Mr. Alan Carter reports

CABRAL GOLD PROVIDES UPDATE FOR CUIU CUIU GOLD DISTRICT, BRAZIL

Cabral Gold Inc. has provided a summary of recent progress at the Cuiu Cuiu gold district in northern Brazil.

Highlights:

• Two drill rigs are currently operating at Cuiu Cuiu. One of these rigs is working on upgrading gold-in-oxide inferred resources to indicated status at the Machichie Main target, which was not considered in the prefeasibility study announced in October, 2024, but is likely to form part of an updated mining plan.
• The second rig is focused on following up drill testing of primary exploration targets at the Machichie NE discovery, where drilling in 2024 returned 11 metres of 33 grams per tonne gold (see press release dated May 30, 2024), and also at the Central SE, Mutum and Jerimum Cima targets. Results are currently pending on 18 holes from both rigs.
• Ausenco Brazil has been contracted to update the PFS on the initial heap leach starter operation, particularly with a focus on capturing the opportunities identified in the PFS to lower the estimated capital and operating expenditures, as well as increasing the mining rate and plant capacity. Discussions regarding project financing and ECPM (engineering, construction and procurement management) contracts are continuing.
• Mine plan scenarios are being run using economic and operating assumptions more aligned with an increased scale, the latest unit costs and the projected gold price environment. This may drive a reduction in the cut-off grade and could further increase mineral reserves across all three deposits (MG, Central and Machichie Main).
• Cabral has hired John Sestan as vice-president, project development, to oversee and manage the gold-in-oxide heap leach starter operation at Cuiu Cuiu and to build potential development options aligned with increasing the global resource base.

Alan Carter, Cabral's president and chief executive officer, commented: "The next few months should be very exciting for our shareholders as we continue to develop our heap leach starter operation at Cuiu Cuiu with the objective of achieving near-term cash flow. Once in operation, this starter project will allow us to aggressively drill off the numerous targets within the Cuiu Cuiu district and significantly expand the global resource inventory.

"Recent optimization work by our team has confirmed potential savings in capital expenditures and operating expenditures for the gold-in-oxide project. In addition, the current drilling program is aimed at further increasing the indicated resource base, which we expect will support the inclusion of gold-in-oxide material from the Machichie Main deposit. The appointment of John Sestan as VP, project development, is another important step in our transition from a pure exploration company to a junior producer.

"In parallel with the advances on our heap leach starter operation, we have also commenced exploration drilling on several high-priority targets in close proximity to the known gold deposits, including Central SE, Mutum, Jerimum Cima and the Machichie NE discovery, where drilling in 2024 returned 11 metres of 33 g/t gold."

Drilling

Cabral is currently operating two reverse circulation drill rigs along with two excavators for trenching and road construction. Currently, one RC rig is conducting infill drilling on the Machichie Main deposit to increase drill spacing and upgrade inferred to indicated gold-in-oxide resources. This could positively impact the resources considered in the mine plan and the reserves.

A second RC rig is conducting further exploration on the Machichie NE zone, where Cabral drilled high-grade intercepts of five m of 24.5 grams per tonne gold (DDH331), 11 m of 33.0 g/t Au (RC421) and six m of 13.3 g/t Au (RC449) in 2024 (see press releases dated May 30, July 25 and Oct. 28, 2024). The high-grade zone at Machichie NE has thus far been traced for 200 m along strike in a northwest-southeast direction. A recent reinterpretation of the airborne geophysical data suggests this structure may extend at least 600 m along strike.

Cabral is planning exploration drilling on several other targets within the Cuiu Cuiu district during first quarter 2025. As with Machichie NE, this program is aimed at making another significant hardrock discovery and adding further to the global resource base within the district.

A series of holes is planned at the Central SE target in the coming weeks, where previous recce drilling hit 27 m of 6.9 g/t gold, and a major soil geochemical anomaly suggests a potential extension immediately southeast of the Central gold deposit.

The company also plans drilling and trenching at the Jerimum Cima target to follow up on 2024 trench results of 18 m of 1.9 g/t gold (see press release dated Nov. 14, 2024, and several older diamond drill holes that intercepted significant gold mineralization, including 39 m of 5.1 g/t gold in primary intrusive rocks.

At Pau da Merenda, mineralization remains open at depth and to both the northwest and southeast toward the Mutum area, where historic surface trenching returned values including 32 m of one g/t gold, 25.5 m of 0.9 g/t gold and 16.5 m of 0.9 g/t gold. Cabral plans drilling in the coming weeks and months to test each of these targets.

