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Manitou Gold.inc

(TSX-V: MTU)Recommendation - BUY;

Target Price - $0.10 - $0.15

April 17, 2019

SUBSTANTIAL LAND POSITIONS IN TWO

SIGNIFICANT GOLD DISTRICTS

UTILIZING ARTIFICIAL INTELLIGENCE IN MINING

IN PARTNERSHIP WITH

2Manitou Gold (TSX-V: MTU) | Recommendation - BUY; Target Price - $0.10 - $ 0.15 | April 17, 2019

Unlocking Potential in Geologically Prospective DistrictsManitou Gold Inc. is a Canadian exploration company with an experienced discovery team and large land package of highly prospective gold properties located in the GoldRock Camp the Goudreau Lake Deformation Zone (“GLDZ”) District of Northwestern Ontario. The company is publicly listed and trades on the Toronto Stock Exchange under the symbol “MTU”.

We are initiating coverage of Manitou Gold with a BUY recommendation and C$ 0.10 - $ 0.15 per share target price.

Projects in Two Re-Emerging Regions of Geological Importance in OntarioManitou is in the process of identifying, investigating, evaluating and acquiring under explored gold properties in geologically proven gold districts in Canada. With the acquisition of key properties in two prominent gold belts - the GoldRock Camp and the GLDZ District area - the company’s added exposure increases upside potential and diversifies the company’s technical risks.

Manitou Gold’s Kenwest project, located in the GoldRock Camp of Ontario, hosts 61 known gold occurrences and three past producing mines, including Kenwest Gold Mine, which operated from 1906-1909, and again from 1941-1943. Additionally, Manitou owns three other projects in the GoldRock Camp: Gaffney, Sherridon and Canamerica.

The GLDZ is a geologically prolific area for gold in Northern Ontario, Canada. It can be subdivided into two structural domains based on the style of deformation - the northern and the southern zones. The northern domain hosts Argonaut Gold’s Magino Mine, the Lochalsh Zone, Kremzar Mine, Edward’s Mine, Cline Lake Mine and Alamos Gold’s Island Lake Gold Mine. Manitou holds two properties in the northern deformation zone, and another two in the southern deformation zone. The northern zone is more accessible than the southern zone, which has historically equated to greater exploration dollars deployed, and hence discoveries made. Manitou Gold has the Goudreau Patents, Markes A Zone, and Dog Lake properties in the northern zone of the GLDZ Gold District, and the Rockstar and Midas in the southern zone.


Initiating Coverage with A Buy Rating And A C$ 0.10 - $ 0.15 Per Share Target PriceManitou Gold has acquired gold properties in two of Canada’s most geologically prospective gold belts. The company has five properties within the GLDZ Area covering over 6,000 hectares, and four properties within the GoldRock Camp spanning in excess of 20,000 hectares. The GoldRock Camp and GLDZ area together have produced over 6 Moz of gold to date. Both areas host a high level of mining activity, with numerous mining companies evaluating potential gold projects.

Some of Manitou Gold’s properties have significant exploration data available, either from past owners or from work completed by Manitou. The geological data available on Manitou’s five GLDZ properties suggests a good chance of finding an economic gold deposit, however only limited exploration has been completed on any of the five properties within the GLDZ Area. Normally for valuation we employ a discounted cash flow model and enterprise value per ounce of resource methods. As Manitou’s projects are in early stage exploration, with no outlined resources, traditional metrics are not possible. Nontraditional methods are by nature more speculative, but include money spent on exploration, enterprise value per ounce based on estimated resource, and current market demand for MTU shares. Our valuation is the result of a combination of these three methods.

We are initiating coverage on Manitou Gold with a BUY recommendation and C$ 0.10 - 0.15 per share target price.


Assets in Canada: Low Political RiskA deposit’s jurisdiction affects its risk level and the risk-adjusted rate used for discounting cash flows for valuation. All of Manitou Gold’s projects are all located in Ontario, Canada. Ontario is one of the most mining-friendly jurisdictions worldwide, with active government support for the mining industry. Location of both gold districts in Ontario carries less investment risk than comparable deposits in less stable jurisdictions like South American or Africa. As such, mining industry investors pay a premium for companies with assets in safer, more favorable jurisdictions like Canada and the US.

Projects Located in Multi-Million Ounce DistrictsThe GLDZ District is already home to several multi-million ounce gold projects, with past production of over 3.5 Moz of gold. The district has produced mines at the Island Gold, Magino, Kremzar, Edwards, Cline, Renabie, Wawa Area and Eagle River areas. Table 1 is a summary of gold produced from several past producing mines in the GLDZ District.

