Mr. Mark Brennan reports

CERRADO GOLD ANNOUNCES Q2 2025 PRODUCTION RESULTS AT ITS MINERA DON NICOLAS MINE IN ARGENTINA

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

Q2 operating highlights:

• Q2 production of 11,437 gold equivalent ounces versus 11,163 gold equivalent ounces in Q1;
• Heap-leach production steadily ramping up to expanded capacity for H2 2025;
• Underground development at Paloma commencing as planned with three access portals started;
• CIL (carbon-in-leach) plant starting to receive initial contribution from underground development, production expected to ramp up over H2 2025.

Operational results for Q2 2025 showed a slight increase in production over the previous quarter, driven by modestly higher production from the heap-leach operations. The heap-leach operational performance remained steady over the quarter; however, recovery rates were impacted by a larger amount of primary ore placed on the pad during the quarter due to mine sequencing. This primary material has lower recovery rates and longer retention times as compared with oxide material. Heap-leach production is expected to improve in H2 2025 as more oxide ore is mined, the addition of an agglomerator to reduce fines and the continuing upgrades to the crushing circuit are completed. In addition, during the quarter the crushing circuit was off-line for approximately 15 days early in the quarter as upgrades were put in place to support higher throughput rates moving forward. Production from stockpiled material through the CIL plant declined somewhat due to lower grades; however, underground operations at Paloma are expected to begin to contribute meaningfully to production in Q3 2025 and beyond as development rates increase and more ore becomes available.

The second phase of the expansion of the heap-leach crushing circuit is now operational, which will increase feed stability in order to deliver steady ore to the pad. While supporting higher production rates, additional crushing facilities are also expected to reduce the feed size to the pad and result in increased recoveries. The final updates to the crusher circuit, including final installation of the agglomerator and additional conveyors, are set to be completed in Q3 2025.

As previously announced, the company commenced underground mining in June, opening up three portals for underground mining beneath the Paloma pit. Ore production is expected to ramp up over the coming months and is set to make a material contribution to production rates as the year progresses. While 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. Underground exploration aims to materially expand resources at MDN, leveraging the underground development for a potential expansion in production and/or mine life.

On the exploration front, the company commenced an approximately 20,000-metre drill program late in the quarter and is set to drill numerous targets in the coming months with the aim to potentially define new resources to provide mill feed to the CIL plant at MDN. Drilling commenced with a single DDH (diamond drilling) rig north of the Paloma pit, where several new veins have been intersected. Results are pending and further drilling will be required to confirm any new resources.

Mark Brennan, chief executive officer and chairman, commented: "While Q2 results were modestly lower than our expectations as the heap leach continues to ramp up to its fully expanded capacity, we continue to be confident in our full-year expectations as the underground operations ramp up in H2 2025. Cerrado also continued to progress both the Lagoa Salgada project and the Mont Sorcier projects towards completion of feasibility studies by Q3 2025 and Q1 2026, respectively, which we believe should demonstrate substantial value being unlocked by Cerrado's development projects."

Mont Sorcier project update

At the Mont Sorcier high-purity iron project, detailed metallurgical test work and flow sheet design continued during the quarter. All key work streams are now engaged and the company has commenced an infill drill program to update sufficient resources to the proven and probable categories as required to support the continuing feasibility. Assay results remain pending at this time.

The bankable feasibility study will look to provide greater detail of the potential for the project that was highlighted in the previous 2022 National Instrument 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. With the improved metallurgical results received to date, the company is confident it can deliver a high-purity DRI-grade (direct reduced iron) iron ore concentrate product of over 67 per cent iron, enhancing the project value and delivering a highly desired product to support the green steel transition.

Lagoa Salgada project update

At the Lagoa Salgada polymetallic VMS (volcanogenic massive sulphide) project, detailed metallurgical test work is scheduled to be completed by the end of July, with results targeting improvements across recoveries and grades for the various concentrate products. An updated mineral resource and reserve estimate is planned to be completed in Q3 2025 incorporating the results of the metallurgical test work as well as using updated long-term commodity price expectations. This updated resource will be used as part of the optimized feasibility study that is well under way and expected to be completed around the end of Q3 2025.

Corporate activities

In addition to financing development programs at Lagoa Salgada and Mont Sorcier Cerrado, the company continued to pay down debt during the quarter. The company anticipates its balance sheet to strengthen over the remainder of the year as cash flow increases from higher production rates and strong gold prices. In the medium term, the company is also set to receive future payments from the Brazilian Monte do Carmo asset sale totalling $15-million (U.S.) ($10-million (U.S.) due in July, 2026, and $5-million (U.S.) by March, 2027) as well as a further $10-million (U.S.) should the option granted over the company's Michelle properties in Argentina be exercised.

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 development and exploration 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 development and exploration 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, high-grade direct reduced 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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