Atlantic Gold Provides Update With Phased Reclamation Security Arrangements for the MRC Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 30, 2016) - Atlantic Gold Corporation (TSX VENTURE:AGB) ("Atlantic" or the "Company") is pleased to announce that the Nova Scotia Department of Natural Resources ("NSDNR") and Nova Scotia Environment ("NSE") (together, the "Province") have accepted the Company's proposal to provide a phased reclamation security (the "Security") in the amount of $10.4 million for its Touquoy Gold Mine ("Touquoy"), the flagship deposit for its Moose River Consolidated Project ("MRC Project") in Nova Scotia.

The Security is a requirement under both the Company's Mineral Lease (2011) and the Company's Industrial Approval dated March 24, 2014 (the "IA").

The Security represents the total cost to reclaim the Touquoy site as determined by the Province. A phased approach to providing the Security was agreed in order to allow the Company to provide satisfactory financial security on a progressive basis commensurate with the area disturbed by the activity on the site at any given time. This approach will ensure that adequate Security is in place before each phase of disturbance, construction and operation and will be commensurate with the level of reclamation liability associated with Touquoy at any point during the project.

The table below outlines the various milestone payments and dates in respect of posting of financial security for reclamation:

Milestone	Description	Estimated Date	Financial Security Required
	Amount currently posted with the NSDNR	N/A	$0.17 million
1	Commencement of Construction	Q2/3 2016	$3.43 million
2	Commencement of Ore Processing	Fall 2017	$2.10 million
3	1 year anniversary of the start of Ore Processing	Fall 2018	$2.60 million
4	2 year anniversary of the start of Ore Processing	Fall 2019	$2.10 million
	Total Financial Security - due December 31, 2019		$10.4 million

To ensure that the actual and planned areas of disturbance matches this agreed phased approach, the Company has committed to providing survey drawings of actual and planned disturbed areas to NSE and NSDNR on an annual basis. Therefore, the actual amount of incremental increase in the Security will be adjusted in accordance with the variance between actual and planned disturbances.