Mr. Douglas Meirelles reports

SOUTH ATLANTIC ANNOUNCES UPDATES TO THE TUCANO JUDICIAL RECOVERY PROCESS IN BRAZIL

South Atlantic Gold Inc. advises that the terms and conditions demonstrated in the Mina Tucano Ltda. bankruptcy process were not chosen by the creditors. Although the company had successful negotiations with certain creditors, some of which issued letters of priority and support, and although the company also offered and negotiated better financial terms for many major creditors than a competing proposal, the conditions precedent set out in South Atlantic's proposal (primarily subject to financing and TSX Venture Exchange approval) were not viewed as being favourable, in comparison to the debtor's financial reorganization plan to the creditors in general.

South Atlantic will continue to monitor other potential developments of the judicial recovery of Tucano however it does not expect to have any favourable outcome to South Atlantic during the next steps of the process.

South Atlantic will continue to look for options to enable the continuation of the exploration program of its flagship asset Pedra Branca. The company will also remain open to other potential opportunities.

About South Atlantic Gold Inc.

South Atlantic 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.

We seek Safe Harbor.