Mr. Mark Brennan reports

CERRADO GOLD ACQUIRES THE PAST-PRODUCING MANANTIAL ESPEJO MINE IN SANTA CRUZ, ARGENTINA, FROM PAN AMERICAN SILVER

Cerrado Gold Inc. has entered into a share purchase agreement dated Nov. 13, 2026, with Pan American and Aquiline Resources Inc., a wholly owned subsidiary of Pan American, and acquired all of the issued and outstanding shares of Minera Triton Argentina S.A. (MTA), the owner of the past-producing Manantial Espejo mine, and the related mining concessions located in Santa Cruz province, Argentina. All dollar amounts in this news release are expressed in U.S. dollars unless otherwise indicated.

Transaction details:

• The acquisition was completed on an as-is, where-is basis;
• Upfront cash payment of $10-million (U.S.) paid on closing;
• Deferred payments of $5-million (U.S.) in cash payable on the first and second anniversaries of the closing date;
• MTA has granted Pan American a 1.0-per-cent net smelter return (NSR) royalty on all future production from the property in settlement of existing indebtedness owed by MTA to Pan American. The NSR royalty is secured by a first-degree mortgage over the mining concessions comprising the property and a parent guarantee from Cerrado;
• The company is not aware of any other material indebtedness of MTA other than the intercompany indebtedness settled by the NSR royalty;
• The assumption of all historical, current and future liabilities, including closure liabilities, with the financial closure guarantee required under Santa Cruz provincial law for approximately $13.8-million (U.S.), which the company will satisfy through a financial institution letter of credit, avoiding impact to its working capital position.

Mark Brennan, chief executive officer and chairman, commented: "We are extremely pleased to acquire MTA and the Manantial Espejo mine. Based on our due diligence, we have developed a phased redevelopment and refurbishment plan to bring the operations back into production in 2027. Through additional exploration and development, it is Cerrado's objective to bring MTA back to historical production levels."

He continued: "We believe this acquisition positions Cerrado for significant accelerated production growth in Santa Cruz. With funds available in Argentina to support our development plans, we believe this opportunity should enhance shareholder value without shareholder dilution."

The transaction is an arm's-length transaction. No securities of the company are being issued as consideration and no approval of the company's shareholders is required.

Property details

MTA's operations consist of the Manantial Espejo mine, situated in Santa Cruz province, approximately 160 kilometres (km) west of Puerto San Julian on Route 25 and 50 km west of the town of Gobernador Gregores (population 7,000), in southern Argentina (Patagonia).

The property consists of a total of 25 mining properties, including 17 mining properties constituting the Manantial Espejo mining group and eight other separate mining properties, covering a total of approximately 45,255 hectares. The property also includes three surface properties (ranches) owned by MTA that will support its mining and exploration activities. Certain concessions comprising the property are subject to a pre-existing 0.5-per-cent net smelter return royalty.

The mine was constructed in 2006 and commenced operations in 2008. Mining activities concluded at the end of 2022 and the mine was closed in early 2023, following which the operation was placed on care and maintenance. The site consists of two historical open-pit mines and additional underground workings accessed from three portals. Mining ceased while mineralized material remained in place.

Historical operations consisted of a mill capable of operating at up to 2,500 tonnes per day and associated infrastructure, including a tailings pond facility used to produce dore. Based on Cerrado's due diligence review, the company believes these facilities remain in good condition and management believes this positions the mine for a rapid restart. Figure 1 below highlights the historical gold and silver production and head grades reported by the previous owner. As shown in figure 1 below, metal production reached a peak of approximately 137,500 gold equivalent ounces (GEOs) in 2011 before declining due to lower grades and less open-pit material being available to support filling the mill with a blend of open-pit and underground material.

Phased redevelopment plan

The company has developed a phased redevelopment plan for the property for 2027. The initial phase will focus on dewatering the underground mine and refurbishing underground and surface infrastructure as needed. This is expected to take up to six months. A new mining fleet for surface and underground operations is also expected to be brought on site to commence mining operations when ready. Based upon current internal plans, initial commissioning of the operation and initial production are expected to be sourced by processing of low-grade stockpiles and then blending in new mineralized material from newly commenced underground mining operations. The initial phase of the redevelopment plan is targeting operation of the mill at approximately 1,000 tonnes per day, being the rate at which the operation was performing prior to shutdown. The redevelopment plan has used this throughput rate as the initial target for commissioning. This leaves spare mill capacity should exploration define additional sources of mill feed.

Cerrado's current operations at Minera Don Nicolas (MDN), also in Santa Cruz province, provide an established operating foundation in Santa Cruz. Cerrado intends to draw on its knowledge of local conditions, government, supplier and contractor relationships, procurement systems and recruitment experience to support the redevelopment of the property. Opportunities to share technical support and apply lessons from MDN in maintenance, metallurgical control and operating discipline will be evaluated as the plan is refined. This regional experience is a practical advantage for mobilization and the rebuilding of operating capability.

The company is not providing production guidance for the property at this time and expects to do so once sufficient technical work has been completed. The timing and level of any future production will depend on sufficient economic feed being defined, operating performance and execution of the redevelopment program.

The planned restart timing and targeted mill throughput described above are forward-looking information, are subject to material assumptions, risks and uncertainties, and may not be achieved.

No mineral resource or mineral reserve has been estimated for the property in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, and no preliminary economic assessment, prefeasibility study or feasibility study has been prepared for the property. Any decision by the company to resume mining at the property would accordingly not be based on a feasibility study of mineral reserves demonstrating economic and technical viability. Projects advanced on that basis carry a materially higher risk of economic or technical failure, including the risk that grades, metallurgical recoveries, capital and operating costs, dewatering and refurbishment requirements, permitting outcomes, and production rates differ materially from the company's current expectations, and the risk that no production is achieved at all.

