Cabral Gold Delivers Transformative Prefeasibility Results with 200% NPV Increase at Cuiú Cuiú Project

• Cabral Gold's updated prefeasibility study demonstrates significant financial improvements with after-tax NPV rising 200% from $25.2 million to $73.9 million at $2,500/oz gold price.
• The after-tax internal rate of return increased substantially from 47% to 78%, with investment payback reduced from 18 months to 10 months from production startup.
• Processing capacity expanded 39% from 720,000 to 1,000,000 tonnes annually while mine life extended from 4.4 to 6.2 years with minimal capital cost increase.
• Probable mineral reserves grew 54% to 128,908 ounces of gold, supporting increased life-of-mine production of 113,155 ounces at all-in sustaining costs of $1,210 per ounce.
• The company targets final investment decision in Q3 2025 with initial gold production planned for second half 2026, positioning for rapid development in a high gold price environment.

Cabral Gold Inc. (TSXV: CBR) (OTCQB: CBGZF) is a Canadian exploration and development company focused on gold projects in Brazil. The company owns a 100% stake in the Cuiú Cuiú gold project located in Pará State, northern Brazil, adjacent to GMining's major Tocantinzinho gold mine. Cuiú Cuiú was historically the largest producer of placer gold during the 1980s Tapajós gold rush and covers an entire gold district with significant exploration potential.

Substantial Financial Performance Improvements

The updated prefeasibility study represents a dramatic enhancement of the project's economics compared to the October 2024 study. The base case after-tax net present value at a 5% discount rate increased nearly 200% from $25.2 million to $73.9 million using a gold price assumption of $2,500 per ounce.

The internal rate of return improvement is equally compelling, rising from 47% to 78% in the updated analysis. Under current spot gold prices of $3,340 per ounce as of July 28, 2025, the financial metrics become even more attractive with an after-tax IRR of 139% and NPV of $137 million.

President and CEO Alan Carter emphasized the significance of these results:

"We are delighted with the results from the Updated PFS on the Oxide Starter Operation at Cuiú Cuiú, which reflects the dedication of our team and consulting advisors. All key financial metrics have significantly improved since we issued the results of the PFS in October 2024."

The payback period has been substantially reduced, with Carter noting:

"While the required capital expenditures remain effectively unchanged at US$37.7 million, the after-tax NPV has surged by nearly 200% to US$73.9 million, and the after-tax IRR has risen from 47% to 78% over a longer project duration."

Enhanced Production Profile & Mine Life Extension

The updated study incorporates significant operational improvements that drive the enhanced financial performance. Annual processing capacity increased 39% from 720,000 tonnes to 1,000,000 tonnes per year, enabled by expanding the processing facility from 2,000 to 3,000 tonnes per day.

Mine life has been extended from 4.4 to 6.2 years despite the higher processing rate, reflecting the inclusion of additional resources and optimized mine planning. The waste-to-ore ratio improved from 0.93 to 0.78, indicating more efficient extraction of mineralized material.

Life-of-mine gold production increased 56% from 72,478 ounces to 113,155 ounces, while maintaining competitive all-in sustaining costs of $1,210 per ounce. This cost level remains essentially unchanged from the previous study's $1,228 per ounce despite the expanded scale.

Carter highlighted the operational drivers:

"The main driver behind these higher returns is the increased plant capacity, which reduces unit costs through economies of scale and allows for a lower cut-off grade, which results in higher Reserves. The addition of the Machichie mining area to the production schedule offers a new source of higher grade and near surface material, enabling the project to boost throughput and extend mine life simultaneously."

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Resource Base & Reserve Growth

Probable mineral reserves increased substantially by 54% from 83,762 ounces to 128,908 ounces of gold from 6.2 million tonnes grading 0.65 grams per tonne. This expansion incorporates updated resource models at the Central and Machichie targets based on additional drilling completed in late 2024 and 2025.

The project now contains indicated resources totaling 13.6 million tonnes averaging 0.50 grams per tonne gold, representing a 26% increase from the October 2024 study. Inferred resources add another 6.4 million tonnes at 0.34 grams per tonne, though these are not included in the prefeasibility analysis.

Importantly, these resource estimates focus only on oxide material and exclude the underlying primary hard rock resources, which account for approximately 80% of total project resources. This positions the oxide starter operation as a pathway toward longer-term development of the broader resource base.

