Mr. Mark Brennan reports

CERRADO CLOSES TRANSACTION WITH HOCHSCHILD SUBSIDIARY FOR SALE OF MONTE DO CARMO GOLD PROJECT

Cerrado Gold Inc. has completed the sale of its 100-per-cent interest in the company's Monte Do Carmo project located in the state of Tocantins, Brazil, to Amarillo Mineracao do Brasil Ltda., a wholly owned subsidiary of Hochschild Mining PLC, in connection with the exercise of its option pursuant to an option agreement entered into on March 5, 2024. In connection with the closing of the transaction, Cerrado received closing cash payments totalling $30-million (U.S.) from Amarillo, in addition to the $15-million (U.S.) that was previously received in connection with granting the option, for total consideration of $60-million (U.S.) (approximately $83-million (Canadian)).

Pursuant to the terms of the option agreement, Amarillo shall make two further payments to Cerrado, totalling $15-million (U.S.) in aggregate, as follows:

• $10-million (U.S.) payable within 14 days of the second anniversary of the date of the Cerrado shareholder approval (being June 27, 2026);
• $5-million (U.S.) within 14 days of the earlier of: (i) the commencement of commercial production from the project; and (ii) March 31, 2027.

The two further payments due from Amarillo are guaranteed by Hochschild pursuant to the option agreement.

Additional details in respect of the transaction can be found in the company's press releases dated Oct. 30, 2024, and March 5, 2024, and the management information circular of the company dated May 29, 2024, all of which can be found on the company's issuer profile on SEDAR+.

About Cerrado Gold Inc.

Cerrado is a Toronto-based gold production, development and exploration company focused on projects in the Americas. 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 is the 100-per-cent owner of the Mont Sorcier iron ore project in Quebec, Canada.

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 its Las Calandrias heap leach project. An extensive campaign of exploration is in progress to further unlock potential resources in its highly prospective land package in the heart of the Deseado masiff.

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.