Cabral Gold Releases PFS for Cuiú Cuiú Gold Project with Potential $35M Annual Cash Flow

• Cabral Gold has released a PFS for a starter oxide gold project in Brazil, with a post-tax IRR of 47.3% at $2,250/oz gold and over 80% at current prices.
• The Cuiú Cuiú Gold projects estimates an initial capex of $37.4M for a 2,000 tpd operation with AISC just over $1,000/oz in initial years.
• The project benefits from free-digging material requiring no drilling/blasting, with simple processing requirements.
• Current mine life is 4.5 years based on only 25% of indicated/inferred resources, with significant expansion potential.
• Cabral Gold has identified 50 exploration targets in their district-scale project next to G Mining's Tocantinzinho mine.

Cabral Gold has unveiled a Pre-Feasibility Study (PFS) for its Cuiú Cuiú oxide gold project in Brazil, presenting a strategic approach to achieving self-funded growth. The company has designed a low-capex starter project targeting oxide resources, with the aim of generating significant cash flow to fund exploration across its district-scale property.

Project Economics: Compelling Returns with Low Capital Requirements

The PFS outlines a project with modest initial capital requirements of US$37.4 million, targeting a processing rate of 2,000 tonnes per day. Key economic highlights include:

• Post-tax IRR of 47.3% at $2,250/oz gold
• IRR is 82.6% at current gold prices ($2,710/oz)
• NPV of $25.2 million at $2,250/oz, rising to $49.3 million at current prices
• All-in sustaining costs $1,003/oz in initial years
• 4.5-year mine life with strong cashflows in the early years and an 18-month payback

Technical Advantages: Simplified Mining & Processing

The project benefits from significant technical advantages that contribute to its low cost profile. CEO Alan Carter explains:

"We've got about 60 meters of weathered material which is basically now clay, we don't need any drilling or blasting. This material that we're targeting with the PFS initially is not hard to put no finer point on it."

The simplified processing approach further reduces both capital and operating costs. Unlike typical gold operations requiring multiple crushing and grinding circuits, Cuiú Cuiú's oxidized material can be processed without conventional crushing and grinding, significantly reducing both initial capital requirements and ongoing operating costs.

Interview with President & CEO, Alan Carter

Growth Strategy: Self-Funded Exploration

The company's strategic rationale centers on establishing consistent cash flow to fund exploration across its extensive land package. With projected annual profits of approximately US$35 million at current gold prices, Cabral would be positioned to conduct aggressive exploration programs without relying on equity markets. Carter emphasizes this strategic advantage:

"$35 million of cash flow profit a year will allow us to get very aggressive with the drill program. You can imagine that would keep five or six rigs turning all year round, and we've certainly got the targets to keep those rigs going."

District-Scale Potential

Cabral's property hosts significant exploration potential, with several key attributes:

• 50 identified gold targets across the district
• Current resource base of 1.2 million ounces
• Location adjacent to G Mining's Tocantinzinho mine
• Historic placer gold production ten times that of neighboring Tocantinzinho
• Recent high-grade discoveries, including 11 meters at 33 g/t gold

Timeline to Production

Cabral Gold has articulated a methodical timeline to advance its Cuiú Cuiú oxide project from study to production. The immediate focus through early 2025 centers on two parallel workstreams: completing detailed engineering studies to refine the project design and specifications, while simultaneously conducting targeted drilling campaigns. This drilling serves a dual purpose - converting inferred resources to the indicated category to potentially expand the mine plan, and testing high-priority exploration targets across the property.

By the second quarter of 2025, the company aims to reach a pivotal construction decision. This milestone will be contingent on several factors, including the successful arrangement of project financing, completion of detailed engineering, and potentially an expanded resource base from ongoing drilling. The financing component is particularly critical, with the company requiring approximately US$37 million in initial capital.

Cabral envisions a 12-month build period extending through 2025-2026. The relatively short construction timeline is facilitated by the project's simplified design - notably the absence of complex crushing and grinding circuits that typically extend construction periods for conventional gold operations. The construction phase will focus on establishing the heap leach facilities, site infrastructure, and mining fleet deployment. Initial production is targeted for mid-2026.

The Investment Thesis for Cabral Gold

• Near-term Catalyst Path: PFS completion (achieved), project financing arrangements (next 6 months), construction decision (Q2 2025), and production commencement (mid-2026)
• Risk Mitigation Elements: Low technical risk due to simple mining/processing, modest capital requirements, clear path to financing, and experienced management team with regional expertise.
• Growth Drivers: Self-funded exploration potential, district-scale property with 50 targets, oxide resource expansion potential and regional consolidation opportunities
• Strategic Value: Adjacent to major producing mine, located in established mining jurisdiction with significant exploration upside and potential M&A target

Cabral Gold presents a strategically structured approach to unlocking value from a district-scale gold property. The starter project's modest capital requirements and strong economics, combined with significant exploration potential, position the company for self-funded growth in a proven gold district.

Macro Thematic Analysis

The Cuiú Cuiú project is strategically positioned within Brazil's Tapajós region, historically the site of the world's largest gold rush. The region's emergence as a major gold producing district is highlighted by G Mining's successful construction of the Tocantinzinho mine, which has attracted increased attention from major mining companies.

The project's timing coincides with strong gold prices and increasing interest in jurisdictions capable of hosting district-scale opportunities. The Tapajós region's historical production of 20-30 million ounces of placer gold suggests significant potential for additional discoveries.

Key quote capturing the opportunity is stated by CEO Alan Carter:

"The Gold Rush that happened in the Tapajós 40 years ago was 10 times larger than the California rush. Cuiú Cuiú was the largest one in terms of historic placer gold production."

For investors, Cabral presents a compelling opportunity with near-term catalysts including project financing arrangements over the next six months and ongoing exploration results. The project's low technical risk, modest capital requirements, and clear path to financing reduce execution risk, while the district-scale exploration potential offers significant upside. With strong project economics, significant exploration potential, and a strategic approach to self-funded growth, Cabral Gold offers investors exposure to a developing gold district with multiple value drivers.