Mr. Alan Carter reports

CABRAL GOLD ANNOUNCES SECOND CLOSING OF OVER-SUBSCRIBED PRIVATE PLACEMENT

Cabral Gold Inc. has closed the second tranche of its previously announced non-brokered private placement financing through the issuance of 3,934,710 common shares at a price of 12.5 cents per share for gross proceeds of $491,839.

The company intends to use the net proceeds from the private placement to drill recently identified high-grade gold targets at the Cuiu Cuiu gold project located in northern Brazil, and for general corporate and working capital purposes.

In connection with the current closing of the private placement, the company incurred finders' fees totalling $7,125.

All securities issued in connection with the private placement are subject to a statutory hold period of four months from the date of issuance in accordance with applicable securities legislation and the policies of the TSX Venture Exchange, pursuant to which the shares of the current closing may not be sold or transferred until Nov. 7, 2020.

The company has also increased the size of its previously announced private placement from $4-million to up to $4.2-million due to increased demand. This increase follows from an earlier increase in the size of the private placement from $2-million to $4-million (see June 1, 2020, news release). The private placement will now comprise up to 33.6 million common shares at a price of 12.5 cents per share.

The first and second closings of the private placement totalled 29,932,110 common shares for gross proceeds of $3,741,514.

A third and final closing of the private placement, comprising 3.5 million common shares to be issued to a single subscriber, is expected following receipt of TSX-V approval. This closing will bring the total private placement to 33,432,110 common shares for gross proceeds of $4,179,014.

About Cabral Gold Inc.

The company is a junior resource company, and is engaged in the identification, exploration and development of projects in Brazil.

We seek Safe Harbor.