Atlantic Gold Secures $115 Million Project Debt Financing for the Development of the MRC Project

All figures presented in Canadian Dollars, unless specified otherwise

VANCOUVER, BRITISH COLUMBIA--(Feb. 22, 2016) - Atlantic Gold Corporation (TSX VENTURE:AGB) ("Atlantic" or the "Company") is pleased to announce that following a competitive selection process, it has received and executed a credit approved commitment letter for a $115 million Project Loan Facility ("PLF") to be arranged and fully underwritten by Macquarie Bank Limited ("Macquarie Bank") and Caterpillar Financial Services Corporation ("Cat Financial"), to fund the majority of the construction costs of the Company's Moose River Consolidated Project ("MRC Project") in Nova Scotia.

Macquarie Bank and Cat Financial are recognized global leaders in the provision of mining project finance. Macquarie Bank is part of Macquarie Group, a global financial services provider with offices in 28 countries and expertise covering banking, financial, advisory, investment and funds management services. As the captive finance company for Caterpillar, Cat Financial has provided financial service excellence and helped Cat® equipment customers make progress possible for more than 30 years. With a global presence in every mining market, Cat Financial focuses on customized financial solutions built to fit customers' unique needs in the ever-changing mining industry.

The PLF carries an interest rate of the Canadian Dealer Offered Rate, or CDOR, plus a margin 5% (pre-Project Completion), reducing to 4.5% post-Completion, and is repayable in quarterly installments over three years commencing late 2017. In order to mitigate gold price risk and as a condition of the PLF, Atlantic will enter into margin free gold forward sales contracts of 215,000 ounces, representing approximately 30% of total recovered life of mine gold production of the MRC Project at an agreed minimum Canadian dollar forward price of $1,500. A defined amount of hedging is expected to be put in place in advance of the signing of a definitive Credit Agreement pending certain conditions being met, in order to fix the sale of gold at a favorable Canadian Dollar gold price.