Mr. Mark Brennan reports

CERRADO GOLD PROVIDES AN UPDATE ON FISCAL POLICY CHANGES IN ARGENTINA INCLUDING REMOVAL OF CURRENCY CONTROLS ON APRIL 14TH

Cerrado Gold Inc. has provided an update on recent fiscal policy changes that are under way in Argentina, which should ease the overall flow of capital into and out of Argentina. It should be noted that not all the details of the new policy are fully available at this time.

On Friday, April 11, 2025, the IMF (International Monetary Fund) approved a new $20-billion loan program for Argentina with $12-billion set to be available to the Central Bank this week. This new agreement has been sought by President Milei's government since taking office to reopen the country to foreign investments. Access to the IMF funds is set to bolster the Central Bank's foreign reserves as the country looks to defend against inflation as it aims to remove all capital controls in the near future. As part of the plan to remove controls, the Central Bank will eliminate most exchange restrictions on flows, unifying all current account flows, debt payments, foreign investment and the accumulation of assets by individuals into a single foreign exchange market. As the initial step, the government will remove this week the crawling peg that has for years artificially limited the peso's weakening. Instead, the Argentine currency will be allowed to trade freely within an initial range of 1,000 pesos to 1,400 pesos per dollar. On Friday, the peso traded at 1,097 to the dollar at the official rate and at 1,375 at the unofficial blue-dollar rate. The band will expand 1 per cent each month.

As part of this phase of removing all capital control on Friday, the government announced companies will be able to repatriate profits out of the country as of 2025, subject to some restrictions, and the use of the differential exchange rates or dollar blend used by exporters will be eliminated and the deadlines for the payment of foreign trade operations are to be relaxed. This is expected to attract new investment into Argentina. Funds from prior to 2025 will need to exchange the debt for dollar-denominated security bonds. Individual Argentines will also be able to legally exchange pesos for dollars without a $200 (U.S.) monthly limit.

Along with the opening of the foreign exchange market, modifications were also introduced for foreign trade operators. From April 14, 2025, importing companies will be able to pay immediately for goods arriving in the country, eliminating the need to wait weeks or months, as was the case with the previous system. This flexibility will be applied without distinction of products. The new scheme also impacts the payment of services acquired abroad, such as streaming platforms, on-line training or consultancies. According to the provisions, if the service provider does not have a corporate relationship with the buyer, payment may be made from the first day of use.

Mark Brennan, chief executive officer and chairman, commented: "After years of significant inflation and restrictions on capital flows, the removal of currency controls is expected to significantly enhance our ability to operate in Argentina more effectively. In addition, as the success of this new policy unfolds, we expect the attractiveness of Argentina for resource investment will grow given the significant resource endowment in the country."

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 projects 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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