Mr. Mark Brennan reports

CERRADO GOLD UPDATED METALLURGICAL TESTWORK SUPPORTS ABILITY TO PRODUCE 67% HIGH PURITY, DIRECT REDUCTION IRON ("DRI") GRADE CONCENTRATES AT ITS MONT SORCIER IRON ORE PROJECT IN QUEBEC

Cerrado Gold Inc. has released further positive metallurgical test results confirming the ability to produce high-purity, DRI-grade (direct reduction iron) 67-per-cent iron concentrates at its Mont Sorcier magnetite iron ore project, located mainly in the Cree territory of Eeyou Istchee James Bay, about 20 kilometres east of Chibougamau, Que., held through its 100-per-cent-owned subsidiary, Voyager Metals Inc. The metallurgical tests results reflect a continuation of the test work announced in March, 2024, which will be used to determine the final flow sheet design for the feasibility study at Mont Sorcier, which is expected to be completed in Q1 2026.

Highlights:

• Metallurgical test work on master composite reaffirms production of DRI-grade iron concentrate with combined silica and alumina below 2.5 per cent;
• DRI-grade concentrate demand to grow at a CAGR (compound annual growth rate) of over 9.0 per cent per annum for the next decade, according to industry forecasts;
• Enhanced economic magnetite iron recovery of 83 per cent;
• Variability test work of the primary domains has commenced;
• Additional test work focused on equipment sizing is now continuing;
• Feasibility study targeted for Q1 2026 (all numbers reported in U.S. dollars).

The design and analysis of the metallurgical test work program is being 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.

This latest phase of test work was focused on greater detailed analysis of the master composite for the Mont Sorcier orebody to provide a higher degree of confidence in the ability to produce a high-purity iron concentrate grading at least 67 per cent iron with low silica and alumina; making it suitable to be classified as a DRI-grade product. Such a product significantly reduces the overall emission of greenhouse gases in steel production compared with other lower-grade concentrates and commands a significant price premium in the market. High-grade concentrates have the potential to be used in electric arc furnaces to produce steel products, further reducing emissions. In addition, as the Mont Sorcier project is a magnetite material, this would also reduce the use of coal in the steelmaking process, further lowering overall emission levels. Numerous industry publications are forecasting that overall demand for DRI-grade iron concentrate is forecasted to grow at over 9.0 per cent per annum for the next decade.

As the strong global demand for green steel increases, demand and price premiums paid for higher-grade products is expected to continue to increase and remain well above the most commonly traded iron products and will 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.

Following the promising results obtained in early 2024 that showed the initial ability to produce concentrate grading 67 per cent iron, further test work, completed on a larger representative master composite of the Mont Sorcier property, confirmed the initial positive outcomes. A summary of the test work program and results is outlined below:

• The material was ground to a size of minus two millimetres and 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 underwent a rougher magnetic separation process. The rougher concentrate was then reground to a P80 of 38 micrometres, subjected to a hydroseparation stage to remove low-density fine material and was then passed through a final cleaning magnetic separation stage.
• The magnetic concentrate was then processed through a reverse iron flotation stage to produce a low-silica concentrate.

These processing steps led to the production of a concentrate grading 67 per cent iron and 1.8 per cent silica for an economic magnetic iron recovery of more than 72 per cent. The addition of a scavenger flotation circuit further improved the global economic magnetic iron recovery to more than 83 per cent (more than 68 per cent total iron), representing a significant enhancement compared with the initial results.

Test work is currently continuing with the processing of 18 variability samples through the flow sheet, aiming to assess the performance of different samples representative of the Mont-Sorcier orebody. A three-tonne bulk sample is also being processed to generate representative concentrate. Going forward, this material will be used to conduct specific equipment test work that will support the equipment design and selection for the feasibility study.

Mark Brennan, chief executive officer and chairman, stated: "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. With the further test work results continuing to support and enhance the ability to produce DRI-grade 67-per-cent iron concentrates with low levels of impurities, we anticipate interest to unlock the value we see in the Mont Sorcier project to increase as we progress through the feasibility stage."

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 Pierre-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. 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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