February 2019
Forward-Looking Statements This presentation is for the purpose of providing information regarding the Company, including management’s assessment of the Company’s future plans and operations. Certain statements set forth in this presentation are forward looking with the meanings of Section 27A of the Securities Act of 1933, as Amended, and Section 21E of the Securities Exchange Act of 1934, as Amended. All statements other than statements of historical nature included in the presentation, including, without limitation, statements regarding the Company’s future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward looking statements. In addition, forward looking statements generally can be identified by the use of forward looking terminology such as “may,” “will,” “expect,” “intend,” “project,” “estimate,” “anticipate,” “believe,” or “continue” or the negative thereof or similar terminology. Although any forward-looking statements contained in this presentation are, to the knowledge or in the judgment of the officers and directors of the Company, believed to be reasonable, there can be no assurances that any of these expectations will prove correct or that any of the actions that are planned will be taken. Forward looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual performance and financial results in future periods to differ materially from any projection, estimate or forecasted results. Some of the key factors that may cause actual results to vary from those the Company expects include inherent uncertainties in interpreting engineering and reserve or production data; operating hazards; delays or cancellations of drilling operations because of weather and other natural and economic forces; fluctuations in mineral prices in response to changes in supply; competition from other companies with greater resources; environmental and other government regulations; defects in title to properties; increases in the Company’s cost of borrowing or inability to raise, or unavailability of, capital resources to fund capital expenditures; and other risks. Please refer to the Company’s filings on www.sec.gov. 2
Corporate Overview Symbol: SRGZ Market: OTC Markets Price: $0.05 52-week Range: $0.02 – $0.300 Shares Outstanding: 77.4 million Market Capitalization: $3.9 million Warrants Outstanding: 30.7 million (Wtd avg exercise price of $0.17) Options Outstanding: 6.7 million (Wtd avg exercise price of $0.07) Insiders: 26.9 million (34.9%) 3
Star Gold Opportunity Nevada stable mining jurisdiction Main Target has a mineable pit designed with low OPEX Substantial expansion of pit potential Commence baseline environmental studies Management aligned with investors 4
Management Lindsay Gorrill Chairman • 25 years experience in the Recent mining company successes resource sector; from Canada Fluorspar, Inc. exploration to development, Sold to Golden Gate Capital in 2014 for production and marketing. $39 million. Built mine and plant to operation. • 20 years experience in Quinto Mining Corp. company building, both Former Director, CFO and Shareholder – Quinto Mining sold to Consolidated Thompson nationally and internationally. for $175 million, deal closed early 2008. Iron • Director of several resource- Ore Exploration properties that were developed and then ultimately sold. based public companies. • Permitted successfully five mines 5
Management/Directors David Segelov Kelly Stopher President Chief Financial Officer • Primarily focused on resource companies • Twenty two years corporate, financial and in the USA, Australia and Canada with an strategic planning experience. emphasis in gold investments. • Financial reporting and modeling for small- • Sole Partner of Reverse Swing Capital, a cap companies. financial consulting firm. • Structuring and negotiating financial • Chartered Financial Analyst (CFA). transactions. • Masters of Business Administration (MBA), • Bachelor of Business Administration Columbia University; Law Degree (LLB), (Accounting), Washington State University. Sydney University. 6
