Mr. Alan Carter reports

CABRAL GOLD RECEIVES SECOND AND FINAL TRANCHE REGARDING THE NSR ROYALTY AGREEMENT WITH OSISKO GOLD ROYALTIES ON THE CUIU CUIU GOLD PROJECT, BRAZIL

Cabral Gold Inc. has received the second and final $2.5-million (U.S.) tranche relating to the royalty agreement with Osisko Gold Royalties Ltd. announced on July 12, 2023, pursuant to which Osisko agreed to purchase a 1-per-cent net smelter return (NSR) royalty on the Cuiu Cuiu gold project for a total cash consideration of $5-million (U.S.).

Cuiu Cuiu project

Cuiu Cuiu is an advanced gold exploration and development project located in the state of Para, Brazil, immediately adjacent to the Tocantinzinho gold project which is currently under construction.

The Cuiu Cuiu project hosts National Instrument 43-101-compliant mineral inventory of 21.6 million ounces 0.87 gram per tonne (g/t) gold (604,000 ounces (oz)) in the indicated resources category and 19.8 million tonnes (Mt) AT 0.84 g/t gold (534,500 oz) in the inferred resources category, as per the NI 43-101 technical report dated Oct. 12, 2022.

A prefeasibility study considering potential exploitation of weathered oxide saprolitic gold mineralization is currently being undertaken by Ausenco. If positive, the study should pave the way for a construction decision for trial mining and heap-leach processing of the near-surface oxide gold mineralization at Cuiu Cuiu.

Details of the transaction

Cabral has granted Osisko a 1-per-cent NSR royalty from the production of all products from the Cuiu Cuiu property. The total consideration is $5-million (U.S.) which has been paid in two tranches: $2.5-million (U.S.) was paid on closing and the remaining $2.5-million (U.S.) was paid on July 26, 2023, following the registration of certain security pledges.

Following the completion of a feasibility study, Cabral will pay Osisko $250,000 (U.S.) on the date thereof and each subsequent anniversary of said completion by way of an advance payment, until the commencement of commercial production. These payments shall be credited against future royalty payments due under the royalty agreement.

The terms of the transaction allow Cabral to use a portion of the proceeds for general working capital purposes.

The parties have registered a pledge of shares in Cabral Gold B.C. and Cabral's wholly owned subsidiary in Brazil. The transaction also grants Osisko certain additional rights on future royalty and stream financings.

About Cabral Gold Inc.

The company is a junior resource company engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil.

We seek Safe Harbor.