Cabral Gold Expands PDM Gold Zone by 50% While Identifying New Primary Mineralization Targets

• Cabral Gold has expanded the gold-in-oxide blanket at the PDM target by 50%, increasing the mineralized area from 0.26 km² to 0.39 km².
• Recent drilling identified two new northwest-southeast trending primary gold mineralization zones that extend at least 600 meters along strike.
• Drill hole RC0579 intersected 6 meters at 2.74 g/t gold from 9 meters depth, including 1 meter at 13.06 g/t gold from 10 meters depth.
• The expanded gold-in-oxide resource base was not included in the recently updated Preliminary Feasibility Study for the starter operation.
• Management continues pursuing US$37.7 million construction financing for the gold-in-oxide operation with projected post-tax IRR of 78%.

Cabral Gold Inc. (TSXV: CBR) (OTCQB: CBGZF) is a Canadian-based gold exploration and development company focused on advancing its flagship Cuiu Cuiu Gold District in Brazil. The company is developing a gold-in-oxide starter operation while exploring primary gold mineralization across multiple targets within its extensive land package. Cabral's strategy centers on leveraging near-surface oxide resources for early cash flow generation while building a longer-term primary gold resource base.

Expansion of Gold-in-Oxide Blanket

The recent drilling program at PDM has delivered significant expansion of the known gold-in-oxide mineralization. Results from 10 reverse circulation (RC) drill holes and 6 diamond drill holes have demonstrated continuity of mineralization across a broader area than previously understood.

The most significant intersection came from drill hole RC0579, which returned 6 meters at 2.74 g/t gold from 9 meters depth, including a high-grade zone of 1 meter at 13.06 g/t gold from 10 meters depth. This hole represents one of the most southerly positions drilled at PDM and extends mineralization 150 meters further south than previously known.

Additional notable intersections in the gold-in-oxide material include 11 meters at 0.88 g/t gold from 26 meters depth in RC0573, 10 meters at 0.39 g/t gold from surface in RC575, and 6 meters at 1.46 g/t gold from 11 meters depth including 1 meter at 7.98 g/t gold in RC583.

President and CEO Alan Carter emphasized the significance of these results: "These latest drill results from the PDM target at Cuiú Cuiú have extended the surface extent of the gold-in-oxide blanket by 50% indicating a significantly larger gold-in-oxide resource base."

Discovery of New Primary Mineralization Zones

Beyond the oxide expansion, the drilling program has identified two additional primary gold mineralization zones in the underlying intrusive rocks. These zones follow the established northwest-southeast structural trend that characterizes mineralization throughout the district.

The new zones are parallel to two existing mineralized zones previously identified at PDM and extend at least 600 meters along strike. All four zones remain open to both the north and south, as well as at depth, indicating potential for further resource expansion.

Diamond drill hole DDH334 intersected multiple zones, returning 9 meters at 0.50 g/t gold from surface plus 5 meters at 1.96 g/t gold from 41 meters depth, including 1 meter at 9.08 g/t gold. Other significant primary zone intersections include 2.75 meters at 3.05 g/t gold from 123.25 meters depth in DDH335 and 12.7 meters at 0.50 g/t gold from 10.3 meters depth in DDH337.

Carter highlighted the strategic importance of these discoveries:

"Of greater importance, however, is the fact that additional drilling has increased the number of NW trending primary mineralized zones in the underlying intrusive rocks at PDM, from two to four. All of these mineralized zones remain open along strike to the north and south and at depth."

Historical Context & Previous Results

The PDM target sits within a prominent northwest-trending gold-in-soil anomaly extending more than 5 kilometers along strike. This structural corridor hosts several of Cabral's key targets, including the Central gold deposit, Central SE, Central North, PDM, and Mutum targets.

Previous drilling in the primary intrusive rocks has returned encouraging results, including 22.4 meters at 4.8 g/t gold with 1.35 meters at 62.0 g/t gold, and 11.9 meters at 3.3 g/t gold including 0.5 meters at 16.1 g/t gold and 1.2 meters at 16.0 g/t gold in DDH239. Another hole, DDH275, intersected 18.0 meters at 2.5 g/t gold from 92.0 meters depth, including 3.0 meters at 10.5 g/t gold.

