South Atlantic Gold Inc. announced the commencement of a Phase II exploration program over its flagship 100% owned exploration project located in Ceará State, northeast Brazil. The Phase II program has been developed utilizing field observations from recent site visits by management and a comprehensive review of Phase I exploration results by the newly formed Technical Committee. Extensive geologic mapping concentrating on alteration zones and the identification of structures and kinematic indicators which help to identify areas of potential mineralization.

Stream sediment sampling program to cover gaps in the tenement areas that were not covered in the Phase I exploration program. The results of the sampling program will be used to identify and evaluate areas potentially associated with additional mineralized structures that were not tested in Phase I. Trenching program similar to the trenching that was conducted in the Phase I exploration program. South Atlantic uses trenching as a relatively inexpensive alternative to drilling and this technique was successful in the Phase I program.

Multi-element geochemistry can be used to determine mobility of certain elements and help to determine which elements are associated with gold and thereby will often assist vectoring into prioritizing the targeted mineralized trend. Multi-element geochemistry will be augmented by spectral orientation and niche sampling that enable lithology characterization. The more geological knowledge that can be acquired at Pedra Branca, the better the ability to identify and target mineralization across the tenement area and, where appropriate, to add tenements to the land package area.