Cerrado Gold Signs Option and Loan Agreements With Subsidiary of Hochschild Mining PLC for the Sale of the Monte Do Carmo Gold Project for Total Consideration of US$60 Million (C$80 Million)

• Proposed Transaction with Amarillo Mineração do Brasil Ltda. to strengthen balance sheet and address lack of liquidity in the junior mining sector
• Company well-positioned to drive future growth via its operating Minera Don Nicolas gold mine in Argentina and its Mont Sorcier development project in Quebec

TORONTO, ON / ACCESSWIRE / March 5, 2024 / Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") announces that it has entered into an option agreement with Amarillo Mineração do Brasil Ltda. ("Amarillo") a wholly-owned subsidiary of Hochschild Mining PLC ("Hochschild"), whereby Cerrado has granted to Amarillo the option ("Option") to purchase a 100% interest in the Company's Monte Do Carmo project ("MDC Project") located in the State of Tocantins, Brazil (the "Proposed Transaction"), for total consideration of US$60 million (approximately C$80 million) (the "Purchase Price"), subject to the fulfilment of certain conditions.

The Purchase Price would be payable in the following stages:

1. US$15 million, initially advanced by way of a 10% interest-bearing secured loan (the "Signing Loan"), of which US$7 million has been advanced as of the date of the grant of the Option (March 4, 2024), US$1 million may be advanced within 60 days, and the balance of US$7 million may be advanced two days following the mailing by Cerrado to its shareholders of a notice of meeting and management information circular in connection with a meeting to approve the Proposed Transaction to be held by June 30, 2024 (the "Cerrado Shareholder Approval"). Upon the Cerrado Shareholder Approval being obtained, the Signing Loan, together with all accrued and unpaid interest thereon and expenses relating thereto, shall be deemed to be repaid in full by Cerrado by the concurrent set off of an amount equal to the Signing Loan due by Amarillo as part of the Purchase Price. If Cerrado fails to secure the Cerrado Shareholder Approval on or before June 30, 2024, the Signing Loan will mature on September 30, 2024.
2. An aggregate of US$45 million, payable in four installments over the next three years, approximately, as further described below.

During the Option Period (as defined below) Amarillo will take operational control of the MDC Project and has committed to spending a minimum of US$5m in qualifying expenditures.