Management/Directors Ron Nilson Paul Coombs Tom Power President and Director Director CEO of Ground Force • Mr. Coombs has over fifteen years of • Mr. Power is President and CEO of Sunshine • Ron Nilson is the President and CEO of experience in the exploration and development Minting, Inc. He also is Chairman of the Board Ground Force Worldwide (“Ground Force”) of gold mining properties in North America, of Sunshine Minting International (Shanghai) based in Post Falls, Idaho. Europe and Africa. Co. Ltd which is a joint venture between Mr. Nilson has run Ground Force since 2000. Sunshine Minting, Inc. and Shanghai JinYuan • Mr. Coombs structured and supervised the • Ground Force is an engineering Culture Development Co. Ltd., for the financial operations for Falconbridge Ltd, and manufacturing company, specializing in production of precious metal blanks and Noranda Inc. and Xstrata PLC’s North mining equipment. products in Shanghai, China. American gold production. • Ground Force designs, engineers and • Mr. Power has over 26 years experience in • At the height of his responsibility, Mr. Coombs manufactures specialized equipment to be the precious metals and minting fields. He managed responsibilities of hedging, selling used in open pit and underground mines began his career in this field with Johnson and refining of more than 1 million ounces of around the world. It is a company with global Matthey Ltd., the Canadian division of gold annually. More recently, he was CFO of reach – operating three factories in north Idaho Johnson Matthey PLC based in the United the Canadian company Canada Fluorspar Inc., and factories in Newcastle, England and in Kingdom. During his tenure with Johnson which was previously listed on the TSXv Lima, Peru. Matthey, Mr. Power held several key exchange. management positions in both Operations • Ground Force is licensed by Caterpillar Inc. as and Sales. • Additionally, Mr. Coombs has worked an OEM Manufacturer and continues to build extensively in West Africa developing producing many of its products based on Caterpillars’ • In May 1997, Mr. Power joined Sunshine gold mines for Endeavour Mining in Burkina chassis. Minting, Inc., as a key member of the senior Faso and exploration projects in Mali, Ghana management team. In January 2007, Mr. and Cote d’Ivoire. Power successfully acquired 100% ownership of Sunshine Minting, Inc. and assumed the • Mr. Coombs completed his undergraduate work role of its President and CEO. Under his at Memorial University in St. John’s, tenure Sunshine Minting, Inc. has grown from Newfoundland, Canada earning a Bachelor of a small regional supplier of products with 30 Commerce, followed by both C.M.A. and C.G.A employees to a large multi-national designations. After working for Falconbridge for corporation which in 2014 employs 450 several years Mr. Coombs completed his MBA people with 2 operations in the United States, at Laurentian University in Sudbury, Ontario, and with offices and agents in Canada, South Canada. America and Europe with total revenue of approximately $1 billion. 7
Nevada Prolific Gold Belt • Pro-mining laws Produces 74% • Politically stable of U.S. Gold • Infrastructure to host and maintain world class operations with a number of Ranked 4 th existing large scale mines in World for • Weather conducive to year-round mining Gold Production • Educated labor force 5.64m Oz. in 2017* Source: * Nevada Mining Association 8
Longstreet Project Property Map Round Mountain Midway Tonopah EXCALIBUR LONGSTREET PROJECT PROJECT JET PROJECT Las Vegas 9
Longstreet Project Location Map Meters Road to Main Spire 1.6 miles North North Slope Opal Main Ridge Red Knob Cyprus Ridge N Shaded area is Star Gold staked property 10
Longstreet Aerial Road to Main 1.6 miles Road to Tonapah 50 miles N Feet Meters Main target 0 500 1000 1500 2000 0 200 400 600 11
Longstreet Site Plan 8 LONGSTREET Distinct Targets 12
Drilling Longstreet (Main) 13
Side Profile on Main Target 14
The Difference in Gold Deposits Low Grade Sulfide vs Low Grade Oxide Dramatically Different Economics Sulfide Oxide • High capital costs - need a • Scalable capital costs which is sized threshold of 2m to 5m oz of low to the resource discovered. grade sulfide to justify a $300 to • Heap leaching well understood in $700m million. Nevada. • Necessitates continual cycle of • Operating costs – cost of treating raising money and drilling until 1/5 of sulfide. reach the requisite oz threshold. • Rare – less than 100 leach pads in • Operating costs - cost of treating the world. ore 5x that of oxide as you need to crush and mill the rock to extract the gold.* *Source: Round Mountain, Senior Geologist, Mr Craig Pickens October 2012 15
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