Cabral Gold Announces Second Closing of Over-Subscribed Private Placement

Cabral Gold Announces Second Closing of

Over-Subscribed Private Placement

Vancouver, British Columbia--(Newsfile Corp. - July 7, 2020) -

Cabral Gold Inc.

(TSXV: CBR) (OTC

PINK: CBGZF)

("

Cabral

" or the "

Company

") is pleased to announce the second closing of its

previously announced non-brokered private placement financing (the "

Private Placement

") through the

issuance of 3,934,710 common shares at a price of $0.125 per share for gross proceeds of $491,839.

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.

In connection with the current closing of the Private Placement, the Company incurred finder's fees

totalling $7,125.

All securities issued in connection with the Private Placement are subject to a statutory hold period of

four months from the date of issuance in accordance with applicable securities legislation and the

policies of the TSX Venture Exchange, pursuant to which the shares of the current closing may not be

sold or transferred until November 7, 2020.

The Company has also increased the size of its previously announced Private Placement from

$4,000,000 to up to $4,200,000 due to increased demand.

This increase follows from an earlier

increase in the size of the Private Placement from $2,000,000 to $4,000,000 (see June 1, 2020 news

release).

The Private Placement will now comprise up to 33,600,000 common shares at a price of

$0.125 per share.

The first and second closings of the Private Placement totalled 29,932,110 common shares for gross

proceeds of $3,741,514.

A third and final closing of the Private Placement comprising 3,500,000 common shares to be issued to

a single subscriber, is expected following receipt of TSX Venture Exchange approval.

This closing will

bring the total Private Placement to 33,432,110 common shares for gross proceeds of $4,179,014.

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 its 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/59252