Mr. Mark Brennan reports

CERRADO GOLD PROVIDES AN UPDATE ON ITS MONT SORCIER HIGH PURITY 67%+ IRON GRADE PROJECT IN QUEBEC

Cerrado Gold Inc. has provided an update on its continuing work programs to complete a National Instrument 43-101 bankable feasibility study by end of Q1 2026 on its high-purity, DRI-grade (direct reduction iron), plus-67-per-cent-iron Mont Sorcier magnetite iron ore project located near Chibougamau, Que.

Metallurgical program focused on delivering premium product

Detailed metallurgical test work programs are currently being undertaken by Soutex Inc. to build on the previous metallurgical test results announced in March, 2024. Previous testing has confirmed the ability to produce high-purity, DRI-grade iron concentrates grading over 67 per cent iron and less than 2.5 per cent silica and alumina combined. Current test work is focused on flotation testing, more detailed variability tests, grind size and reagent optimization programs, and equipment sizing. Current test work and overall process design are to be at the core of the NI 43-101 bankable feasibility study, which is targeted to be completed by the end of Q1 2026. While continuing, results to date are encouraging and indicate the potential for further improvement in iron grade, purity and potentially grind size.

The design and analysis of the metallurgical test work program are being completed by Soutex, 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.

Bankable feasibility program

In addition to the current test work, the company has selected various consultants to undertake the key work programs in 2025 to deliver an NI 43-101 compliant bankable feasibility study for the Mont Sorcier high-purity iron project. The lead consultant and study integrator will be DRA, which will also be responsible for the updated mineral resource estimate, mine design and planning, geotechnology, and hydrogeology. In addition, the company has retained Soutex (process design), LDV Consultants (site infrastructure, capital and operating cost estimation) and WSP (environmental and permitting). Additional specialized consultants will be added as needed.

The bankable feasibility study will look to provide greater detail into the potential of the project that was highlighted in the previous 2022 NI 43-101 preliminary economic assessment, which delivered a project net present value (discounted at 8 per cent) of $1.6-billion (U.S.). With a higher-quality, 67-per-cent-plus iron concentrate product now expected, the company anticipates any cost inflation to be largely offset by premium pricing. The PEA outlined a project producing 5.0 million tonnes of high-grade iron concentrates per annum (equivalent to producing 300,000 gold ounces per year at long-term consensus prices) over a 21-year mine life. This material would then be rail hauled on existing railways to the port of Saguenay for export to global markets. Given the scale of the existing resource, future expansion remains a likely possibility. The table below provides the summary of the PEA results.

A premium product for the transition economy

The Mont Sorcier project is uniquely positioned to be at the centre of the green steel transition. As the global demand for green steel increases, it is expected that the demand and overall price premium paid for higher-grade products and DRI will continue to increase 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 and Canadian governments 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 ability to produce a high-purity iron concentrate grading 67-per-cent-plus iron with low silica and alumina, making it suitable to be classified as a DRI-grade 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 resource is a magnetite material, reducing the use of coal in the steelmaking process, combined with the availability of hydroelectric power in Quebec, lowers overall emission levels for steel producers.

Mark Brennan, chief executive officer and chairman, stated: "We are very excited to be ramping up our work programs for the high-purity 67-per-cent-plus iron project at Mont Sorcier, which will highlight the robust value we see in the project. Metallurgical test work to date remains encouraging and we are likely to improve on previous results to be incorporated into our BFS scheduled for completion by end of Q1 2026. We continue to expect that Mont Sorcier will be a robust and an economically strong project positioned to deliver the exact product desired by the future green steel industry. 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 Metals by Pierre-Jean Lafleur of Voyager Metals, who is a qualified person as defined under NI 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 mines 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, Que.

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 massif.

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 SDGs (sustainable development goals).

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