South Atlantic Gold Announces Further Results from Phase II Exploration at Pedra Branca Project

Kelowna, August 31, 2022 - South Atlantic Gold Inc. (TSXV:SAO) ("South Atlantic" or the "Company") is pleased to announce further exploration results from its previously announced Phase II program (see release dated February 3, 2022 here). Results include recently received assays from reconnaissance RC drilling which, when combined with geophysical, geochemical sampling of soils and trenches and geological mapping data has, for the first time, informed a comprehensive target generation exercise across the full extent of the Company´s strategic tenement package.

Highlights

• As previously presented, the Phase II Exploration Program incorporated both the requirements of the Brazilian mining agency "Agencia Nacional de Mineraçao or (ANM)", to ensure exploration work was sufficient to maintain the tenements in good standing, as well as to cost effectively complete first pass reconnaissance exploration across the southern section of the entire tenement package.

• Exploration results highlight the presence of the favorable structural, geological, and geochemical trends already identified by prior work extending along the full 60 km strike length influenced by the primary regional structure into areas with no previous work. MAP 1 provides a global view of the currently defined 13 targets (9 new + 4 existing) areas supported by geological interpretation. See ANNEX MAP 1 (Click here to view high resolution map).

• The Phase II exploration program has successfully expanded the priority target portfolio from 4 (including 3 areas with NI 43-101 defined mineral resources) to a new total of 13 areas.

• 15 final exploration reports were filed in May 2022 with the ANM and have been successfully reported as received by ANM.

Douglas Meirelles, President and CEO stated, "It is truly exciting to have such a dominant strategic tenement package at Pedra Branca with this potential mineral endowment. When we started Phase II, we had 4 main targets, including 3 with initial defined mineral resources and now this Exploration Program has produced positive results which have allowed the Company to expand its pipeline of priority targets to a new total of 13 targets. With limited funding, our team has efficiently delivered the new targets in areas that were never explored before while fulfilling our legal obligations with respect to keeping our tenement package in good standing. With no more near-term obligations attached to the tenement portfolio, the Company is well placed to focus on progressing the priority targets through the next important exploration phases toward further discoveries.

Structured Exploration Approach

As previously announced in the news release of February 3, 2022 (click here to view release), the Company completed the Phase II exploration program which focused beyond the 4 previously identified targets which included 3 main targets with defined mineral resources (Queimadas, Mirador and Igrejinha) announced June 28, 2021 (click here to view release).

Phase II Exploration focused on extending the southern limits of the main structural trend (N20E). In parallel, work was completed within some 15 tenements that were reaching their ANM expiry date. From this combined work, 9 new high priority targets were successfully identified. These targets were selected and prioritized in terms of a series of selection criteria based on soil sampling and trench rock chip sampling geochemistry and comparative geophysical (magnetics) signatures obtained over known mineralization. A total of 6 of these targets are positioned within the basal volcanic-sedimentary greenstone sequence namely (Mir-Coelho, Barra Nova, Mundo Novo, Cruzeta, Cachoeirinha and Dedezinho) and a further 3 targets occur within the upper greenstone sequence (Várzea Formosa, Moquém Norte and Moquém Sul).

Reconnaissance Trenching

• During Phase 2, a total of 48 trenches were excavated for a total of 9,966 m which provided 5,038 trench rock chip channel sample assays as press released on March 9, 2022 (click here to view release).

• To date a total of 22,290 meters of trenches have been excavated and sampled with 17,208 assays consolidated in the database.

• The trenching program has successfully confirmed bedrock sources to surface soil anomalism along the targeted structural trend.

• The consolidated results can be seen on our website (click here to view).

Drone Survey

As released June 13, 2022 (click here to view release), the high resolution drone survey at 50-meter line spacing was successful in the identification of magnetic signatures over the current resource area (Igrejinha, Queimadas and Mirador). This information along with the results from Phase I, Phase 2, the geophysical study, and the magnetic survey from Companhia de Pesquisa de Recursos Minerais ("CPRM" or "Geological Survey of Brazil") at a resolution of 500-meter line spacing, formed the base data for target prioritization and selection of initial reconnaissance drilling.

