Mr. Douglas Meirelles reports

SOUTH ATLANTIC COMPLETES $512,040 NON-BROKERED PRIVATE PLACEMENT

South Atlantic Gold Inc. has completed the previously announced non-brokered private placement offering for gross proceeds of $512,040 to the company. The offering consisted of 8,533,999 common shares of the company at a price of six cents per common share.

The proceeds of the offering will be used to continue to advance the company's due diligence on the proposed acquisition of the Tucano gold mine in Brazil, as previously announced on July 5, 2023, business development and for general corporate purposes.

Insiders of the company, including certain directors participated in the offering for an aggregate amount of $19,000 common shares. Such participation is considered a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The related party transaction will be exempt from minority approval, information circular and formal valuation requirements pursuant to the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the gross securities to be issued under the offering nor the consideration to be paid by the insiders will exceed 25 per cent of the company's market capitalization.

No finders' fees were paid in connection with the offering.

All securities issued under the offering will be subject to a hold period expiring on Dec. 1, 2023.

Adviser Haywood Securities Inc. is acting as exclusive financial adviser in connection with the proposed acquisition. As consideration of certain services provided by the adviser as of the date hereof, the company has agreed to pay the Advisor a corporate finance fee of $96,000. The company and the adviser have agreed subject to TSX Venture Exchange approval to satisfy the corporate finance fee through the issuance of 1.6 million common shares at six cents per common share (being the issue price of the offering). The common shares issued to the adviser will be subject to a hold period expiring four months and one day from the date hereof.

About South Atlantic Gold Inc.

South Atlantic Gold is an exploration company engaged in acquiring and advancing mineral properties located in the Americas. Its flagship asset is the 100-per-cent-owned Pedra Branca project, located 280 kilometres 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 is based in Kelowna, B.C., and is listed on the TSX-V under the symbol SAO

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