Cabral Gold - A Transformative Year in 2024

Pivoting Strategy for Growth

Cabral Gold’s 2024 journey marked a pivotal year as the company redefined its approach to developing its flagship Cuiú Cuiú Gold District in Brazil. Located adjacent to G Mining’s Tocantinzinho Mine, which commenced commercial production in September 2024, the district benefits from shared infrastructure and a proven gold-mining jurisdiction. Recognizing the challenges of traditional, capital-intensive development, Cabral shifted focus to fast-tracking a gold-in-oxide heap-leach starter operation. This strategy, outlined in a pre-feasibility study (PFS) released in October, aims to generate near-term cash flow which is expected to fund an aggressive drill campaign aimed at growing the district's primary gold resource potential.

Operational Milestones: Advancing Cuiú Cuiú

Cabral Gold’s operational achievements in 2024 underscored its commitment to unlocking value at Cuiú Cuiú. Notable milestones include:

• Positive Pre-feasibility Study (PFS):
  • The October release of the PFS for a gold-in-oxide starter operation highlighted a 47.3% after-tax internal rate of return (IRR) and an after-tax net present value (NPV) of USD 25.2 million (at a gold price of USD 2,250/oz). At a gold price of $2,710 per ounce, the post-tax IRR increases to 82.6% and the after-tax NPV₅ is US$49.3 million.
  • The project’s 18-month payback period and 4.5-year mine life provide a pathway to early cash flow, positioning the company to fund further development and exploration.
• Exploration Discoveries:
  • Machichie NE Target: Drill results from this target include 11m at 33g/t gold and 5m at 24.5 g/t gold. The mineralized zone has been traced 200 meters along strike and remains open.‍
  • Jerimum Cima Target: Trenching identified a fifth gold-in-oxide blanket with results such as 18m at 1.9 g/t gold. This supports the view of significant upside to the current gold-in-oxides within the district.

Corporate Milestones: Strengthening the Foundation

Cabral Gold strengthened its foundation in 2024 through successful fundraising, leadership changes, and a focus on sustainability, supporting its strategic pivot for growth.

• Successful Fundraising:‍
  Cabral completed oversubscribed private placements in 2024, ensuring sufficient funds for exploration and early development work. This success reflects investor confidence in the new strategic direction.

• Leadership Change:‍
  Brian Arkell (Ex-Newmont and Argonaut Gold) was appointed Vice president Exploration and Technical Services in April, and Samantha Shorter was appointed Chief Financial Officer in July, bringing extensive financial and production expertise to navigate the complexities of advancing the Cuiú Cuiú district.

• Environmental & Community Engagement:‍
  Cabral continued to emphasize sustainable practices and positive relationships with local communities, ensuring its development aligns with stakeholder interests.

Investor Outlook: Opportunities & Challenges

Cabral Gold’s achievements in 2024 lay a strong foundation for its operational, corporate, and investor outlooks in 2025. These sections explore the company’s priorities, potential, and the challenges ahead.

Opportunities:

• Rapid Cash Flow Potential: The PFS’s focus on a gold-in-oxide starter operation positions Cabral to generate revenue quickly, reducing and likely eliminating the reliance on dilutive equity financings.
• Exploration Upside: Discoveries at Machichie NE and Jerimum Cima reinforce the district-scale potential of Cuiú Cuiú. The exploration upside at Cuiú Cuiú is enormous. Management believes that the Cuiú Cuiú district will ultimately be proven to contain several million ounces of gold. Cuiú Cuiú has historic placer production of 2Moz compared with 0.2Moz from the adjacent TZ gold mine.‍
• Strategic Positioning: With a scalable approach, Cabral can adapt to market conditions and capitalize on gold price fluctuations.

Challenges:

• Gold Price Sensitivity: As with all gold developers, Cabral’s valuation and project economics are closely tied to gold prices.
• Execution Risk: Transitioning from exploration to production presents operational challenges, especially in Brazil’s regulatory environment. However, the recent changes in management suggest that mitigating this risk is a priority for Cabral.

Outlook for 2025

Cabral Gold enters 2025 with a clear set of priorities that build on the momentum of 2024. The company’s strategy for the year includes:

• Advancing Cuiú Cuiú Development:
  • Completion of the post-PFS detailed engineering and infill drilling which is expect to lead to a construction decision in mid-2026
  • Begin detailed engineering and pre-construction activities to ensure a smooth transition into development.
• Exploration Expansion:
  • Continue drilling at high-priority targets like Jerimum Cima to add gold-in-oxide resources.
  • Continue exploration within the larger district aimed at adding to the hard-rock resource base. The recent success at Machichie NE is indicative of the enormous potential within the district.
• Financial Strengthening:
  • Completion of project financing to allow for construction of the gold-in-oxide heap-leach starter project.
  • Explore potential strategic partnerships or joint ventures to share development costs and mitigate risks.
• Community and Sustainability Initiatives:
  • Maintain strong relationships with local communities and ensure all operations align with environmental and social best practices.

With its revised strategy and a robust pipeline of operational goals, Cabral Gold is well-positioned to make significant strides in 2025. Successful execution of these initiatives will be crucial in unlocking shareholder value and establishing Cuiú Cuiú as a producing asset.

Conclusion: A Transformative Year

Alan Carter, President, CEO and Founder stated:

“During the past year we have made significant progress in our strategic objective of developing a small starter heap-leach operation to fund the exploration of the larger Cuiú Cuiú district. The financial metrics resulting from the Prefeasibility Study on this starter operation are compelling, and we expect to make a construction decision during mid-2025. The current Indicated and Inferred resources of 1.2Moz form an excellent basis to move forward, and with additional drilling we expect to extend the existing resources at the MG and Central gold deposits, and also define maiden hard rock resources at the Machichie Main and PDM discoveries. In addition, recent drilling at the Machichie NE target returned 11m at 33g/t gold and highlights the potential of the larger district, where we currently have over 50 targets where we have gold."

Cabral Gold’s strategic pivot in 2024 has reshaped its trajectory, focusing on near-term cash flow through the Cuiú Cuiú gold-in-oxide starter operation. Operational successes, coupled with a positive PFS, have solidified its position as a competitive player among junior gold developers. While challenges remain, Cabral’s approach offers a compelling value proposition for investors seeking exposure to a high-potential gold project with a clear path to production. As the company heads into 2025, its ability to execute on its revised strategy will be key to unlocking long-term value.