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Kelowna, British Columbia – TheNewswire - June 30, 2026 — SOUTH ATLANTIC GOLD INC. (TSX-V: SAO) (OTC Pink: JLRRF) ("South Atlantic" or the "Company") provides an update on its 5,000-metre Phase III diamond drilling and induced polarization / resistivity ("IP") geophysical survey program at the 100%-owned Pedra Branca Gold Project in Ceará State, northeast Brazil. Preliminary IP data demonstrated chargeability zones in disseminated sulphide-zones that coincide with gold mineralization logged in the drill core, providing a clear path and new tool for future discoveries.

1. Highlights

1) Induced Polarization & Resistivity (IP) Survey is providing rapid exploration method for gold discovery. Preliminary data reveals chargeability responses that appear spatially coincident with the sulphide-bearing zones (predominantly pyrrhotite) logged in the drill core , extending along strike and remaining open in all directions . — As a result, the Company now has a proven exciting new method for mapping the mineral system.

a) New and never-before tested additional areas for follow-up. (See Figure 1. Chargeability reflects sub-surface sulphide content). There are several chargeability zones to the east and parallel to the known mineralization zone that is totally novel to our exploration team. (See Figure 2)

b) The IP survey will also be expanded and used to test other targets. Given this early success - the IP survey will be expanded at the current target of Queimadas and moved to test Igrejinha and Mirador targets.

2) Program advancing — seven holes complete, an eighth in progress, with further sample batches to the laboratory. Drilling has completed seven holes with an eighth in progress for approximately 1,503 metres of HQ-diameter core . The first sample batch (677 samples covering the first two completed holes) has been submitted to the laboratory and assayed with further sample batches being prepared for dispatch.

a) First hole assayed - Deepest gold intercept identified at Queimadas – ever. The first hole (26DDQUE001) intersected gold mineralization at approximately 231 meters downhole — the deepest gold intercept identified at Queimadas to date, below the roughly 201-metre maximum depth of previous drilling — assaying 0.5 metres at 0.524 g/t Au from 231.0 metres (core length, not true width) (See Figure 1).

b) Drilling campaign is performing well. Drill-core logging and working cross-sections interpret a folded, alteration-hosted, pinch-and-swell structure that remains open along strike to the northwest; its relationship, if any, to gold mineralization is potentially high. (See drill core photos section .) Assay results pending.

Induced Polarisation Geophysical Survey

The IP geophysical survey across the Queimadas target area is underway, conducted by an experienced Brazilian geophysical contractor, with line preparation and data acquisition progressing on schedule. The survey is designed to image chargeability anomalies associated with the disseminated sulphide assemblages logged in the Queimadas host rocks.

Drill-core logging and cross-sections interpret these sulphide-bearing zones as occupying a folded, alteration-hosted, pinch-and-swell structure, of which gold is occurring with sulphides in many cases.

First results of the field data from the survey lines show chargeability responses that appear spatially coincident with the sulphide-bearing zones logged in Phase III drill core, and that extend along strike and remain open toward the northwest — suggesting additional areas for follow-up drilling. These observations are based on preliminary field data only; data processing and two- and three-dimensional inversion will follow on completion of acquisition, and the results, once reviewed by the Company's Qualified Person, will inform target refinement and the design of subsequent drilling. Chargeability reflects the sub-surface distribution of sulphide minerals, which are not necessarily gold-bearing; geophysical anomalies represent exploration targets only and require drill testing and laboratory assay to evaluate.

 
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Figure 1: Chargeability (IP) inversion model along Line 400 at the Queimadas Target, intersecting the drill holes. The section demonstrates the close spatial correlation between the chargeability anomaly interpreted to maps hydrothermal alteration and disseminated sulphides in a hydrothermal system.

 
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Figure 2: Inverted induced-polarization (IP) chargeability model along survey Line 700 at the Queimadas target. Chargeability zone to the east and parallel to the known mineralization zone that is totally novel to our exploration team Warm (red) colours denote higher chargeability, interpreted to reflect disseminated sulphides (predominantly pyrrhotite) logged in drill cores. Chargeability reflects sub-surface sulphide content.

Drill Core Photographs

PHOTO 1 — Hole ID: 26DDQUE001, interval from 231.10 to 231.15 m. Lithology: meta-amphibolite with centimetre-scale biotite schist interlayers and millimetre-scale pyrrhotite bands concordant with the foliation. Structure: strongly foliated. Assays of the Interval: 26DDQUE001: 0.5 meters @ 0.524 Au g/t– From 231.0m

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PHOTO 2 — Hole ID: 26DDQUE003, interval from 29.7 to 29.90 m. Lithology: Grey amphibole-quartz schist with biotite-rich foliation planes. and millimetre-scale pyrrhotite bands concordant to sub-concordant with the foliation. Assays pending.

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PHOTO 3— Hole ID: 26DDQUE006, interval from 143.00 to 143.10 m. Lithology: Dark grey biotite-amphibole-quartz schist hosting a 4 cm thick quartz vein with millimetre-scale pyrrhotite developed along the border of the vein. The quartz vein is recrystallized and subparallel to the strong foliation. Assays pending

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PHOTO 4— Just for comparation, Photo of Historial Drill hole. Hole ID: FCC001, interval from 46.25 to 46.45m m. Lithology: Dark grey biotite-amphibole-quartz schist with millimetric lamination of pirrotie in a strong foliation. Assays of the Interval: FCC001 : 1.0 meters @ 2.86 Au g/t – From 46.25m

