Mr. Mark Brennan reports

CERRADO GOLD BEGINS UNDERGROUND OPERATIONS AT ITS MINERA DON NICOLAS MINE

Cerrado Gold Inc. has provided an update on the development of the company's inaugural underground operation commencing underneath the high-grade Paloma pit at its Minera Don Nicolas (MDN) mine in Argentina.

Highlights:

• Portal construction commenced with initial blast completed;
• Underground operations expected to contribute to production in June and ramp up during Q3 2025;
• Open-pit exploration drill campaign commenced.

Earlier this week, the company completed the initial blast to begin construction of the underground portal and progress the development of the underground mine over the coming months. The initial decline will be driven through the orebody and will provide nominal feed to the carbon-in-leach (CIL) plant. Production from the underground is expected to ramp up to reach steady-state production by October this year.

Additionally, the company has now mobilized the initial drill rig to commence the previously announced 20,000-metre exploration drill program at MDN. The primary focus will be near-surface, high-grade deposits that can provide feed to the CIL plant as well as expanding potential resources in and around the Las Calandrias heap-leach project to add both high-grade and heap-leachable material. Underground drilling at Paloma will commence once the underground exploration platforms have been established.

Mark Brennan, executive chairman, commented: "The start of the underground operation is a key milestone for Cerrado's Argentinian operations; we now have the ability to produce from open-pit, heap leach and underground operations. Not only will the underground operations contribute to production immediately, but it will also provide a platform for underground exploration, which remains completely open and largely unexplored at MDN."

Review of technical information

The scientific and technical information in this press release has been reviewed and approved by Andrew Croal, PEng, chief technical officer 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. The company is the 100-per-cent owner of the producing Minera Don Nicolas and Las Calandrias mine in Santa Cruz province, Argentina. In Portugal, the company holds an 80-per-cent interest in the highly prospective Lagoa Salgada VMS project through its position in Redcorp -- Empreendimentos Mineiros Ltda. In Canada, Cerrado Gold is developing its 100-per-cent-owned Mont Sorcier iron project located outside of Chibougamau, 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 Portugal, Cerrado is focused on the exploration and development of the highly prospective Lagoa Salgada VMS project located on the prolific Iberian pyrite belt in Portugal. The Lagoa Salgada project is a high-grade polymetallic project, demonstrating a typical mineralization endowment of zinc, copper, lead, tin, silver and gold. Extensive exploration upside potential lies both near deposit and at prospective stepout targets across the large 7,209-hectare property concession. Located just 80 kilometres from Lisbon and surrounded by exceptional infrastructure, Lagoa Salgada offers a low-cost entry to a significant exploration and development opportunity, already showing its minable scale and cash flow generation potential.

In Canada, Cerrado holds a 100-per-cent interest in the Mont Sorcier high-purity iron project, which has the potential to produce a premium iron 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.

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