Sertão Drilling Resumes Today

Dear Shareholders and Interested Parties,

I am really excited to announce the restart of our drilling campaign today at Sertão after a well earned Christmas break for Helio and his team. Sertão was the highest grading gold mine in the world between 2003-6 and we believe it will achieve those same bragging rights again in 2023.

Our Chief Geo Paulo Aguirre has really got his eye in now and nailed 6 of his last 8 holes from the first season. Carlos and Arthur have been great and I’m excited to have them back working alongside Paulo. The table shows his best results and illustrates how many vertical metres these intersections are below the bottom of the current Stage 5 (Crew's reef) pit. This is the same pit that will host the new underground mine portal leading straight into the lush high-grade material that we'll truck to our 4,500tpd Pilar mill. For example SRSD0013 which was Paulo's best hole of half a metre @ 218 g/t Au is only 13 vertical metres below the current workings.

21st January 2022 - Drill rig arrival on site at Sertão in preparation for restart

Please see the presentation below from Paulo which is a detailed historical study of this incredible orebody. Last month Paulo showed me the RAB holes that Troy did in 2005 on Stage 5 when it was accidently discovered sitting below the then dry stacked tailings. He got these results from an old employee of Troy that were long lost and sitting on his computer. What I found incredible was the consistency of results that were 100 - 500 g/t Au over 1.0 to 1.5 metres running some 300 metres just under the farm paddock. In fact, the last hole ever drilled at the bottom of Stage 5 was 1 metre @ 358 g/t Au before Troy left. The best hole drilled at Sertão so far was 6.1m @ 523 g/t Au from surface by WMC about 500 metres East from where we are drilling now.

A second rig is arriving next week that will explore the 'gap zone' between both reefs and was never drilled by Troy or WMC. This is a theory we are testing after Divino, who owns the Sertão farm and worked for Troy as their surveyor, got talking with Paulo over Christmas.

Pilar Gold - Sertao Drilling Campaign 2021 - 2022 (Download)

The private placement at CA$0.70 cents with one full warrant will be officially closing on Friday 28th January. To put this round in perspective, post money this values the whole group at only US$120 million. As a back of the envelope the Pilar Mine alone was built in 2013 by Yamana Gold for US$220 million of capex. Today we have over 4moz in our upcoming 43-101 that could easily grow to 8moz. The Sertão mine took Troy Resources to a market cap of over US$300 million in 2005 when gold was just $500. Our recent Bodo Tungsten acquisition on its own could feasibly be compared to King Island Scheelite which currently enjoys a market cap of US$80 million. My dad used to own a farm on King Island and I still remember as a kid flying there with him on a tiny plane.

If you are a fan of Plastic Bertrand the 1970's Belgium pop singer then watch OldGold's latest video on Sertão. Unlike Plastic, Sertão is not a one hit wonder! This video has already had 59,000 views and is very informative.

Pilar Gold Sertão Video by OldGold - December 2021 (Youtube link)

Our next raise will be north of $1 a share. We have the potential to be a $1 billion company ($4.50 a share) and that is what we are focused on becoming over the next 24 months as we grow production and prove that Sertão is once again the highest grading gold mine in the world.

Pilar Gold - Electronic Subscription Agreement (Apply Here)

If you would prefer to complete a share subscription using a traditional subdoc please contact Edward.Balme@PilarGold.com

Thanks again for your support and please contact Edward or myself if you have further questions.

Regards,

Jeremy Gray | CEO
jeremy.gray@pilargold.com
UK: +44 7769 388376

Edward Balme | Head of Investor Relations
edward.balme@pilargold.com
BR: +55 62 98538 0014

Pilar Gold

2032 45 Avenue SW

Calgary, AB T2T 2P5

Canada

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