Cabral Gold's PFS on Track for Q3 2024 Completion

• Cabral Gold's ongoing Pre-Feasibility Study (PFS) on trial mining and heap leach processing of near-surface oxide gold resources at Cuiú Cuiú is now 87% complete, with an initial capex estimate nearing completion.
• Recent RC drilling has improved confidence in the resource estimate, confirmed higher grades in near-surface saprolite and blanket material, and identified Machichie as a third source of high-grade shallow oxide mineralization.
• Metallurgical test work on additional representative oxide samples from MG and Central deposits is 60% complete, with initial results indicating gold recoveries comparable to previous 82% recovery at MG.
• Mine design and planning by Deswick is 30% complete using updated oxide resource models. Engineering has commenced on early works to support fast-track project construction.
• Cabral expects to release PFS results in mid-Q3 2024, marking a key milestone in advancing Cuiú Cuiú towards potential production.

About Cabral Gold

Cabral Gold Inc. (TSXV:CBR) is a junior resource company focused on gold exploration and development in Brazil. The company's flagship asset is the 100%-owned Cuiú Cuiú gold district located in the Tapajós region of Pará State in northern Brazil.

Cuiú Cuiú currently hosts 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) across two main gold deposits. Notably, the project sits within the Tapajós Gold Province, the largest gold rush site in Brazil's history that produced an estimated 30-50 million ounces of placer gold between 1978-1995. Cuiú Cuiú itself was the largest area of historical placer workings in the Tapajós, yielding approximately 2 million ounces of placer gold production.

PFS Progress & Initial Findings

Cabral is making steady progress on the Pre-Feasibility Study (PFS) evaluating the economic viability of trial mining and heap leach processing of near-surface oxide gold resources at the MG and Central deposits. The ongoing PFS, conducted by Ausenco do Brasil Engenharia Ltda ("Ausenco"), is now 87% complete.

A key focus of the remaining work is refining the initial capital expenditure (capex) estimate, which is nearing completion. The combined Ausenco-Cabral team is conducting trade-off studies and more detailed design work on various project components, including earthworks, leach pad, and process plant. The goal is to optimize the project to the most efficient, cost-effective design while obtaining more precise cost estimates.

In parallel, metallurgical test work on six additional representative samples of oxide ore from MG and Central is progressing well and is now 60% complete at Kappes Cassiday & Associates in Reno, Nevada. Initial results are encouraging, indicating gold recoveries in line with previous test work that achieved 82% recovery at MG after 60 days of column leaching.

The testing confirms that the ore will require cement agglomeration to ensure sufficient competency for heap leaching. Agglomeration and compaction tests suggest a cement addition of 10 kg/tonne will provide the necessary stability for a single-lift (5 meter) heap leach pad. Higher heap heights may require increased cement additions depending on the total lift height.

Interestingly, ore from the Central deposit demonstrates superior competency compared to MG and will likely require lower cement levels to maintain heap integrity. With proper agglomeration and cement addition, the ore appears suitable for processing in multi-level leach pads. However, the PFS team is also evaluating a single lift, on-off leach scenario that may be optimal for early processing of higher-grade MG ore. Final metallurgical test results for both deposits are anticipated in the coming weeks.

To support the PFS, Pronorte Geotecnica Ltda ("Pronorte") has wrapped up a geotechnical drilling campaign at Cuiú Cuiú, consisting of an initial 16 diamond drill holes and 30 power auger holes. Mine design and planning, carried out by Deswick Brazil Inc. ("Deswick"), is now 30% complete which utilizes updated resource models for the oxide material at MG and Central.

Expanded Exploration Program

Alongside the PFS, Cabral has extended its Reverse Circulation (RC) drilling program aimed at identifying additional near-surface oxide resources across the broader Cuiú Cuiú district.

As previously reported, recent drilling at MG and Central has delivered positive results, improving confidence in the resource estimate and confirming higher grades within the near-surface saprolite and overlying laterite blanket. Moreover, drilling at the Machichie target has delineated a third source of high-grade, shallow oxide mineralization that could potentially be added to the project's resource inventory.

The expanded RC program is currently focused on Machichie, with plans to continue drilling at the PDM (Pau de Merenda) deposit and other prospective targets in the coming months. These exploration efforts highlight the substantial upside potential at Cuiú Cuiú to grow the oxide resource base and make new discoveries.

