Mr. Mark Brennan reports

CERRADO GOLD TENDER PROCESS OVERSUBSCRIBED WITH TWO INTERNATIONAL BANKS SELECTED TO ACT AS MANDATED LEAD ARRANGERS FOR EXPORT CREDIT AGENCY SUPPORTED NON-RECOURSE PROJECT FINANCING FOR ITS MONTE DO CARMO PROJECT IN BRAZIL AND ITS MONT SORCIER PROJECT IN QUEBEC

Cerrado Gold Inc. has completed the tender process for its export-credit-agency-(ECA)-supported non-recourse project financing, and expects to complete the on-boarding and appointment process within the next few weeks. The company has chosen two international banks to act as MLAs; one for the Monte Do Carmo project (MDC) and another as MLA for its Mont Sorcier project (MS) in Quebec. (All numbers are reported in United States dollars.)

As announced on Sept. 5, the company together with its advisers, SD Capital Advisory Ltd. and GKB Ventures Ltd. (S&G), initiated a tender process to solicit interest from a number of global project finance banks to act as MLA for the company's ECA supported non-recourse project financing, supported by the U.K. Export Finance agency (UKEF). As a result of this process the company received several compelling bids and have evaluated the bids based on experience, execution capabilities and financial terms. The institutions selected have extensive experience in ECA financing, a long-standing relationship with UKEF and presented competitive terms for the financing. The company is currently undertaking a review of formal engagement letters with each bank and will announce the banks and their terms once signed.

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, political risk insurance premium as well as other approved expenditures for each project.

The appointment of the MLAs is a significant milestone for the project financing requirements for both the MDC and MS projects. The next phase of the process will comprise a formal due diligence period before final binding offers and documentation which are expected to be completed in Q2 2024. This process is expected to start immediately in the case of MDC but will not be initiated at MS for a period of six months, to align more closely with the completion of the planned feasibility study.

Mark Brennan, chief executive officer and chairman, stated: "After a robust tender process, we are very pleased to have been in a position to generate the support of two very strong project financing institutions to lead our project financings. We view the early commitment of the ECA's and the MLAs as a testament to the robust financial strength of the MDC and MS projects. With the completion of the MDC feasibility study imminent, we are excited to bring the first of these two great projects toward a fully funded project development decision during Q2 2024."

About Cerrado Gold Inc.

Cerrado 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 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 increasing production through its operations at the Las Calandrias heap leach project. An extensive campaign of exploration is continuing to further unlock potential resources in its 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 SDG goals.

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