Mr. Jack Stoch reports

MORE PROGRESS AT CHIBOUGAMAU INDEPENDENT'S MONT SORCIER IRON-VANADIUM ROYALTY PROJECT

Cerrado Gold Inc. has completed the tender process for its Export Credit Agency (ECA) supported non-recourse project financing and expects to complete the onboarding and appointment process within the next few weeks. Cerrado has chosen an international bank to act as mandated lead arranger (MLA) for the Mont Sorcier iron-vanadium project in the Chibougamau area of Quebec (see Cerrado's press release of Oct. 18, 2023).

The appointment of the MLA is a significant milestone for the project financing requirement. The next phase will comprise a formal due diligence period to be started in six months in order to align closely with completion of the planned feasibility study, before a final binding offer and documentation, which is expected to be completed in Q2 2024.

Chibougamau Independent Mines Inc. retains a 2-per-cent gross metal royalty on all iron and vanadium production from the Mont Sorcier property, currently expected to generate $235-million (U.S.) per annum in free cash flow over a 21-year period, with the project having a net present value of $1.6-billion (U.S.) based on indicated resources only, which represent 25 per cent of the total defined resource, leaving room for optimization and expansion potential (see Cerrado press release of March 7, 2023).

This press release was written by Jack Stoch, PGeo, president and chief executive officer of Chibougamau Independent Mines in his capacity as a qualified person under National Instrument 43-101.

We seek Safe Harbor.