Elemental Royalties

Harvest Signs LOI to Amalgamate with Canasur Gold Ltd.

Vancouver, BC / TheNewswire / February 17, 2016 - Harvest Gold Corporation (TSX.V: HVG) (the "Company") is pleased to announce that it has executed a Letter of Intent (LOI) dated February 16, 2016 with Canasur Gold Ltd. ("Canasur"), a private arm's length Nova Scotia company with mineral interests in Suriname.

The LOI provides for the amalgamation of Canasur with Harvest (the "Amalgamation") by way of a three cornered amalgamation under the B.C. Business Corporation Act whereby Canasur would continue into British Columbia and amalgamate with a newly formed subsidiary of Harvest. In connection with the Amalgamation shareholders of Canasur would collectively receive 16,247,008 shares of Harvest, representing 2/3 of the issued and outstanding shares of Harvest prior to the completion of the equity financing detailed below.

In connection with the Amalgamation, Harvest plans to complete an equity financing of up to $1,000,000 (minimum $650,000) by way of the issuance of units at $0.05, with each unit to be made up of a share and a warrant entitling the holder to acquire a further share of Harvest at $0.10 for a term of two years. Finder's fees may be paid in connection with the financing.

On closing of the Amalgamation it is proposed that Joel Matheson, a director of Canasur, will be appointed to the Board of Directors of Harvest.

The Amalgamation remains subject to completion of satisfactory due diligence, execution of a definitive agreement and receipt of all requisite regulatory approvals, including the acceptance of the TSX Venture Exchange and the approval of the shareholders of Canasur.

Harvest's President and CEO Rick Mark states: "This opportunity came to us through my relationship with David Mosher, who is on the Canasur Board and also sits on the Harvest Board (see news release of January 7, 2016). His personal history of discovery around the world includes his time as President and CEO of High River Gold in the West African Greenstone Belt in Burkina Faso in the late 1990's and early 2000's. He and his team extrapolated the rich gold belts of Ghana north through the Burkina Faso border believing there was no geological reason for the belt to stop there. Today, there are 6 deposits in production in Burkina Faso, two that High River discovered."

"When Dave was approached by the Founders of Canasur, they had already begun to establish relationships and acquire sizable concessions in Suriname, a relatively unexplored, mining friendly country in South America. What was analogous to his High River experience in Burkina Faso was the continuation of that same rich West African Greenstone Belt, except here the continuation of the belt was separated by millions of years and the Atlantic Ocean, not a nearby border. Suriname already hosts two multi-million ounce gold deposits"

"The timing regarding the recent rise in the price of gold is excellent for Harvest and Canasur shareholders. We are now raising initial capital to position ourselves as a public Company with a strong foundation in Suriname and a capital structure suitable to future financings in what we see as a continuing strong gold market. The Halifax group of investors is excited and looking forward to seeing their development efforts result in an effectively run, technically strong public Company primed for acquiring and developing assets and relationships in Suriname and surrounding gold friendly countries."

About Canasur

Canasur is a privately funded mining exploration company based in Halifax, Nova Scotia. Canasur has three fully registered mineral concessions on properties in Suriname, the Goliat-Tibiti, the Gonini River and the Oelemari concessions.

As result of the strong relationships built in Suriname by the Founders and Board of Canasur, a valuable 15 year exploitation license was granted in 2015 on their first project, Goliat-Tibiti concession. This solidifies the company's position in Suriname and enhances the prospects on Goliat-Tibiti. The Company also plans to renew its Gonini River and Oelemari concessions.

The Goliat-Tibiti Project

The Goliat-Tibiti Project is located in east central Suriname, South America in the district of Sipaliwini. The concession is located approximately 140 kilometers south of Paramaribo, the capital city of Suriname. It is at the favourable junction for gold mineralization near the break between the greenstone belt and the high grade gneisses of west Suriname.

Significant historic and recent small scale gold mining of alluvial material has occurred on the concession. The primary target on the property is the structurally controlled gold mineralization, similar to the mines and multi-million ounce deposits at nearby Rosebel (Iamgold) and Merian (Newmont).

The Gonini River Concession

This concession consists of 14,000 hectares and is located in the South Eastern region of Suriname, in the Sipaliwini district, east of the Gonini River. It is approximately 230 km from Paramaribo, the capital city of Suriname. It lies adjacent to the Benzdorp gold district. A major structural zone that is gold-bearing elsewhere also passes close to this concession. The Benzdorp district is one of the more active areas of small scale mining by locals and Brazilians in Suriname and has a long history of mining.

The Oelemari Concession

This concession consists of 12,000 Hectares. It is located in the South Eastern region of Suriname, in the Sipaliwini district, adjacent to the Oelemari River. It is approximately 300 km from Paramaribo, the capital city of Suriname. This area has promising indications of gold.

About Suriname

Suriname (formerly Dutch Guiana), officially the Republic of Suriname, is a country in northern South America. Suriname is the smallest sovereign state in terms of area and population in South America. The country is the only Dutch-speaking region in the Western Hemisphere which is not a part of the Kingdom of the Netherlands. Suriname is extremely diverse ethnically, linguistically, and religiously; a multi-ethnic society of about 495,000 people, living in a country 3 times the size of Nova Scotia (163,800 km2). It is located on the Caribbean coast of South America, between Guyana and French Guyana. The official language is Dutch

Suriname participates in the Amazonian Pact, a grouping of the countries of the Amazon Basin that focuses on protection of the Amazon region's natural resources from environmental degradation. Reflecting its status as a major bauxite producer, it is also a member of the International Bauxite Association.

The country also belongs to the Economic Commission for Latin America, the Inter-American Development Bank, the International Finance Corporation, the World Bank, and the International Monetary Fund.

Suriname's economy has been dominated by the exports of alumina, oil, and gold. Suriname is in the early stages of attracting large gold mining industry players, including IamGold and Newmont. Prior to IamGold's Rosebel Mine, all operations were for alluvial gold. Newmont is presently developing the Merian Mine at a cost of approximately $1B.

Dr. Dennis J. LaPoint, a consultant to the Company, is the Qualified Person who approved the scientific or technical information contained herein.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of Canadian securities legislation. Forward looking information in this press release includes information about the completion and timing of the proposed transaction between Harvest and Canasur and the potential benefits thereof. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those anticipated, including, the contemplated transaction not being completed as a result of a number of factors including , without limitation, the shareholders of Canasur not approving the transaction, or required regulatory approvals not being obtained, the possible failure to realize the anticipated expected benefits of the transaction; and other risks and uncertainties. Readers should not place undue reliance on the forward-looking information contained in this news release. Harvest does not undertake to update any forward-looking information, except as required by applicable securities laws.

ON BEHALF OF THE BOARD OF DIRECTORS

Rick Mark,
CEO
Harvest Gold Corporation

For more information please contact:

Rick Mark or Jan Urata
@ 604.682.2928 or
info@harvestgoldcorp.com

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.

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Copyright (c) 2016 TheNewswire - All rights reserved.

MORE MINING NEWS

GET DAILY NEWS FLOW

Sign Up To Receive All Morning
News To Your Email Inbox

Please review our Disclaimer and Privacy Policy before subscribing.

EAGLE ROYALTIES (CSE: ER)

Eagle Royalties

Eagle Royalties holds a diverse portfolio of more than 35 royalty interests in western Canada. Target commodities subject to royalties include a broad spectrum including critical metals, precious metals, industrial minerals and diamonds... LEARN MORE