South Atlantic Gold Announces Additional Near-Surface Assay Results

Near-Surface Assay Highlights:

• - Igrejinha Target results included:

  • - Reverse Circulation ("RC") Drill hole PBRC052 intercepted 1 meter ("m") grading 1.61 grams per tonne ("g/t") gold ("Au") from 1 m depth

  - Coelho-Queimadas Target results included:

  • - RC Drill hole PBRC037 intercepted 1 m grading 1.06 g/t Au from 8 m depth

  - Bombeiro Target results included:

  • - RC Drill hole PBRC055 intercepted 1 m grading 1.95 g/t Au from 8 m depth

    - RC Drill hole PBRC059 intercepted 1 m grading 1.00 g/t Au from 22 m depth

  - Mir-Coelho Target results included:

  • - RC Drill hole PBRC065 intercepted 1 m grading 1.05 g/t Au from 3 m depth

    - RC Drill hole PBRC068 intercepted:

    • - 1 m grading 1.06 g/t Au from 6 m depth

      - 1 m grading 1.13 g/t Au from 9 m depth

      - 1 m grading 2.36 g/t Au from 12 m depth

      - 1 m grading 2.09 g/t Au from 14 m depth

      - 1 m grading 1.10 g/t Au from 15 m depth

      - 1 m grading 2.13 g/t Au from 30 m depth

  - Barra Nova Target results included:

  • - Trench result of 1 m grading 1.72 g/t Au

  - Mirador Target results included:

  • - RC Drill hole PBRC074 intercepted 1 m grading 1.17 g/t Au from 2 m depth

    - RC Drill hole PBRC075 intercepted 1 m grading 2.00 g/t Au from 12 m depth

    - RC Drill hole PBRC086 intercepted 1 m grading 1.07 g/t Au from 1 m depth

Douglas Meirelles, CEO stated, "It is impressive to see this significant number of positive assays from near-surface drilling and trenching throughout the central and northern part of Pedra Branca. We are finding mineralization from Bombeiro in the north all the way down to Barra Nova in the south where very little exploration has been done to date. These additional results, from the shallow RC drilling and trenching program, continue to outline the extensive mineralization seen at Pedra Branca. We are working diligently on the geologic and resource modeling."

Marcelo Batelochi, Senior Exploration Manager stated, "The mineralized lodes dip approximately 40-55 degrees to southeast with a folded strike varying from N0 to N45E. Trenches are less expensive and provided the first pass check of the mineralization which were followed by RC drilling to confirm the depth and true width of the ore shoots. The RC drilling program was designed to follow the surface mineralization with orthogonal (orthogonal azimuth and dip direction) intercept of the mineralization. We are pleased with these additional results as they indicate new intercepts across a 6 km strike length demonstrating the potential for a very large mineralized system at Pedra Branca."

The Phase I exploration program has been completed. Pedra Branca now has a total of 122 RC and 90 Diamond Drill holes comprising 5,022 m of RC drilling and 8,914 m of Diamond Drilling. All of the drill holes have been shallow in nature with a maximum depth of 250 m for diamond drill holes and 60 m for the RC holes.

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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.

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