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SAO.V ·

South Atlantic Gold Announces RSU/DSU Plan

Share Capital & Compensation

TSX-V: SAO

South Atlantic Gold Announces RSU/DSU Plan

Kelowna, British Columbia, October 2 1, 2022 - SOUTH ATLANTIC GOLD INC. (TSX- V: SAO) (“South

Atlantic” or the “Company”) announces that the board of directors of the Company effective October 21,

2022 (the “ Effective Date ”) have adopted a restricted share units (“RSUs”) and deferred share units

(“DSUs") long term incentive plan (the “LTIP").

The purposes of the LTIP will be to: (i) provide the Company with a mechanism to attract, retain and

motivate highly qualified directors, officers, employees and consultants; (ii) align the interests of eligible

participants of the LTIP with that of other shareholders of the Company generally; and (iii) enable and

encourage participants to participate in the long-term growth of the Company through the acquisition of

RSUs and DSUs as long-term investments.

While the LTIP has been adopted by the board of dir ectors of the Company, it remains subject to

ratification by shareholders of the Company and approval of the TSX Venture Exchange (the “Exchange”).

In accordance with the policies of the Exchange, the Company is required to obtain disinterested

shareholder approval for the implementation of the LTIP. These approvals will be sought at the upcoming

meeting of shareholders of the Company to be held on December 6, 2022 (the “Meeting”).

The maximum number of RSUs/DSUs issuable under the LTIP Plan may not excee d 9,433,666 common

shares representing 10% of the number of issued and outstanding common shares of the Company as at

the Effective Date,

Further details regarding the LTIP will be included in the management information circular of the Company

which will be sent to shareholders and filed on SEDAR in connection with the Meeting.

About South Atlantic Gold

South Atlantic Gold 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, Cear á 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, 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:

Anne Hite, Vice President, Investor Relations

T: 250-762-5777

Email: [email protected]

TSX-V: SAO

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 cause the Company’s actual results, performance or

achievements, or developments in t he industry to differ materially from the 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, uncertainties 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. There can be no assurance that the Fundamental Acquisition will be completed as

proposed or at all.

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

uncertainties associated with general economic conditions; the Covid -19 pandemic; 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, futur e

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 assumptions 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, I T 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.

TSX-V: SAO