Mr. Mark Brennan reports

CERRADO GOLD CONFIRMS ABILITY TO PRODUCE 67% HIGH PURITY, DIRECT REDUCTION IRON GRADE CONCENTRATES AT ITS MONT SORCIER IRON ORE PROJECT IN QUEBEC

Cerrado Gold Inc. has released positive metallurgical test results confirming the ability to produce high-purity, DRI (direct reduction iron)-grade iron concentrates at its Mont Sorcier magnetite iron ore project located near Chibougamau, Que., held through its 100-per-cent-owned subsidiary, Voyager Metals Inc. The metallurgical tests were the initial phase in determining the final flowsheet design for the feasibility study at Mont Sorcier, targeted for later this year.

All numbers are reported in United States dollars.

The design and analysis of the metallurgical test work program was conducted by Soutex Inc., a consultancy firm specializing in ore processing and metallurgical processes based in Quebec City, Que., with test work completed by SGS Canada, one of the world's leading testing, inspection and certification companies, based in Quebec City.

The results of this initial phase of test work demonstrate that the Mont Sorcier project has the potential to produce a high-purity iron concentrate grading 67 per cent iron with low silica and alumina, making it suitable to be classified as a direct reduction iron-grade product. Such a product significantly reduces the overall emission of greenhouse gases in steel production compared with other lower-grade concentrates. It has the potential to be used in electric arc furnaces to produce steel products, further reducing emissions. Also, as the Mont Sorcier project is a magnetite material, it reduces the use of coal in the steel-making process and, when combined with the availability of hydroelectric power in Quebec, lowers overall emission levels.

As the global demand for green steel increases, it is expected that the demand and price premium paid for higher-grade products will continue to increase to a level above the most commonly traded iron products and replace demand for lower-grade materials. The ability to produce high-purity iron concentrates places Mont Sorcier as a project capable of delivering critical and strategic high-purity iron as outlined by the Quebec government, as it aspires to become a leader to support energy transition through the development of critical and strategic minerals, and reduce overall global emissions.

The test work program was designed to evaluate alternative processing flowsheets to maximize the value of the project as compared with the previous National Instrument 43-101 preliminary economic assessment (PEA) completed in July, 2022, and to assess the capability of producing a high-purity iron concentrate, with low deleterious elements, suitable for direct reduction.

Composite samples representative of the life of mine material were processed at the laboratory scale through the following stages:

• The material was ground to a size of minus 1.7 millimetres (mm) and was subjected to a magnetic separation process:
  • The concentrate of the first magnetic separation stage, the cobber stage, was reground to a P80 of 106 micrometres and submitted to a rougher magnetic separation process;
  • The rougher concentrate was then reground to a P80 of 38 micrometres, and magnetite was recovered in a final cleaning magnetic separation stage.
• The magnetic concentrate was then processed through a hydroseparation step to remove low-density fine material, followed by a sulphur flotation step aimed at reducing the sulphur content in the concentrate. These processing steps led to the production of a concentrate grading 65 per cent iron and 3 per cent silica, with a sulphur content below 0.4 per cent, for an iron recovery of 75 per cent, which was in accordance with the previous PEA results.
• The concentrate was then processed through an additional reverse iron flotation stage to assess the capability of producing a low-silica concentrate. Successful tests led to the production of a 67 per cent iron concentrate, with combined silica and alumina grades below 2.3 per cent (SiO2 (silicon dioxide) equals 1.8 per cent and Al2O3 (aluminum oxide) equals 0.5 per cent) and sulphur content below 0.4 per cent for an iron recovery of 61 per cent.

The results generated from this test work program represent a significant step forward compared with previous results, and demonstrate not only that a base case of 65 per cent iron concentrate is readily achievable but also that the production of high-purity 67 per cent iron concentrates is now possible. Going forward, continued work will focus on flowsheet and grind size optimization, in addition to confirmation of the test work results obtained on the composite on variability samples. Currently, the deposit is defined by five domains, and work will now shift to understanding the best sequence for mining and processing to deliver the optimal production profile and enhance project economics.

Mark Brennan, chief executive officer and chairman, stated: "We are very pleased that the test results have confirmed the ability to produce DRI-grade 67 per cent iron concentrates with low levels of impurities. As the global steel markets continue to aim to reduce overall emissions in the steel production process, concentrates such as those from Mont Sorcier are expected to be in high demand to support this transition and replace lower-grade materials."

Review of technical information

The technical information contained in this news release with respect to the Mont Sorcier project has been reviewed and approved on behalf of Voyager by Pierra-Jean Lafleur of Voyager Metals, who is a qualified person as defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

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 Chibougamau, 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 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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