Mr. Mark Brennan reports

CERRADO GOLD ANNOUNCES ACCELERATION OF EXPLORATION PROGRAM AT ITS MINERA DON NICOLAS GOLD MINE

Cerrado Gold Inc. has revised its exploration plans to accelerate the previously announced 20,000-metre exploration program at its Minera Don Nicolas gold mine (MDN). The company is planning to add three additional drill rigs (two diamond and one reverse circulation) to its diamond drill rig, aiming to accelerate and expand the current program and allow for drilling on multiple high-quality targets simultaneously.

The overall scope of the program is expected to increase significantly to approximately 50,000 metres in 2026. In addition, in order to expedite assay completion and turn around times, the company is taking steps to certify its on-site lab. The company anticipates issuing exploration results in batches to provide increased clarity and definition with results. The company remains focused on expanding the mine life and potentially increasing production levels at MDN over the coming year.

Operations on site are performing well and are in line with expectations, benefiting from new investment in mining equipment (new trucks and support equipment) to increase the higher rates of ore being delivered to the leach pad at a rate of 300,000 tpm (tonnes per month) to achieve planned production rates. In addition, underground development is progressing well, with three access portals now open. Initial, higher-grade underground ore is being fed to the mill, albeit in modest amounts, to blend with the lower-grade stockpiles. The bulk of the high-grade underground ore for 2025 is expected to be mined late in the fourth quarter under the current mine plan. Underground exploration is also expected to commence in the coming months once sufficient development has been completed.

Mark Brennan, chief executive officer and chairman of Cerrado Gold, commented: "Following an internal review of the significant potential of high-quality exploration targets at MDN, and the progress the current exploration program is making, we have decided to accelerate and expand the drill program with additional rigs. There is also an opportunity to accelerate the exploration process by certifying our on-site lab further expediting the turn around of assay results."

He continued: "We are seeing a significant shift in the operations at MDN as we have a solid base for consistent production and mine life, with numerous high-quality opportunities to extend both. At a minimum, we hope to deliver a proof of concept of significant LOM extension and growth potential by year-end."

The company also announces that in accordance with regulatory requirements, that it has issued 8,314,997 restricted share units (RSUs) and 100,000 share purchase options to eligible participants under its amended and restated omnibus incentive plan. The RSUs will vest in 12 months and expire on Dec. 15, 2028. The options have an exercise price of $1.27, vest immediately and will expire on Sept. 30, 2028.

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 Lda. In Canada, Cerrado Gold is developing its 100-per-cent-owned Mont Sorcier iron 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 its highly prospective land package in the heart of the Deseado Masiff.

In Portugal, Cerrado 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 mineable scale and cash flow generation potential.

In Canada, Cerrado holds a 100-per-cent interest in the Mont Sorcier 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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