Mr. Douglas Meirelles reports

SOUTH ATLANTIC GOLD ANNOUNCES LOAN AGREEMENT

South Atlantic Gold Inc. has entered into a loan and unsecured promissory note agreement with a non-arm's-length party of the company in the amount of $500,000. Proceeds from the loan will provide short-term working capital and funds to continue to develop the company's Pedra Branca project. The loan bears interest at 8 per cent per annum and will mature 24 months from date of issue.

The lender is a related party of the company, and, as a result, the advance and repayment under the loan constitute related party transactions for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying upon an exemption from the formal valuation and minority shareholder approval requirements under MI 61-101 in respect of the related party transactions, in reliance on sections 5.5(a) and 5.7(1) of MI 61-101, respectively, as the fair market value of the related party transaction, collectively, does not exceed 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101. The company did not file a material change report related to the loan more than 21 days before the expected closing of the loan as required by MI 61-101 as the company wished to organize the loan on an expedited basis for sound business reasons. No finders' fees were paid in connection with the loan.

About South Atlantic Gold Inc.

South Atlantic is an exploration company engaged in acquiring and advancing mineral properties in the Americas.

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