INVESTMENT POSITIVES


Gold Recovered from Mini Bulk Sample at Kenwest in 2018. Source: Manitou Gold Inc.

Figure 1: Manitou Properties in the GLDZ District


Mine Township Years of Production Tons Milled

Production (oz gold)

Grade (oz/ton)

Alden-Goudreau Cowie 1937, 1940, 1943, 1945 13.479 3.220 0,24

Centennial Naveau 1939-1940 8.612 610 0,07

Cline Jacobson 1938-1940, 1947-1948 331.842 63.328 0,19

Darwin/Grace McMurray 1902-1903, 1907-1908, 1910, 1923, 1925, 1930, 1935, 1937, 1940, 1943-1944 45.528 15.191 0,33

Deep Lake McMurray 1936-1938, 1943 2.790 1.633 0,59

Eagle River Point Isacor 1995-2017 3.914.716 1.142.605 0,30

Edwards Jacobson 1938 1.537 485 0,32

1997-2002 389.858 139.692 0,33

Holdsworth Prospect Corbiere 1933 60 10 0,17

Island Gold Finan 2007-2017 2.444.733 526.941 0,26

Kremzar Finan 1988-1990 392.858 37.678 0,10

Magino/Algoma Summit Finan 1930-1940, 1988-1992 885.305 114.319 0,13

Magnacon Mishibishu Lake 1989-1990 165.000 15.356 0,09

Minto (includes Jubilee and Cooper) McMurray 1929-1942 184.600 37.678 0,20

Mishi Mishibishu Lake 2002-2007, 2012-2017 713.793 52.618 0,09

Murphy/Algold/Amherst Abotossaway 1926-1932, 1936-1938, 1940 23.211 2.450 0,10

Norwalk/Manxman Naveau 1904, 1910 820 60 0,07

Parkhill McMurray 1902, 1929, 1930-1938, 1940-1944 125.778 54.301 0,43

Ranson Rabazo 1939 774 156 0,20

Renabie Leeson 1947-1970, 1981-1991 5.583.895 1.100.000 0,20

Smith/Van Sickle McMurray 1935-1936 9.228 536 0,06

Stanley McMurray 1936 1.963 84 0,04

Surluga McMurray 1968-1969, 1988-1989 87.460 8.898 0,10

17.007.192 3.682.876 0,20

Table 1: Summary Of The Gold Production From Current And Past Producing Mines In The GLDZ District

Source: Hees, E.H., Pace A, Bustard, A., Gomwe, T.S., Bousquet, P.Daniels, C.M. Wilson, A.C. Streit, L. Program,Timmins Regional Resident Geologist Report: Timmins and Sault Ste. Marie Districts, Ontario Geological Survey,

Open File 6339, 117 p


Additionally, the GoldRock Camp also has several past producing mines, including the Big Master, Laurentian and Elora Mines. All of Manitou Gold’s properties are strategically located in the vicinity of large deposits and/or past producing or currently producing gold mines.

Strategic Partnership With Goldspot DiscoveriesBased in Toronto, GoldSpot Discoveries is the first company in the resource industry to use artificial intelligence and machine learning to target mineral exploration on a regional and localized scale. GoldSpot’s technology examines and cleans a company’s geological and geophysical data, then analyses the refined data to identify the most prospective areas for exploration. Their team includes 24 technical experts across Earth Sciences and Data Sciences, as well as 9 PhDs in geology and data science.

With the potential to revolutionize mineral exploration, Goldspot is backed by, and has partnered with, some of the industry’s most respected names: Yamana Gold, Hoschchild, Integra Resources, McEwen and Sprott Mining. The company went public on the TSX Venture Exchange on February 21, 2019.

The strategic alliance with GoldSpot, including the use of their propriety AI capabilities, should prove invaluable to Manitou’s exploration program. Manitou is among the very first and very few junior mining companies selected by Goldspot to demonstrate the impact A.I. and machine learning will have upon mineral exploration. Moreover, the partnership included a sizeable investment (C$884,400) from Goldspot, at a premium to market price, detailed below:

On March 1, 2019, Manitou Gold closed a non-brokered private placement of 7.3 MM units (consisting of one common share and one half warrant) at a price of $0.08 per unit to raise aggregate gross proceeds of C$584,800, and 3.75 MM flow-through units (consisting of one flow-through share and one half warrant) at a price of $0.08 per unit to raise aggregate gross proceeds of C$300,000.

