Cerrado Gold Announces Receipt of Second Advance Under Secured Loan From Subsidiary of Hochschild Mining PLC

• US$1 million received as second advance of Signing Loan under option agreement with Hochschild Mining Plc ("Hochschild").
• Total of US$8 million received with remaining US$7 million expected to be advanced in June.
• Funds received to-date addressed short-term capital needs in Argentina and will continue to support deleveraging.

TORONTO, ON / ACCESSWIRE / May 6, 2024 / Cerrado Gold Inc. (TSX.V:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") announces receipt of the second advance of US$1 million under the signing loan entered into with Amarillo Mineração do Brasil Ltda. ("Amarillo") a wholly-owned subsidiary of Hochschild Mining PLC ("Hochschild"), whereby Cerrado has granted to Amarillo the option to purchase a 100% interest in the Company's Monte Do Carmo project located in the State of Tocantins, Brazil (the "Proposed Transaction"), for total consideration of US$60 million, as announced on March 5, 2024.

A total of US$15 million is expected to be advanced by way of a 10% interest-bearing secured loan (the "Signing Loan"), of which US$8 million has now been advanced. The balance of US$7 million is expected to be advanced within 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 on June 27, 2024 (the "Cerrado Shareholder Approval"). Cerrado expects to mail the management information circular not later than June 5, 2024. Upon obtaining Cerrado Shareholder Approval, 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.

Mark Brennan, CEO and Chairman commented, "The second advance under the Signing Loan demonstrates the good progress that Cerrado and Hochschild are making to complete the Proposed Transaction, and this cash infusion, along with the strong production rates over the last two months and strong gold prices will further assist in our continued debt reduction activities at MDN."

The Proposed Transaction has been unanimously approved by the Board of Directors of Cerrado. The Company's Board of Directors, senior officers and principal shareholder, collectively owning approximately 22.83% of the outstanding common shares of the Company, have entered into voting and support agreements to support the Proposed Transaction.