February 2019 Forward-Looking Statements This presentation is for - - PowerPoint PPT Presentation

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

• perations, 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.

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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%)

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Star Gold Opportunity

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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

Management

• 25 years experience in the

resource sector; from exploration to development, production and marketing.

• 20 years experience in

company building, both nationally and internationally.

• Director of several resource-

based public companies.

• Permitted successfully

five mines

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Recent mining company successes

Canada Fluorspar, Inc. Sold to Golden Gate Capital in 2014 for $39 million. Built mine and plant to operation. Quinto Mining Corp. Former Director, CFO and Shareholder – Quinto Mining sold to Consolidated Thompson for $175 million, deal closed early 2008. Iron Ore Exploration properties that were developed and then ultimately sold.

Lindsay Gorrill Chairman

Management/Directors

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• Primarily focused on resource companies

in the USA, Australia and Canada with an emphasis in gold investments.

• Sole Partner of Reverse Swing Capital, a

financial consulting firm.

• Chartered Financial Analyst (CFA).
• Masters of Business Administration (MBA),

Columbia University; Law Degree (LLB), Sydney University. Kelly Stopher Chief Financial Officer

• Twenty two years corporate, financial and

strategic planning experience.

• Financial reporting and modeling for small-

cap companies.

• Structuring and negotiating financial

transactions.

• Bachelor of Business Administration

(Accounting), Washington State University. David Segelov President

Management/Directors

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Tom Power Director Paul Coombs Director

• Mr. Coombs has over fifteen years of

experience in the exploration and development

• f gold mining properties in North America,

Europe and Africa.

• Mr. Coombs structured and supervised the

financial operations for Falconbridge Ltd, Noranda Inc. and Xstrata PLC’s North American gold production.

• At the height of his responsibility, Mr. Coombs

managed responsibilities of hedging, selling and refining of more than 1 million ounces of gold annually. More recently, he was CFO of the Canadian company Canada Fluorspar Inc., which was previously listed on the TSXv exchange.

• Additionally, Mr. Coombs has worked

extensively in West Africa developing producing gold mines for Endeavour Mining in Burkina Faso and exploration projects in Mali, Ghana and Cote d’Ivoire.

• Mr. Coombs completed his undergraduate work

at Memorial University in St. John’s, Newfoundland, Canada earning a Bachelor of Commerce, followed by both C.M.A. and C.G.A

• designations. After working for Falconbridge for

several years Mr. Coombs completed his MBA at Laurentian University in Sudbury, Ontario, Canada.

• Ron Nilson is the President and CEO of

Ground Force Worldwide (“Ground Force”) based in Post Falls, Idaho.

• Mr. Nilson has run Ground Force since 2000.
• Ground Force is an engineering

and manufacturing company, specializing in mining equipment.

• Ground Force designs, engineers and

manufactures specialized equipment to be used in open pit and underground mines around the world. It is a company with global reach – operating three factories in north Idaho and factories in Newcastle, England and in Lima, Peru.

• Ground Force is licensed by Caterpillar Inc. as

an OEM Manufacturer and continues to build many of its products based on Caterpillars’ chassis.

Ron Nilson President and CEO of Ground Force

• Mr. Power is President and CEO of Sunshine

Minting, Inc. He also is Chairman of the Board

• f Sunshine Minting International (Shanghai)
• Co. Ltd which is a joint venture between

Sunshine Minting, Inc. and Shanghai JinYuan Culture Development Co. Ltd., for the production of precious metal blanks and products in Shanghai, China.

• Mr. Power has over 26 years experience in

the precious metals and minting fields. He began his career in this field with Johnson Matthey Ltd., the Canadian division of Johnson Matthey PLC based in the United

• Kingdom. During his tenure with Johnson

Matthey, Mr. Power held several key management positions in both Operations and Sales.

• In May 1997, Mr. Power joined Sunshine

Minting, Inc., as a key member of the senior management team. In January 2007, Mr. Power successfully acquired 100% ownership

• f Sunshine Minting, Inc. and assumed the

role of its President and CEO. Under his tenure Sunshine Minting, Inc. has grown from a small regional supplier of products with 30 employees to a large multi-national corporation which in 2014 employs 450 people with 2 operations in the United States, and with offices and agents in Canada, South America and Europe with total revenue of approximately $1 billion.

Nevada Prolific Gold Belt

• Pro-mining laws
• Politically stable
• Infrastructure to host and

maintain world class

• perations with a number of

existing large scale mines

• Weather conducive to

year-round mining

• Educated labor force

Produces 74%

• f U.S. Gold

Ranked 4th

in World for Gold Production

5.64m Oz.

in 2017*

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Source: * Nevada Mining Association

Longstreet Project Property Map

LONGSTREET PROJECT Round Mountain Midway Tonopah Las Vegas EXCALIBUR PROJECT JET PROJECT

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Longstreet Project Location Map

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Main

N

North Slope Cyprus Ridge Red Knob North Spire Opal Ridge Road to Main 1.6 miles

Meters

Shaded area is Star Gold staked property

Longstreet Aerial

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Main target Road to Tonapah 50 miles Road to Main 1.6 miles

N

Feet Meters

200 400 600 0 500 1000 1500 2000

Longstreet Site Plan

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LONGSTREET

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Distinct Targets

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Drilling Longstreet (Main)

Side Profile on Main Target

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The Difference in Gold Deposits

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Low Grade Sulfide vs Low Grade Oxide Dramatically Different Economics

Oxide

• Scalable capital costs which is sized

to the resource discovered.