The agreement also provides for GoldSpot to purchase a 0.25% net smelter return royalty with respect to each of the Goudreau, Rockstar, Midas, Dog Lake, Canamerica and Sherridon properties of the company, for consideration of C$500,000 each. Manitou CEO Richard Murphy and Manitou President Pat Dubreuil purchased 3.75MM units of this financing, at the same terms as GoldSpot; management’s investment totaled C$300,000, and was purchased at a premium to market price.


Management, Board and Close Affiliates Own Over 30% InterestManagement, Board and close affiliates own over 30% of the Manitou’s total outstanding shares. A high share ownership by management and insiders signals a high level of confidence in themanagement team and the quality of the company’s projects.

Core Containing 53.7kg/t, or 53,700 g/t Gold, Kenwest Property Drill Hole KW-11-26Source: Manitou Gold Inc.


Technical Risks - ModerateThe success rate of finding economical deposits in the mining industry is extremely low. Exploration for mining projects involves a high degree of risk. Not all projects that are funded by mining companies can be economically developed into a mine or even into a deposit. Manitou Gold has early stage exploration projects in not one but two favorable jurisdictions, but as with all early stage exploration ventures, it may prove unsuccessful in delineating an economical ore body. The risks involved with mining companies, including technical, operational, metallurgical, environmental, and labor-related risks, make investing in junior mining companies inherently high-risk.

Future Financing Risks - HighManitou will continue to fund exploration efforts to better understand the geology and style of mineralization at their projects. Funding will most likely be through equity financing or flow through financing. Equity financing leads to the issuance of more shares, and the reduction in ownership percentage of a stock caused by the issuance of new shares (dilution). Although in recent years flow-through financing (tax-based financing incentive) has not been as popular for investors, Manitou recently announced an equity and flow-through financing with GoldSpot Discoveries, which closed March 1 of this year with heavy Management participation.

Commodity Price Risks - ModerateAlthough mining companies in production are heavily affected by commodity prices, exploration companies are also driven by them. A rising gold price often drives the stock price of individual junior mining companies, if not the junior mining industry as a whole. While this relationship provides significant upside in a rising gold market, the inverse is true as well; next to a declining gold price, junior mining stocks often fall in price as well. Our analysis calls for a short term gold price of US$ 1,350/oz and mid-term of US$ 1,300/oz, sufficient to outperform the general markets over the next 2-5 years. If correct, Manitou stands to benefit in the near term from its heavy exposure to the price of gold.

INVESTMENT RISKS


• Sampling of new extensions to high grade gold veins from the Rockstar properties in May 2019• Results from geophysical and geochemical work in early-2019• Drill results from one or both gold districts, mid-late 2019• Initiation of project work with GoldSpot Discoveries.• Re-sampling historic drill cores from both the Rockstar and Midas properties where historic

work focused solely on high grade vein exploration. Company geologists have seen broad sections of good mineralization in un-sampled boxes.

• Strip off the surface projection of the Kenwest 1946 zone and samples, once weather permits.• Drilling at Kenwest, projected to begin fall 2019

We use a discounted cash flow (“DCF”) methodology for valuation of companies that have a PEA, Pre-Feasibility Study or Feasibility Study completed. As Manitou Gold is still in early stage exploration at both of its focus areas, the GLDZ and GoldRock Camp Projects, the company does not currently have a NI-43-10 resource estimate on any of its properties. Nontraditional valuation methods available to us are limited, but include money spent on exploration, enterprise value per ounce based on estimated resource, and current market demand for MTU shares. Our valuation is the result of a combination of these three methods.

Our Adjusted Valuation for Manitou Gold is C$ 0.10 - $ 0.15 per shareManitou Gold has spent a total of over C$ 12 MM on their projects. Based on the company’s outstanding shares, and exploration spending of C$ 12 MM, we can estimate a value of $ 0.10 per share for MTU.

The second method we use to evaluate the company is enterprise value per ounce, based on our estimate of the total gold resource at the company’s projects. For comparison we list (Table 2)

NEAR-TERM CATALYSTS

VALUATION


companies with gold projects in similar jurisdictions and their enterprise value per ounce of M&I resources. The EV/oz of M&I resources of these companies provide a context for what Manitou shares could be valued at when the company reports its first NI-43-101 compliant resources. For our valuation of MTU shares, we estimate 800,000 ounces of gold, equating to $0.15 per share for MTU.

