Mr. Alan Carter reports

CABRAL GOLD DRILLS 16M @ 5.2 G/T GOLD FROM 7M DEPTH IN OXIDIZED MATERIAL AT CENTRAL GOLD DEPOSIT, CUIU CUIU GOLD PROJECT, BRAZIL

Cabral Gold Inc. has released drill results from the first eight RC (reverse circulation) holes from the Central gold deposit that are part of the continuing drill program currently being conducted at both the Central and MG gold deposits within the Cuiu Cuiu gold district in northern Brazil.

Highlights:

• Notable drill intercepts from the initial eight RC holes testing the Central gold-in-oxide blanket and basement saprolite include RC357, which returned 16 metres at 5.2 grams per tonne (g/t) gold (Au) from seven m depth in saprolite, including three m at 23.9 g/t gold.
• RC352 was drilled 50 m to the northwest of RC357 on an adjacent section and returned nine m at 4.6 g/t gold from 47 m depth in saprolite, including three m at 12.7 g/t gold.
• These initial drill results from the Central gold deposit indicate that significant high-grade mineralization intersected in previous deep drilling of the hard basement rocks can be traced upward to near surface within oxidized blanket sediments and the underlying saprolite material.
• The current drill program is continuing. A total of 55 RC holes and nine shallower, power-auger holes have been completed to date. Assay results are pending on 12 RC holes and nine power-auger holes drilled at MG, and 29 RC holes drilled at Central.

Alan Carter, Cabral's president and chief executive officer, commented: "These drill results from the near-surface gold-in-oxide blanket and saprolite material at the Central gold deposit clearly demonstrate the continuity of higher-grade material near surface. This bodes very well for the optimization of the resource model of the known gold-in-oxide resources at Cuiu Cuiu over the coming months. The fact that the near-surface drilling recently identified zones of higher grades at the MG gold deposit suggests that both of the main gold deposits identified thus far at Cuiu Cuiu contain zones of higher-grade mineralization within the near-surface oxide material."

Central RC drill results

The Central gold deposit is one of the two main gold deposits that have been identified to date at Cuiu Cuiu. As with the nearby MG gold deposit, the upper portion of the Central gold deposit is extensively weathered resulting in a vertical profile of approximately 60 m on average of highly weathered basement saprolite. The weathered mineralized basement saprolite is overlain by mud, soil and colluvium material which forms a blanket. All of the blanket material contains gold, and is derived from the chemical and physical weathering the underlying saprolite basement gold mineralization.

The bulk of the gold resources at Central are contained within the underlying primary (unweathered) basement material (see the National Instrument 43-101 report dated effective July 31, 2022). The overlying oxide material currently contains indicated resources of 3.49 million tonnes (Mt) at 0.6 g/t (65,400 ounces (oz)) and inferred resources of 3.36 Mt at 0.4 g/t (44,800 oz). A significant amount of higher-grade material (greater than 1.75 g/t gold) is contained within these resources, and the current drill program at Central is designed to expand these resources within the near-surface saprolite and blanket material.

Holes RC350 to RC357 were all drilled within the overall outline of the oxide resource at Central to a maximum depth of 97 m.

Section N21295

Drill holes RC354, RC355, RC356 and RC357 were all drilled on Section N21295 in the northern part of the Central deposit. This was a section wherein the weathered oxide saprolite and blanket material had not been previously drilled.

Hole RC357 intersected 16 m at 5.2 g/t gold from seven m depth, including three m at 23.9 g/t gold from 18 m depth. This zone is interpreted as the up-dip extension of a significant zone of primary mineralization in the underlying primary (unweathered) basement rocks. RC355 and RC356 were drilled 45 m to the northeast and cut three m at 0.3 g/t gold and eight m at 0.9 g/t gold, respectively, from surface in blanket soils and sediments. RC355 also intersected multiple intercepts in the underlying weathered saprolite material, including three m at 0.8 g/t from 30 m depth, 10 m at 0.6 g/t from 44 m depth, three m at 0.7 g/t from 60 m depth and nine m at 1.1 g/t from 68 m depth. The hole ended in gold-in-oxide mineralization within saprolite basement.

Section N21345

Holes RC352 and RC353 were both drilled on Section N21345. RC352 intersected nine m at 4.6 g/t gold from surface, including three m at 12.7 g/t gold from 47 m depth. This zone is interpreted to be the same zone intersected in hole RC357, 50 m to the southeast, and indicates the continuity of a significant zone of high-grade mineralization in near-surface saprolite material at Central. RC353, drilled on the same section, cut several zones of mineralization in oxidized material, including nine m at 0.4 g/t from surface, two m at 0.9 g/t from 16 m depth and four m at 0.6 g/t from 32 m depth.

