Mr. Mark Brennan reports

CERRADO GOLD ANNOUNCES POTENTIAL UK EXPORT CREDIT AGENCY SUPPORT FOR PROJECT FINANCE AT ITS MONTE DO CARMO AND MONT SORCIER PROJECTS

Cerrado Gold Inc. has received and accepted expressions of interest (EOIs) from U.K. Export Finance (UKEF) to support potential export credit facilities for the company's 100-per-cent-owned Monte Do Carmo project in Tocantins state, Brazil (MDC) and the Mont Sorcier iron ore and vanadium project in Quebec, Canada (MS), held by its wholly owned subsidiary Voyager Metals Inc. The EOIs provide support for up to $190-million (U.S.) for the MDC project and up to $420-million for the MS project, representing 70-per-cent of total capital expenditure, interest payable during construction and the political risk insurance premium, as well as other approved expenditures for each project.

UKEF is a department of the United Kingdom government and is the U.K.'s official export credit agency (ECA). UKEF operates under an Act of Parliament to support U.K. exports, predominately through the provision of 100 per cent unconditional guarantees backed by the U.K. government.

UKEF's engagement with the opportunity is at an early stage. UKEF's EOI is not a legally binding commitment and is subject to a series of standard project finance terms and due diligence, including, among others, suitable structured offtake contracts, the successful completion of the definitive feasibility study (DFS), and an environmental and social impact assessment (ESIA) to Equator Principles. The EOI provides an indication of currently available country limits, an indication of the attractiveness of the project and it covers, in principle, the level of financial support, their flexibility and desired conditions.

UKEF's EOI is in line with the OECD (Organisation for Economic Co-operation and Development) arrangements for officially supported export credits and stipulates minimum U.K. content requirements whilst enabling equipment to be sourced locally and from other countries.

As previously announced on April 17, 2023, the company appointed SD Capital Advisory Ltd. and GKB Ventures Ltd. (S&G) to solicit interest for export credit agency backed project financing. As a result of this process, the company received four expressions of interest from ECAs around the world. The company also received an expression of interest from an additional ECA on an untied basis, which may be used to complement UKEF support. The company is very excited with the level of support and interest from the ECA market, which highlights the potential for success of both of these projects.

The company has selected UKEF based on numerous factors related to the terms of the expression of interest and unique aspects of the capital spend at both MDC and MS.

Together with S&G, the company will now be soliciting interest from project finance banks to act as mandated lead arranger (MLA) for the transactions. The company expects to appoint an MLA by the end of July. Once an MLA has been appointed, detailed due diligence will commence with the aim of receiving final terms for the ECA-backed project financing at MDC toward the end of the year.

Mark Brennan, chief executive officer and chairman, commented: "We are very pleased to partner with UKEF to bring both our Monte Do Carmo and Mont Sorcier projects into development. The support of the U.K. government and UKEF is a testament to the robust and attractive nature of both the MDC and MS projects, and we look forward to working with UKEF and the future appointed MLA to complete project financing in the coming months."

He added, "We view ECA-supported limited recourse project finance, with each project undertaken on a ring-fenced, stand-alone basis, as an attractive form of long-term debt capital."

In addition, S&G's mandate has now been amended to include the structuring and arranging of ECA-backed project financing for the MS project.

About Cerrado Gold Inc.

Cerrado Gold is a Toronto-based gold production, development and exploration company focused on gold projects in South America. The company is the 100-per-cent owner of both the producing Minera Don Nicolas mine in Santa Cruz province, Argentina, and the highly prospective Monte Do Carmo development project, located in Tocantins state, Brazil. In Canada, Cerrado Gold is developing its 100-per-cent-owned Mont Sorcier iron ore and vanadium project located outside of Chibougamou, Que.

In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas operation through continued operational optimization and is growing production through its operations at the Las Calandrias heap leach project. An extensive campaign of exploration is continuing to unlock potential resources in the company's highly prospective land package in the heart of the Deseado Masiff.

In Brazil, Cerrado is rapidly advancing the Serra Alta deposit at its Monte Do Carmo project, through feasibility and into production. Serra Alta is expected to be a high-margin and high-return project with significant exploration potential on an extensive and highly prospective 82,542-hectare land package.

In Canada, Cerrado holds a 100-per-cent interest in the Mont Sorcier iron ore and vanadium project, which has the potential to produce a premium iron ore concentrate over a long mine life at low operating costs and low capital intensity. Furthermore, its high-grade and high-purity product facilitates the migration of steel producers from blast furnaces to electric arc furnaces, contributing to the decarbonization of the industry and the achievement of sustainable development goals (SDG).

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