An anonymous director of Phoenix Gold reports

DILUTION OF PHOENIX GOLD FUND LIMITED SHAREHOLDINGS IN SOUTH ATLANTIC GOLD INC.

As a result of the increase in the issued and outstanding shares of South Atlantic Gold Inc. (the issuer) due to the closing of a non-brokered private placement event by the issuer, Phoenix Gold Fund Ltd. of Kuala Lumpur, Malaysia, no longer holds over 10 per cent of the issued and outstanding shares of the issuer.

Prior to the event, Phoenix owned 10 million common shares of the issuer, representing approximately 10.06 per cent of the issued and outstanding shares of the issuer on an undiluted basis.

As a result of the event, Phoenix continues to own 10 million common shares of the issuer, representing approximately 9.26 per cent of the issued and outstanding shares of the issuer on an undiluted basis assuming no further common shares of the issuer have been issued.

Phoenix continues to hold the securities for investment purposes only. Phoenix may, in the future, participate in financings and/or acquire or dispose of securities of the issuer in the market, privately or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.

The disclosure respecting Phoenix's shareholdings contained in this press release is made pursuant to the National Instrument 62-103 and/or the National Instrument 62-104 and a report respecting the above acquisition will be filed with the applicable securities commissions using the Canadian SEDAR+ website.