These higher-grade intersections occur within brecciated structural zones and remain open at depth and along strike, suggesting potential for significant resource expansion through continued drilling.

Implications for Resource Development

The 50% expansion of the gold-in-oxide blanket carries particular significance as this material was not included in Cabral's recently updated Preliminary Feasibility Study released in July 2025. The expanded resource base could potentially enhance the economics of the proposed starter operation or extend its operational life.

Carter noted the importance of this exclusion:

"This is important given that the existing resource base at PDM was not included in the recently released updated PFS study for the gold-in-oxide starter operation."

The expanded blanket now covers 0.39 km² and includes the Mutum area to the southeast, where previous trenching returned results of 32 meters at 1g/t gold, 25.5 meters at 0.9g/t gold, and 16.5 meters at 0.9g/t gold. The mineralized area remains open to the north, suggesting potential for further expansion.

Current Exploration Activities

Cabral is maintaining an active drilling campaign across multiple targets within the district. Three rigs are currently operating at the Mutum target, as well as the Machichie Main and Machichie NE targets.

Recent drilling at the Machichie NE target has returned exceptional high-grade results, including 12 meters at 27.7 g/t including 5 meters at 65.5 g/t gold, 11 meters at 33.0 g/t including 4 meters at 89.3 g/t gold, 6 meters at 13.3 g/t including 1 meter at 77.5 g/t gold, and 5 meters at 24.5 g/t including 2 meters at 60.5 g/t gold.

Results remain pending on two additional diamond drill holes at PDM (DDH342 and DDH344), which may provide further definition of the mineralized zones.

Carter outlined the current exploration focus:

"Drilling is currently in progress at the previously untested Mutum target where surface trenches average 0.9 to 1g/t gold in quartz vein stockwork mineralization in altered intrusive rocks. Drilling is also currently in progress at the Machichie and Machichie NE targets."

Construction Financing Progress

Parallel to exploration activities, Cabral's management team continues pursuing construction financing for the gold-in-oxide starter operation. The Updated PFS study indicates construction capital requirements of US$37.7 million for the heap leach operation targeting near-surface mineralized saprolite and soil material.

The feasibility study projects attractive economics with a post-tax internal rate of return of 78% and net present value of US$73.9 million based on a US$2,500 per ounce gold price assumption. All-in sustaining costs are projected at $1,210 per ounce with a payback period of 10 months.

The company is simultaneously advancing detailed engineering work for the project while building its construction and operating team under recently appointed Construction Manager Luiz Celaro.

District-Wide Potential

The PDM results reinforce the district-wide potential of the Cuiu Cuiu Gold District, where Cabral holds 43-101 compliant Indicated and Inferred resources at the Central, MG, and JB deposits. The consistent northwest-southeast structural trend across multiple targets suggests a unified mineralizing system with potential for additional discoveries.

The presence of both near-surface oxide mineralization suitable for heap leaching and deeper primary mineralization amenable to conventional processing provides optionality for development sequencing and operational flexibility.

For Investors

The recent drilling results at PDM demonstrate Cabral's ability to expand known resources while discovering new mineralization zones within its established district. The 50% expansion of the gold-in-oxide blanket provides potential upside to the starter operation economics, while the identification of four parallel primary mineralization zones suggests significant exploration upside.

For investors evaluating Cabral Gold, key factors include the company's progress toward construction financing, the potential for additional resource expansion across the district, and the successful integration of near-term oxide production with longer-term primary resource development. The strong feasibility study economics provide a foundation for near-term cash flow generation, while the expanding resource base offers potential for extended operational life and production growth.

The company's systematic exploration approach across multiple targets within the district, combined with the structural continuity of mineralization, positions Cabral for potential additional discoveries that could further enhance the project's long-term value proposition.