Cabral Gold Moves Closer to Production as Construction Nears Completion in Brazil

• Cabral Gold's gold processing project in Brazil is nearing full completion, with the main construction phase finished and the site now transitioning into start-up.
• Mining has begun on schedule, with the first ore successfully processed and placed into position for gold recovery.
• The final piece of processing equipment needed for gold recovery has arrived in the country and is expected on site shortly.
• Construction has proceeded without major disruption, with spending and timing remaining consistent with the company's original plan.
• The project has maintained a strong safety record and an entirely Brazilian workforce throughout construction, positioning the company to begin gold production later this year.

Company Overview

Cabral Gold (TSXV: CBR | OTCQB: CBGZF) is a junior resource company focused on exploring and developing gold properties in Brazil. The company holds full ownership of a gold district in the Pará state region of northern Brazil, where several gold deposits have been identified through prior exploration work carried out over a number of years. The area has a long history of gold production, having been the site of one of Brazil's largest gold rushes, with the company's own project historically known as one of the most productive areas within that district.

Building on this exploration history, Cabral Gold is now constructing its first processing project in the region, a step intended to move the company from an explorer into a gold producer. The project has progressed steadily through design, construction, and now into the early stages of start-up, positioning the company for its first period of commercial gold output.

Construction Update

The main construction work at Cabral Gold's project has been completed, with the company reporting that the project overall is approximately 85% complete, with over plus 90% of project costs already committed. Equipment used to prepare the ore before processing has been installed and is now operating, and the systems used to move material through the site, including the conveyors linking different parts of the plant, have also been finished. The supplies needed to run the processing plant, such as water and fuel, are already available on site, and the company has received the necessary government approvals to use the chemicals required for gold extraction. Spending and timing on the project remain consistent with the company's original plan, suggesting the build has proceeded without major disruption.

Ponds used to manage water on site have been completed, and the pads where ore will sit while gold is extracted are being built, with more expected to be finished this month. The area of the plant used to prepare ore before it goes through processing has also been finished. A specialist team arrived on site to oversee the early stage of start-up, and this stage is now largely complete. It recently reached an important point, with mining beginning, ore being successfully processed for the first time, and the first batch of material placed into position for gold recovery.

The next stage of start-up, which involves extracting the gold itself from the processed material, is planned to begin later this quarter, with the exact timing depending on how the current stage progresses over the coming weeks. The equipment used for gold recovery has already been tested overseas before being shipped to Brazil, and is expected to arrive on site soon, marking one of the final major steps before the plant can be fully operational.

President and Chief Executive Officer of Cabral Gold, Alan Carter, commented:

"Our construction team have continued to make excellent progress on the construction of our Phase 1 gold-in-oxide heap leach project at Cuiú Cuiú during the last couple of months. Commissioning is in progress and the project remains on schedule for commercial gold production during the fourth quarter of this year. The commissioning of the dry plant processing facilities is now largely complete, and the ADR plant has arrived in country and is expected to arrive on site later this month. Mining of the MG orebody has commenced and stacking of ore on pad 1 is currently in progress. All of this has been achieved by the owners' team and contractors having worked a total of 501,743 hours with zero lost time incidents during 2026."

Mining Update

Equipment needed to mine the ore has been brought to site, and the company has now moved from preparing the site to actively mining ore. This shift means material is now being extracted and fed into the processing system on an ongoing basis, rather than the earlier stage of preparing roads, pads, and access for mining to begin.

Safety & Workforce

The project has maintained a strong safety record throughout construction, having recorded 501,743 combined hours worked by owners (184,406 hours) and contractors (317,337 hours) in 2026, with a zero lost-time incident rate as of 3 July 2026. The construction workforce of 308 employees and contractors is made up entirely of Brazilian workers, with approximately 61% coming from people living in the local state of Pará. This local hiring approach reflects the company's engagement with nearby communities as construction has progressed.

Next Steps

The company expects to complete start-up of the processing plant later this quarter, with production of gold expected to begin by the end of the year. The remaining piece of gold recovery equipment is due to be installed on site, after which the company will complete start-up of the full processing system, including the stage that extracts gold from processed material. Once this is done, the company expects to begin gold production and gradually increase output before year-end. Additional pads used to hold ore during processing are also expected to be finished this month as construction continues alongside the start-up process.

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