this target is within the gold mineralized system.
        B          Gold and silver plus arsenic, mercury soil anomalies coincident with northwesterly structure, prominent regional
                   linear, previously untested by drilling.
        C          Good gold and silver soil anomalies coincident with bladed silica after calcite mineral textures supportive of gold
                   system intact below surface, rock samples include assays of 4.1 g/t gold.
Structure D & E (Extension of Structure of A, B & C?)
        D          Good sheeted stringer veins, strong silica alteration, poor rock exposure, historical drillholes include 6.1m@7.36
                   g/t gold and 3.0m @ 5.14 g/t gold.
        E          Rock samples from old workings include 48.9 and 22.4 g/t gold, historical drilling includes 7.6m @ 4.45 g/t gold.

Structure F, G, H , I, & J
         F            At intersection of 2 structures, broad zone of quartz and chalcedony alteration, rock samples include 36.9 and 14.5
                      g/t gold and a further 9 rock samples greater than 2 g/t gold, historical drillholes include 7.6m @ 8.33 g/t gold,
                      3.0m @ 2.75 g/t gold
         G            Rock sample assays continuously anomalous along 500 metre structure, 5 rock samples greater than 10 g/t gold
                      and a further 16 samples greater than 2 g/t gold, structural inflection prospective for gold deposition.
         H            Various old workings and historic small scale mining, rock samples include assays of 65.5 and 9.6 g/t gold with
                      anomalous silver, arsenic and antimony, historical drillholes include 6.1m @ 3.97 g/t gold.
        I,J           Historical drill holes include 2.2m@22.4 g/t gold, (which ended in mineralization at 45.7m), 3.0m @ 37.92 g/t gold,
                      1.5m @ 9.03 g/t gold and numerous old workings, locations provide flexibility subject to permitting.
WHY DISCOVERY HARBOUR?                                                                                TSX.V: DHR
                                                                                                          18

 High grade gold in Nevada
    Caldera epithermal gold project in Nevada has numerous high grade gold results In historical
     shallow drill holes, surface samples and old workings.

 Never drilled deep to epithermal boiling zone
    Deepest historical drill hole only 194 meters, average historical drill hole
Contact Information                                                      TSX.V: DHR
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Office Address                  Contacts
 Suite 1100 – 595 Howe Street   Mark Fields, P.Geo., B.Comm (Hon)
 Vancouver, British Columbia    President & CEO
 Canada V6C 2T5                 Office: 1.604.681.3170
 www.discoveryharbour.com       mfields@discoveryharbour.com

                                Rodney Stevens, CFA
                                Vice President, Interim CFO & Director
                                Office: 1.604.765.8657
                                rstevens@discoveryharbour.com
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