South Atlantic Gold Inc. announced another milestone for the Phase II exploration program which included a high-resolution Unmanned Airborne Vehicle magnetic survey at its 100% owned Pedra Branca project, located in Ceará state, northeastern Brazil. The initial results of the UAV survey define a distinct signature over areas of known mineralization that, when combined with other datasets demonstrates the potential for gold mineralization to extend well beyond the limits of the current resource. The completion of the drone magnetic survey provided significant results that will help guide and focus the next steps of the exploration program.

In the National Instrument 43-101 technical report, The magnetic signature at this target leaves the possibility to expand the current Inferred resource with additional drilling. As seen on the map below, the section of Queimadas is contrasted with the consolidated exploration programs completed at surface (average 40 m depth) in conjunction with the magnetic survey, demonstrating the new potential of this entire target area. The drone survey also highlighted the area between Mirador and Queimadas as seen on the map below, which greatly aided the interpretation of the structures that connects these two main targets for a total length of 60 km.

The Company has also completed the magnetic survey between these two areas and is expecting to receive the data in the next few weeks. In the 1.5 years that South Atlantic has been exploring the Pedra Branca property, a significant amount of current and historical work has been completed within a limited budget. This geological work provides a basis for the initial understanding of the mineralization at Pedra Branca.