Dear Shareholders and Interested Parties

As we reach our first year of drilling at Sertão, it is becoming increasingly clear that this incredible deposit is likely to become one of the highest grading gold mines in the industry in 2023. What is also apparent is that the success of this shallow hole drill programme so far, is just scratching the surface of what we believe is a very large high grade system. I expect Sertão will deliver us 45,000 ounces in 2023 at an average grade of 16 g/t and a cash cost of < $500 per ounce but see no reason why that cannot grow significantly thereafter.

In the last month, Paulo and the team have intersected Lima's reef at 0.75m @ 97 g/t Au, 2.1m @ 9.9 g/t and 0.5m @ 77 g/t at Crew’s reef, and made a surprise discovery 40 metres below Crew's reef of 1m @ 237 g/t. We are not sure if this is a new reef that sits below Crew's and will need to do more drilling to check its potential.

Pages 11-16 in the presentation link below provides a very detailed summary of the 41 holes with mineralisation to the west of the old Troy open pit. Prior to our campaign starting last year in July, the average width and grade of these historical holes was 1.3 metres @ 23.2 g/t. Since then, Paulo and the team have intersected a number of very high grades and improved the overall average by 82% to 1.3 metres @ 40.3 g/t. What is interesting is that Troy drilled only 6 holes west of the open pit and seemed to have left early without checking where the gold came from that supplied their pit with 260,000 ounces at an eye watering 29 g/t average.

Lima's reef appears to be the old Stage 5 Troy reef system. As a thank you to Marcelo Lima for all his hard work and loyalty over the last 4 years we renamed Stage 5 to Lima's reef. Marcelo has stuck with me through thick and thin and there were some very tough times where he could have taken much better paid jobs.

Pages 20-24 in the presentation show never seen before grade control results from Stage 5 when Troy was getting ready to mine it in 2006. We found this data on an old server at the Orinoco Gold office which was until recently used by Pilar Gold in the beautiful town of Goiás Velho. Orinoco bought Sertão from Troy in 2014.

We included these slides to illustrate just how high grade Lima's reef can be and 0.75 @ 97 g/t told us straight away that it’s from the same mineralisation that Troy called Stage 5. What is characteristic of Sertão mineralisation at both Lima and Nilsson reefs is that there is usually a 0.5-1.0 metre of extremely high grade (50-400 g/t) that gives it the knockout punch in the mill. A really important point also is that this high grade mineralisation typically has very little nugget effect which means the results are not distorted by nuggets getting into the core.

Sertão is very understated and reminds me a bit of the character Roy Hobbs in the movie - The Natural. Played by Robert Redford, Roy sat half the season out because his coach refused to play him, thinking he was too old. When he got the chance to have some batting practice, that was the beginning of the turn around for the New York Knights as they went on to the win the World Series. This scene is one of my favourites and it sums up Sertão perfectly - a forgotten mine that is going to hit it out of the park.

If Sertão proves to be as good as we are now beginning to believe, then our current $1 round with a full warrant will prove a low valuation of C$207 million for Pilar Gold. This is considering our company already boasts some $400 million of sunk capital with 4 mills (3 idle) + 7 mines (5 dormant) and a real possibility to deliver 90,000 ounces in 2023 with an AISC below $1,000 per ounce. Click on the link below or contact us if you want to discuss further.

Finally, we’d like to give a big welcome to James 'Jim' Jackson and his family who are landing into Brazil today from Mackay, Queensland. Jim is going to be our Project Manager at Sertão and will work closely with Paulo, Israel, Richard, Juliana, Rafael, Fransisco, Ramon, Wallacy, Marcelo and the whole team to make Sertão our number 1 priority to start mining in January. I think Jim is going to do great things for Sertão and Pilar Gold and am really proud to have him on the team.

Thanks again for your support.

Regards,

Jeremy Gray | CEO
jeremy.gray@pilargold.com

Charles Chebry | President
charles.chebry@pilargold.com

Edward Balme | Head of Investor Relations
edward.balme@pilargold.com

Previous Pilar Gold emails:

• 07/09/2022 - Pilar Gold’s first ever Broker Report from GOLDINVEST.de

• 07/02/2022 - Pilar Gold Achieves Strongest Production Rate in 3 Years

• 05/31/2022 - More High-Grade Results at Sertão

• 05/09/2022 - New Video of Pilar Gold’s 7 Mines and 4 Mills

• 05/01/2022 - Pilar Gold Orders MRS Dry Stack Tailings System

• 04/10/2022 - Tungsten's Looming Price Spike

• 03/17/2022 - Pilar Gold Bonanza Discovery Webinar

• 03/08/2022 - Pilar Gold closing 70 cent round this Friday

• 03/05/2022 - China + Russia = 87% of Global Tungsten Supply

• 02/17/2022 - Pilar Gold’s MLSE Drilling Update

• 02/13/2022 - Pilar Gold Signs Offtake with Trafigura Pte Ltd

• 01/27/2022 - Tungsten Price Update

• 01/25/2022 - Launch of Pilar Gold Website

• 01/21/2022 - Sertão Drilling Resumes Today

• 01/17/2022 - Pilar Gold Inc Completes the Acquisition of Bodó Mineração in Brazil

• 12/27/2021 - New Video on Pilar Gold's Sertão Drilling

• 12/17/2021 - Pilar Gold Hits 2.5m @ 33.8 g/t at Sertão

• 12/15/2021 - Drilling Starts at Maria Lázara South East

• 12/07/2021 - Pilar Gold - Bonanza Grade Drill Results at Sertão

• 11/26/2021 - Pilar Gold Update and Private Placement