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SAO.V ·

South Atlantic Announces Updates to the Tucano Judicial Recovery Process in Brazil

Metallurgy & Processing

TSX-V: SAO

News Release

South Atlantic Announces Updates to the Tucano Judicial Recovery Process in Brazil

September 15th , 2023 – Vancouver, British Columbia – South Atlantic Gold Inc. (TSX-V:SAO) (“South

Atlantic” or the “ Company”) wishes to advise 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 T SX 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 favorable 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. And will 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. Our flagship asset is the 100%-owned Pedra Branca project, located 280 km

southwest of Fortaleza, Ceará State, Brazil. South Atlantic 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 is based in Kelowna, British Columbia, and

is listed on the TSX-V under the symbol “SAO”.

ON BEHALF OF THE BOARD

Douglas Meirelles, President and CEO

For more information regarding this news release, please contact:

Douglas Meirelles, President and CEO

T: 250-762-5777

Email: [email protected]

Cautionary Note Regarding Forward-Looking Information

This news release contains statements that constitute “forward -looking Information”, as such term

is used in applicable Canadian securities laws. Such forward-looking information involves known and

unknown risks, uncertainties and other factors that may c ause the Company’s actual results,

performance or achievements, or developments in the industry to differ materially from the

TSX-V: SAO

anticipated results, performance or achievements expressed or implied by such forward -looking

information. Forward-looking information includes statements that are not historical facts and are

generally, but not always, identified by the words “expects,” “ plans,” “anticipates,” “believes,”

“intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions

“will,” “would,” “may,” “could” or “should” occur.

Although the Company believes the forward -looking information contained in this news release is

reasonable based on information available on the date hereof, by its nature forward -looking

information involves assumptions and known and unknown risks, uncert ainties and other factors

which may cause our actual results, level of activity, performance or achievements, or other future

events, to be materially different from any future results, performance or achievements expressed or

implied by such forward-looking information.

Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks

and uncertainties associated with general economic conditions; adverse industry events; the receipt

of required regulatory approvals and the timing of such approvals; that the Company maintains good

relationships with the communities in which it operates or proposes to operate, future legislative and

regulatory developments in the mining sector; the Company’s ability to access sufficient capital from

internal and external sources, and/or inability to access sufficient capital on favorable terms; mining

industry and markets in Canada and generally; the ability of the Company to implement its business

strategies; competition; the risk that any of the assumptio ns prove not to be valid or reliable, which

could result in delays, or cessation in planned work, risks associated with the interpretation of data,

the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent

with the Company’s expectations, as well as other assumptions risks and uncertainties applicable to

mineral exploration and development activities and to the Company, including as set forth in the

Company’s public disclosure documents filed on the SEDAR website at www.sedar.com.

THE FORWARD -LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE

EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS

SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON

FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY

OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS

INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH

APPLICABLE LAWS.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.