The third method we use is current market valuation of MTU shares. While Manitou shares currently trade on the Toronto Stock Exchange for C$ 0.05 per share, the company recently closed an $800,000 financing with GoldSpot Discoveries for 7.3 MM common shares and 3.75 MM flow through shares at $ 0.08 per unit. Early stage investors and especially strategic investors at least require a return of 25% on their investment. This implies a valuation of $ 0.10 per unit based on current market demand.

Company Name Ticker Enterprise value (C$ MM)

M&I and Inferred (Moz) EV/Resources

West Kirkland Mining WKM 26,6 1,70 15,6

Allegiant Gold AUAU 13,1 0,72 18,1

Liberty Gold LGD 83,5 2,90 28,8

Fiore Gold F 23,0 0,95 24,2

Viva Gold VAU 7,0 1,00 7,0

Average 18,8

Resource Estimate (oz) Valuation Per Share

400.000 7,5 0,08

500.000 9,4 0,09

600.000 11,3 0,11

700.000 13,1 0,13

800.000 15,0 0,15

900.000 16,9 0,17

Table 2: Comparable Gold Companies - Valuation


CORPORATE OVERVIEW

A Junior Mining Company with Exposure to Two Emerging Gold DistrictsManitou Gold is a Canadian exploration company with four properties in GoldRock Camp totaling over 20,000 hectares and five additional properties in the GLDZ Area totaling over 6,000 hectares. The company is in a unique position to capitalize on the exploration success of two emerging gold districts - the GLDZ and Gold Rock Districts. Its shares are listed on the TSX Venture Exchange (TSX-V) under the symbol “MTU.”

Manitou Gold’s Kenwest, Gaffney, Canamerica and Sherridon projects are located within the GoldRock District of Northwestern Ontario, which extends approximately 30 km in the SW-NE direction. The company completed its winter drill program at the Kenwest project in February 2018; assay results indicate the area needs more follow-up drilling to outline a high grade ore body. Manitou made the discovery of a new gold zone named the “1946 Zone” during the 2017 winter drilling program. This new gold zone on the BM#1 shear will also be the focus of future exploration.

Since the $933 MM acquisition of Richmont Mines by Alamos Gold in late 2017, the GLDZ Gold District has re-emerged as a prominent gold district in Ontario. In October 2017, Manitou acquired the Goudreau Property in the GLDZ Gold District. The Goudreau Property is located on the Goudreau-Localsh Deformation Zone, just north of Wawa, Ontario. The property covers a key section of the deformation zone, located just east of Alamos Gold’s Island Gold Mine and the past producing Edwards and Cline Mines. The past producing gold mines in the GLDZ Gold District have produced in excess of 3.7 Moz of gold from over 22 mines. Such significantly high gold production from one district speaks to its geological potential. Manitou has the Merke A project to the west of the past producing Cline Mine. The Dog Lake, Midas and Rockstar are also located in the geologically prospective northern domain of the GLDZ.


GLDZ GOLD DISTRICT - ONTARIOManitou Gold has acquired a number of geologically prospective properties in the GLDZ Gold District, which hosts Alamos Gold’s producing Island Gold Mine. The GLDZ is separated into the northern and southern deformation zones. The northern deformation zone is more well-known, with exploration records dating back to the 1930’s. Manitou Gold has two patents, Markes A Zone and Dog Lake Property, on the northern deformation zone.

Gold exploration in the 1920s and the 1940s in the GLDZ district led to the discovery of significant deposits including the Kremzar, Magino, Cline and Edwards Properties. Past production from the GLDZ includes 46,798 oz gold at a grade of 0.139 oz/t at the Kremzar Mine, 110,000 oz gold at a grade of 0.135 oz/t at the Magino Mines and 63,328 oz gold at a grade of 0.19 oz/t at the Cline Mine. The Island Gold Mine began operations in October, 2007 and has produced over 600,000 oz of gold to date. Manitou Gold’s Goudreau Property is located approximately 9.5 km northeast of Island Gold mine, along the same Goudreau Lake Deformation Zone.

Manitou Gold’s current property portfolio along the GLDZ now includes the Goudreau Patents, which consist of 160 acres of surface and mining rights patented lands, and the recently acquired 15,900 acres of contiguous lands comprised of the Rockstar, Midas and Dog Lake Properties. These properties cover a strike length of over 17 km along the eastern portion of the GLDZ. Manitou’s Dog Lake and Midas properties have had no exploration work to date.


