SOUTH ATLANTIC GOLD INC. announce that the Brazilian environmental agency for the state of Ceará has commenced the evaluation process to license the Company's operations. The Company has also completed metallurgical testwork on the main ore zones of the Pedra Branca project as required by the mining license process. The samples submitted for metallurgical testing were from both the oxide zone and from fresh rock, with limitations to the size of the initial pit.

These samples were tested for gold concentration via a Falcon centrifuge to test gravity concentration followed by cyanide leaching. The tests were carried out on milling product leaching, Falcon tailings leaching and intensive leaching from the gravitational separation step. Tests were also made for BWi.

(Bond Work Index) /Grinding Curve, which tests hardness and amenability to grinding and crushing which resulted in a BWI of 19.2 kwh/tonne for the fresh rock. In addition, the samples were analyzed by Metallic Screen for higher accuracy.