Mr. Jack Stoch reports

CHIBOUGAMAU INDEPENDENT MONT SORCIER ROYALTY NEWS

Cerrado Gold Inc. has received acceptance of an expression of interest (EOI) from the United Kingdom Export Credit Agency (UKEF) to provide up to $420-million of support for the Mont Sorcier iron-vanadium project, located just east of Chibougamau, Que. Chibougamau Independent Mines Inc. holds a 2-per-cent gross metal royalty on all production from the property.

The Mont Sorcier deposit is a well advanced, large, long-life, and economically robust project in a tier one mining jurisdiction. In September 2022, Voyager Metals Inc., now a wholly owned subsidiary of Cerrado, completed a Preliminary Economic Assessment (the PEA) on Mont Sorcier, which outlined a project with an after-tax NPV of US $1.6 billion and an IRR of 43%, producing 5.0 MMtpa of iron concentrate over a mine life of 21 years with annual free cash flow of US $245 million. The project is currently advancing towards completion of a bankable feasibility study ( Cerrado Press Release March 7, 2023 ).

Cerrado in their press release today stated, "UKEF's engagement with the opportunity is at an early stage. UKEF's EOI is not a legally binding commitment and is subject to a series of standard project finance terms and due diligence, including, among others, suitable structured offtake contracts, the successful completion of the Definitive Feasibility Study (DFS), and an Environmental and Social Impact Assessment (ESIA) to Equator Principles. The EOI provides an indication of currently available country limits, an indication of the attractiveness of the project, and it covers, in principle, the level of financial support, their flexibility and desired conditions."

Jack Stoch, P.Geo. President and CEO of Chibougamau Independent Mines Inc. wrote this press release in his capacity as QP under applicable regulations.

We seek Safe Harbor.