- CASH COSTS CAD $569/OZ (USD $432/OZ @0.76 USD/CAD)
- AISC CAD $743/OZ (USD $565/OZ @0.76 USD/CAD)
- MINE OPERATING EARNINGS CAD $15.5 MILLION
- OPERATING CASH FLOW CAD $19.4 MILLION ($0.10 PER SHARE)
- REMAINS ON TRACK TO MEET ANNUAL PRODUCTION AND COST GUIDANCE
August 15, 2018
Canadian dollars unless otherwise noted
Vancouver, British Columbia – Atlantic Gold Corporation (TSX-V: AGB) ("Atlantic" or the "Company") is pleased to announce its operational and financial results for the second quarter of 2018 at its Moose River Consolidated Gold Mine (“MRC”) in Nova Scotia, Canada.

Description Q1 2018 Q2 2018 YTD 2018
Gold Produced (oz.) 18,183 22,269 40,452
Gold Sold (oz.) 17,187 22,728 39,915
Cash Cost/oz. ($CAD) 549 569 560
AISC/oz. ($CAD) 751 743 746
Mine Operating Earnings ($CAD) 5,889,743 15,483,426 21,373,169
Operating Cash Flow ($CAD) 4,214,432 19,393,031 23,607,463

The Company remains on track to deliver on its annual guidance of producing 82,000 - 90,000 ounces at a cash cost (see “Non-IFRS Performance Measures”) of CAD $500 - CAD $560 per ounce and an AISC between CAD $675 - CAD $735 per ounce. The Company previously released its gold production and revenue for the second quarter of 2018 (see news release dated July 09, 2018).

Additionally, in July 2018, the Company announced the execution of a credit approved commitment letter for a fully underwritten CAD $150,000,000 senior secured revolving credit facility with National Bank of Canada. This facility will be used to repay the Company’s project financing loan and for general working capital purposes.
The Company has a total cash balance at June 30, 2018 of CAD $33 million, which includes $17 million of restricted cash that will be released upon execution of the credit facility with National Bank of Canada.
Throughout the second half of 2018, the Company will continue to focus on the following:
• Producing 82,000 - 90,000 ounces from Touquoy in 2018 at a cash cost of $500 - $560 per ounce (US$400 – US$448 per ounce @ an exchange rate of CAD$0.80), and an AISC between $675 and $735 per ounce (US$540 – US$588 per ounce, @ an exchange rate of CAD$0.80).
• Progressing the Company’s Phase 4 Corridor Regional diamond drilling program which commenced in April 2018, with the objective to systematically explore the regional prospective host structure targeting the Company’s disseminated style gold deposit model amenable to open pit mining.
• Completing formal documentation in respect of the senior secured revolving credit facility with National Bank of Canada.
• Progressing and seeking approval of the Environmental Impact Statement for Beaver Dam which was submitted in June 2017.
• Preparation of the Fifteen Mile Stream and Cochrane Hill Projects Environmental Impact Statements, with submissions expected in Q1 2019.

Q2 and YTD 2018 Operating Results**:
Three months ended June 30, 2018 Six months ended June 30, 2018
Operating data
Ore mined Tonnes 757,865 1,852,353
Waste to ore ratio (waste to ore) 1.39 0.85
Mining rate (waste + ore) Tonnes per day 19,921 18,903
Ore milled Tonnes 567,238 986,388
Head grade g/t Au 1.28 1.35
Recovery % 95.2 94.7
Mill throughput Tonnes per day 6,233 5,450
Gold ounces produced ozs. 22,269 40,452
Gold ounces sold ozs. 22,728 39,915

**Disclosure of operating results and supporting discussion in this news release does not present comparative statistics for the prior year as MRC began producing gold in Q4 2017 and commenced commercial production effective March 1, 2018.

Gold production and sales
During the three months ended June 30, 2018, MRC produced 22,269 ounces of gold (which was above Q2 2018 production guidance of 21,000 to 22,000 ounces of gold) and sold 22,728 ounces of gold.
During the first half of 2018, the Company produced 40,452 ounces of gold, which included 9,373 ounces of gold produced during operation ramp up in January and February 2018, prior to commencement of commercial production. Gold sales during the first half of 2018 was 39,915 ounces, which includes 9,432 ounces of gold sold during operation ramp up in January and February 2018, prior to commencement of commercial production.

Mining
During the three months ended June 30, 2018, a total of 757,865 tonnes of ore were mined at a waste to ore ratio of 1.39:1 with a total of 1,812,803 tonnes of material moved.
During the first half of 2018, a total of 1,852,353 tonnes of ore were mined, at a waste to ore ratio of 0.85:1 with a total of 3,421,473 tonnes of material moved. Approximately 49% of the ore mined in the first half of 2018 was stockpiled as low and medium-grade material which will be readily available for processing later in the mine life. This material was assumed to be waste
in the 2015 Feasibility Study. Waste material was used to build the Tailings Management Facility (“TMF”) and the waste dump with its ditches and water collection area.

Processing
During the three months ended June 30, 2018, a total of 567,238 tonnes of ore was processed at an average grade of 1.28 g/t Au and average process recovery of 95.2% which exceeded the design recovery of 94%. The decrease in grade for Q2 2018 is attributed to physical constraints in accessing the ore due to the removal of historical tailings that required permitting plus supervision by independent consultants and prevented access to higher grade ore for more
than 8 weeks. Access to the higher-grade mining blocks was achieved by the end of June.
A total of 986,388 tonnes of ore was processed during the first half of 2018, at an average grade of 1.35 g/t Au with a recovery of 95%.
As with Q1, during the second quarter, the Company continued its efforts to optimize certain areas of the plant including the crushing circuit, reagents consumption and overall energy management. Operations statistics since the commencement of commercial production on March 1, 2018 supports the Company’s full year production guidance for 2018.

Sustaining capital
The Company incurred a total of $2,400,054 and $4,428,850 in sustaining capital expenditures during the three and six months ended June 30, 2018, respectively. The vast majority of the expenditures relate to the scheduled TMF raise which commenced ahead of schedule due to favorable weather conditions at the end of the first quarter of 2018.

Growth capital
The Company incurred a total of $2,126,754 and $4,889,196 in growth capital expenditures during the three and six months ended June 30, 2018, respectively. A large proportion of the expenditures in the first half of 2018 relate to development of the waste dump area, removal of historic tailings, and costs associated with initial fit-out of site infrastructure, as well as costs
incurred due to design and commissioning issues identified as part of the ramp-up process.

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