TSX-V: SAO

Kelowna, British Columbia, May 26, 2021 – SOUTH ATLANTIC GOLD INC. (TSX-V: SAO) (“South Atlantic” or the “Company”) is pleased to announce it has received additional positive assay results from its Phase I exploration program at the Mirador Target, within its Pedra Branca Project area, located 280 kilometers (“km”) southwest of Fortaleza, Ceará State, Brazil.

Douglas Meirelles, CEO stated, “We are pleased with the results being reported today. Our Phase 1 program focused primarily on the core targets, but towards the end of the program, we also explored the extensions of the trends, towards southeast (“SE”) of Pedra Branca and other tenements that had little to no historical work, as part of the schedule required to maintain the permits and licenses. The results that we are currently receiving were surprising and suggest that mineralization is extended and continuous within the Mirador Target.”

The new assay results from the Mirador Target confirm the lateral extension of mineralization at NW Mirador and confirm the continuity of ore at SE Mirador. (Click HERE to see map).

Highlights include (see Annex 1 for full table of results):

  • Reverse Circulation (“RC”) drill hole PBRC099 intersected 3 meters (“m”) grading 1.91 grams per tonne (“g/t”) gold (“Au”), including 1 m grading 4.72 g/t Au, from 7 m depth
  • RC drill hole PBRC106 intersected 4 m grading 1.69 g/t Au, including 2 m grading 2.65 g/t Au, from 20 m depth
  • RC drill hole PBRC106 intersected 8 m grading 0.89 g/t Au, including 3 m grading 1.84 g/t Au, from 37 m depth
  • RC drill hole PBRC108 intersected 2 m grading 6.17 g/t Au, including 1 m grading 5.94 g/t Au, from 17 m depth
  • PBRC108 also intersected 6 m grading 52 g/t Au, including 1 m grading 3.03 g/t Au, from 25 m depth

The results that continue to arrive from the laboratory are being inserted into the geological section of the technical report, and are being used to gain greater understanding of the controls on mineralization at the Pedra Branca Project. As the company continues into Phase 2 of the exploration program, the new consolidated database continues to be updated and is assisting in the formulation of the subsequent exploration and development activities. It is important to note that all the assay results are the result of a US$1 million Phase 1 exploration program with RC drilling that averaged at most 60 m in depth. Historically, the higher-grade mineralization is found at deeper intersects.

South Atlantic is working, in conjunction with Jaguar Mining Inc., on the review of geological data and the financial audit as required by our contractual obligations for the Company’s earn-in rights to the Pedra Branca Project. The release of the maiden resource and National Instrument (“NI”) 43-101 technical report for Pedra Branca is anticipated for the second quarter of 2021.

QA/QC PROCEDURES

The assays follow Quality Assurance/Quality Control (QA/QC) procedures that included the insertion of standards, blanks and duplicate samples, sent to the lab along with the samples.

All samples were analyzed at either SGS GEOSOL Laboratórios Ltda in Minas Gerais, Brazil, or ALS Brasil Limitada in Minas Gerais, Brazil. Both contracted laboratories follow the same procedures for sample preparation and chemical analysis, described below. In the laboratory, each ±2 kg sample is recorded, dried for 8 to 12 hours, crushed to 70% <2mm (-10 #) split to obtain approximately 250g and the 250g sub-samples are pulverized to P85 74 microns (-200 #).

Gold analysis is carried out using fire assay comprising three stages: Fusion, Cupellation and Analysis.

Samples with a gold fire assay equal to or higher than 10.0 g/t Au are re-analyzed by a screen-metallic method. Base metal assays are first determined by ICP-OES (Inductive Coupled Plasma-Optical Emission Spectroscopy). Analyses of ore elements that exceed the method’s upper limits are re-analyzed by appropriate ore-grade methods.

About South Atlantic Gold

South Atlantic Gold is an exploration company engaged in acquiring and advancing mineral properties located in the Americas. The Company’s principal BC asset is the wholly-owned 4,056-hectare Big Kidd property, located near Aspen Grove, BC. Our Brazilian flagship asset is our option to acquire the Pedra Branca project, located 280 km southwest of Fortaleza, Ceara 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’s 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

Qualified Person

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

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Annex 1

New Results Table.