Expansion Potential & Future Growth

The company has identified significant near-term expansion opportunities that could extend mine life or increase production capacity. Recent exploration work has discovered a fifth gold-in-oxide blanket at Jerimum Cima, which currently lacks resources due to limited drilling but offers potential for future inclusion.

Carter noted the exploration upside:

"Recent drilling and trenching at Cuiú Cuiú has discovered a fifth gold-in-oxide blanket at Jerimum Cima, which currently lacks resources due to limited drilling. This target, along with the known gold-in-oxide resource at PDM, also not included in the Updated PFS, could offer opportunities for future expansion or extension of the mine life for the gold-in-oxide starter operation."

The company views the oxide starter operation as instrumental to its longer-term strategy, with Carter explaining:

"In parallel with developing the Oxide Starter Operation at Cuiú Cuiú, the Company is currently undertaking an aggressive exploration drilling program aimed at pursuing the Company's main goal of increasing the primary hard rock resource base, and testing the highest potential targets within the Cuiú Cuiú gold district."

Capital Requirements & Development Timeline

The initial capital cost estimate remains essentially unchanged at $37.7 million compared to $37.4 million in the previous study, despite the significant operational improvements. This includes a 10% allowance on most materials and 20% contingency on all direct and indirect costs, with approximately 70% of direct costs based on supplier quotations.

Sustaining capital requirements are modest, limited primarily to expanding waste dumps and spent ore facilities as production progresses. The company has intentionally delayed some containment structure investments to shift costs from initial to sustaining capital, optimizing cash flow timing.

The development timeline targets a final investment decision in the third quarter of 2025, with initial gold production planned for the second half of 2026. This 12-month construction timeline reflects the relatively simple processing requirements of heap leach operations compared to conventional mills.

Processing & Metallurgical Performance

The processing approach utilizes heap leach technology well-suited to the oxidized nature of the ore. Metallurgical testing by Kappes Cassiday and Associates demonstrated excellent gold recoveries, with bottle-roll leach tests generally exceeding 90% and reaching maximum recovery of 98% after 336 hours.

Column leach tests using material crushed to appropriate sizes achieved strong performance across all deposits. Recent testing focused on Machichie ore returned recoveries of 91% in saprolite and 96% in blanket sediments, supporting a blended recovery estimate of 88% used in the updated study.

The processing facility design incorporates four leach pads with 83,333-tonne capacity each at five-meter stacked ore height. The carbon-in-column circuit will process pregnant leach solution at 215 cubic meters per hour, targeting loaded carbon grades of 2,500 grams per tonne gold.

Infrastructure & Permitting Progress

The project benefits from existing infrastructure development and advancing permitting processes. Road upgrades on the municipal access route are underway in partnership with local government, including widening to 10 meters and constructing nine new bridges totaling 126 meters to Department of Transit standards.

Current trial mining licenses provide processing capacity of 500,000 tonnes per year, with one license renewed for three years in May 2025 with increased volume to 300,000 tonnes annually. A second license is in renewal process for 200,000 tonnes per year capacity.

Environmental licensing for full mining operations is progressing, with the updated Environmental Impact Assessment submitted in the first quarter 2025. Public audiences are planned for the near future, with preliminary license expected in September 2025 as an important step toward full mining license approval.

Market Position & Investment Considerations

The updated prefeasibility study positions Cabral Gold as a near-term gold producer in a favorable market environment. The project's location adjacent to the major Tocantinzinho gold mine provides infrastructure advantages and demonstrates the district's mining potential.

The company's strategic approach of using oxide starter production to generate cash flow while advancing primary resource development offers multiple value creation pathways. Current gold prices significantly above the study's base case assumption of $2,500 per ounce provide additional upside potential.

Carter summarized the investment proposition: "The Updated PFS has checked all our boxes and delivered a significantly larger starter project with very attractive early financial returns and quick payback, especially during a period of high gold prices."

For Investors

Cabral Gold's updated prefeasibility study demonstrates substantial improvements across all key financial and operational metrics while maintaining modest capital requirements. The 200% increase in net present value to $73.9 million, combined with a 78% internal rate of return and 10-month payback period, presents an attractive near-term development opportunity in the gold sector. The company's systematic approach to advancing both oxide starter production and longer-term primary resource development provides multiple value creation catalysts for investors considering exposure to Brazilian gold development projects in the current high-price environment.