Mr. Douglas Meirelles reports

SOUTH ATLANTIC GOLD ANNOUNCES THE CLOSING OF THE BIG KIDD OPTION AGREEMENT

South Atlantic Gold Inc. has closed the previously announced property option agreement dated Nov. 4, 2022, and subsequent first and second amendments dated Jan. 4, 2023, and March 3, 2023, with Quetzal Copper Ltd. to divest the company's 100-per-cent interest in the Big Kidd project.

Quetzal Copper has completed the qualifying financing and paid the remaining balance of the commitment amount of $130,000.

Quetzal Copper is new copper exploration company focused in British Columbia and Mexico with a portfolio of drill-ready projects. It is currently completing an amalgamation with TSX Venture Exchange-listed Ankh Capital Inc.

The remaining terms of the option include:

• $200,000 per year on or before the first, second, third and fourth anniversaries, commencing Jan. 4, 2024;
• At the five-year anniversary of the signing, Quetzal Copper will make a cash payment of $350,000 or, if Quetzal Copper is publicly listed on a recognized stock exchange in North America, it may elect to issue common shares with a market value of $350,000 to South Atlantic;
• Further milestone payments:
  • Following the completion of 40,000 metres of drilling at Big Kidd, Quetzal Copper will make a payment of $300,000 in cash or shares, at its election (if listed on a recognized stock exchange in North America);
  • Following the filing of a prefeasibility study on Big Kidd, Quetzal Copper will make a cash payment of $1.2-million in cash or shares, at its election (if listed on a recognized stock exchange in North America);
  • Following the filing of a feasibility study on Big Kidd, Quetzal Copper will make a payment of $2-million (if listed on a recognized stock exchange in North America).
• Net smelter royalty:
  • South Atlantic Gold will retain a net smelter royalty of 2 per cent over the asset, of which 1 per cent may be bought back by Quetzal Copper for $2-million. In the event that there is a third party offer for such 1-per-cent royalty, Quetzal Copper will retain a right of first refusal to purchase the royalty on terms no less favourable than the third party offer to South Atlantic. The remaining 1-per-cent royalty will be at South Atlantic's discretion.

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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