Hole Id From To Au g/t X Coord Y Coord Z Coord Target
PBRC093 31 32 0.562 379,843.273 9,393,169.887 589.509 Mirador
PBRC093 32 33 0.538 379,842.734 9,393,170.083 590.328 Mirador
PBRC094 25 26 0.656 379,821.525 9,393,171.895 584.383 Mirador
PBRC094 26 27 0.446 379,820.986 9,393,172.092 585.203 Mirador
PBRC095 29 30 0.582 379,841.358 9,393,119.851 587.388 Mirador
PBRC095 30 31 0.097 379,840.819 9,393,120.047 588.207 Mirador
PBRC095 31 32 0.043 379,840.280 9,393,120.244 589.026 Mirador
PBRC095 32 33 1.191 379,839.741 9,393,120.440 589.845 Mirador
PBRC096 5 6 4.3 379,819.627 9,393,120.627 567.791 Mirador
PBRC096 11 12 0.525 379,816.393 9,393,121.804 572.706 Mirador
PBRC096 12 13 0.683 379,815.854 9,393,122.000 573.525 Mirador
PBRC096 13 14 0.753 379,815.315 9,393,122.196 574.345 Mirador
PBRC096 14 15 0.503 379,814.776 9,393,122.393 575.164 Mirador
PBRC096 15 16 0.567 379,814.237 9,393,122.589 575.983 Mirador
PBRC096 16 17 0.625 379,813.698 9,393,122.785 576.802 Mirador
PBRC099 7 8 4.721 379,759.473 9,392,972.092 560.298 Mirador
PBRC099 8 9 0.754 379,758.934 9,392,972.288 561.117 Mirador
PBRC099 9 10 0.244 379,758.395 9,392,972.485 561.936 Mirador
PBRC100 1 2 0.413 379,807.612 9,393,027.793 559.123 Mirador
PBRC100 2 3 0.677 379,807.073 9,393,027.989 559.942 Mirador
PBRC100 7 8 0.31 379,804.378 9,393,028.970 564.038 Mirador
PBRC100 8 9 0.842 379,803.839 9,393,029.166 564.857 Mirador
PBRC100 9 10 0.26 379,803.300 9,393,029.363 565.676 Mirador
PBRC100 10 11 1.007 379,802.761 9,393,029.559 566.495 Mirador
PBRC100 11 12 0.374 379,802.222 9,393,029.755 567.314 Mirador
PBRC106 20 21 3.876 378,870.376 9,392,767.198 557.629 Mirador
PBRC106 21 22 1.421 378,869.936 9,392,767.567 558.448 Mirador
PBRC106 22 23 0.748 378,869.497 9,392,767.935 559.267 Mirador
PBRC106 23 24 0.73 378,869.057 9,392,768.304 560.086 Mirador
PBRC106 37 38 0.501 378,862.906 9,392,773.466 571.554 Mirador
PBRC106 38 39 0.114 378,862.467 9,392,773.834 572.373 Mirador
PBRC106 39 40 0.145 378,862.027 9,392,774.203 573.193 Mirador
PBRC106 40 41 3.047 378,861.588 9,392,774.572 574.012 Mirador
PBRC106 41 42 0.749 378,861.149 9,392,774.941 574.831 Mirador
PBRC106 42 43 1.728 378,860.709 9,392,775.309 575.650 Mirador
PBRC106 43 44 0.147 378,860.270 9,392,775.678 576.469 Mirador
PBRC106 44 45 0.646 378,859.830 9,392,776.047 577.288 Mirador
PBRC107 25 26 0.41 378,827.253 9,392,739.248 562.564 Mirador
PBRC107 26 27 0.592 378,826.813 9,392,739.616 563.384 Mirador
PBRC107 43 44 0.893 378,819.344 9,392,745.884 577.309 Mirador
PBRC107 44 45 0.078 378,818.904 9,392,746.253 578.128 Mirador
PBRC107 45 46 0.728 378,818.465 9,392,746.621 578.947 Mirador
PBRC108 17 18 3.347 378,761.596 9,392,729.794 559.419 Mirador
PBRC108 18 19 8.983 378,761.156 9,392,730.163 560.238 Mirador
PBRC108 25 26 5.939 378,758.081 9,392,732.744 565.972 Mirador
PBRC108 26 27 0.013 378,757.641 9,392,733.112 566.792 Mirador
PBRC108 27 28 0.141 378,757.202 9,392,733.481 567.611 Mirador
PBRC108 28 29 0.005 378,756.763 9,392,733.850 568.430 Mirador
PBRC108 29 30 0.005 378,756.323 9,392,734.218 569.249 Mirador
PBRC108 30 31 3.033 378,755.884 9,392,734.587 570.068 Mirador
PBRC114 7 8 0.844 379,086.185 9,392,986.143 557.102 Mirador
PBRC114 8 9 0.883 379,085.745 9,392,986.512 557.921 Mirador