Mr. Mark Brennan reports

CERRADO GOLD ANNOUNCES THIRD QUARTER FINANCIAL RESULTS

Cerrado Gold Inc. has released its operational and financial results for the third quarter (Q3 2024), including its Minera Don Nicolas (MDN) gold project in Santa Cruz province, Argentina, and its Mont Sorcier high-quality iron project in Quebec. The company's Q3 2024 financial results continue to consolidate the expenses, assets and liabilities related to the Monte Do Carmo (MDC) gold project as the sale of MDC to Amarillo Mineracao do Brasil Ltda., a wholly owned subsidiary of Hochschild Mining PLC, was completed subsequent to the quarter-end. The sale was in connection with the exercise of Amarillo's option pursuant to an option agreement dated March 5, 2024. (All amounts are in U.S. dollars, except as noted.)

In connection with the transaction, Cerrado received closing cash payments totalling $30-million from Amarillo on Nov. 6, 2024, in addition to the $15-million that was previously received in connection with granting the option. A further two payments totalling $15-million are expected to be received within the next 28 months bringing the total consideration of the sale to $60-million (approximately $83-million (Canadian)).

Production results for MDN were previously released on Oct. 16, 2024. The company's financial results are reported and available on SEDAR+ and the company's website.

Q3 2024 MDN operating highlights:

• Q3 2024 production of 16,604 gold equivalent ounces (GEOs);
• Q3 2024 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $7.4-million;
• AISC (all-in sustaining costs) of $1,678 during Q3; focus on cost reduction initiatives has begun;
• Recent National Instrument 43-101 mineral resource update and preliminary economic assessment completed for MDN showing a net present value (NPV) at 5 per cent of $111-million at a price of $2,100 per ounce (oz) gold over a five-year mine life;
• Focus remains on delivering cash flow and strengthening the balance sheet with significant progress made towards debt reduction during the quarter.

Operational results for Q3 2024 demonstrated a slight increase in production over the previous quarter, highlighting greater stability in operations. Ore from the Calandrias Norte high-grade open pit was exhausted late in the quarter and is now being replaced by additional high-grade feed from two additional pits. The carbon-in-leach (CIL) plant is now expected to continue production until early 2025 as operations continue to transition to solely heap leach production. The ramp-up of heap leach operations continued to improve as crushing capacity continued to climb with record production of 1,664 GEOs in August before a slight decline in September as some adjustments were put in place to support the overall expansion of the facilities. The performance of the heap leach continues to depend on the output of the crushing circuit. The installation of the secondary crusher is expected to reduce fleet and operating costs. The new circuit is expected to be fully operational by the end of the fourth quarter, at which time the mobile crushers will be placed on standby. Recovery rates are in line with expectations given ore on the pad to date.

Mark Brennan, chief executive officer and chairman, commented: "The results from this quarter further confirm we have entered into a more stable period of operations. We expect this to continue for the remainder of the year as the heap leach operation continues to ramp up to its expanded capacity. The cash flow from operations, combined with funds received from the sale of the MDC project, have had a significant positive impact on our working capital position, and we are now positioned to deploy capital in a strategic and fiscally prudent manner to ramp up exploration efforts at MDN, complete a bankable feasibility study at our high-grade Mont Sorcier iron project and fund our recently announced normal course issuer bid."

The company produced 16,604 GEOs during the third quarter ended Sept. 30, 2024, as compared with 10,082 GEOs for the third quarter ended Sept. 30, 2023. Production is higher in the three months ended Sept. 30, 2024, due to 44-per-cent-higher gold head grade and 18-per-cent-higher throughput.

The company generated revenue of $36.7-million for the third quarter ended Sept. 30, 2024, from the sale of 15,505 ounces of gold and 28,505 ounces of silver at an average realized price per gold ounce sold of $2,329. For the third quarter ended Sept. 30, 2023, the company generated revenue of $21.6-million from the sale of 11,263 ounces of gold and 9,071 ounces of silver at an average realized price per gold ounce sold of $1,897. Revenue and sales of gold for the current period are higher than the quarter ended Sept. 30, 2023, due to higher ounces sold and higher average realized gold price.

Cost of sales for the third quarter ended Sept. 30, 2024, were $29.3-million, as compared with $20.3-million for the quarter ended Sept. 30, 2023. The company incurred $5.6-million higher production costs for the third quarter ended Sept. 30, 2024, due primarily to higher labour costs.

Total cash costs (including royalties) per ounce sold were $1,617 per ounce in the third quarter ended Sept. 30, 2024, as compared with $1,689 per ounce for the third quarter ended Sept. 30, 2023, a $72 per ounce decrease. The decrease is a result of higher ounces sold in 2024 as compared with 2023.

Net income for the third quarter ended Sept. 30, 2024, was $1.5-million as compared with a $400,000 net loss for the third quarter ended Sept. 30, 2023. The decrease in net loss is primarily a result of an increase in revenue offset by higher other expenses.

The company incurred general and administrative expenses of $2.9-million for the third quarter ended Sept. 30, 2024, as compared with $3.3-million of general and administrative expenses incurred during the third quarter ended Sept. 30, 2023. For the three months ended Sept. 30, 2024, there was a decrease in share based payments expense of $400,000 and office expense of $300,000, offset by an increase in professional fees of $300,000.

Other expense of $2.1-million during the third quarter ended Sept. 30, 2024, includes finance expense of $1.6-million, foreign exchange gain of $6.4-million, loss on fair value remeasurement of MDN stream obligation of $2.4-million, and loss on fair value remeasurement of MDC secured note and stream obligation of $3.1-million.

Normal course issuer bid

As previously announced on Nov. 13, 2024, the company announced TSX Venture Exchange approval for the company's notice to implement a normal course issuer bid (NCIB) permitting the company to repurchase, for cancellation, up to 5,170,903 common shares of the company, representing 5 per cent of the issued and outstanding common shares.

Share incentive issuances

The company also announces it has issued 200,000 share purchase options at an exercise price of 36.5 Canadian cents for a period of two years to a third party consultant of the company.

Review of technical information

The scientific and technical information in this news 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. In Canada, Cerrado Gold is developing its 100-per-cent-owned Mont Sorcier iron ore and vanadium project, located outside of Chibougamou in Quebec.

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 the Las Calandrias heap leach project. An extensive campaign of exploration is continuing to further unlock potential resources in the company's 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 sustainable development goals.

We seek Safe Harbor.