An anonymous director reports

Phoenix Gold Fund Ltd. of Kuala Lumpur, Malaysia, has acquired an aggregate of eight million common shares of Cabral Gold Inc. pursuant to a non-brokered private placement (4.5 million shares on June 19, 2020, and 3.5 million shares on July 7, 2020). Phoenix Gold acquired the common shares at a price of 12.5 cents per share for a total purchase price of $1-million. The issuer's head office is located at suite 1500, 409 Granville St., Vancouver, B.C., V6C 1T2.

Immediately prior to the acquisition, Phoenix Gold owned 4,166,666 common shares of the issuer, representing 6.76 per cent of the issued and outstanding shares of the issuer. In addition, Phoenix Gold owned two million share purchase warrants. If Phoenix Gold exercised all of its warrants, it would then have owned 6,166,666 common shares of the issuer, representing 9.69 per cent of the issued and outstanding shares of the issuer on a partially diluted basis, assuming no further common shares of the issuer have been issued.

As a result of the acquisition, Phoenix Gold now owns 12,166,666 common shares of the issuer, representing 12.79 per cent of the issued and outstanding shares of the issuer on an undiluted basis. In addition, Phoenix Gold owns two million share purchase warrants. If Phoenix Gold exercises all of its warrants, it would own 14,166,666 common shares of the issuer, representing 14.59 per cent of the issued and outstanding shares of the issuer on a partially diluted basis, assuming no further common shares of the issuer have been issued.

Phoenix Gold acquired the securities for investment purposes and has no present intention to dispose of securities of the issuer. Phoenix Gold may, in the future, participate in financings and/or acquire or dispose of securities of the issuer in the market, privately or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.

The disclosure respecting Phoenix Gold's shareholdings contained in this press release is made pursuant to Multilateral Instrument 62-104 and a report respecting the acquisition will be filed with the applicable securities commissions using SEDAR and will be available for viewing.