Mr. Mark Brennan reports

CERRADO GOLD ANNOUNCES Q2 GOLD PRODUCTION RESULTS FOR ITS MINERA DON NICOLAS MINE IN ARGENTINA

Cerrado Gold Inc. has released production results for the second quarter of 2023 from the Minera Don Nicolas (MDN) mine in Santa Cruz province, Argentina. Full financial results are expected to be released in August, 2023.

Q2 operating highlights:

• Q2 2023 gold production of 12,336 ounces and gold equivalent ounce (GEO) production of 12,453 ounces, compared with 11,640 GEO ounces in Q2 2022;
• GEO sales in Q2 of 11,195 ounces;
• Results continue to demonstrate stable mill throughput:
  • Gold head grade of 4.84 grams per tonne and gold recovery of 83.68 per cent for the quarter.

Operational results presented for Q2 2023 highlight the stability of the operations. Since Cerrado acquired the Minera Don Nicolas mine, it has continuously improved performance during the first two years. As seen in prior years, Q2 and Q3 results are expected to show some variability, given the seasonal challenges in the winter months and given the company is still developing and implementing its life-of-mine strategy.

Ore milled remained stable throughout the quarter, at above 1,000 tonnes per day. Production increases were driven primarily by continuing efforts to reduce dilution and thus increase head grades, offset slightly by lower recoveries due to changes in ore type. Please see an attached table for a summary of key highlights for the second quarter of 2023. Sales for the quarter were lower than production; however, these sales should be recovered in the third quarter due to high-grade material entering the plant at the end of the quarter. Some challenges were experienced with recoveries, mainly for Chulengo, a high-grade deposit, but minor changes in operating strategies and throughput rates were found to be successful, and the operation stabilized with recoveries above 90 per cent at the end of the quarter.

Continuing work to optimize mine sequencing and exploration work to upgrade and define new sources of resources remains the key focus of development at MDN. The operations team is focused on numerous new growth projects aside from expanding current open-pit resources, including the construction of the Las Calandrias heap-leach operation (first gold pour Q3 2023), underground development and production at Paloma, and a new heap-leach operation at Martinetas.

Although the Las Calandrias project heap-leach pad is still under construction, 33 per cent of the pad is completed and is currently being loaded with ore, and irrigation has commenced. Mining activities are at full production level, and gold production is anticipated to ramp up during the third quarter, with full production expected by the end of the third quarter.

Review of technical information

The scientific and technical information in this press release has been reviewed and approved by Sergio Gelcich, PGeo, vice-president, exploration, who is a qualified person as defined in National Instrument 43-101.

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 and Las Calandrias mines 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 further 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.

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