Phase III is a fully funded, 8-month exploration program targeting three priority zones at Pedra Branca:

• Drilling Program — 2 drill rigs targeting 5,000 metres across Queimadas (depth extensions), Mirador (SW extension & stream sediment anomaly), and Igrejinha (high-grade veins)
• Soil Sampling — Regional and local geochemical programs to generate new targets across the 50 km trend
• IP Geophysics — Short-term campaign to define structural controls and potential sulfide bodies

Source: January 2026 Corporate Presentation. See SEDAR+ for full disclosure.

The deepest drilling at the Queimadas target reached approximately 85 metres. The current inferred resource (180,000 oz Au) sits at an average depth of just 30 metres from surface.

For context, comparable orogenic gold deposits hosted in greenstone belts — such as those along Quebec’s Cadillac Fault Zone — are routinely mined at depths of 2–3 km. Magnetic data at Queimadas shows the mineralized structure plunging ~45° to the northwest, indicating significant untested depth potential.

Phase III drilling will specifically target depth extensions below current drilling limits at all three core targets.

South Atlantic holds a 100% interest in the Pedra Branca property, subject to underlying royalties to the original property vendors as follows:

• Base Metals: 1.0% royalty on gross revenues over any production
• Gold (M&I ≤ 200,000 oz): 0.5% royalty on gross revenues, plus a US$500,000 payment within 3 months of commercial production
• Gold (M&I > 200,000 oz): 1.0% royalty on gross revenues; 0.5% of this royalty may be purchased for US$750,000

Source: Audited Financial Statements (FY2025) filed on SEDAR+.

Ceará is a pro-business state with a long history of mining and strong government support. Brazil’s mining sector is regulated by the Agência Nacional de Mineração (ANM), a federal agency integrated into the Ministry of Mines and Energy, providing a stable regulatory framework.

South Atlantic has advanced permitting on its three main tenements, with strong local community support. The Company’s CEO, Douglas Meirelles, is Brazilian with over 20 years of experience operating in the country, and the on-site exploration team is locally hired as part of the Company’s commitment to responsible operations.

Infrastructure at Pedra Branca includes paved highway access (BR-020, 280 km to Fortaleza), nearby power lines, abundant water, and local supply centres.

Per the January 2026 Corporate Presentation:

Phoenix Gold Fund Limited (BVI, managed by AIMS/Seraya Investment) holds approximately 11.0% based on its May 2025 early warning report filed on SEDAR+.

Ownership data based on most recent public filings. Subject to change following completion of announced financings.