Cabral Gold's Drilling Progress & Heap Leach Optimization at Cuiú Cuiú Gold District

• Two drill rigs operating at Cuiú Cuiú focused on resource upgrade drilling at Machichie Main and exploration drilling at high-priority targets.
• Ausenco Brazil contracted to update PFS on initial heap leach starter operation, with potential capital and operating cost savings identified.
• Mine plan scenarios being run to potentially increase mineral reserves by lowering cut-off grade based on updated cost and gold price assumptions.
• John Sestan hired as VP Project Development to oversee oxide heap leach project and build development options for expanding global resource base.
• Cuiú Cuiú hosts NI 43-101 Indicated resources of 12.29Mt @ 1.14g/t Au (450,200oz) and Inferred resources of 13.63Mt @ 1.04g/t Au (455,100oz) in primary material.

Cabral Gold Inc. (TSXV:CBR) is a junior resource company focused on advancing the Cuiú Cuiú gold district in the Tapajós Region of Pará State in northern Brazil. The company holds a 100% interest in the district, which contains NI 43-101 compliant Indicated resources of 12.29Mt grading 1.14 g/t gold (450,200oz) and Inferred resources of 13.63Mt grading 1.04 g/t gold (455,100oz) in primary basement material. An additional oxide resource contains Indicated resources of 11.11Mt grading 0.48 g/t gold (171,883oz) and Inferred resources of 12.22Mt grading 0.39 g/t gold (151,608oz).

Drilling Progress

Cabral is currently operating two reverse circulation (RC) drill rigs at Cuiú Cuiú. One rig is focused on infill drilling at the Machichie Main deposit to upgrade Inferred oxide resources to the Indicated category. Machichie Main was not included in the October 2024 PFS but could be incorporated into an updated mine plan. The second rig is conducting exploration drilling on several high-priority targets, including following up on the high-grade Machichie NE discovery made in 2024. Highlight intercepts from that discovery included 11m grading 33.0 g/t gold. In the company press release, CEO Alan Carter commented:

"The next few months should be very exciting for our shareholders as we continue to develop our heap-leach starter operation at Cuiú Cuiú with the objective of achieving near-term cash flow. Once in operation, this starter project will allow us to aggressively drill off the numerous targets within the Cuiú Cuiú district and significantly expand the global resource inventory."

Cabral also plans to drill test the Central SE target, where previous drilling hit 27m grading 6.9 g/t gold, the Jerimum Cima target which has returned trench results up to 18m grading 1.9 g/t gold, and the Mutum target area. Results are pending on 18 holes from the current drilling.

Heap Leach Project Optimization

Ausenco Brazil has been contracted to update the pre-feasibility study (PFS) on the initial heap leach starter operation at Cuiú Cuiú. The October 2024 PFS outlined a 720,000 tonne per year operation processing oxide material via open-pit mining and heap leaching. At US$2,250/oz gold, the project carried an after-tax NPV-5% of US$25.2M and after-tax IRR of 47.3%. Initial capex was estimated at US$37.4M.

The updated PFS will aim to capture opportunities identified to reduce capital and operating costs, as well as potentially increase the mining rate and processing capacity. Updated mine plans are being run using more aggressive economic assumptions that could drive a reduction in cut-off grades and increase mineral reserves.

"Recent optimization work by our team has confirmed potential savings in capital expenditures and operating expenditures for the gold-in-oxide project," said Carter. "In addition, the current drilling program is aimed at further increasing the Indicated resource base which we expect will support the inclusion of gold-in-oxide material from the Machichie Main deposit."

Additional metallurgical test work is also planned on Machichie Main oxide material. An updated oxide resource estimate incorporating results of the recent infill drilling is expected in Q2, feeding into the revised PFS.

Project Leadership Strengthened

To lead the oxide heap leach project development, Cabral has appointed John Sestan as VP Project Development. Sestan is a mining finance specialist with over 30 years experience in mine development, M&A, and project finance across multiple jurisdictions.

Sestan will be responsible for overseeing the heap leach project and building out development options for the wider primary mineralization at Cuiú Cuiú. His immediate focus will be assembling an executable, financeable development plan for the heap leach starter operation.

Next Steps

Over the next few months, Cabral will remain focused on advancing the Cuiú Cuiú heap leach project while conducting exploration across the wider district. Key upcoming milestones include:

• Results from infill drilling at Machichie Main and exploration drilling at Machichie NE, Central SE, Mutum and other targets
• Updated oxide resource estimate in Q2 incorporating Machichie Main drilling
• Revised heap leach PFS study from Ausenco Brazil in Q2
• Continuation of project financing and EPCM contract discussions
• Further exploration drilling aimed at expanding the global resource base

With a strengthened leadership team, drilling progress underway, and opportunities to optimize the heap leach starter project, Cabral Gold appears well positioned to advance Cuiú Cuiú towards potential production while continuing to unlock the wider potential of this historically prolific gold district. The next few months should provide steady news flow as the company executes on this two-pronged strategy.