Mr. Mark Brennan reports

CERRADO GOLD ANNOUNCES Q4 AND ANNUAL 2024 GOLD PRODUCTION RESULTS FOR ITS MINERA DON NICOLAS MINE IN ARGENTINA

Cerrado Gold Inc. has released production results for the fourth quarter ended December, 2024, from the Minera Don Nicolas (MDN) mine in Santa Cruz province, Argentina. Full fourth quarter financial results are expected to be released prior to April 30, 2025.

Q4 operating highlights:

• Q4 production of 10,431 GEO (gold equivalent ounces) versus 16,604 GEO in Q3;
• Annual sales of 51,694 GEO for 2024;
• Production impacted by lower than planned feed grade to the CIL (carbon-in-leach) plant during the quarter as mining of high-grade pits nears completion;
• Studies to commence underground operations at Paloma in the second half of 2025 initiated during the quarter;
• Focus remains on ramping up crushing capacity at Calandrias Sur and bringing heap leach production up to 4,000 to 4,500 GEO per month by March, 2025.

While operational results for Q4 2024 demonstrated a decrease in production over the previous quarter, this was driven by lower than expected ore grades delivered from the final stages of mining of the older high-grade open pits and stockpiles to feed the CIL plant as the company's operations transition to a primarily heap leach operation in 2025. The heap leach operational performance continued to improve over the quarter, reaching record production levels as more ore was added to the pad. The performance of the heap leach continues to depend on the crushing circuit. An additional secondary crushing circuit is currently being installed to ensure excess capacity is in place to support the transition to a heap-leach-only facility. Once fully operational, the crushing capacity should allow for approximately 300,000 tonnes of ore to be placed on the pad per month. The installation of the secondary crusher is expected to reduce fleet and operating costs and is expected to operate at full capacity by the end of the first quarter, at which time the mobile crushers will be placed on standby.

In addition, the company is undertaking detailed analysis and preparations for equipment sourcing with the view to commencing underground operations later this year beneath the Palmoa pit. While the initial production expectations are relatively modest given the current known underground resource, underground access is expected to provide a platform for major exploration activities at lower costs than drilling from surface with the aim to materially expand the resources available for underground development. Further details will be released once finalized and a development decision is made.

The company provides 2025 annual production guidance of between 50,000 and 55,000 GEO at an ASIC (all-in sustaining cost) of between $1,300 and $1,500 per GEO. The bulk of this production is expected to be delivered solely from heap leach operations from Q2 2025 onward.

Mont Sorcier update

At the Mont Sorcier high-purity iron project, detailed metallurgical test work and flow sheet design continued during the quarter. As announced in early December, 2024 (see press release dated Dec. 4, 2024), test work has reaffirmed the potential to produce high-grade and high-purity iron concentrate grading in excess of 67 per cent iron with silica and alumina below 2.3 per cent. Continuing test work is focused on flotation testing, more detailed variability tests, grind size and reagent optimization programs, as well as equipment sizing.

Current test work and overall process design are to be at the core of the National Instrument 43-101 bankable feasibility study, which is targeted to be completed by the end of Q1 2026. 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 (PEA) that delivered a project net present value (discounted at 8 per cent) of $1.6-billion (U.S.) based upon iron concentrates grading 65 per cent iron.

Corporate activities

The company has also continued to make progress on improving its working capital position during the quarter with the receipt of a total of $34-million (U.S.) from asset sales and the sale of an option on the Michelle properties at MDN. As a result, the company has now significantly strengthened its balance sheet and expects to continue to deliver further deleveraging during 2025. Future payments from the Brazilian Monte do Carmo asset sale totalling $15-million (U.S.) as well as a further $10-million (U.S.), should the Michelle option be exercised, would continue to add to the company's strong cash position moving forward.

Mark Brennan, chief executive officer and chairman, commented: "While 2024 was a year with significant challenges, we are pleased to have achieved gold production in line with our guidance for the year, supported by strong growth in production from the heap leach as the year progressed. With the new crushing circuit currently being installed, we expect this trend to continue to support production targets for 2025 while we review the potential to add additional production from a potential underground operation at Paloma. Further test work at our Mont Sorcier project in Quebec continues to highlight the significant upside we see in this project as we work to unlock value with the completion of a feasibility study by Q1 2026. Cerrado is exiting the year with a significantly improved working capital position, placing Cerrado in a stronger financial position heading into 2025."

Review of technical information

The scientific and technical information from Minera Don Nicolas in this press release has been reviewed and approved by Cid Bonfim, PGeo, senior geologist for Cerrado Gold, and Pierre Jean LaFleur, PGeo, vice-president, exploration, for Voyager Metals, a 100-per-cent-owned subsidiary of Cerrado Gold, are qualified persons as defined in NI 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, 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 its 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 (sustainability development goals).

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