Mr. Mark Brennan reports

CERRADO GOLD CLOSES $10 MILLION STRATEGIC PRIVATE PLACEMENT WITH ERIC SPROTT

Cerrado Gold Inc. has closed the previously announced strategic non-brokered private placement financing with Eric Sprott for aggregate gross proceeds of $10-million.

The private placement consisted of the issuance of 4,000,000 units of the company to an entity owned and controlled by Mr. Sprott at a price of $2.50 per unit. Each unit consisted of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant entitles the holder thereof to acquire one common share at an exercise price of $3.35 per warrant share for a period of 24 months from the closing date of the private placement.

The private placement remains subject to final acceptance of the TSX Venture Exchange. All securities issued in connection with the private placement are subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws and the policies of the TSX-V.

The company intends to use the net proceeds of the private placement for working capital and general corporate purposes.

The company also announces a correction to an investor services agreement previously announced (see press release dated Aug. 18, 2026). The name of the service provider was stated as Engage 360; it should have stated that the service provider was Investor Events Inc. (the consultant). All other terms of the agreement remain the same, and the agreement remains subject to approval by the TSX Venture Exchange.

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 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 ongoing to further unlock potential resources in our 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 the 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 exploration and development 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, located on the traditional Cree territory of Eeyou Istchee James Bay in the municipality of Chibougamau. The Mont Sorcier high-purity, high-grade DRI iron 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.