Mr. Mark Brennan reports

CERRADO GOLD ANNOUNCES SHARE ISSUANCE TO SPROTT STREAMING AND ROYALTY CORP.

In connection with the $20-million (U.S.) secured note issued by Cerrado Gold Inc. to Sprott Resource Streaming and Royalty Corp. to facilitate financing of the gold and silver stream agreement in advance of commercial production at its Monte do Carmo project, Cerrado has elected to pay interest due Dec. 31, 2023, in shares.

Pursuant to the note, the company may elect to satisfy the payment of any accrued and unpaid interest on the note by the issuance of common shares of the company at a price per common share equal to 95 per cent of the volume-weighted average price of the common shares for the five trading days immediately prior to the date payment is due or any combination of cash and common shares in the company's sole discretion.

Interest due on the note for the period ended Dec. 31, 2023, amounts to $504,109.58 (U.S.), being $666,735.33 (Canadian) at the Bank of Canada rate of 1.3226 as of Dec. 29, 2023. Subject to the approval of the TSX Venture Exchange, the company will issue 1,175,523 common shares to Sprott at the price of 56.72 cents per share to satisfy the interest payment.

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 Las Calandrias heap leach project. An extensive campaign of exploration is continuing to further unlock potential resources in the 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.

We seek Safe Harbor.