Figure 2: Projects in the GLDZ District

GLDZ Northern Portion: Historical Discoveries Top 3 Moz GoldThe Goudreau-Lochalsh area was regionally mapped by E.L. Bruce (1942), and in more detail by Heather and Arias (1992) and Sage (1994). Two subparallel, regionally extensive zones of deformation, the Goudreau Lake Deformation Zone (GLDZ) and the Cradle Lakes Deformation Zone (CLDZ), have been defined within the area (Heather & Aries, 1992). The GLDZ is a 4.5 km wide, >30 km long east-northeast to east striking zone that hosts the majority of known gold deposits throughout the area. Historically, the northern portion of the GLDZ has had more discoveries than the southern area. The CLDZ is approximately 5-10 km in length, 1-2 km in width and is located to the south of the GLDZ.


Figure 3: Projects in the GLDZ District

Alamos, Argonaut and ManitouDominating the GLDZ DistrictThe western half of the GLDZ hosts Alamos Gold’s producing Island Gold mine and Argonaut Gold’s advanced development project - Magino. Immediately to the east of the Alamos property are the past producing Edwards and Cline Mines. Manitou Gold’s Goudreau Patents property is located just to the east of the Edwards and Cline Mines. Alamos and Argonaut Mining together hold 10,000 km in length in the northern deformation zone. Manitou holds an additional 10,000 km of land in the northern deformation zone. Figure 9 illustrates the proximity of Manitou Gold’s properties to Magino, Kremzar, Island Gold, Edwards, Cline, Markes North zone, Manitou patents and Markes A zone.


GOUDREAU PATENTS PROPERTY GLDZ DISTRICT, ONTARIO

The Goudreau Patents Property consists of 4 patented mining claims in the GLDZ gold district of Ontario.

Infrastructure and AccessThe Goudreau Patents Property is located in Jacobson Township, 17 km east of the town of Dubreuilville, 50 km northeast of the town of Wawa. The Goudreau Property consists of 4 patented mining claims, all held 100% by Manitou Gold, as well as two staked mineral claims also in the name of Manitou Gold. The property is close to three small communities with a total population of over 4,000, providing a labor pool for mining projects.

ROCKSTAR PROPERTY GLDZ DISTRICT, ONTARIO

Over the past few years Manitou has assembled a very large land package in the GLDZ belt. At the Rockstar Property, Manitou investigated in detail, sampling over an expanded area of 275 m eastwest by 325 m north-south previously identified Tracanelli Occurrence. Preliminary results of prospecting work within the immediate proximity of this gold occurrence confirm the presence of four separate, structurally controlled vein systems, referred to as the Sunday vein, Balsam vein, the 110 vein and the 150 vein. Individual veins have been observed at surface in separate areas measuring up to 3 m in width and ranging from 15 to 30 m in length. The broader vein systems are exposed over total strike lengths ranging from 40 m to 100 m, and are open along strike to the west and northwest. Twenty-three grab samples from these vein systems returned an average value of 7.6 g/t gold, with individual assays ranging from 0.03 to 137.5 g/t gold.

Manitou’s geologists identified a previously unknown shear zone in the eastern part of the Rockstar property, named the Bankfield Shear Zone. Part of this broad shear zone is believed to correspond with the previously discovered Bankfield gold occurrence. The Bankfield Shear pinches and swells


MIDAS GOLD PROPERTYGLDZ DISTRICT, ONTARIO

DOG LAKE PROPERTYGLDZ DISTRICT, ONTARIO

The Midas Gold Property is located within the southern deformation of the GLDZ. The property iscomprised of mining claims covering a total area of over 5,500 acres along the southern domain ofthe GLDZ. The property covers at least six known gold occurrences, only two of which have beentested by exploration.

Magnetic Survey, IP Survey and SGH Survey have identified signatures of gold mineralization; based on the different geological surveys, one particular circular cluster of anomalies centered in the southwest quadrant of the property has been identified as a very high priority target, and will be the focus of exploration in early 2019.

The company’s most recent acquisition is the Dog Lake Property in GLDZ. The Dog Lake Property is comprised of 82 mining claim units, and covers a total area of over 3,800 acres along the northern domain of the GLDZ. The property covers a number of historic gold showings associated with mineralized shear zones. The shear zones are part of the northern domain of the GLDZ, which to the west hosts Alamos’ Island Gold mine and Argonaut Gold’s (Prodigy Gold) Magino deposit. The northern domain also hosts several other past-producing mines, including the Kremzar, Edwards and Cline mines, and Manitou Gold’s Goudreau Patents property.

along strike and has been observed to be up to at least 60 m wide in some areas.The shear zone hosts at least two discreet sets of quartz veins and has been defined over at least 550 m along strike; there are early indications that the Bankfield Shear Zone extends for 1,750 m strike length. Although field work has identified 17 samples, some of which have returned 48 g/t gold, more work is required in the Bankfield Shear area to determine the size and grade potential of this zone. Based on the initial success of field work at Rockstar, Manitou has staked an additional 350 acres covering the eastern end of the property.


