Atlantic Gold Corporation announced that it has executed a commitment letter and supporting term sheet with Caterpillar Financial Services Corporation ("Cat Financial"), pursuant to which Cat Financial has agreed to underwrite up to $20 million in mining fleet equipment financing to fund the Company's acquisition of Cat® mining equipment to be supplied by Atlantic Tractors & Equipment Ltd. (authorized Cat dealer for Nova Scotia), for the Company's Moose River Consolidated Project ("MRC Project") in Nova Scotia (the "Equipment Facility").

The Equipment Facility will be utilized towards the acquisition cost of the primary mining fleet and ancillary equipment (the "Mining Fleet"). Deliveries of the Mining Fleet are expected to commence arriving at site in mid-2016 and be completed in late 2017. The term of the Equipment Facility will be 5 years and will be secured by the Mining Fleet. Title to the Mining Fleet will transfer to the Company at the completion of the Equipment Facility.

Closing of the transaction is anticipated to occur in the coming weeks and is subject to customary conditions including completion of final documentation for this Equipment Facility, as well as the Project Loan Facility between the Company, Cat Financial, and Macquarie Bank Limited (as announced on February 22, 2016), satisfactory completion of conditions precedent and receipt of final internal credit approval.

Steven Dean, Chairman and CEO commented, "Atlantic is pleased to engage in another transaction with Cat Financial in respect of an equipment finance facility that will facilitate the purchase of a first-class mining fleet for our MRC Project. The result of our negotiations and work with Cat Financial is a competitive approach with benefits beyond the contract mining assumptions in our August 2015 feasibility study. The Company is looking forward to the completion of final documentation to formalize the Equipment Financing in due course."