Exploration program

In parallel with the above-noted mine redevelopment plan, the company also plans to undertake an exploration drill program of approximately 40,000 metres on the property in 2027, with the objective of generating sufficient data to support the preparation of an initial mineral resource estimate for the property in accordance with National Instrument 43-101. There is no certainty that the program will be completed as planned or that it will result in the delineation of mineral resources.

Based on its review of the information made available by the vendors during its due diligence investigation, including historical mine plans, survey data and the historical drilling database for the property, Cerrado has identified a target for further exploration in the previously mined open-pit and underground areas of between 1.3 million and 1.8 million tonnes at a grade of between 1.5 and 2.8 grams per tonne gold that was left unmined at closure.

Analyzing the historical database, there is considerable exploration upside across the property. The key target is the Punta Maria vein, which represents the eastern extension of the project's main mineralized structure. Three existing underground drifts have returned positive channel sample results. Beyond these drifts, eight exploration drill holes completed by Pan American have confirmed high-grade mineralization along approximately 600 metres of strike length. Cerrado plans to further drill this area in a closer drilling mesh and convert these intersections into mineral resources to support future mine development planning and production.

Open-pit opportunities are also being evaluated across the property. Potential pushbacks of the existing mature pits, as well as shallow, lower-grade mineralized intersections, represent additional exploration upside. The Karina and Concepcion pits, both at a mature stage of development, could be further drilled along strike and at depth to assess extension potential and re-evaluate their economic viability. In addition, the Punta Maria and Puntita Maria open-pit targets contain several low-to-medium-grade mineralized intersections that should be considered in future drilling programs and economic evaluations, with the objective of defining and potentially converting these mineralized zones into mineral resources following appropriate verification and resource estimation work.

The MTA project is hosted in Chon Aike formation rocks. Compared with other volcanic units present in the Deseado Massif, such as the andesitic rocks of the Bajo Pobre formation, the Chon Aike rhyolites are more closely associated with the development of large low- and intermediate-sulphidation epithermal systems. Numerous significant deposits and operating mines within the district, including Cerro Vanguardia, Cerro Negro, San Jose, Martha and La Josefina, are hosted wholly or partially within Chon Aike volcanic rocks and related structure. Mineralization at these deposits is not necessarily indicative of mineralization on the property.

The company believes that there is potential for near-mine exploration within a 10 km radius of the operation. Several surface geochemical anomalies remain untested by drilling, representing potential exploration targets. As part of its expansion strategy, Cerrado plans to systematically rank, prioritize and drill test these anomalies to evaluate their potential for mineral resource growth in proximity to the existing mine infrastructure.

The potential quantity and grade of this exploration target are conceptual in nature. There has been insufficient exploration to define a mineral resource on the property, and it is uncertain whether further exploration will result in the target being delineated as a mineral resource. The exploration target is not a mineral resource or a mineral reserve, it has not been estimated in accordance with NI 43-101 or the CIM definition standards, and it must not be relied upon as if it were a mineral resource estimate. Cerrado is not treating the exploration target as a current mineral resource or mineral reserve and has not used it in any economic analysis.

Permitting and closure obligations

The property is subject to an approved mine closure plan and to continuing permitting, reporting and closure obligations under Argentine federal and Santa Cruz provincial law, which the company has assumed on closing. Certain of the environmental and mining permits for the property, including the environmental impact report for the project, will require updating or renewal before mining activity at the property is resumed. The financial closure guarantee required under Santa Cruz provincial law of approximately $13.8-million (U.S.) and will be satisfied through an environmental insurance policy, avoiding impact to the company's working capital position.

Government co-operation and local employment

Cerrado is working closely with local government and the provincial Mining Secretariat as it advances the redevelopment of the property. The acquisition supports their efforts to expand employment and economic activity in Santa Cruz, particularly in the communities surrounding the operation. A phased return to operations offers the opportunity to create direct employment, support local contractors and suppliers, and rebuild mining skills in the region.

Review of technical information

The scientific and technical information in this news release has been reviewed and approved by Andrew Croal, PEng, chief technical officer for Cerrado, who is a qualified person as defined in NI 43-101. The geological database and drilling information in this news release have been reviewed through site visits and approved by Cid Bonfim, PGeo, senior geologist at Cerrado Gold, who is a qualified person as defined in NI 43-101. Mr. Croal and Mr. Bonfim are employees of Cerrado and are not independent of the company. The technical information relating to the property was generated by the previous owner and was made available to Cerrado in the course of its due diligence investigation. The company's qualified persons have reviewed that information and have visited the site, but have not independently verified the historical sampling, analytical and test data underlying it, and the quality assurance program and quality control measures applied to the historical drilling have not been independently confirmed. Accordingly, that data have not been verified for the purposes of Section 3.2 of NI 43-101 and readers are cautioned not to rely upon it.

Regulatory filings

The company will file a material change report in respect of the transaction, together with a copy of the agreement, on SEDAR+ in accordance with applicable Canadian securities laws.

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 Chibougamau, Que.

In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas (MDN) 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 km from Lisbon and surrounded by existing 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 is developing its 100-per-cent-owned Mont Sorcier high-purity, high-grade, direct reduced iron project, located on the traditional Cree territory of Eeyou Istchee James Bay in the municipality of Chibougamau. The Mont Sorcier project 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.