Grab samples collected on the property by the Ontario Geological Survey in 1983 returned assays ranging between 3.4 and 74.6 g/t gold. More recent prospecting led to the discovery of a new highgrade gold showing on the Property, where a grab sample returned an assay of 29.2 g/t gold. No follow-up work has been completed on this showing to date.

KENWEST PROPERTYONTARIO

BackgroundThe Kenwest Property in Ontario hosts 61 known gold occurrences, including three past producing mines: Big Master, Laurentian, and Elora. The Kenwest Property has a large land package of over 18,000 hectares and was acquired by Manitou Gold in 2009. Kenwest is characterized by a high grade zone on the Big Master #2 structure, first discovered in 2011 when the Company intersected 53,700 g/t gold over 0.55 m at a vertical depth from surface of 30 m in drill hole KW-11-26. Manitou Gold performed stage 1 bulk sampling of the high-grade zone at Kenwest in November 2017. Results were released February 2018 and demonstrated over 99% gold recoveries. Manitou has applied for permits that would allow a larger bulk sample test; permit approval is pending. The company has a sample 12,000 tons ready to mine and ship upon receipt of an advanced exploration permit.

Between 2009 and 2018, trenching, channel sampling, geological mapping and 104 diamond drill holes were drilled on the Kenwest project, totalling 19,387 m. The company’s progress on Kenwest includes drafting a closure plan, consulting with First Nation Communities, and construction of an advanced exploration project to commence in the fall of 2019.


Three Mineralization StylesGeologically, The Gold Rock District is located in the western part of the Wabigoon Subprovince of the Precambrian Shield. The western Wabigoon region is comprised of a series of interconnected greenstone belts surrounded by large elliptical granitoid batholiths. The greenstone belts are dominated by volcanic rocks with lesser amounts of clastic and chemical sedimentary rocks. The Gold Rock district is bisected by the northeast trending Manitou Straits Fault (MSF), which is 60 m wide and forms the southeast boundary of the 4-5 km wide Manitou Straits Deformation Zone (MSDZ).

Three different styles of mineralization have been identified on the property:• Gold associated with quartz veins, stringers, and stock work within felsic dykes• Gold associated with pyrite within the groundmass of the felsic dykes• Gold associated with the sheared volcanics adjacent to the dike contacts

Figure 4: Manitou Properties in GoldRock District


There are five parallel shear structures on the property encompassing a 700 m wide zone, containing a number of highly prospective gold bearing structures. Together with the Canamerica 502 block Property, there is a 4.5 km long section of favorable structures hosting one past producing gold mine with nine other shafts and numerous exploration pits with unreported production. The high density of shafts in this area is auspicious for future exploration.

The Kenwest area witnessed intense prospecting between 1900 and 1940. Gold mineralization is typical of the Archean or Mesothermal Lode Gold deposit model. Vein-type deposits as seen in the Gold Rock area typically consist of open-space filled coarse quartz with associated feldspar, carbonate, tourmaline and/or chlorite.

Easy Access To InfrastructureThe Kenwest Property (via Dryden) has access to rail, road, power and labor. The city of Dryden supplies services to most of northwestern Ontario between the cities of Thunder Bay and Kenora. The city’s population is just over 10,000 people, and it is located on the Tran-Canada Highway. Dryden is well served by air, rail and road transportation. An electric power line runs parallel to Highway 502, 5.6 km from the Kenwest property.

Gold Recoveries 95% or HigherIn April 2018, Manitou announced results from the metallurgical test work at its Kenwest Property. The initial surface bulk sample results, in which the company recovered 6.5 g/t gold over a trench length of 12.1 m, were sent to the SGS Lakefield laboratory for metallurgical testing. The metallurgical test work focused on the amenability of a bulk sample to gravity separation and cyanide leaching. The SGS Lakefield Laboratory also tested the sample to confirm the head grade.The gravity gold recovery from the Knelson concentrate was 88.6% and the gravity tailing sampleusing cyanidation with 48-hour leach extraction testing returned 95.1% recovery. The head gradeof the 100 kg composite sample was found to be 8.9 g/t gold compared to the expected 6.5 g/t head grade. This could be due to the nugget effect of the mineralization. This also suggests that additional bulk sample testing will be required to establish reliable grades for Kenwest gold mineralization.


