Mr. Mark Brennan reports

CERRADO GOLD ANNOUNCES Q4 AND ANNUAL 2023 GOLD PRODUCTION RESULTS FOR ITS MINERA DON NICOLAS MINE IN ARGENTINA

Cerrado Gold Inc. has released production results for the fourth quarter of 2023 (Q4 2023) from the Minera Don Nicolas mine in Santa Cruz province, Argentina (MDN). Full financial results are expected to be released in late April, 2024.

Q4 operating highlights:

• Q4 2023 gold equivalent ounce (GEO) production of 15,202 ounces and annual GEO production of 51,688 ounces for 2023;
• Ramp-up of production from the Las Calandrias heap leap project continues; commercial production delayed to end of Q1 2024;
• Prestrip at Calandrias Norte largely complete and higher-grade ore beginning to feed the mill;
• Major capital programs at MDN complete, with current focus on delivering cash flow, rebuilding the balance sheet, and longer-term exploration and mine life extension.

Operational results presented for Q4 2023 continued to be impacted by the slower-than-expected ramp-up of the Calandrias heap leach project during the quarter while a new crushing system was installed. The crushing unit is now operational, and mining rates are reaching planned capacity. Production is set to ramp up over the first quarter of 2024 and achieve nameplate production rates from April thereafter. At Calandrias Norte, stripping activities were largely completed during the quarter and the pit is now beginning to deliver ore to the carbon-in-leach plant at Martinetas. Ore is expected to fill the mill by mid-February onward. Head grades from Calandrias Norte are reconciling well with the model and grades are expected to increase as early benches are mined and deeper, higher-grade levels accessed.

While production levels have begun to improve, the delay in the ramp up of the heap leach operations, the costs associated with stripping at Calandrias Norte and debt repayment associated with capital projects have had an impact on the financial performance at MDN. Newly introduced fiscal policies that have resulted in hyperinflation have also had a significant impact on the operations of the business particularly as suppliers react to the new fiscal regime in Argentina.

Mark Brennan, chief executive officer and chairman, commented: "While the second half of the year has been challenging, starting with unusually harsh winter conditions in August resulting in a slower ramp-up at the heap leach, we see operations at MDN positioned to turn the corner in February as we access higher-grade ore from Calandrias Norte and the leach cycle at Las Calandrias normalizes. That said, recent changes to fiscal policies in Argentina have resulted in a highly inflationary environment, impacting operations as costs have increased and suppliers have reduced payment terms. The focus at MDN will move to generating cash flow from our capital investments in 2023 that allow us to rebuild the balance sheet and refocus our efforts on exploration and increasing the overall life of mine at MDN."

Stripping at Calandrias Norte continued during the quarter. The prestrip is now largely complete allowing for fresh ore to fully feed the mill.

Ore milled increased during the fourth quarter as operations normalized. Production rates improved in Q4 as the operating environment returned to normal. However, additional gold production expected from the heap leach has been limited in the fourth quarter as irrigation was paused to allow for the completion of the installation of the new crushing circuit. Total production from the heap leach in the fourth quarter was 531 ounces. Sales for the quarter were slightly higher than production due to timing differences.

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 completion of the ramp-up of Las Calandrias heap leach operation and the review of a potential new heap leach operation at Martinetas.

Monte Do Carmo update

At the company's Monte Do Carmo (MDC) project in Brazil, as announced on Dec. 15, Cerrado filed its National Instrument 43-101 updated feasibility study technical report for MDC with an updated after-tax net present value (5 per cent) of $390-million (U.S.) and internal rate of return of 34 per cent. The licence of installation/construction (LI) is expected to be granted during Q1 2024.

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, for Cerrado Gold, 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 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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