South Atlantic Gold Hits Visible Gold in First-Ever Diamond Drilling at Igrejinha (6.55 m @ 2.28 g/t Au) and 45 Metres of Gold Mineralization at Queimadas, Pedra Branca, Brazil

South Atlantic Gold Inc. (SAO) has released the first diamond drill results from the Igrejinha target, alongside additional data from Queimadas, at its 100%-owned Pedra Branca gold project in Ceará, Brazil. The release concludes a drilling program totaling approximately 5,000 meters across 45 holes. Currently, only seven holes have been fully assayed, while 38 remain pending in whole or in part.

Key intercepts reported, all representing downhole lengths with true widths unknown, include:

• Igrejinha 26DDIGR005: 6.55 m @ 2.28 g/t Au from 35.00 m, including 4.80 m @ 3.06 g/t, within which 1.00 m @ 12.75 g/t (visible gold observed at ~38.1 m). Only 31.00–50.00 m of the 75.70 m hole was assayed.
• Igrejinha 26DDIGR013 (28 m from 005): 8.00 m @ 1.21 g/t Au from 26.00 m, including 5.00 m @ 1.85 g/t, within which 1.00 m @ 5.89 g/t; every included sample was ≥0.40 g/t.
• Queimadas 26DDQUE009: 45.00 m @ 0.40 g/t Au from 94.00 m, including 7.15 m @ 1.21 g/t; a second zone 22.30 m @ 0.52 g/t from 142.00 m, including 8.70 m @ 0.96 g/t; a third 2.00 m @ 1.12 g/t from 189.00 m.
• Queimadas 26DDQUE004 (530 m away): 24.00 m @ 0.63 g/t Au from 77.00 m, including 5.00 m @ 1.17 g/t.
• Queimadas 26DDQUE001: ended in mineralization at 250.60 m (deepest hole to date), 3.60 m @ 0.48 g/t from 247.00 m.

Remaining Queimadas holes showed weaker results: 26DDQUE002 4.00 m @ 0.13; 26DDQUE003 4.40 m @ 0.19; 26DDQUE005 2.00 m @ 0.56; 26DDQUE006 4.20 m @ 0.13; 26DDQUE007 no composite; 26DDQUE008 3.90 m @ 0.21 and 2.95 m @ 0.24 g/t. Assays for the Mirador target, identified as the highest-grade resource target with seven holes totaling 388.10 m, are all pending.

South Atlantic Gold Inc. (SAO) is a pre-resource-growth explorer with a market capitalization of approximately C$10.5 million and C$3.86 million in cash as of the Q2-2026 balance sheet. For companies at this stage, drill results are the core value driver, making grade-and-width substance more critical than for producing mines.

The market had previously been shown specific anchor results, including Igrejinha trench PBTR009 with 7.04 meters at 6.19 grams per tonne, which was the target this hole tested. Historical data from Queimadas included 12.8 meters at 7.38 grams per tonne and 32 meters at 4.13 grams per tonne. Resource grades for the properties were listed as 1.73 grams per tonne for Igrejinha and 1.24 grams per tonne for Queimadas.

The stock price moved from approximately C$0.04 in October 2025 to C$0.14 in May 2026 on anticipation of the drilling program, before round-tripping to C$0.05, a 64% decline from the peak. The current price is near the financing price of C$0.05 and the 52-week low of C$0.03. The anticipation premium has fully unwound, meaning the previous high is not embedded in the current valuation.

The new best intercepts are materially weaker in grade-and-width substance than the property's previously demonstrated grades. Igrejinha DDH recorded approximately 14.9 gram-meters (approximately 2.2 gram-meters excluding nugget effect) compared to the trench’s 43.6 gram-meters. At Queimadas, QUE009 upper zone recorded 18.0 gram-meters versus historical ranges of 94 to 132 gram-meters.

The results are not materially better than anything previously demonstrated, underperforming the trench and historical grades the company itself publicizes. The thesis remains intact as the Igrejinha vein is confirmed at shallow depth and roughly at resource grade, while Queimadas shows lateral extent and a deep mineralized intersection. However, the release delivers no discovery-defining grade and no scale upgrade. It confirms rather than reverses the de-rating the market has already applied, resulting in a modest negative impact.

South Atlantic Gold Inc. (TSX-V: SAO) is a pre-revenue gold explorer advancing its 100%-owned Pedra Branca project in Ceará State, NE Brazil. The project encompasses over 52,000 hectares on the Troia greenstone belt, which is described as a ~50 km mineralised shear trend containing nine targets.

The company’s inferred resource totals 4.0 Mt @ 1.38 g/t Au for ~180,000 oz at a 0.40 g/t cutoff, based on an NI 43-101 report effective 16 March 2021. The resource is split as follows:

• Queimadas: ~128,000 oz @ 1.24 g/t
• Mirador: ~40,000 oz @ 1.97 g/t
• Igrejinha: ~12,000 oz @ 1.73 g/t

The 2026 Phase III program drilled ~5,000 m across 25 Queimadas, 13 Igrejinha, and 7 Mirador holes. Management includes President/CEO Douglas Meirelles, SVP Exploration/QP Marcelo Batelochi, and CFO Terese Gieselman, with technical advisers including Matt Rees and structural consultant Dr. Brett Davis.

At ~C$10.5M market cap and ~C$3.86M cash, the enterprise value is ~C$6.6M against the 180 koz Inferred resource, roughly C$37/oz.