Dear Shareholders and Interested Parties

We are really excited about Sertão’s latest hole SRSD51 at 2.1m @ 36.5 g/t Au because it’s two football fields away from the old pit where Troy Resources pulled out 260,000 Au ounces @ 29 g/t. It is also 250m west of SRSD41 at 2.5m @ 25.4 g/t. SRSD51 included 0.5m @ 117.7 g/t which has the same hallmark super high-grade that gave Sertão its knockout punch in the mill 16 years ago.

We think we are just scratching the surface of what looks to be a very large high-grade system. I expect Sertão will deliver our PGDM mill 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. With Fosterville grades in decline, we think Sertão will soon be the highest grading gold mine in the industry when it restarts in January.

What is also exciting is that SRSD51 is potentially the gateway to SRT001 (2m @ 18.7 g/t) which sits another 1km to the west. It was drilled by Yamana in 2009 before they gave up the tenements. We think SRT001 is also Crew's reef and there is no reason we won't find Lima and Nilsson's reefs near the old Yamana drill pad. In our last report to you in July we reported Lima's reef at 0.75m @ 97 g/t and Crew’s reef at 0.5m @ 77 g/t near the pit and made a surprise discovery directly underneath Stage 5 of 1m @ 237 g/t.

In 2020, before we acquired PGDM from Equinox, the western extension of Sertão came up on the ANM auctions. This collection of tenements extends 5km west of the old pit and was a must have for us. At the time I was very worried that a bigger group would offer a lot more money than we could afford. To my shock, the only other bid came from a local farmer who put in a low ball offer. How quickly the industry forgets that Sertão was the highest grading, lowest cost mine between 2003-6.

To give you an idea of how good Sertão was, its best quarter was 19,657 ounces at an average open pit gold grade of 46.5 g/t and a cash cost of $35 per ounce in Q2'03. The best hole drilled so far was 6.1m @ 523 g/t from surface by WMC. No gold mine in the last 30+ years has come close to this and we want to better those results going forward. These days a 6 gram open pit mine is considered world class and commands big institutional support.

Click on the link to our video that will give you a better idea of the scale of what we think we have at Sertão.

Pages 18-20 in the presentation link above provide a detailed summary of the 46 holes with mineralisation drilled so far 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 improved the overall average by 78% to 1.3 metres @ 39.6 g/t. What is interesting is that Troy drilled only 6 holes west of the open pit.

Next week we will update you on SRSD50 which caused us some problems back in August when the drill and rod got stuck in the hole, mainly due to highly fractured saprolite in the first 15 meters. Hole SRSD51 is located very close by so Helio and his team pumped a large amount of driller's mud into the top portion, having the effect of gluing the saprolite together and allowing them to complete it without any issues. They decided to re-drill hole 50 using this same approach and successfully reached full depth today. Helio and his boys are some of the best drillers in Brazil. Hole 49 was only 1 metre @ 6.4 g/t because we seemed to have drilled the edge of the high grade at Crew's reef.

Our fund raising at the C$1 round with a full two-year warrant at C$1.50 per share is going steadily. In this round we are pleased to welcome 12 new investors so far to our register which takes us to over 400 very supportive investors since we started this journey in May 2019. A special thanks to John and Dean who have participated in every round. Whenever I have been down in the past, thinking no one believes in Sertão, John and Dean have always been there to spur me on. One thing is for sure - when Sertão does show its incredible potential we won't be selling stock for only C$1.

Next month, I have asked James 'Jim' Jackson to write to you to give his impressions of his first 2 months working as Project Manager for Sertão. Jim and his family relocated from Mackay Queensland and they have settled in well. I’m really happy that Jim is leading the charge to bring back the highest grading gold mine in the industry.

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:

• 07/25/2022 - Gold Rush at Sertão

• 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