Cabral Gold's Drill Results Highlight Potential of Machichie Main Gold Deposit

• Trench and drill results from Cabral Gold's Machichie Main gold deposit confirm the presence of high-grade gold mineralization in both the near-surface gold-in-oxide material and the underlying fresh intrusive rock.
• Drill hole RC0515 at Machichie Main intersected 10m grading 2.2 g/t gold from surface and 3m grading 15.9 g/t gold from 16m depth within weathered oxide material.
• Drill hole RC0504 discovered a new mineralized zone at Machichie Main, parallel to the main structure, returning 12m at 3.1 g/t gold including 3m at 11.2 g/t gold.
• Trench CT054 at Machichie Main returned 13m at 2.3 g/t gold in saprolite material at surface, including 5m at 5.8 g/t gold.
• The positive drill and trench results bode well for Cabral Gold's efforts to upgrade the Inferred resources at Machichie Main and significantly update the PFS study that was released in October 2024.

Cabral Gold Inc. (TSXV:CBR) is a junior resource company focused on gold properties in Brazil. The Company's flagship asset is a 100% interest in the Cuiú Cuiú gold district in the Tapajós Region of northern Brazil. Three main gold deposits have been defined at Cuiú Cuiú containing NI 43-101 compliant Indicated resources of 12.29Mt @ 1.14 g/t gold (450,200oz) in fresh rock and 11.11Mt @ 0.48 g/t gold (171,883oz) in weathered oxide material. Inferred resources total 13.63Mt @ 1.04 g/t gold (455,100oz) in fresh rock and 12.22Mt @ 0.39 g/t gold (151,608oz) in oxide material.

Exploration Results from Machichie Main

Recent drill and trench results from the Machichie Main gold deposit at Cuiú Cuiú have returned significant high-grade gold intercepts in both near-surface weathered oxide material and underlying fresh intrusive rock:

• Drill hole RC0515 returned 10m @ 2.2 g/t gold from surface and 3m @ 15.9 g/t gold from 16m depth within gold-in-oxide saprolite
• Drill hole RC0504 returned 12m @ 3.1 g/t gold including 3m @ 11.2 g/t gold in oxide material, representing a new mineralized zone 40m north of the main Machichie Main structure
• Trench CT054 returned 13m @ 2.3 g/t gold in saprolite including 5m @ 5.8 g/t gold, with mineralization open to the north and south
• Additional drill highlights include 7m @ 2.8 g/t gold including 2m @ 7.5 g/t gold in fresh rock in RC502, and 15m @ 1.5 g/t gold in fresh rock in RC506

Alan Carter, Cabral's President and CEO commented in the news release:

"The identification of a new and previously unrecognised parallel zone of mineralization at Machichie Main is a very positive development. Together with the other new drill and trench results released today, this underlines the potential of the Machichie Main deposit to make a meaningful contribution to the near-term development plans for the gold-in-oxide material at Cuiú Cuiú, as well as the global resource base within the district."

Upgrading Resources & Updating PFS

A preliminary Inferred resource of 3.73Mt @ 0.5 g/t gold (151,608oz) was calculated for Machichie Main's gold-in-oxide material in October 2024. The main objective of the current drill and trench program is to upgrade a significant portion of those Inferred resources to Indicated status for inclusion in an updated mine plan for Cabral's proposed gold-in-oxide heap leach starter operation at Cuiú Cuiú.

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Carter further noted:

"These results bode very well for our efforts to upgrade the Inferred resources at Machichie Main and significantly update the PFS study released in October 2024."

A pre-feasibility study (PFS) on the proposed heap leach starter operation released in October 2024 outlined an after-tax NPV5 of USD 25.2 million and IRR of 47.3% at $2,250/oz gold, increasing to an NPV5 of USD 49.3 million and IRR of 82.6% at $2,710/oz gold. The project showed an 18-month payback and 4.5-year mine life based on Indicated oxide resources from the MG and Central deposits only. Upgrading resources at Machichie Main and other newly identified oxide zones like Jerimum Cima could significantly enhance the economics and mine life.

Significance of Results In Accordance to Development

The recent drill and trench results from Cabral Gold's Machichie Main deposit provide strong evidence that this zone could make an important contribution to the company's proposed heap leach gold starter operation. The high grades encountered in both near-surface weathered oxide material and underlying fresh rock are very encouraging for upgrading the current Inferred resource to Indicated status.

Discovering a new parallel zone of oxide mineralization 40m north of the main structure also shows the exploration potential that still exists within the broader Cuiú Cuiú district. With over 50 targets identified, Cabral appears well positioned to continue growing the global resource base.

For investors, these results represent another step forward as Cabral works to develop a near-term path to production and cash flow. Incorporating upgraded resources from Machichie Main and other oxide targets into an updated PFS could significantly enhance the already robust economics outlined in the October 2024 study.

Cabral still has work ahead to advance the heap leach starter project to a construction decision and a lot can change in the interim. But the latest drill results suggest the company is on the right track as it aims to unlock the multi-million ounce potential of this highly prospective gold district in the Tapajós Region of Brazil. The recent management additions also indicate Cabral is getting the right technical expertise in place to successfully navigate the transition from explorer to producer.

For Investors

With a market capitalization of approximately C$80 million, the company appears undervalued relative to the combined potential of the heap leach starter project and the broader Cuiú Cuiú district. Positive drill results that continue to build the resource base could be important catalysts for the stock over the coming months.

Cabral Gold's recent drill and trench results from the Machichie Main deposit underscore the potential for this zone to make a meaningful contribution to the Company's proposed gold-in-oxide heap leach starter operation at Cuiú Cuiú. High-grade gold intercepts in both near-surface weathered oxide material and underlying fresh rock bode well for upgrading Inferred resources to Indicated status. The discovery of a new parallel zone of oxide mineralization also highlights the exploration upside that still exists within the broader Cuiú Cuiú district where Cabral has identified over 50 targets.

For investors, the drill results represent another step forward in Cabral's efforts to develop a near-term path to production and cash flow as it works to unlock the multi-million ounce potential of this district-scale project in the heart of Brazil's Tapajós Region.