Mr. Mark Brennan reports

CERRADO GOLD RECEIVES US$8.75M PAYMENT FROM HOCHSCHILD

Cerrado Gold Inc. has received $8.75-million (U.S.) from Amarillo Mineracao Do Brasil Ltda., a wholly owned subsidiary of Hochschild Mining PLC, as a prepayment of the $10-million (U.S.) receivable related to the sale of the Monte Do Carmo gold project in Brazil.

Under the terms of the option agreement dated March 4, 2024, two payments remain outstanding following closing of the option exercise on Nov. 6, 2024:

• $10-million (U.S.), payable within 14 days of the second anniversary of the date Cerrado received shareholder approval on June 27, 2024;
• $5-million (U.S.), payable within 14 days of the earlier of: (i) the commencement of commercial production from the MDC project; and (ii) March 31, 2027.

Mark Brennan, chief executive officer and chairman, commented: "This payment immediately strengthens our balance sheet and gives us greater flexibility to accelerate our growth initiatives. We are now well positioned to push forward on multiple fronts -- from ongoing exploration and development at Minera Don Nicolas, completing the optimized feasibility study at Lagoa Salgada, and advancing the inaugural bankable feasibility study at the Mont Sorcier high-grade iron project. With stronger liquidity and a clear path to value creation, we're focused on driving the next phase of growth for our shareholders."

With this prepayment, Hochschild has now satisfied its obligation for the first $10-million (U.S.) payment. The $5-million (U.S.) obligation due in 2027 remains outstanding and due to Cerrado as detailed above.

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 (volcanogenic massive sulphide) 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.

We seek Safe Harbor.