High-Grade Gold Discoveries Strengthen Cabral Gold's Position in Historic Brazilian Gold District

• New drill results from Machichie NE target reveal high-grade intercepts including 5m @ 24.5 g/t gold in step-out hole DDH331
• Results extend Machichie NE zone along strike to at least 200m, remaining open in all directions
• Recently announced PFS demonstrates robust economics with 47.3% after-tax IRR and US$25.2M NPV5
• Low initial CAPEX of US$37.4M with 18-month payback period
• RC drilling at Central deposit shows potential to upgrade Inferred resources to Indicated resources

About Cabral Gold

Cabral Gold Inc. (TSXV: CBR) (OTC Pink: CBGZF) is a junior resource company focused on the exploration and development of gold properties in Brazil. The company holds a 100% interest in the Cuiú Cuiú gold district, located in the prolific Tapajós Region of northern Brazil's Pará state, adjacent to G Mining's recently commissioned Tocantinzinho gold mine. The project hosts two main gold deposits with National Instrument 43-101 compliant resources, including 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). The project is situated in an area that historically produced an estimated 2 million ounces of placer gold, making it the largest placer workings in the Tapajós region.

Positive Economics from Recent PFS

On October 21, 2024, Cabral announced a positive Prefeasibility Study for its gold-in-oxide starter operation at Cuiú Cuiú. The study demonstrated robust economics with a base case after-tax IRR of 47.3% and NPV5 of US$25.2 million, assuming a gold price of US$2,250/oz. The project features low initial capital requirements of US$37.4 million and an 18-month payback period. The operation is designed to process 720,000 tonnes per year through heap-leach processing, with average annual gold production of 19,700 ounces in the first two years at an attractive AISC of US$1,003/oz.

High-Grade Success at Machichie NE

Recent drilling results from Cabral Gold's Machichie NE target have revealed significant high-grade gold mineralization, highlighting the potential for resource expansion at the Cuiú Cuiú project. The latest diamond drill hole, DDH331, returned impressive intercepts of 1m @ 14.2 g/t gold from 44.5m depth and 5m @ 24.5 g/t gold from 82m depth in hard rock, including 2m @ 60.5 g/t gold from 82m depth. These results follow previously reported high-grade intersections from RC421, which yielded 11m @ 33.0 g/t gold including 4m @ 89.3 g/t gold, and RC0449, which returned 6m @ 13.3 g/t gold including 1m @ 77.5 g/t gold.

Structural Significance & Strategic Location

The significance of these results lies in the extension of the Machichie NE zone, which now spans at least 200m along strike and remains open in all directions and at depth. The zone's northwest-southeast trend aligns with the orientation of the Central gold deposit and the Central-PDM trend, suggesting potential structural controls on mineralization. The proximity of Machichie NE to existing deposits – just 650m north of the MG gold deposit and 150m northeast of the Machichie Main Zone – adds to its strategic importance within the project area.

Central Deposit Expansion Program

Concurrent with the high-grade discoveries at Machichie NE, Cabral has been conducting an extensive RC drilling program at the Central gold deposit. The program aims to upgrade significant Inferred gold-in-oxide resources to the Indicated category, which could potentially be incorporated into an updated mine plan prior to the planned construction decision in Q2 2025. Recent results from 17 RC holes, primarily drilled outside the current pit shell used in the recent Prefeasibility Study, have returned encouraging intercepts. Notable results include 56m @ 0.85 g/t gold in RC0475, 41m @ 0.37 g/t gold in RC0476, and multiple other significant intersections demonstrating the potential for resource expansion beyond the current pit boundaries.

The Investment Thesis for Cabral Gold

Strong Economics

• Robust PFS Economics: 47.3% after-tax IRR and US$25.2M NPV5 at US$2,250/oz gold
• Low Capital Intensity: Initial CAPEX of US$37.4M with quick 18-month payback
• Strong Operating Margins: AISC of US$1,003/oz in first two years of production

Exploration Upside

• High-Grade Discovery Potential: Recent drilling at Machichie NE demonstrates the potential for additional high-grade discoveries within the project area
• Resource Growth Opportunity: Systematic exploration continues to identify new mineralized zones while expanding known deposits
• Near-term Resource Expansion: Ongoing drilling program could add significant oxide resources ahead of construction decision

Strategic Advantages

• Strategic Location: Project situated in the historic Tapajós Gold Province, adjacent to recently commissioned Tocantinzinho mine
• Infrastructure Advantage: Established mining region with access to necessary infrastructure
• Multiple Value Drivers: Combination of near-term production potential and significant exploration upside

Development Pathway

• Clear Timeline: Targeting construction decision in Q2 2025 with production by mid-2026
• Expansion Potential: Initial oxide operation provides platform for future growth
• Self-Funded Exploration: Cash flow from oxide operation to fund ongoing exploration

The recent drill results from Cabral Gold's Cuiú Cuiú project, combined with the positive PFS announced in October 2024, demonstrate a compelling investment opportunity. The high-grade intersections at Machichie NE suggest significant potential to expand the resource base, while the ongoing RC drilling program at Central could add immediate value to the planned oxide operation. The robust economics of the starter project, featuring a 47.3% IRR and low initial capital requirements, provide a clear pathway to near-term production and cash flow generation. With multiple catalysts on the horizon, including potential resource upgrades, detailed engineering advancement, and a construction decision targeted for Q2 2025, Cabral Gold represents an attractive opportunity in the junior gold sector with both near-term production potential and significant exploration upside.