South Atlantic Gold Inc. announced that it has entered into a Memorandum of Understanding Agreement with the government of Ceará State, Brazil to support South Atlantic in the advancement and development of the Pedra Branca Project, located in Ceará State, Brazil. Highlights of the Memorandum of Understanding. The government of Ceará pledges to support the Company with permitting, license reviews and financial and benefits programs that would advance the construction of a small-scale mining operation at Pedra Branca.

The Company pledges to work cooperatively to encourage economic growth in the communities surrounding the project area through sustainable ESG programs, local human resources development and local supply chain prioritization, as the project advances. The government of Ceará has also pledged to assist South Atlantic with upwards of BRL 120 million (CAD 30 million) in direct and indirect funding from activities related to tax-exemption and economic development programs to support the exploration and future construction of the Pedra Branca project. The impetus behind the government's decision is to help expedite the advancement of the project in the region along with its associated economic development with jobs generation, supply chain development and necessary investments to support the economic endeavor of this project.