Cabral Gold Continues to Deliver Strong Drill Results at Cuiú Cuiú Project in Brazil

About Cabral Gold

Cabral Gold Inc. (TSXV: CBR) is a junior resource company focused on the identification, exploration and development of gold properties in Brazil. The company has a 100% interest in the Cuiú Cuiú gold district located within the state of Pará in northern Brazil.

The Cuiú Cuiú project contains National Instrument 43-101 compliant indicated resources of 21.6Mt @ 0.87 g/t gold (604,000 oz) and inferred resources of 19.8Mt @ 0.84 g/t gold (534,500 oz). It was the largest area of placer gold workings in the Tapajós gold province during the Brazilian gold rush between 1978 and 1995, producing an estimated 2Moz of placer gold historically.

Latest Drill Results Expand Oxide Resources at MG Deposit

Cabral recently announced results from the first six RC drill holes at the MG deposit, part of an ongoing drill program testing the near surface oxide blanket and saprolite at the MG and Central deposits.

Highlights include:

• RC343 returned 27m @ 1.9 g/t gold from surface including 15m @ 3.3 g/t gold from 15m depth
• RC342 returned 28m @ 1.8 g/t gold from surface including 6m @ 7.1 g/t gold

The objectives of the drill program are to:

1. Better define and expand the higher-grade portion of the oxide resources, particularly closer to surface
2. Improve confidence in the oxide gold resources
3. Aid in mine planning and sequencing for the prefeasibility study on trial mining of the oxide resources

The most recent resource estimate used a 0.13 g/t gold cut-off grade for the oxide material, representing the minimum grade expected to be economically viable. The new drill results are intended to identify zones of mineralization above this cut-off grade.

The results clearly show the presence of higher grade mineralization extending from surface in areas previously considered lower grade. For example, RC342 intersected 6m @ 7.1 g/t gold from 5m depth where lower grades were expected.

The intercept in RC343 was also higher grade than anticipated, returning 15m @ 3.3 g/t gold from 15m depth. This shows the potential to expand the existing oxide resources which currently stand at Indicated Resources of 5.78Mt @ 0.5 g/t for 88,300oz, and Inferred Resources of 1.19Mt @ 0.3 g/t for 12,300oz.

The mineralized oxide blanket overlies the basement saprolite mineralization and is interpreted to connect the high grade intercepts in RC342 and RC343. This blanket material consists of soil and colluvium with grades above the resource cut-off.

In section E553610, RC346 shows the potential for additional higher grade basement saprolite mineralization beyond the current defined resources. It also intersected a significant zone within the blanket from 11 to 21m depth which has now been traced over 250m of strike length from section E553508 to E553750.

Upcoming Prefeasibility Study on Oxide Trial Mining

The new drill results will allow Cabral to optimize the resource model for the known oxide deposits. This updated model will form the basis of a proposed mine plan as part of an upcoming prefeasibility study on trial mining of the oxide resources.

The prefeasibility study will assess open pit mining and heap leach processing to exploit the higher grade zones in the early years of production. Cabral has existing trial mining permits that would allow mining of these near surface oxide resources.

Drilling is ongoing at Cuiú Cuiú with results pending from another 21 RC holes and 9 auger holes at MG, plus 24 RC holes at the Central deposit. The additional results will continue expanding the resources ahead of the prefeasibility study.

Conclusion

With its 100% interest in the large and historic Cuiú Cuiú gold district, Cabral Gold offers substantial exposure to the upside potential from both oxide and primary gold resources. The latest drill results show strong continuity of high grade oxide mineralization near surface at the MG deposit that will grow the existing gold-in-oxide resources.

The company has outlined a clear path forward with a prefeasibility study underway that will assess low cost, open pit mining and heap leach processing of the oxide resources. Additional drill results pending over the coming weeks could further improve the oxide resources ahead of the study. With existing trial mining permits in place, Cabral has the flexibility to fast track initial oxide mining and leverage the cash flow to fund expansion of the project.

Investors interested in near-term producer upside coupled with longer term exploration potential in an established Brazilian gold district should keep an eye on Cabral Gold.