Mr. Mark Brennan reports

CERRADO GOLD ELECTS TO REVISE TIMING FOR COMPLETION OF THE MONT SORCIER FEASIBILITY STUDY TO UNDERTAKE OPTIMIZATION INITIATIVES

Cerrado Gold Inc. has elected to extend the completion date of the bankable feasibility study at its Mont Sorcier high-grade iron project, led by Voyager Metals, a 100-per-cent-owned subsidiary of Cerrado Gold, to review numerous optimization and tradeoff opportunities that have been identified during the BFS process as having the potential to materially enhance the overall value of the project.

• Optimization opportunities to be incorporated into the Mont Sorcier feasibility, resulting in an extended completion date.
• Key optimization focus areas include:
  • Enhanced mine plan to reduce overall strip ratio;
  • Tailing dam construction;
  • Capex (capital expenditure) and opex (operating expenditure) review in light of continuing regional inflation;
  • Tradeoff in concentrate quality versus premium price.
• Modest drill program set for late Q3 to enhance mine plan by upgrading additional resources.

Mark Brennan, chief executive officer and chairman, commented: "We believe that this is the right course of action and are confident that the opportunities identified will have a material impact on the value of the project. Furthermore, the optimization program is not expected to materially impact the overall project timeline, which is driven by the environmental and social impact assessment submission date, which we now expect will be submitted in Q2/27 as a result of these changes."

Mont Sorcier feasibility updated timeline

During recent quarters, work has continued to advance the bankable feasibility study (BFS) for the company's high-grade Mont Sorcier iron project. As the BFS has progressed, the company has identified several opportunities to further optimize project economics and reduce both capital and operating costs, despite continuing industry-wide inflation. A number of tradeoff studies are expected to be completed to evaluate and capture these improvements.

The most significant opportunity to enhance the project has emerged from the ongoing mine planning process. An opportunity to enhance the overall mine plan and lower costs has been identified through a conversion of a modest amount of currently inferred resources to measured resources within a defined area to the east of the current planned pit. The material in this region is expected to be shallower and should materially reduce stripping and tailings management costs over the life of mine. The company will undertake a small, targeted definition drill program in Q3 2026 so that any resources which may be converted from inferred to measured may be incorporated into the optimized mine plan. Given the potential and material positive impact on project economics, the company has determined that this should be incorporated into the BFS in order to deliver an optimal mining operation.

Additional areas for detailed review and tradeoff studies will be undertaken with respect to overall capex and opex estimates that are currently seeing a material impact from rising inflationary pressures in the market. As such, a focus on LOM tailing dam construction and other project infrastructure needs to reduce the overall size and construction material required is currently planned.

A further area for review will be tradeoff studies to commence the operation producing a 65-per-cent grade iron concentrate versus the currently planned 67-per-cent grade iron concentrate. While current metallurgical testwork supports the ability to produce the 67-per-cent higher-grade concentrates that is desired by the Green Steel industry, the current price premium to the premium offered to 65-per-cent concentrate, being seen and forecast in the market today, may not be sufficient to justify the additional capital and operating cost requirements to deliver the 67-per-cent product. However, if high-grade price premiums were to increase, additional infrastructure could be added if economic. It should be noted that 65-per-cent grade iron concentrates remain a highly desired product in the market, receiving an approximate 20-per-cent premium over the more common 61- to 62-per-cent iron concentrate index. Currently, 67-per-cent concentrates garner an approximate $20/tonne premium to the 65-per-cent index as published by leading industry forecasters, subject to specific concentrate characteristics. The lower price would be offset by a higher weight recovery in the concentrator plant to deliver higher levels of production with a simplified flow sheet, reducing capital and operating costs.

While the precise impact on the final completion date of the BFS remains uncertain at this time pending the completion of the drill program, the company does not expect it to materially affect the timing of the environmental and social impact assessment (ESIA), which is expected to be filed in Q2 2027. The ESIA is a key project milestone, as its submission initiates the formal permitting process. On this basis, the company continues to expect that the required permits could be granted around year-end 2028, suggesting construction could commence around the end of Q1 2029. Recent comments by policymakers indicate a desire to accelerate the permitting process, though no clear timeline for how this may affect Mont Sorcier is available at this time. The company views this step as a prudent investment to optimize the project for all stakeholders and will provide further updates on timing as they become available.

Review of technical information

The scientific and technical information in this press release has been reviewed and approved by Andrew Croal, PEng, chief technical officer for Cerrado Gold, who is a qualified person as defined in National Instrument 43-101.

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 our highly prospective land package in the heart of the Deseado Masiff.

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 the deposit and at prospective stepout targets across the large 7,209-hectare property concession. Located just 80 kilometres from Lisbon and surrounded by existing infrastructure, Lagoa Salgada offers a low-cost entry to a significant development and exploration opportunity, already showing its mineable 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, led by Voyager Metals, a 100-per-cent-owned subsidiary of Cerrado Gold, 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.

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