South Atlantic Gold Inc. announced that the Phase II Exploration program is proceeding well and early results demonstrated a high-grade sample of 96.04 grams per tonne ("g/t") gold ("Au") over 1 meter ("m") at the Barra Nova target. This assay result (which was re-assayed), among others highlighted below, are confirming mineralization along 40 kilometers ("km") of the regional strike length, and to the south of the initial Pedra Branca resource. The Phase II exploration program has commenced and its trenching program consists of 47 trenches representing a total of 9,880 m. These trenches are part of the entire program, which seeks to systematically prove the mineralized extensions of the current trends along the southern areas of the Pedra Branca tenement package. company reports the following highlighted results, averaging 20 km south and along the trend of the current resource at Coelhos-Quemadas. Refer to Annex Map here: At the Barra Nova target, the following trench results were intercepted: 3 m grading 32.63 g/t Au including 1 m grading 96.04 g/t Au and 1 m grading 1.58 g/t Au At the Cachoeirinha target, the following trench results were intercepted. 8 m grading 0.94 g/t Au including 2 m grading 3.3 g/t Au. 2 m grading 0.47 g/t Au. 8 m grading 0.59 g/t Au including 2 m grading 1.75 g/t Au. At the Muquem Norte target, the following trench results were intercepted including. 2 m grading 0.59 g/t Au. 2 m grading 0.54 g/t Au.Over 200 samples have had positive results above threshold of 50 parts per billion ("ppb") or 0.05 g/t Au. The original high-grade sample that triggered the re-assay was taken from the PB-TR-047 trench located within the Barra Nova target from 20 to 21 meters along the trench (sample number 7133). Because this sample was so much greater than previous samples, a nugget effect and/or free gold was suspected. The re-analysis divides the sample into two granulometric fractions, one greater than 150 microns and the other smaller than 150 microns. The test is conducted with a large, one kilogram ("kg") sample using a metallic screen to divide the sample into the sizes to be assayed. The purpose of this process is to provide
sample heterogeneity to minimize the nugget effect.