PHOTO 5— Just for comparation, Photo of Historial Drill hole. Hole ID: FCC002, interval from 50.6 to 50.7 m. Lithology: Dark grey biotite-amphibole-quartz schist with millimetric lamination of pirrotie in a strong foliation. Assays of the Interval: FCC002 : 0.9 meters @ 11.52 Au g/t – From 50.3 m

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PHOTO 6— Hole ID: FCC003, interval from 50 to 51  m. Lithology: Dark grey biotite-amphibole-quartz schist hosting a 1 cm thick quartz vein with millimetre-scale pyrrhotite developed along the border of the vein. The quartz vein is recrystallized and subparallel to the strong foliation. Assays of the Interval: FCC003: 1.0 meters @ 7.13 Au g/t – From 50.0 m

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Project Context

The Pedra Branca Gold Project hosts a National Instrument 43-101 ("NI 43-101") compliant Inferred Mineral Resource of 4.0 million tonnes grading 1.38 g/t gold, containing approximately 180,000 ounces of gold, estimated at a 0.40 g/t gold cut-off grade, as set out in the technical report titled "NI 43-101 Technical Report on the Pedra Branca Gold Project" with an effective date of March 16, 2021 and was prepared by Rodrigo Mello, FAusIMM, an independent Qualified Person. An Inferred Mineral Resource has a lower level of confidence than an Indicated Mineral Resource, must not be converted to a Mineral Reserve, does not have demonstrated economic viability, and there is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to a higher category. The project is situated within the Paleoproterozoic Troia Greenstone Belt.

Qualified Person

The scientific and technical information that forms the basis for this news release was reviewed and approved by Marcelo Antonio Batelochi (P.Geo.), MAusIMM (CP), the Company's Senior Vice-President, Exploration, who is a Qualified Person as defined by NI 43-101. For the purposes of this news release, the Qualified Person reviewed and verified the data underlying the disclosure herein, including drill collar and downhole survey data, core-recovery records, geological logs, sampling and chain-of-custody records, and the preliminary geophysical field data.

Quality Assurance and Quality Control

The Company applies industry-standard QA/QC protocols to its Phase III drilling and sampling program. All holes are drilled with HQ-diameter equipment, with downhole surveys conducted at regular intervals. Core is logged, photographed, cut and sampled as half core by the Company's field team, and certified reference materials, blanks and field duplicates are routinely inserted into the sample stream — for the first sample batch, 23 certified reference standards, 22 field duplicates (quarter core) and 23 blanks accompanying 609 primary core samples. Samples are submitted under chain-of-custody to SGS Geosol, an independent and accredited laboratory, where gold is determined by fire assay with a gravimetric or atomic-absorption finish and multi-element analysis is undertaken. Assay results and associated quality-control data are reviewed and validated by the Company's Qualified Person prior to disclosure.

About South Atlantic Gold

South Atlantic Gold is an exploration company focused on the exploration and development of gold projects in the Americas. The Company's flagship asset is the 100%-owned Pedra Branca Gold Project, located in Ceará State, northeast Brazil. The project hosts a NI 43-101 compliant Inferred Mineral Resource of 4.0 million tonnes grading 1.38 g/t gold (approximately 180,000 ounces of gold), as described under "Project Context" above, and is situated within the Paleoproterozoic Troia Greenstone Belt. South Atlantic Gold is listed on the TSX Venture Exchange under the symbol "SAO" and on the OTC Pink marketplace under the symbol "JLRRF".

Douglas Meirelles , President & CEO — T: 250-762-5777 — E: ir@southatlanticgold.com — W: www.southatlanticgold.com

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" under applicable Canadian securities laws, including statements regarding the timing and progress of drilling and the IP survey, the interpretation of geophysical and geological data and the apparent spatial association between the preliminary IP chargeability response and the sulphide-bearing zones logged in drill core, the identification of potential follow-up areas from preliminary geophysical data. Forward-looking information is identified by words such as "expects," "plans," "anticipates," "intends," "scheduled," "will," "would," "may," "could" or "should." Such information is based on material assumptions — including that drilling, sampling and the IP survey proceed substantially as planned; that laboratory turnaround, sample transport and required site access remain available; that weather, ground conditions and contractor and equipment availability permit continued operations; that the Company's financial resources are sufficient to fund the planned program; and that assay results are received and validated by the Qualified Person in the ordinary course — and involves known and unknown risks and uncertainties, including exploration and assay results, laboratory turnaround and accuracy, drilling and operational delays, contractor and equipment availability, surface access and permitting, commodity prices and the availability of financing, that may cause actual results to differ materially. The Company will report assay results on a hole-by-hole basis as they are compiled, QA/QC-reviewed and validated by the Qualified Person; no inference as to the presence, grade, width or continuity of gold mineralization should be drawn from the drilling, geological logging or geophysical data described herein. Geophysical data described herein are preliminary and unprocessed; chargeability reflects sub-surface sulphide content, which is not necessarily gold-bearing; geophysical anomalies are exploration targets only and require drill testing and assay to evaluate. Visual observations of drill core described herein, including lithologies, sulphide species, alteration assemblages and structural features, are preliminary, are not a substitute for laboratory assay results, and cannot be used to estimate or predict gold grade. The Mineral Resource for the Pedra Branca Gold Project is classified as Inferred; an Inferred Mineral Resource has a lower level of confidence than an Indicated Mineral Resource, must not be converted to a Mineral Reserve, does not have demonstrated economic viability, and there is no certainty that all or any part of it will be upgraded to a higher category. Forward-looking information represents the Company's expectations as of the date hereof and is subject to change; the Company does not undertake to update it except as required by law.

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.

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South Atlantic Gold Inc.  |  TSX-V: SAO  |  OTC: JLRRF  |  ir@southatlanticgold.com

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