PFS on Track for Q3 2024 Completion

Cabral anticipates releasing the results of the PFS in mid-Q3 2024, marking a significant milestone in the company's evolution.

As stated by Cabral's President and CEO Alan Carter:

"The PFS continues to make good progress and reinforces our previous expectations for the initial trial-mining project, while identifying significant potential improvement and value enhancements. We expect some of these opportunities will be included in the PFS scope and, together with other elements, will provide robust pathways for future growth and optimisation."

The PFS is shaping up to be a potential catalyst for Cabral, providing a first pass economic assessment of the near-surface oxide resource at Cuiú Cuiú. Positive results would derisk the project and provide a framework for advancing to a production decision.

Notably, the PFS scope is focused on trial mining and heap leach processing as a first phase of development. This approach allows for a faster pathway to initial production and cash flow generation while laying the groundwork for future expansion.

The trial mining scenario also enables Cabral to leverage the project's high-grade, near-surface oxide resource as a starter operation. The updated resource models incorporating higher grade zones in the saprolite and blanket material, coupled with the addition of Machichie as a third shallow oxide target, bode well for the PFS economics.

Exploration Upside & Growth Potential

While the PFS is a near-term focus, Cabral's ongoing exploration activity underscores the district-scale potential at Cuiú Cuiú. The company's 100% ownership of the 360 sq km land package within the prolific Tapajós Gold Province is a key differentiator.

As noted, Cuiú Cuiú sits at the heart of Brazil's largest historical placer gold rush that produced up to 50 million ounces. The project itself was the largest garimpo (artisanal mining site) in the Tapajós, with an estimated 2 million ounces of placer gold sourced from the property. This rich history is a testament to the project's exceptional gold endowment and hard rock potential.

Cabral's exploration strategy is twofold – targeting additional near-surface oxide resources to expand the scope of the PFS while systematically testing the broader district for new discoveries.

The expanded RC drill program is the first prong of this approach. Recent drilling has already delivered a third source of high-grade oxide mineralization at Machichie, and ongoing drilling at Machichie, PDM, and other targets offers potential to further grow the shallow resource base.

Longer-term, Cabral is embarking on a comprehensive exploration push to unlock the full potential of the Cuiú Cuiú district. This will include detailed geophysics, sampling programs, and structural analysis to define new drill targets across the expansive land package. With much of the project area underexplored, there is excellent potential for new discoveries.

The Tapajós: Brazil's Next Major Gold Camp

Zooming out, Cabral's Cuiú Cuiú project is ideally positioned within the re-emerging Tapajós Gold Province. The Tapajós is rapidly gaining recognition as Brazil's next major gold camp, with a growing presence of major and mid-tier miners attracted by the district's vast gold endowment and untapped potential.

Cabral's first-mover advantage in securing the most prospective and historically productive portion of the Tapajós is a major competitive edge. As exploration and development activity accelerates in the region, the company is well placed to capitalize on its strategic land position and advance Cuiú Cuiú as a cornerstone project in the district.

Conclusion for Investors

Cabral Gold presents a compelling investment opportunity in the junior gold space. The company is advancing the Cuiú Cuiú project on two fronts – near-term oxide resource development and district-scale exploration.

The ongoing PFS is evaluating a potential fast-track to production via trial mining and heap leach processing of the shallow, high-grade oxide resource at MG and Central. With the study now 87% complete and on track for delivery in Q3 2024, investors can look forward to a potential near-term catalyst that would derisk the project and outline a pathway to initial production and cash flow.

In parallel, Cabral is pursuing aggressive exploration to expand the oxide resource base and unlock the district-scale potential of Cuiú Cuiú. The current RC drill program is already delivering results, with the delineation of Machichie as a third source of high-grade oxide mineralization. Systematic exploration of the broader land package offers potential for significant new discoveries in this historically prolific yet underexplored region.

Cabral's 100% ownership of the district-scale land position in the heart of the Tapajós Gold Province is a key value driver. With the Tapajós rapidly re-emerging as a major gold camp, the company is ideally positioned to create value through exploration success and resource growth.

As the PFS nears completion and exploration activity ramps up, Cabral is entering an exciting phase in its evolution. Investors can anticipate a steady stream of news flow in the coming months as the company advances Cuiú Cuiú towards potential production while unlocking the exceptional exploration upside of this highly prospective gold district.