CBR.V · 2020-05-20 12:00:00

Cabral Gold Announces $2M Financing

Financings

Vancouver, British Columbia--(Newsfile Corp. - May 20, 2020) -

Cabral Gold Inc.

(TSXV: CBR) (OTC PINK:

CBGZF)

("Cabral" or the "Company")

is pleased to announce the terms of a non-brokered private placement of up to

16,000,000 common shares ("

") at a price of $0.125 per Share for gross proceeds of up to $2,000,000 (the "

Private

Placement

"). Closing is expected by 19

June 2020.

The Company intends to use the net proceeds from the Private Placement to drill recently identified high-grade gold targets at

the Cuiú Cuiú gold project located in northern Brazil, and for general corporate and working capital purposes.

The securities issued pursuant to the Private Placement will be subject to a four-month hold period from the closing date.

Completion of the Private Placement and the payment of any finder's fees will be subject to the receipt of all necessary

regulatory approvals, including the approval of the TSX Venture Exchange.

Cabral may pay a cash finder's fee equivalent up to 7% of the gross proceeds of the Private Placement.

Recap of Recent Results

During the last 6 months, Cabral has announced the following drill results and identified a number of new targets at the Cuiú Cuiú

gold project as follows;

Drill results from the existing MG gold deposit and in particular hole 199-19 which returned

16.9m @ 9.6 g/t gold from

82.6m including 7.6m @ 18.5 g/t gold

from 91.9m

(see press release dated 7

November 2019)

Additional drill results from the MG deposit including

14.2m @ 6.7 g/t gold

from 109.4m depth

including 5.6m @ 13.0

g/t gold

from 109.4m

and

0.9m @ 22.4 g/t gold

from 121.3m depth in drill hole 202-19 confirming the along strike and

down dip continuity of high-grade mineralization (see press release dated 20

January 2020)

Additional drill results from a second zone of high-grade gold mineralization at MG including

7.8m @ 4.7 g/t gold

including 0.6m @ 48.5 g/t

gold in drill hole 201-19 (see press release dated 20

January 2020)

Drill results from high grade portions of the Central deposit including

17.3m @ 2.1 g/t gold

including 6.0m @ 4.9 g/t

gold

from 130.5m

in hole 204-19 and

39.6m @ 1.3 g/t gold from 126.6m including 3.6m @ 6.0 g/t gold

and 2m @

5.0 g/t gold in

hole 205-19 and

38.5m @ 1.5 g/t gold including 1.5m @ 6.0 g/t and 1.6m @ 8.6 g/t gold in

hole 206-

19 (see press release dated 5

February 2020)

The discovery of high-grade gold mineralization on surface in a brand new zone called

Alonso

located 3km SE of the MG

gold deposit where 24 rock samples collected from surface boulders returned gold values ranging from

11.6 to 200.3 g/t

gold and average 91.7 g/t gold

(see press release dated February 11

2020)

The identification of a second new zone of high-grade gold mineralization on surface at the

Medusa

Target located 4km

east of Alonso. Two areas of quartz-sulphide boulders on surface returned values of

1.1 to 82.1g/t gold (13 samples

averaging 26.0g/t gold) and 5.2 to 50.1 g/t gold (6 samples averaging 21.8g/t gold)

(see press release dated 22

April 2020)

About Cabral Gold Inc.

The Company is a junior resource Company and is engaged in the identification, exploration and development of projects in

Brazil.

The Company owns the Cuiú Cuiú gold project which currently contains Indicated resources of 5.9Mt @ 0.90g/t (200,000

oz) and Inferred resources of 19.5Mt @ 1.24g/t (800,000 oz and is located in the Tapajós Region within the state of Pará in

northern Brazil.

The Tapajós Gold Province is the site of the largest gold rush in Brazil's history producing an estimated 30 to 50 million ounces

of placer gold between 1978 and 1995. Cuiú Cuiú was the largest garimpo in the Tapajós and produced an estimated 2M

ounces of placer gold historically.

FOR FURTHER INFORMATION PLEASE CONTACT:

"Alan Carter"

President and Chief Executive Officer

Cabral Gold Inc.

Tel: 604.676.5660

Neither the TSX Venture Exchange nor the Regulation Services Provider (as such term is defined in the policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable

securities legislation (collectively "forward-looking statements").

The use of the words "will", "expected" and similar expressions

are intended to identify forward-looking statements.

These statements involve known and unknown risks, uncertainties and other

factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

Such forward-looking statements should not be unduly relied upon.

This news release contains forward-looking statements and

assumptions pertaining to the following:

strategic plans and future operations, and the private placement and use of proceeds.

Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and

uncertainties and other factors.

The Company believes the expectations reflected in those forward-looking statements are

reasonable, but no assurance can be given that these expectations will prove to be correct.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY

FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/56192

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