Mr. Alan Carter reports

CABRAL GOLD ANNOUNCES THIRD AND FINAL CLOSING OF OVER-SUBSCRIBED PRIVATE PLACEMENT

Cabral Gold Inc. has closed the third and final tranche of its previously announced non-brokered private placement financing through the issuance of 3.5 million common shares at a price of 12.5 cents per share for gross proceeds of $437,500.

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. 8, 2020.

The original size of the private placement was up to $2-million (see May 20, 2020, news release). The private placement increased to up to $4-million (see June 1, 2020) and then to up to $4.2-million (see June 7, 2020, news release) due to increased demand.

The current closing brings the total private placement to gross proceeds of $4,179,014 comprising 33,432,110 common shares issued at 12.5 cents per share including a brokered component comprising 2.4 million common shares for gross proceeds of $300,000.

In connection with the private placement, the company incurred total finders' fees of $55,625. Of this amount, $34,625 relates to the non-brokered portion of the private placement and includes $18,000 paid through the issuance of common shares. The remaining $21,000 of finders' fees relates to the brokered portion of the private placement and was paid through the issuance of common shares. The company also issued an aggregate of 144,000 share purchase warrants in connection with the brokered portion of the private placement; each broker warrant entitles the holder to purchase one common share of the company at a purchase price of 20 cents for a period of 24 months following closing of the private placement.

Officers and directors of Cabral subscribed in the private placement for a total of 1.7 million common shares for gross proceeds of $212,500. The participation of officers and directors of Cabral in the private placement constitutes a related-party transaction within the meaning of Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to Section 5.5(a) and Section 5.7(1)(a) as the fair market value of the officers' and directors' participation is not more than 25 per cent of the company's market capitalization.

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.

Alan Carter, president and chief executive officer, stated: "We would like to personally thank our shareholders and investors for their support in closing this significantly oversubscribed financing. This funding will allow us to drill test a number of recently identified high-grade gold targets and we look forward to issuing regular updates as we continue to unlock the high-grade gold potential of this exciting district."

Extension of share purchase warrants

The company issued a total of 22,796,832 share purchase warrants on July 25, 2019, in connection with a private placement that closed on this date. Each share purchase warrant entitles the holder to acquire one common share at a purchase price of 20 cents for a period of 12 months through July 25, 2020.

The company would like to advise the holders of these warrants that it will be seeking approval from the TSX Venture Exchange to extend the term of these share purchase warrants by four months from July 25, 2020, to Nov. 25, 2020.

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.