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Dear Shareholders and Interested Parties,

OldGold just released a second video on Sertão which is worth watching.  He visited Sertão and is a big fan. Hopefully it gives you an idea on why we are so excited about its potential to be the highest grading gold mine in the world again.  It is a title this incredible mine held between 2003-6 and a title it should hold again.    
Pilar Gold Sertão Video by OldGold - December 2021 (Youtube link)
To be honest, I am embarrassed that we only gave Paulo our Head Geo one rig in this recent campaign to drill 3,000 metres. More famous names  like New Found Gold have 14 rigs running and will do 20+ times that metreage. For Pilar Gold, 2021 was all about securing the funding to acquire the Pilar Operation from Equinox Gold. Equinox have been fantastic supporters along this journey and now we have a world class mill up the road from Sertão so we don't need to build another mill when Sertão restarts in Q3'22.

This is different to New Found or Great Bear that will take 2-3 years to get their permits and build their operation at a cost of well north of $200 million given the inflation in the industry and their remote locations. While a gold rush has been going on in New Found Land, Pilar has quietly picked up most of the prospective ground in 4 of the 5 greenstone belts in the Goiás Archean Block in Brazil. Only AngloGold holds the 5th being Crixás. 
 
OldGold thinks we will have 10 rigs at Sertão by next Christmas and I hope he is right. We already have 5 rigs running at the Pilar and Maria Lazara mines that should take the combined ounces there to over 7 million. If Sertão is as big and high grade as we think then it could easily add 3 million ounces but time will tell.
 
Should Sertão deliver 10 g/t to the Pilar mill on 50 tonne trucks then we will increase our daily production from 130 to 260 ounces per day. Given it averaged 29 g/t for Troy Resources we are quietly confident it might better that.  Sertão is the kind of mine that could reduce Pilar Gold's AISC from its average of $1,300 to $800 per ounce and begin to rival Fosterville's AISC.  Remember in Brazil it is much cheaper to run a mine than in Australia and the currency weakness is proving to be a major benefit to us and other Brazilian producers. If we can achieve this then Pilar Gold can easily be a $5 stock given we have only 227 million shares fully diluted post this equity raise.

It's worth noting that the high-grade results we've seen so far have only just scratched the surface. The drilling campaign in 2021 focused on the area in the immediate surrounding of Troy's open pit and we have good reason to believe this will continue at least another 1.3km on the down plunge.
 
We have strong interest in our fund raising at 70 cents with a full warrant at $1 per share that values the group at just US$120 million post money. I told Paulo that if we raise more than our target of C$3.5 million then he can have 3 rigs by March. Click on the link to subscribe or Edward and I can send you the hard copy subdoc.  
 
Pilar Gold - Electronic Subscription Agreement (Apply Here)
Best Regards,

Jeremy Gray - CEO, Pilar Gold Inc

For more information please contact:

Jeremy Gray, CEO: +44 7769 388 376

Edward Balme, Head of Investor Relations: +44 7514 584610
Copyright © 2021 Pilar Gold, All rights reserved.


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