Dr. Alan Carter reports

CABRAL GOLD PROVIDES UPDATE ON PREFEASIBILITY STUDY REGARDING EXPLOITATION OF NEAR-SURFACE GOLD-IN-OXIDE MINERALIZATION AT CUIU CUIU GOLD PROJECT, BRAZIL

Cabral Gold Inc. has provided an update of the continuing trial-mining prefeasibility study regarding exploitation of near-surface gold-in-oxide mineralization at both the Central and MG gold deposits within the Cuiu Cuiu gold district in northern Brazil.

Highlights:

• The RC (reverse circulation) drilling program at Cuiu Cuiu continues to make excellent progress with a total of 69 holes completed to date. Results are currently pending on 31 RC holes from Central, 12 RC holes and nine power auger holes from MG, and 12 RC holes from Machichie, where previous drilling indicates the potential for a new zone of gold-in-oxide mineralization.
• Drilling results to date support the strategic direction of developing a high-grade/high-margin project based on the gold-in-oxide blanket above the primary sulphide-hosted orebody at Cuiu Cuiu. Early indications from the drilling point to the potential for an increase in high-grade inventory, closer to the surface.
• Additional metallurgical test work, including column-leach tests, are planned to better understand the gold recoveries of both the high-grade and low-grade gold-in-oxide ore at Central and MG. Additional metallurgical samples are currently being collected.
• Pronorte Geotecnica Ltda. has been contracted to complete a program of geotechnical drilling at Cuiu Cuiu consisting of an initial 16 diamond drill holes and 30 power auger holes. The drill rig has arrived on site and drilling has commenced.
• A lidar (light detection and ranging) topographic survey was recently completed on site and will be used to accurately design the construction of the mine and associated infrastructure.
• Dewick Brazil Inc. has been contracted to complete a mine plan as part of the trial-mining prefeasibility study (PFS). This work will be undertaken following the completion of both the current drill program and a revised resource estimate for the gold-in-oxide material.

Alan Carter, Cabral's president and chief executive officer, commented: "The ongoing PFS at Cuiu Cuiu continues to make excellent progress on a range of different fronts. The commencement of the geotechnical drilling program and the arrival of a second rig on site is an important step forward, as is the completion of the lidar topographic survey which will provide critical input into the design of the mine and the layout of the associated processing infrastructure. In addition, the excellent initial drill results from the program of RC drilling at the MG and Central gold deposits has provided further confirmation that high grades occur within the near-surface oxide blanket and underlying saprolite mineralized material, both of which are expected to be free digging. We look forward to receiving additional metallurgical results from the ongoing studies, which are designed to better understand the scalability, optimal cement-ore ratios, agglomeration and compaction-permeability tests on samples to determine potential stack heights."

Update regarding prefeasibility study

The company is making good progress on a National Instrument 43-101-compliant PFS regarding the economic viability of mining and heap leach processing of the gold-in-oxide material at the Central and MG gold deposits at Cuiu Cuiu. The company has contracted Ausenco do Brasil Engenharia to complete the study.

The company is currently conducting a program of RC drilling at both the MG and Central deposits as part of the PFS. A total of 69 holes have been completed thus far and results have been released on the initial 14 holes (six holes from MG and eight holes from Central). Initial results have been highly encouraging and include 27 metres at 1.9 grams per tonne (g/t) from surface at MG (see press release dated Oct. 12, 2023) and 16 m at 5.2 g/t gold from seven m depth at Central (see press released dated Nov. 2, 2023).

In addition, results are pending on 12 holes which have been completed at the Machichie target, where previous drilling suggests the presence of a significant gold discovery (see press release dated Jan. 7, 2021). Previous drilling in the weathered oxide material returned values up to 34 m at 5.4 g/t gold from surface to 34 m depth, including 13 m at 13.4 g/t gold from 18 m to 31 m depth.

Results are currently pending on 31 RC holes from Central, 12 RC holes and nine power auger holes from MG, and 12 RC holes from Machichie.

Ausenco and Cabral have also elected to undertake additional metallurgical testwork to better understand the ore characteristics and optimize the processing envelopes (throughput rates, recovery rates, leaching times, pad heights et cetera). These studies are designed to better understand the leaching characteristics of the entire resource base as well as the scalability, optimal cement-ore ratios, agglomeration and compaction-permeability tests on samples for various potential stack heights.

Pronorte has been contracted to complete a program of geotechnical drilling aimed at understanding the overall ground conditions at Cuiu Cuiu prior to the erection of the heap leach pads, the agglomeration and ADR plants, and associated infrastructure. A total of 16 diamond drill holes and 30 power auger holes are planned. Drilling is in progress.

The company recently completed a lidar topographic survey as part of the PFS. Lidar uses infrared light in the form of lasers to precisely measure distances. The lidar instrument consists of a laser, a scanner and a GPS receiver mounted on a drone platform, and will be used to accurately design the construction of the mine and associated infrastructure.

The company has hired Deswick to complete a mine plan as part of the PFS. This work will be completed from December, 2023, to February, 2024, in conjunction with Ausenco, which is supervising the PFS. Deswick is a provider of various mine planning software and consulting services to the mining industry and has a global reach. The work will be completed following an update of the near-surface high-grade oxide resources, which will include the recent drill results from the current RC drilling program.

The continuing PFS continues to evolve and is generating opportunities to optimize the value of the project. These opportunities include the potential to increase the amount of material mined and processed, which may allow for reduced unit operating costs through greater economies of scale, the potential to optimize gold recoveries and potential capex (capital expenditure) savings. In order to capture these opportunities within the NI 43-101-compliant PFS, additional time has been allowed which will mean that the PFS results are now expected in Q2 2024.

Completion of debt settlement

Cabral also announces that, further to its press release of Nov. 2, 2023, the company has settled 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.

A total of 358,762 of the shares have been issued pursuant to the debt settlement to an arm's-length creditor in settlement of $41,258 for geological consulting services rendered up to Feb. 28, 2023. An additional, 1,261,684 of the shares have been issued pursuant to the debt settlement to Dr. Carter, a director, CEO and president of the company, as payment for accrued interest of $145,094 through 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 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 sections 5.5(b) and 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.

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 million tonnes at 0.87 g/t gold (604,000 ounces) 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 million ounces 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.

Guillermo Hughes, MAusIMM, FAIG, a consultant to the company as well as a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

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