http://www.atacresources.com/assets/docs/2018-12-07-atac-shareholders-letter.pd

Dear ATAC Resources Shareholders

I want to personally thank you for your continued support of ATAC as we work hard to advance one of the most prospective undeveloped gold and polymetallic belts in North America. In 2018, we made four major achievements at our 1,700-km2 Rackla Property: (i) the maiden resource at the Osiris project; (ii) a new gold discovery 1 km south of the Conrad Deposit, (iii) the identification of significant, high-grade copper-gold skarn mineralization at the Bobcat target; and, (iv) a positive joint decision document from the First Nation of Na-cho Nyak Dun and Yukon Government for a 65 km tote road that will connect our Rau project to the Yukon highway system.

ATAC’s gold inventory at the Rackla Property is now approximately 2.3 million ounces considering the inferred Carlin-type gold resource at the Osiris project1 and the measured and indicated resource at our Tiger Gold Deposit2 . Remarkably, our maiden Osiris resource ranks as the second highest-grade, pit-constrained resource over a million ounces gold in North America with an average grade of 4.08 g/t. Furthermore, this year’s drilling was very successful in extending mineralization at all of the Osiris gold zones. These results reaffirm our belief that ATAC’s mineral resources will continue to increase across the Rackla Property.

As many of you know, Nevada’s Carlin Trend hosts world-class deposits that have produced nearly 85 million ounces of gold since the early 1960s. These deposits are typically found in clusters along trends or districts, and continue to be found by junior and major mining companies. ATAC is very fortunate to control the only significant Carlin-type gold district ever found outside of Nevada. We must not lose track of the fact that we are in the infancy of discovery at Rackla. 

1. For Osiris Project resource details see ATAC news release dated June 18, 2018.
2. For Tiger Deposit resource details see ATAC news release dated May 31, 2016.

Exploring a district-scale property with multiple deposits does have its challenges. It requires management to be highly attuned to field logistics, capital market conditions, and community relations. Importantly, we must balance these challenges with the impact our decisions will have on our shareholders.

I can assure you that ATAC is focused on effectively advancing the Rackla Property as quickly as possible, while remaining committed to maintaining a healthy treasury and minimizing shareholder dilution. Our earn-in agreement with Barrick Gold Corporation for the Orion Project is a successful example of how we have been able to limit share dilution, while attracting exploration dollars to a large, grassroots portion of the Rackla Property. We will continue to explore partnership opportunities where we see the potential to add significant shareholder value.

ATAC was created in 2000. Since that time it has transitioned from a project generator to an exploration company that has demonstrated economics of the Tiger Deposit (PEA Pre-Tax NPV of $107M3 ) and made Canada’s only Carlin-type gold discovery. We have never consolidated the shares of the company and take great pride in our ability to conduct highly cost-effective mineral exploration. Nothing we have accomplished over the past 18 years could have been done without the hard work and quality of the people that have and continue to work for ATAC, or our primary contractor Archer, Cathro & Associates (1981) Limited.

3. Using a gold price of US$1250/oz and a US$/CA$ 0.78 exchange rate. For details see ATAC news release dated May 31, 2016

I would like take this opportunity to congratulate Julia Lane (ATAC’s VP Exploration) and her partners at Archer Cathro for their receipt of the 2018 Yukon Chamber of Mines Community Award that recognizes their contribution to the advancement of a sustainable and responsible Yukon mining and exploration industry. ATAC is committed to respecting the communities and Territory we work in and will continue to support sustainable and responsible mineral exploration.

Going forward, we believe 2019 will be an exciting year. ATAC plans to work toward the final tote road permit, test new copper and precious metal targets, and advance our gold resources at Tiger and Osiris. We are continually striving to find innovative ways to create value for our shareholders regardless of market conditions.

ATAC remains very well positioned with both maturing gold deposits and the potential for new discoveries in a mining friendly jurisdiction. Our year-end treasury remains strong with over $10 million in cash. As always, we welcome and greatly appreciate shareholder feedback as it is critical to improving everything we do. Thanks again for your ongoing support

Thanks again for your ongoing support.
Sincerely,
Graham Downs President & Chief Executive Officer
December 7, 2018