Mr. Mark Brennan reports

CERRADO GOLD APPOINTS BANCO SANTANDER S.A. AS MANDATED LEAD ARRANGER FOR EXPORT CREDIT AGENCY SUPPORTED PROJECT FINANCING AT ITS MONTE DO CARMO PROJECT IN BRAZIL

Further to the Oct. 18, 2023, announcement in relation to potential Export Credit Agency (ECA) supported project financing of up to $175-million, Cerrado Gold Inc. has appointed and executed an engagement letter with Banco Santander SA as the mandated lead arranger (MLA) for its Monte Do Carmo project in Brazil. Santander has executed the engagement letter and completed administrative procedures and on boarding, and plans to initiate the due diligence process within the coming weeks. (All numbers are reported in U.S. dollars.)

As announced on Sept. 5, the company together with its advisers, SD Capital Advisory Ltd. and GKB Ventures Ltd., initiated a tender process to solicit interest from global project finance banks to act as the MLA for the company's Brazilian and Quebec projects. As a result of this competitive process, the company received compelling bids. Together with the company's advisers, the bids were evaluated based on ECA project finance experience, execution capabilities and ultimately the financial terms for the project financing. Santander has extensive experience in ECA financing and a long-standing relationship with UKEF, and presented competitive and compelling terms for the project financing. Additionally, Brazil is one of the core markets for the Santander, which is also one of the top-20 largest financial institutions, globally.

The UKEF backed facility is expected to be for up to $175-million on a non-recourse project financing basis for a total tenor of eight years. The financing will be to cover 70 per cent of the expected project capital expenditures for the Monte Do Carmo project.

As is common for ECA supported project financing, UKEF provides political and commercial guarantees to project lenders, thereby lowering the overall project risk to the lender and resulting in lower costs of capital. This reduces the cost of debt to Cerrado whilst at the same time extending tenors and creating debt capacity not normally available in the commercial bank market. To secure such support, project developers commit to a preagreed level of procurement from United Kingdom-based organizations for goods, services and materials. UKEF's mandate is to promote and support exports from British companies in the global market.

The appointment of the MLA is on an exclusive basis and sets out the indicative terms upon which the proposed ECA financing is expected to be based. For the avoidance of doubt, the terms are purely indicative, and do not constitute an offer of finance or a legally binding commitment of any kind to provide finance. The provision of any binding offer is subject to, among other things: credit and other internal approvals, E&S approvals, satisfactory due diligence and documentation, satisfaction of KYC requirements, and other terms customary for this type of transaction.

While the conclusion of project financing remains subject to the granting of construction permits and due diligence, amongst other requirements, the appointment of Santander as MLA is a significant milestone for the project financing of the Monte Do Carmo project. At the Monte Do Carmo project, work continues to advance the permitting with its construction licence expected in the coming months. The company is preparing the issuance of its National Instrument 43-101 feasibility study report and, once completed, will commence comprising a formal due diligence period before a final binding offer and documentation.

Mark Brennan, chief executive officer and chairman, stated: "We are very pleased to have the support of such a well-regarded and experienced financial institution such as Santander as MLA to lead our project financing in partnership with UKEF as we progress with the development of Monte Do Carmo. We view the support of Santander and UKEF as another indication of the robust nature of the Monte Do Carmo project."

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 Chibougamau, 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 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 massif.

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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