Nordic Platinum Project Ground Geophysical Program Underway

VANCOUVER, BRITISH COLUMBIA--APRIL 11, 2001--South Atlantic Resources Ltd. (the "Company") is pleased to announce that a ground geophysical program over key target areas within the Company's Nordic Platinum Project is underway.   The ground H.L.E.M. (horizontal-loop electromagnetic) geophysics is a follow-up program to the airborne E.M. survey conducted by the Geological Survey of Finland which identified numerous anomalies over the project area.  The ground H.L.E.M. survey will assist in designing a scout drilling program which is scheduled to commence within the next few weeks.  SCQ holds a 100% interest in the Nordic Platinum Project located within the Penikat-Portimo Layered Complex in northern Finland.  The project encompasses over 300 square kilometres in an important new platinum-palladium district and is directly adjacent to and on strike with the recently announced Gold Fields/Outokumpu platinum group metal discoveries (3 million ounces).

Geological Overview

The geology of northern Finland is composed of pre-Cambrian shield similar to that of Canada, offering excellent exploration potential for platinum-palladium mineralization in several layered mafic complexes.  These layered mafic complexes are geologic environments which host the world's major platinum-palladium deposits.

Layered mafic complexes refer to deep-seated igneous rocks which have intruded vertically and horizontally into the shallow crust of the earth and crystallized.  The original shape of the intrusive body can often be characterized as having the shape of a "champagne glass" in cross-section.  Ore-forming minerals concentrate in the cooling rock by gravitational settling, usually at the base of the intrusive ("marginal series"), but may also be injected as ore into surrounding country rock.  In many cases, multiple 
injections of igneous rock form layers which repeat mineralized horizons ("reefs") on top of each other.  Geologic events such as faulting and folding can subsequently break-up the intrusive body into complicated, offset blocks.

The class of ore deposit found in layered complexes include the largest ore-forming systems known.  The best examples being the Bushveld Complex of South Africa (2 billion ounces), the Great Dike of Zimbabwe, the Sudbury Complex of Canada, and the Stillwater Complex of Montana (50 million ounces).  Ore deposits in these rocks constitute major sources of platinum-palladium ("PGE" or platinum group elements), copper, nickel, chromium, titanium, iron and vanadium.

Penikat-Portimo Complex - Northern Finland

One of the most important layered complexes discovered in recent times is the Penikat-Portimo Complex located in northern Finland.  This complex hosts a number of PGE deposits and occurrences along a 135 kilometre northeast trend which divides Proterozoic volcanic and sedimentary rocks on the north from older Archean basement to the south.

South Atlantic's Nordic Platinum Project covers 300 square kilometres of the Penikat-Portimo Complex.  The rest of the ground in the area is held by the Gold Fields/Outokumpu joint-venture which is known as the Arctic Platinum Project ("APP").

The two most important intrusions in the APP area are the Penikat and Portimo.

At the Penikat intrusion, over 700 drill holes have defined three "reef-type" mineralized layers in the gabbro complex.  These mineralized reefs are very similar to those found in the Stillwater and Bushveld complexes.

In the Portimo area, the number and types of platinum-palladium occurrences exceeds that reported anywhere else in the world.  Four principal types of PGE mineralization have been identified:

1. PGE-bearing Cu-Ni disseminated sulphides at the base of the layered complex - "marginal series".

2. PGE-bearing massive pyrrhotite deposits located close to or within the marginal series.

3. Reef-type mineralized layers in the layered gabbro.

4. Cu-PGE mineralization offset in the basement below the contact with the layered gabbro complex.

Types 1, 2 and 4, and in some cases, reef-type mineralization, contain conductive sulphide mineralization of pyrrhotite, pentlandite and chalcopyrite which can be detected by geophysical methods at shallow depths - an exploration advantage in an area overlain by glacial till.  To date, South Atlantic has detected at least 15 significant anomalies within its project area.

Other types of PGE mineralization known to exist in the Portimo area are located in dikes in the basement and pegmatite bodies within the layered complex.

Gold Fields/Outokumpu have announced a PGE resource estimate of approximately 3 million ounces on two areas within the Portimo complex - the Ahmavaara and Konttijarvi disseminated sulphide deposits.  These deposits are immediately adjacent to and on strike with South Atlantic claims.

The Konttijarvi deposit is reported to contain 23.6 million tonnes grading 0.43 grams platinum, 1.57 grams palladium and 0.11 grams per tonne gold, with credits of 0.09% nickel and 0.14% copper.

The Ahmavaara deposit is reported to contain 25.6 million tonnes grading 0.26 platinum, 1.25 palladium and 0.12 gram per tonne gold, plus 0.11% nickel and 0.24% copper.  Gold Fields/Outokumpu have announced that scoping studies are underway for the development of these deposits.

Private Placement

The Company has completed the previously announced private placement of 3,000,000 units at a price of CDN$0.26 per unit for total gross proceeds of CDN$780,000.  Each unit consists of one common share and one-half of one share purchase warrant.  Each whole warrant shall be exercisable into one common share over a 2 year period at a price of $0.30 per share.  Net proceeds of the private placement will be used for general working capital purposes.  The private placement has received regulatory approval and the securities have now been issued to the investors.
 

ON BEHALF OF THE BOARD

Edward F. Posey, President

South Atlantic Resources Ltd.
Sophia Shane
Corporate Development
(604) 689-7842
Website: www.scq.com