Only one diamond hole (CC-63) and a surface trench (XH0159) had previously tested this section within the oxidized and weathered profile on this section.

Section N21400

Holes RC350 and RC351 were both drilled on Section N21400. RC350 was drilled toward the northeast and intersected a thicker-than-expected section of oxide materialization, returning 19 m at 0.4 g/t gold from surface in overlying blanket sediments and underlying saprolite material. RC351 was drilled 50 m to the southwest on the same section in a northeast direction and cut several zones of mineralization in oxidized material, including one m at 0.8 g/t from 33 m depth, two m at 0.8 g/t from 49 m depth and one m at 1.6 g/t from 54 m depth.

No previous drilling had been conducted on this section within the oxidized and weathered profile.

These drill results and those that are pending will allow the generation of a more accurate resource model of the oxide mineralization at MG and Central, which will form the basis of a proposed mine plan for trial mining. The prefeasibility study on trial mining of the gold-in-oxide resources will consider the exploitation by open-pit mining and heap-leach processing.

The current drill program is continuing, with a total of 55 RC holes and nine shallower power-auger holes completed to date. Results are currently pending on 12 RC holes and nine power-auger holes at MG, and 29 RC holes at Central.

Debt settlement

The company also announces that it has agreed to settle an aggregate of $186,352 of debt owed to certain creditors by issuing an aggregate of 1,620,446 common shares of the company at a deemed price of 11.5 cents per share.

The company will issue 358,762 shares to an arm's-length creditor in settlement of $41,258 for geological consulting services rendered up to Feb. 28, 2023, and 1,261,684 shares to Dr. Alan Carter, a non-arm's-length party as he is a director and senior officer of the company, for accrued interest of $145,094 up to Sept. 30, 2023, on a loan provided to the company by Dr. Carter. For further information regarding the loan with Dr. Carter, please see the company's news release dated March 7, 2023.

The debt settlement is subject to TSX Venture Exchange acceptance. The securities to be issued pursuant to the debt settlement are subject to a four-month hold period in accordance with applicable securities laws.

The issuance of 1,261,684 shares pursuant to the debt settlement to Dr. Carter constitutes a related-party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 for related-party transactions in connection with the debt settlement contained in Section 5.5(b) and Section 5.7(1)(a) of MI 61-101, on the basis that the company is not listed on specified markets and the fair market value of the securities of the company to be issued to related parties does not exceed 25 per cent of its market capitalization, as determined in accordance with MI 61-101.

Issuance of stock options and RSUs

Cabral's board of directors has approved the granting of restricted share units (RSUs) pursuant to the company's 2023 omnibus equity incentive plan. Subject to any necessary or required approval of the TSX Venture Exchange, the RSUs entitle the holders to acquire a total of 1.2 million common shares in the capital stock of the company. In respect of the 650,000 RSUs granted to four independent directors, 50 per cent of the RSUs will vest 18 months after the date of grant, with the remainder vesting after 36 months. In respect of 550,000 RSUs granted to three officers and one employee, 100 per cent of the RSUs will vest 36 months after the date of grant.

Cabral's board of directors has also approved the granting of stock options pursuant to the plan. The stock options entitle the holders to purchase a total of 5,295,000 common shares in the capital stock of the company at a price of 12 cents per common share. The grant includes 1.5 million stock options granted to four independent directors and 1.6 million stock options granted to three officers. The stock options are exercisable for five years and are subject to vesting over 24 months.

The RSUs and stock options are being granted as officer compensation, director fees, consultant fees and employee compensation (as applicable), in respect of both 2022 and 2023. Prior to the current grants, the company's most recent RSU and stock option grants were on April 12, 2021, and Aug. 31, 2021, respectively.

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. The company has a 100-per-cent interest in the Cuiu Cuiu gold district located in the Tapajos region, within the state of Para in northern Brazil. Two main gold deposits have so far been defined at the Cuiu Cuiu project which contains National Instrument 43-101-compliant indicated resources of 21.6 Mt at 0.87 g/t gold (604,000 oz) and inferred resources of 19.8 Mt at 0.84 g/t gold (534,500 oz), as per the NI 43-101 technical report dated Oct. 12, 2022.

The Tapajos gold province is the site of the largest gold rush in Brazil's history which, according to the ANM (Agencia Nacional de Mineracao or National Mining Agency of Brazil), produced an estimated 30 million ounces to 50 Moz of placer gold between 1978 and 1995. Cuiu Cuiu was the largest area of placer workings in the Tapajos and produced an estimated two Moz of placer gold historically.

We seek Safe Harbor.