Mr. Mark Brennan reports

CERRADO GOLD ENTERS TENDER PHASE FOR MANDATED LEAD ARRANGER FOR ITS EXPORT CREDIT AGENCY SUPPORTED PROJECT FINANCING AT ITS MONTE DO CARMO AND MONT SORICER PROJECTS

Cerrado Gold Inc. has commenced the tender phase for the mandated lead arranger (MLA) of its export credit agency (ECA) project financing program. As of Sept. 4, 2023, the company and its advisers have issued detailed banking information memorandums to a number of project finance banks which have indicated an interest in being the mandated lead arranger as part of the UKEF-supported (U.K. Export Finance) export credit facilities for the company's 100-per-cent-owned Monte Do Carmo (MDC) project in Tocantins state, Brazil, and the Mont Sorcier (MS) iron ore and vanadium project in Quebec, Canada (see press release dated July 5, 2023).

The selection of the MLA is expected to be completed by the end of September. 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.

As outlined previously, UKEF has expressed an interest to provide support for up to $190-million (U.S.) for the MDC project and up to $420-million (U.S.) for the MS project, representing 70 per cent of total capital expenditure, interest payable during construction, the political risk insurance premium as well as other approved expenditures for each project.

As previously announced on April 17, 2023, the company appointed SD Capital Advisory Ltd. and GKB Ventures Ltd. (S&G) to solicit interest for ECA-backed project financing. As a result of this process the company appointed U.K. Export Finance to support potential export credit facility.

UKEF is a department of the U.K. government and is the United Kingdom's official export credit agency. 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.

Mark Brennan, chief executive officer and chairman, commented: "We are very pleased to be moving forward to the next stage of determining project financing support to bring both our Monte Do Carmo and Mont Sorcier projects into development. We look forward to working with UKEF and the future appointed MLA to complete project financing in the coming months."

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 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.

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