The total area of Pedra Branca is considerably large with more than 46,000 hectares that remain unexplored with few limited soil lines. When considering further exploration in these areas, the Company will continue to make use of cost-effective exploration methods such as unmanned aerial vehicle ("UAV" or "drone") magnetic survey to cover large sections of this unexplored ground. New anomalies are highlighted on ANNEX MAP 2 (click here to view).

Reconnaissance RC Drilling

Within the Phase II prioritized area comprising of 9 tenements and 8 main targets, the Company conducted additional reconnaissance work and drilled a total of 43 shallow RC drill holes up to a maximum 60 meters depth. A total of 1,657 m was drilled collectively with 719 samples assayed with approximately 25% (414m) of total meterage drilled returned anomalous gold assays 20 ppb Au or greater. The table of results is extensive and is available on the following link under (click here to view and scroll down).

The drilling program has in many instances confirmed continuity to depth of the anomalism identified from prior trenching and soil sampling bedrock sources to surface soil anomalism along the targeted structural trend.

Analysis of results demonstrates the similarity and continuity of the geological signatures extending beyond the original 3 targets with defined resources. Interpretation of Phase II data clearly confirms the presence of the geology and structural framework that the Company believes is favorable for the orogenic mineralization styles being targeted along the full extent of the 60km strike length. The Company continues to refine and improve its targeting criteria as further data becomes available and this will drive exploration efforts aimed at the continued identification of additional areas of interest.

Qualified Person's Statement

The scientific and technical information that forms the basis for parts of this news release was reviewed and approved by Marcelo Antonio Batelochi (P.Geo.), MAUSIMM (CP), the Company's Exploration Manager who is a Qualified Person as defined by NI 43-101.

ANNEX MAP 1 (60km)
Overview of anomalous geochemistry and geophysics overlay.

Click Image To View Full Size

ANNEX MAP 2

UAV MAG SURVEY COMPARISON (50 meters line spacing and 500 meters line spacing)

Click Image To View Full Size

About South Atlantic Gold

South Atlantic Gold is an exploration company engaged in acquiring and advancing mineral properties located in the Americas. Our flagship asset is the 100%-owned Pedra Branca project, located 280 km southwest of Fortaleza, Ceará State, Brazil. South Atlantic Gold is focused on creating value for its shareholders by engaging in the development and acquisition of high-quality mineral assets located in stable and mining-friendly jurisdictions. South Atlantic Gold is based in Kelowna, British Columbia, and is listed on the TSX-V under the symbol "SAO".

ON BEHALF OF THE BOARD

Douglas Meirelles, President and CEO

For more information regarding this news release, please contact:

Anne Hite, Vice President, Investor Relations

T: 250-762-5777

Email: ir@southatlanticgold.com

Cautionary Note Regarding Forward-Looking Information

This news release contains statements that constitute "forward-looking Information", as such term is used in applicable Canadian securities laws. Such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information includes statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.

Although the Company believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by its nature forward-looking information involves assumptions and known and unknown risks, uncertainties and other factors which may cause our actual results, level of activity, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. There can be no assurance that the Fundamental Acquisition will be completed as proposed or at all.

Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; the Covid-19 pandemic; adverse industry events; the receipt of required regulatory approvals and the timing of such approvals; that the Company maintains good relationships with the communities in which it operates or proposes to operate, future legislative and regulatory developments in the mining sector; the Company's ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of the Company to implement its business strategies; competition; the risk that any of the assumptions prove not to be valid or reliable, which could result in delays, or cessation in planned work, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company's expectations, as well as other assumptions risks and uncertainties applicable to mineral exploration and development activities and to the Company, including as set forth in the Company's public disclosure documents filed on the SEDAR website at www.sedar.com.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

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