Mr. Alan Carter reports

CABRAL GOLD SECURES US$45 MILLION GOLD LOAN TO FULLY FUND HEAP LEACH STARTER OPERATION

Cabral Gold Inc. has executed a gold loan agreement with Precious Metals Yield Fund (the lender) with a principal amount of $45-million (U.S.) and a term ending 39 months from the first drawdown date with the full amount to be repaid no later than Dec. 31, 2028 (the gold loan). The company expects to use the proceeds of the gold loan to fully finance the capex for the Cuiu Cuiu heap leach gold starter project, which is estimated at $37.7-million (U.S.) in the company's prefeasibility study released on July 29, 2025. Drawdown of the gold loan is expected within weeks and is subject to the registration of security interests in favour of the lender in accordance with the binding gold loan agreement.

With the project now fully financed through this commitment, the company is also pleased to announce that its board of directors have approved a decision to construct for the project. With approximately $70-million in the treasury on drawdown of the gold loan, the company will accelerate its early works program into full construction mode in support of the first gold pour by the end of 2026. Additionally, the financial flexibility provided by this gold loan and the recent equity raise of $14.9-million (see press release dated May 6, 2025) will allow the company to continue to execute its regional exploration drilling program at Cuiu Cuiu during the construction of the project.

Alan Carter, Cabral's president and chief executive officer, commented: "This gold loan agreement is a monumental step forward for our company and provides a complete funding solution for the construction of our heap leach starter project, without any significant further dilution to our capital structure. The financial metrics included within the recent PFS study make for a compelling opportunity, with a capex cost of $37.7-million (U.S.), a posttax IRR of 78 per cent, an NPV5 of $74-million (U.S.) and a payback of just 10 months, at a base case gold price of $2,500 (U.S.)/ounce.

"The gold loan agreement also allows us to continue our program of exploration drilling during the construction period and beyond. This program is aimed at expanding the much larger underlying hard rock resource base at Cuiu Cuiu. Following the commencement of commercial production in Q4 2026, this exploration drill program will expand to test the more than 50 targets so far identified across the Cuiu Cuiu district and is expected to be self-funding.

"Cabral's board of directors has formally approved commencement of construction of the gold-in-oxide starter project, which is expected to take 12 months to complete."

Gold loan details

The key terms of the gold loan are as follows:

• Term of 39 months;
• $45-million (U.S.) principal amount to be advanced to the company in gold or cash, at the company's option;
• Should the principal amount be advanced to the company in cash, the balance outstanding shall be expressed in fine gold kilograms based on the gold price at drawdown;
• Annual interest rate of 10 per cent;
• 100 per cent of interest costs capitalized to principal until December, 2026;
• Principal payments of 39 kilograms of gold per quarter commencing March 31, 2027;
• Provision for penalty free repayment of outstanding principal and interest;
• No hedging, cash sweeps, cash collateralization or offtake agreement.

The gold loan principal and interest are forecast to account for under 14 per cent of the gold produced during the project's life and 32 per cent of the gold produced during the gold loan's life.

Full terms of the executed gold loan agreement will be filed on SEDAR+ under Cabral's issuer profile.

Warrants will be issued to the lender on drawdown of the gold loan;

• 10 million non-transferable common share purchase warrants of Cabral Gold, with each warrant entitling the lender to acquire one common share of the company for a period of 24 months following the issuance of the warrants;
• The warrants and the common shares of the company underlying such warrants will be subject to an applicable statutory hold period under Canadian securities laws expiring four months and one day following the issuance of the warrants. Issue price of the warrant shares shall be 71 cents per warrant share (50-per-cent premium on five-day VWAP (volume-weighted average price) ending Oct. 15, 2025);
• All conditions precedent to the drawdown under the gold loan shall be satisfied prior to the issuance of the warrants.

The gold loan and the related issuance of the warrants to the lender on the drawdown date remain subject to approval of the TSX Venture Exchange. The company's obligations under the gold loan will be secured by, among other things, corporate guarantees and first-ranking guarantees, and first security from each of Cabral Gold B.C. Inc. and Magellan Minerais Prospeccao Geologica Ltda. (each a wholly owned subsidiary of the company). The company expects to draw on the gold loan and issue the warrants upon satisfaction of all conditions precedent to the first draw under the gold loan agreement.

The lender (Precious Metals Yield Fund) is an affiliate of the Phoenix Gold Fund, Cabral's largest institutional shareholder.

Project financing and initial capital

The $45-million (U.S.) in proceeds from the gold loan financing fully funds the initial capital costs to develop the project based on the updated prefeasibility study prepared by Ausenco earlier this year and released on July 29, 2025 (the updated PFS). The results of this study indicated that an attractive opportunity exists to monetize the gold in surface oxide blankets at Cuiu Cuiu. With a one-million-tonne-per-annum capacity heap leach plant, the project has a 6.2-year mine life, producing gold at an all-in-sustaining operating cost of $1,210 (U.S.) per ounce. The investment is modest, with capital costs estimated at $37.7-million (U.S.), of which approximately $3-million (U.S.) has been invested to date in early works activities. Commissioning of the project is planned for Q3 2026, with production scheduled for Q4 2026.

The project returns an IRR (internal rate of return) of 78 per cent and an NPV (net present value) 5 per cent of $74-million (U.S.), with a project payback period of 10 months at the base case gold price of $2,500 (U.S.) per ounce (see press release dated July 29, 2025). The financial appeal of the project has greatly increased since the release of the updated PFS, following the recent substantial rise in gold prices.

The gold loan provides capital at a very attractive cost of capital, especially in relation to the forecast returns of the project. It also provides Cabral with the security of locking in the current gold price for all debt service obligations and allows the company to continue its exploration drilling program during the gold loan period.

Construction decision

The board of directors of the company has approved a decision to construct for the project. From Nov. 1, the project is expected to transition from the early works phase to the formal construction program. As part of the early works activities, detailed engineering and procurement are well under way, as is the hiring of the project implementation team under Luiz Celaro, Cabral's construction manager. The construction schedule includes a key milestone of completing earthworks and civil works on the production plateau by the end of 2025.

Plant commissioning is scheduled for Q3 2026, with production scheduled to follow in Q4 2026.

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 within the Cuiu Cuiu gold district which contain National Instrument 43-101 -- Standards of Disclosure for Mineral Projects-compliant indicated resources of 12.29 Mt (million tonnes) at 1.14 g/t (grams per tonne) gold (450,200 oz (ounces)) in fresh basement material and 13.56 Mt at 0.50 g/t gold (216,182 oz) in oxide material. The Cuiu Cuiu gold district also contains inferred resources of 13.63 Mt at 1.04 g/t gold (455,100 oz) in fresh basement material and 6.4 Mt at 0.34 g/t gold (70,569 oz) in oxide material. The resource estimate for the primary material is based on the NI 43-101 technical report dated Oct. 12, 2022. The resource estimate for the oxide material at the company's PDM and MG deposits are based on a NI 43-101 technical report dated Oct. 21, 2024. The resource estimate for the oxide material at the Central and Machichie deposits are based on the updated PFS.

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 workings in the Tapajos and produced an estimated two Moz of placer gold historically.

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