• Heap leaching well understood in

Nevada.

• Operating costs – cost of treating

1/5 of sulfide.

• Rare – less than 100 leach pads in

the world.

Sulfide

• High capital costs - need a

threshold of 2m to 5m oz of low grade sulfide to justify a $300 to $700m million.

• Necessitates continual cycle of

raising money and drilling until reach the requisite oz threshold.

• Operating costs - cost of treating
• re 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

Main Target Block Model – Agnerian Technical Report

16 At a pit discard cut-off grade of 0.137 g/t Au the Mineral Resources of the Main Zone of the Longstreet property total approximately 4.4 million tonnes of Indicated Mineral Resources at an average grade of 0.64 g/t Au (0.022 oz/t) and 15.6 g/t Ag (0.55 oz/t), containing approximately 91,000 ounces of gold and 2.2 million ounces of silver, and 305,000 tonnes of Inferred Mineral Resources at an average grade of 0.48 g/t Au (0.017

• z/t) and 14.6 g/t Ag (0.51 oz/t),

containing approximately 4,750 ounces

• f gold and 143,000 ounces of silver.

The Longstreet Mineral Resources are contained in a conceptual open pit, and comprise approximately 84% of the global Mineral Resources, with an ore-to-waste strip ratio of 1:0.56. http://www.stargoldcorp.com/pre sentation/disclaim1.php?dest=A gnerianLongstreetTechnicalRep

• rtDec2013.pdf

Metallurgy at Longstreet

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Excellent leachability of gold at Main Zone

Longstreet – Gold and Silver Leach Rate Profiles, Column Leach Tests, Longstreet Composites, 80%-19mm Feed Size. At 10mm – Silver recovery is

• approx. 60%.

McClelland Laboratories Inc. 90 80 70 60 50 40 30 20 10 100 20 40 60 80 100 120 140 160 200 Surface Au Surface Ag Underground Au Underground Ag Leach Time, Days. Cumulative Recover, %of total Master Au Master Ag

Scoping Study 2014

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29% IRR (pre tax) and 24% IRR (post tax) at base case of $1350 gold per oz Operating costs of $760 (when combined with silver) - diesel $3.40 gallon. Strip ratio of 0.7 to 1 with a simple open pit. CAPEX 25.4m 4.4 year mine life with approximately 20,000 oz AU Eq per year New design and costs underway.

Re-Thinking the Longstreet Mine Plan

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Significantly better economic thinking from 2014 Scoping Study

Advantages of placing leachpad near the Longstreet hill (position about 400 feet away). No need to build significant road. Hauling costs substantially reduced. Less heavy equipment needed. No environmental issues of bird LEKs. Leads to dramatically lower CAPEX and better OPEX.

Permitting Process

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Step

1

Step

2

Step

3

Submission of the following reports:

 Wildlife and Biological

Baseline Study (WBS)

 Cultural and Archeology

Study  Hydrology Study  Plan of Operations Development

 COMPLETED  NEARLY COMPLETE

 IN PROGRESS

Granting of permission to proceed to a formal Environmental Impact Study (“EIS”). Permission is not automatically granted and the relevant agencies may request further clarifications prior to granting permission to commence an EIS. Once permission is granted, we expect it to take about five months to complete the EIS. Publishing the EIS and conducting the public comment period, followed by the issuance of a permit to mine the Project.

Star Gold Opportunity

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Permitting Underway New design and costs underway Substantial expansion potential Low capital costs with a goal to production Management aligned with investors with 35%+ ownership

Gold Hosting Rhyolite Tuft at Main Target

Cautionary Statement Regarding Mineral Resources

Information that may be released by the Company in the future uses the terms "resources", "measured resources", "indicated resources" and "inferred resources". United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Mineral resources that are not mineral reserves do not have demonstrated economic viability. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Inferred resources are in addition to measured and indicated resources. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in this presentation and in presentations by the Company in the future, have been or will be prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. The requirements of NI 43-101 are not the same as those of the SEC. The terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves , adopted by the CIM Council, as amended. These definitions differ from the definitions in the United States Securities and Exchange Commission ("SEC") Industry Guide 7 under the United States Securities Act of 1933, as amended (the "Securities Act"). Under SEC Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that all or any part of a mineral deposit in these categories will ever be converted into reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures.

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Cautionary Statement Regarding Mineral Resources

Subject to the forgoing Cautionary Statement, the following are the definitions of the terms used in the Longstreet NI 43-101 Report: NI 43-101 Definitions: “Indicated mineral resource”: The term "indicated mineral resource" refers to that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be established with a level of confidence sufficient to allow the appropriate application

• f technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on

detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. ”Inferred mineral resource”: The term "inferred mineral resource" refers to that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. “Measured mineral resource”: The term "measured mineral resource" refers to that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

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