Mr. Alan Carter reports

CABRAL GOLD ANNOUNCES CLOSING OF US$45.1 MILLION GOLD LOAN AND DRAW DOWN TO FULLY FUND HEAP LEACH STARTER OPERATION

Cabral Gold Inc. has completed all transaction documents for the previously announced arm's-length gold loan agreement and received the entire $45.1-million (U.S.) principal amount under the gold loan between Precious Metals Yield Fund (the lender) and Magellan Minerais Prospeccao Geologica Ltda., a wholly owned subsidiary of the company (the borrower).

The company has entered into binding transaction agreements, including all necessary finance agreements and the intercreditor agreements and has issued a drawdown notice to the lender and received the principal amount under the gold loan equal to 345 kilograms of gold at a value of $45,121,732 (U.S.). No finders' fees are payable in connection with the gold loan and the terms of such gold loan are substantially consistent with those disclosed in the company's news release dated Oct. 16, 2025. The borrower's obligations under the gold loan will be secured by, among other things, corporate guarantees and first-ranking security from each of the company, the borrower and Cabral Gold B.C. Inc., a wholly owned subsidiary of the company.

The company expects to use the proceeds of the gold loan to fully finance the construction for the Cuiu Cuiu heap-leach gold starter project, which has an estimated capex (capital expenditure) of $37.7-million (U.S.) as per the company's prefeasibility study released on July 29, 2025.

Concurrent with the receipt of the principal amount under the gold loan, the company issued 10 million non-transferable common share purchase warrants of the company to the lender. Each warrant entitles the lender to acquire one common share of the company for a period of 24 months following the date hereof at an exercise price of 71 cents per warrant share, representing a 50-per-cent premium on the five-day VWAP (volume-weighted average price) ending Oct. 15, 2025, being the day prior to the initial announcement of the gold loan. The warrants and warrant shares are subject to a hold period expiring four months and one day from the date hereof in accordance with applicable Canadian securities laws.

With approximately $66-million in the treasury following receipt of the principal amount, the company has pre-emptively accelerated its early works program into full construction mode in support of the first gold pour planned for Q4 2026. As of today's announcement, the company has 141 employees and contractors on site at Cuiu Cuiu for construction and support roles, excluding the exploration team.

Additionally, the financial flexibility provided by this gold loan will allow the company to continue to execute its exploration drilling program during construction of the project, which is aimed expanding the hard-rock resource base, which was last updated in September, 2022, and will form the basis of the much larger Stage 2 development of the Cuiu Cuiu project.

The gold loan and the related issuance of the warrants to the lender have been conditionally approved by the TSX Venture Exchange and remain subject to final approval of the TSX-V.

Project financing and initial capital

The $45.1-million (U.S.) in proceeds from the gold loan financing fully finances 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 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-year-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 $6-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 NPV5 (net present value discounted at 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 anticipated financial returns of the project have 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 while retaining the upside exposure on all gold reserves and resources at Cuiu Cuiu that are not allocated to the debt service of the gold loan.

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 in the Cuiu Cuiu gold district, which contain National Instrument 43-101-compliant (Standards of Disclosure for Mineral Projects) indicated resources of 12.29 million tonnes at 1.14 grams per tonne gold (450,200 ounces) in fresh basement material and 13.56 million tonnes at 0.50 gram per tonne gold (216,182 ounces) in oxide material. The Cuiu Cuiu gold district also contains inferred resources of 13.63 million tonnes at 1.04 grams per tonne gold (455,100 ounces) in fresh basement material and 6.4 million tonnes at 0.34 gram per tonne gold (70,569 ounces) 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 is based on an NI 43-101 technical report dated Oct. 21, 2024. The resource estimates for the oxide material at the Central and Machichie deposits are based on the updated PFS NI 43-101 technical report dated Sept. 10, 2025.

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 gold province and produced an estimated two million ounces of placer gold historically.

Qualified person and technical information

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

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