Recent Discovery of the “1946 Zone”Manitou’s 2017 winter drill program concluded in February 2018; the company drilled 16 holes covering 2,078 m. Results from this drill program are summarized in Table 3. Drill holes confirm the presence of high grade vein type mineralization at Kenwest. Visible gold was encountered in the core in 4 of the 16 holes. Manitou Gold made another new gold discovery in March 2018 during the winter drill program; the newly discovered zone was named 1946 Zone. Out of 16 holes, 4 holes tested BM#2 vein and 12 holes tested BM#1 vein.

Figure 5: Manitou Gold - 2018 Drilling


Table 3: Drill Results from 2018 Winter Drill Program at Kenwest

Hole # From (m) To (m) Length (m) Gold (g/t)

KW-18-01 42,08 43,67 1,59 9,2

KW-18-02 68,87 70,30 1,43 4,0

KW-18-03 43,00 45,10 2,10 7,7

and 50,29 53,10 2,81 4,7

KW-18-04 42,47 44,38 1,91 2,0

KW-18-05 no significant mineralization intersected

KW-18-06 106,02 106,50 0,48 26,6

KW-18-07 163,69 164,54 0,85 1,0

and 188,27 188,66 0,39 6,1

KW-18-08 196,00 197,65 1,65 3,8

KW-18-09 29,00 29,68 0,68 3,0

and 79,50 81,41 1,91 25,2

KW-18-10 25,16 26,88 1,72 14,1


KW-18-12 71,37 71,94 0,57 3,7

and 87,43 88,28 0,85 5,0

KW-18-13 127,20 128,12 0,92 3,7




Holes KW-18-01 through KW-18-04 were drilled to test the Kenwest Big Master (“BM”) #2 shear zone. Drill holes KW-18-11 through 16 tested new areas of potential identified along the BM#1 shear zone. Holes KW-18-05 through KW-18-10 were drilled in an area interpreted to correspond with the up plunge potential of the last mineralized body mined by Kenwest Mines before their operations were shut down in 1946. Their final mining activity took place on the 6th mine level (approximately 180 m deep). No past exploration has been conducted between this last development and surface. With the exception of hole KW-18-05, all six holes intersected mineralization, signaling significant potential to grow the newly-rediscovered “1946 Zone”.


Understanding Structural Controls Key To Formulating A Successful Drill CampaignManitou is preparing a new 3-D model of project geology and mineralization to develop plans for the next round of exploration drilling. Additionally, the company is preparing documentation required for permitting an underground bulk sample at Kenwest. The second metallurgical testing of the underground bulk sample will help Manitou understand the reasons for higher “shoots” at Kenwest.

Geological mapping, sampling and structural measurements taken during the sampling process will be incorporated into the existing geologic model of the zone, with the aim of increased understanding of the controls of the high-grade gold zones, as well as the relationships between multiple areas of concentrated visible gold and cohosted minerals.

GAFFNEY EXTENSIONGOLDROCK AREA, ONTARIO The Gaffney Extension lies in the Lower Manitou lake area, 60 km south of Dryden. The propertyconsists of 26 unpatented claims covering 4,560 hectares and 12 patented claims purchased fromTeck covering 174 hectares. All of the claims at Gaffney are contiguous.

Evidence of A Large Gold SystemThe Gaffney Extension is located along the southern portion of the Manitou Straits Deformation Zone. The area had two historical operations - the Gaffney Shaft and the Bee Hive Shaft. The gold bearing zone has been traced along 440 m of strike extent to a vertical depth of 250 m. Gold is hosted within disseminated sulphides and small quartz veins within a quartz diorite intrusion and within feldspar porphyry dykes. As of September 2012, Manitou has drilled 48 diamond holes totalling 12,000 m. Past drilling has demonstrated gold mineralization over substantial widths, and indicates the presence of a large gold system at Gaffney. The company expects to drill test the area to demonstrate the continuity of gold grade.


Figure 6: Gaffney Extension

CANAMERICAGOLDROCK AREA, ONTARIO

Canamerica is located 35 km from Dryden, within the Boyer Lake Area, Turtlepond Lake Area, and the Harper Lake Area. There are 26 non-contiguous unpatented claims in two separate blocks, known as the Canamerica Main Block (13 claims), and the Canamerica 502 Block (13 claims). The two blocks encompass 4,400 hectares and are separated by the Kenwest property.


