Mr. Alan Carter reports

CABRAL GOLD ANNOUNCES $2M PRIVATE PLACEMENT FINANCING

Cabral Gold Inc. has arranged a non-brokered private placement of up to 12.5 million units of the company at a price of 16 cents per unit for gross proceeds of up to $2-million. Each unit will consist of one common share in the capital of the company and one-half common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of 24 cents for two years following the date of closing of the private placement.

Cabral may pay finders' fees in connection with the private placement. Finders will be paid a cash commission equal to up to 6 per cent of the gross proceeds of the private placement.

The company intends to use the net proceeds from the private placement for general corporate purposes and to further the continuing prefeasibility study on the weathered gold-in-oxide material at the Cuiu Cuiu gold district.

The securities issued pursuant to the private placement will be subject to a four-month hold period from the closing date. The completion of the private placement and the payment of any finders' fees will be subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

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, Para state, 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 gram per tonne gold (604,000 ounces) and inferred resources of 19.8 million tonnes at 0.84 g/t gold (534,500 ounces).

The Tapajos gold province is the site of the largest gold rush in Brazil's history, producing an estimated 30 million 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 million ounces of placer gold historically.

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