Announcement • Jun 18
Heritage Mining Ltd. Confirms Multiple Gold Bearing Veins At Depth and Commences Structural Study Lead by Brett Davis, At the Melba Project Heritage Mining Ltd. announced the confirmation of multiple gold mineralized veins at its Melba Project. Drill holes ML3800-001 (assays complete) and HML3800-002 (assays pending) are targeting multiple veins along trend of the "Blue Vein", where visible gold is described at surface from historical reports. The Melba Project is located ~22km northeast from Kirkland Lake and 90km southeast of Timmins in Northeastern Ontario, Canada. Assays are reported from drill hole ML3800- 001, which intersected multiple mineralized veins and returned: The Company is currently logging core from drill hole M3800-002 and has initiated the taking of oriented drill core structural measurements to determine the trend and dip of the multiple vein sets. This data will be incorporated into the geological model. Gold Mineralization occurs within a sheared Rhyolitic Tuff/Fragmental lithology comprising yellow- grey strongly siliceous, fragmental lithologies interbedded with narrow intervals of lithic wacke. Multiple gold bearing veins are very encouraging and adds significant exploration upside for the Melba Project. The mineralized zone is strongly structurally controlled, containing multi-generational veins hosting breccia-, shear- and extension-related features. Vein morphologies and overprinting relationships are products of multiple fluid ingress events, which are characteristic of large orogenic-style gold deposits globally. Diamond drill intersections suggest a braided system of shear-hosted veins with intervening altered wall-rocks in the damage zones. The braided character of the veins and the historical mapping from Melba underground workings have imparted variable orientations to mineralized and wall-rock structures, which will be assessed with a forward program of oriented core drilling. The Melba project is located ~22km northeast from Kirkland Lake and 90km southeast of Timmins in Northeastern Ontario, Canada. The project is comprised of ~3,886Ha. Melba lies along the Ross Fault, which is a splay off the Porcupine-Destor Fault Zone and is associated with development-stage and historic producing gold mines: McEwen Mine (Grey Fox Mine, +1Moz Au) ~22km away, and the Ross Mine (+1Moz Au) ~16km away. New Risk • May 29
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -CA$2.4m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-CA$2.4m free cash flow). Share price has been highly volatile over the past 3 months (18% average weekly change). Negative equity (-CA$231k). Earnings have declined by 27% per year over the past 5 years. Shareholders have been substantially diluted in the past year (58% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (CA$9.03m market cap, or US$6.55m). New Risk • May 05
New major risk - Negative shareholders equity The company has negative equity. Total equity: -CA$338k This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Negative equity (-CA$338k). Earnings have declined by 31% per year over the past 5 years. Shareholders have been substantially diluted in the past year (61% increase in shares outstanding). Revenue is less than US$1m. Market cap is less than US$10m (CA$6.77m market cap, or US$4.98m). 