Drill results are currently pending on 18 holes.

Continuing work regarding heap leach starter operation

Cabral has contracted Ausenco Brazil to complete an updated PFS study on the gold-in-oxide material at Cuiu Cuiu, the results on which are expected during second quarter. The results of the PFS study on the gold-in-oxide starter operation included an after-tax internal rate of return of 47.3 per cent and an after-tax net present value discounted at 5 per cent of $25.2-million (U.S.) for an initial 720,000-tonne-per-year starter operation using open-pit mining of oxidized gold mineralization and heap leach processing, and assuming a gold price of $2,250 (U.S.) per oz. The development capital expenditures were estimated at $37.4-million (U.S.). At the spot gold price on Oct. 21, 2024, of $2,710 (U.S.) per oz, the after-tax IRR increases to 82.6 per cent and the after-tax NPV discounted at 5 per cent to $49.3-million (U.S.) (see press release dated Oct. 21, 2024).

Recent optimization work has confirmed a number of potential cost savings, particularly the estimated capital and operating expenditures, as well as potential to increase the mining rate and plant capacity.

Furthermore, the additional drilling currently in progress at Machichie Main and drilling completed at the Central gold deposit following the release of the PFS study could result in the conversion of a significant portion of the inferred gold-in-oxide resources to indicated resources, which will be incorporated in an updated resource estimate for the gold-in-oxide material at Cuiu Cuiu. This in turn will result in an amended mineral reserve estimate and mine plan, also expected as part of an updated PFS during second quarter 2025.

Additional metallurgical work, including a number of column leach tests, is also planned at the Kappes Cassiday and Associates lab in Reno, Nev., and is aimed at characterizing the gold-in-oxide material from the Machichie Main gold deposit. These metallurgical results are expected in Q2 2025.

Mine plan scenarios are being run using economic and operating assumptions more aligned with an increased scale, the latest view of unit costs and the projected gold price environment. This may drive a reduction in the cut-off grade and should further increase mineral reserves across all three deposits (MG, Central and Machichie Main).

Discussions regarding engineering, construction and procurement management contracts and project financing are continuing.

VP, project development

Cabral has hired Mr. Sestan as VP, project development, to oversee and manage the gold-in-oxide heap leach starter operation at Cuiu Cuiu and to build potential development options aligned to significantly increasing the global resource base.

He is mining finance specialist with over 30 years of experience in mining and resource mergers and acquisitions, raising capital, and mine development. His experience spans most continents and multiple jurisdictions, and he is highly skilled at leading teams and managing a wide range of competing stakeholders. He combines the rigour and technical expertise gained at significant mining companies, such as Rio Tinto, with his entrepreneurial flair to build deliverable development strategies for new mines.

He is committed to assembling a development plan for Cuiu Cuiu that meets the moment, is executable and is financeable in the current capital markets. He complements theexisting management team, and will be accountable for driving the company's transition to production.

In parallel, he will also be driving plans to fast-track the development of the larger primary ore resources so that the company can accelerate the realization of the full potential of the Cuiu Cuiu district.

He is an engineer, and has an MBA and various other financial qualifications, including company director qualifications from the Australian Institute of Company Directors.

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. Three main gold deposits have so far been defined at the Cuiu Cuiu project, which contain National Instrument 43-101 indicated resources of 12.29 million tonnes of 1.14 g/t gold (450,200 ounces) in fresh basement material and 11.11 Mt of 0.48 g/t gold (171,883 oz) in oxide material. The project also contains inferred resources of 13.63 Mt of 1.04 g/t gold (455,100 oz) in fresh basement material and 12.22 Mt of 0.39 g/t gold (151,608 oz) in oxide material. The resource estimate for the primary material is based on the National Instrument 43-101 technical report dated Oct. 12, 2022. The resource estimate for the oxide material is based on the NI 43-101 technical report dated Dec. 4, 2024.

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 to 50 million ounces of placer gold between 1978 and 1995. Cuiu Cuiu was the largest area of placer gold workings in the Tapajos and produced an estimated two million ounces of placer gold historically.

Technical information included in this release was supervised and approved by Brian Arkell, BS in geology and MS in economic geology, SME (registered member), AusIMM (fellow) and SEG (fellow), Cabral's vice-president, exploration and technical services, a qualified person under NI 43-101.

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