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Mon, May 31, 2010

Harte Signs Formal Option Agreement to Acquire 100% of Sugar Zone


Published on 2010-05-31 05:10:08 - Market Wire
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TORONTO, ONTARIO--(Marketwire - May 31, 2010) - Harte Gold Corp. ("Harte")(TSX VENTURE:HRT)(FRANKFURT:H4O) is pleased to announce that, further to its press release of March 8, 2010, Harte has entered into a formal option agreement (the "Option Agreement") with Corona Gold Corporation ("Corona") (TSX:CRG).

Under the terms of the original Letter Agreement between Corona and Harte, Harte made an initial cash payment to Corona of Cdn$10,000 and issued to Corona 7,180,000 Harte common shares and became the Operator of the project.

Pursuant to the Option Agreement, Harte has made a further cash payment to Corona of Cdn$2,000,000 and issued an additional 4,331,638 common shares. As a result of such issuance, Corona now holds an aggregate of 11,511,638 shares of Harte which represent 9.9% of the outstanding shares.

To acquire Corona's 51% joint venture interest in the Property and hold 100% of the Sugar Zone Property Harte must make the following additional payments to Corona:

  1. Cdn$90,000 in cash on or before each sixth month anniversary of the Option Agreement until payment of one of the amounts specified in paragraph (b) below; and
  2. Cdn$2,500,000 in cash on or before the second anniversary of the Option Agreement or, failing such payment, Cdn$3,000,000 in cash on or before the third anniversary of the Option Agreement.

The Option will be terminated and operatorship will revert to Corona if Harte fails to make any of the additional cash payments described above.

Stephen G. Roman, President and CEO commented that "Harte is very pleased to have entered into a formal option agreement with Corona on the Sugar Zone Property. The opportunity to own 100% of an NI 43-101 compliant inferred resource of 904,400 tonnes grading 9.75 g/t Au for 284,000 ounces of contained gold represents a significant step forward for Harte. As Operator, we are looking forward to conducting comprehensive and sustained exploration programs focused on increasing the size of the known resource and exploring several high priority target areas at Sugar Zone."

About Harte Gold Corp.

Harte Gold Corp. is a Canadian gold exploration company with interests in the Sugar Zone and Stoughton-Abitibi properties located in Ontario, Canada. The Sugar Zone Property is located 60 kilometres east of the Hemlo Gold Camp in White River, Ontario, and holds an NI 43-101 compliant inferred resource of 904,400 tonnes grading 9.75 g/t Au for 284,000 ounces of contained gold. Harte currently owns a 49% interest in the Sugar Zone Property and has the option to acquire the remaining 51%.

The Stoughton-Abitibi property is located on and adjacent to the Destor-Porcupine Fault Zone in close proximity to the 2.5 million ounce Holloway-Holt Gold Mine in the Timmins Porcupine gold camp.

George Flach P.Geo, Vice-President of Exploration for Harte is the Qualified Person (QP) as defined by National Instrument 43-101 and he has reviewed the technical information contained herein.

Common Shares outstanding: 116,279,169


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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