Figure 7: Gaffney - Drill Hole Locations

GeologyThe property area, adjacent to the Kenwest and Elora properties, is located along the northeastern portion of the Manitou Straits Deformation Zone and the south limb of the Manitou Antiform. The gold is associated with felsic dykes, quartz veins, and sheared volcanic rocks. The combined holdings of Canamerica encompass an 800 m wide zone containing a number of highly prospective gold bearing structures. A 4.5 km long section of favorable structures contains three past producing mines and nine other shafts with unreported production. The high density of shafts in this area is a favorable indicator of exploration potential at this property.

BackgroundIn addition to numerous gold showings, five historical (1896-1904) shafts are located on the Canamerica property: Quackenbush, Little Master, Imperial, Volcanic Reef and Last Chance. In 1987, Canamerica Precious Metals Inc. completed a diamond drill program consisting of 15 holes totalling 766 m.


Figure 8: Canamerica E-Zone - Drill Hole

SHERRIDONGOLDROCK AREA, ONTARIO The Sherridon Project is located within the Mang Lake Area, the Lower Manitou Lake Area, and the Meggisi Lake Area, about 60 km south of Dryden. The Sherridon property includes 26 contiguous unpatented claims covering 4,240 hectares.

Geology and BackgroundThe Sherridon property is located along a structure off the Manitou Straits Deformation Zone. With no past exploration work on the property, Sherridon is a brand-new gold discovery for Manitou Gold. The property has occurrences of coarse gold in quartz veins.


SHARE CAPITALIZATIONAs of March 1, 2019, Manitou Gold has 113 MM common shares issued and outstanding. It has about 6.2 MM stock options outstanding at an average exercise price of C$ 0.10/sh, and 18.1 MM share purchase warrants outstanding at an average exercise price of C$ 0.14/sh. Based on the closing market price of C$ 0.05 as of April 15, 2019, Manitou Gold has a market capitalization of about C$ 5.7 MM. The Fully Diluted shares as of March 14, 2019 total 137.3 MM.


MANAGEMENT AND BOARD OF DIRECTORSRichard Murphy P.Geo. - Chief Executive Officer (CEO) and Director Mr. Murphy has over 25 years of experience as a Senior Geologist, President and CEO of a number of TSX and TSX-V listed companies. He successfully completed multiple IPOs, financings, acquisitions and divestitures. He was also the CEO of Ginguro Exploration Inc. and of Independent Nickel Corp. Mr. Murphy is a P. Geo. and an alumnus of the earth science programs at University of Western Ontario and Laurential University.

Pat Dubreuil MBA - PresidentMr. Dubreuil has over 12 years of mining related experience, and was named the Northern Ontario Business Entrepreneur of the year 2016. He also serves as Research and Development Director for the Centre of Excellence for Mining Innovation and Ultra Deep Mining Network, where he is responsible for the commercial development of innovative new mining technologies and processes. Mr. Dubreuil is also a Director of Nickel Basin Development Corporation, a financial lending agency for FedNor. He holds a MBA degree from the University of Athabasca, Alberta.

Carmelo Marrelli - Chief Financial Officer (CFO)Mr. Marrelli is a Chartered Accountant (CA), a Certified General Accountant (CGA), and an Associate (ACIS) of the Institute of Chartered Secretaries and Administrators (ICSA). He has a Bachelor of Commerce degree from the University of Toronto. Mr. Marrelli acts as Chief Financial Officer for a number of reporting issuers on the TSX and TSX Venture exchanges.

Guy Mahaffy - DirectorMr. Mahaffy is the Managing Director of W.G. Mahaffy Limited, a financial advisory firm. He holds the professional designations of Chartered Accountant, Chartered Professional Accountant and Chartered Financial Analyst.

Craig Stanley - DirectorMr. Stanley is a Principal and precious metals analyst with Eight Capital. He holds a Master of Science in Geology from the University of Western Ontario and is a member of the Society of Economic Geologists, the Society for Geology Applied to Mineral Deposits and the Prospectors and Developers Association of Canada.

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Comprehensive Research Equity Rating Scale:

Buy – Annual expected rate of return exceeds 12% or the expected return is commensurate with risk

Hold – Annual expected rate of return is between 5% and 12%

Sell – Annual expected rate of return is below 5% or the expected return is not commensurate with risk

Suspended or Rating N/A— Coverage and ratings suspended until more information can be obtained from the company regarding recent events.

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