Cabral Gold - Latest Drill Results Advance Near-Surface Oxide Opportunity at Machichie

• Cabral Gold intersects 23m @ 1.1 g/t gold from surface at the Machichie discovery, located just 500m from the MG deposit
• Results confirm significant zone of near surface oxide mineralization that could expand existing oxide resources
• CEO Alan Carter: “Excellent chance of adding additional oxide resources given proximity to MG”
• Additional drilling underway to further define limits; results pending on 13 holes at Central and MG deposits
• Oxide mineralization strengthens potential economics outlined in ongoing PFS study

Cabral Gold Inc. (TSXV: CBR) is a Canadian mineral exploration company focused on advancing the district-scale Cuiú Cuiú gold project in northern Brazil. According to President & CEO Alan Carter, the latest drill results from the Machichie discovery provide “an excellent chance of adding additional oxide resources” given the proximity and similarities to the existing MG deposit, located just 500 meters away. These initial results suggest Cabral is building an expanded near-surface oxide gold inventory that could strengthen project economics as the company works towards a production decision.

Defining Large Near-Surface Oxide Zone at Machichie

Results from the first nine RC drill holes at the Machichie target confirm the presence of significant gold mineralization within weathered bedrock (saprolite) extending from surface to depths over 20 meters. Highlights include 23m @ 1.1 g/t gold from surface (RC399) and 23m @ 0.5 g/t from surface with a higher grade subsection of 7m @ 2.5 g/t at depth (RC402). Alan Carter noted holes also returned 10m @ 0.6 g/t from surface and 23m @ 0.5 g/t from surface including 1m @ 6.6 g/t.

The initial Machichie discovery consisting of parallel high grade zones was made in late 2020, but drilling has predominantly focused on the underlying primary mineralization. These early RC holes specifically targeted oxide mineralization above the main basement discovery.

Given the similarities to MG, the confirmation of shallow high grade oxide material has important positive implications for Cabral’s ongoing PFS studying an initial heap leach mining operation at Cuiú Cuiú according to Carter.

Oxide Drilling Expands

Additional results are pending from 12 recently completed RC holes testing along strike and down dip at Machichie, as well as from 13 RC holes testing extensions of the Central and MG deposits. Carter stated these continued results will provide important information for evaluating the scale of the near surface oxide mineralization.

Given the extensive artisanal placer gold workings surrounding the project area covering over 20 kilometers, there is considerable upside for Cabral to continue expanding the oxide inventory across its dominant regional land package.

Strengthening Development Strategy

In late 2022, Cabral published an updated mineral resource estimate for the Cuiú Cuiú project encompassing the MG and Central deposit areas. Total Measured and Indicated Oxide resources now stand at 21.6 million tonnes at 0.87 g/t gold containing 604,000 ounces. Carter highlighted “the proximity of this oxide material to the MG deposit is obviously a huge plus.”

With initial recovered grade estimates used in the PFS exceeding 1 g/t gold, any expansion of the near surface oxide inventory would strengthen project fundamentals. Oxide resources likely amenable to simple and lower cost heap leach processing could enhance economics by reducing initial capex and shortening the payback timeline.

World Class Artisanal Production Underscores Potential

The Tapajós region of northern Brazil witnessed one of the world’s largest historical gold rushes from 1978-1995 producing an estimated 30-50 million ounces of placer gold mainly originating from drainages surrounding Cabral’s Cuiú Cuiú project area. Yet modern exploration only began a decade ago.

Given exceptional historical placer mining across a multitude of drainages covering over 20 kilometers, the upside potential is highlighted by Cabral’s early exploration success defining four primary deposit areas along just two drainages to date.

Attractive Exposure to Resource Growth

With discoveries emerging from limited shallow drilling surrounding defined deposits at Central and MG, and most recently at Machichie, the mineralized zones tested cover a fraction of Cabral’s extensive regional land package.

As exploration continues across its commanding land position, investors gain attractive exposure to significant resource expansion potential that few juniors can match.