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Cabral Gold Identifies a New Mineralized Structure at Indio Target and Provides Tracaja Drill Update, Cuiu Cuiu District, Brazil

Exploration Programs

Cabral Gold Identifies a New Mineralized

Structure at Indio Target and Provides Tracaja

Drill Update, Cuiu Cuiu District, Brazil

Vancouver, British Columbia--(Newsfile Corp. - January 20, 2021) -

Cabral Gold Inc.

(TSXV: CBR)

(OTC Pink: CBGZF)

("Cabral" or the

"

Company

") is pleased to provide an update regarding the

current reconnaissance RC drilling at Tracaja and the identification of a compelling new drill target at

Indio, within the Cuiú Cuiú gold

district in northern Brazil.

Highlights are as follows;

Reconnaissance surface sampling at the

Indio

target returned gold values from quartz-sulphide

float material up to

137.8 g/t gold

. Reconnaissance drilling is planned during the second half of

January

A northeast-trending vein structure has been identified in reconnaissance drilling

at the

Tracaja

target where a total of seven reconnaissance RC holes have been completed

to date. Nineteen

surface grab samples collected from the edge of historic placer workings at Tracaja in November

2020, returned gold values of

24.2 g/t to 165.0 g/t gold

and averaged 74.9 g/t gold

Alan Carter, Cabral's President and CEO commented, "The identification of high-grade quartz-

sulphide mineralization on surface at the Indio target, with values up to 137.8 g/t gold, is very

encouraging and will be tested by reconnaissance drilling over the next couple of weeks. Similarly, the

identification of a NE-trending mineralized vein system at Tracaja is significant and gives us a

mineralized structure that we can now trace along strike and down-dip in order to determine which part

of the structure is the source of the high-grade blocks found on surface. It is important to note that our

reconnaissance drill program continues in parallel with follow up drilling using a larger contract RC rig

which is having excellent success at the Machichie target. The Cuiú Cuiú district was not the largest

placer gold area in the world's third largest placer gold region for no reason, and our exploration

program is only just starting to reveal the grade and size of this exciting gold district."

Figure 1: Cuiú Cuiú location map showing the Indio and Tracaja targets in relation to the 43-101

compliant MG and Central gold resources and the recently identified Cilmar, Alonso, Medusa and

Dona Moca targets. Background to map is 1VD RTP airborne magnetic data

To view an enhanced version of Figure 1, please visit:

https://orders.newsfilecorp.com/files/3900/72372_a6733345a4985baf_002full.jpg

Indio Target

Results were received from several new surface grab samples at the undrilled Indio target which is

located approximately 1.5km SE of the MG gold deposit and 2.5km NW of the Alonso gold target

(Figure 1).

Previous results from surface float samples at Indio ranged from

1.5 to 52.6 g/t gold

and results from

quartz-sulphide samples (see Figure 3) taken from a new area 200m to the northwest where a

submerged vein is reported, returned values of

7.7, 9.7, 13.3 and 29.3 g/t gold.

A sample taken slightly

to the south of a previous sampling site returned

137.8 g/t gold

(Figure 2).

The strike of the vein is

reported to be ENE, subparallel to a significant gradient which forms a lineament in the magnetic data.

Reconnaissance drilling at Indio with an initial six holes targeting the historic workings, will commence

within the next few days.

Figure 2: Photograph showing surface samples of high-grade quartz-sulphide vein material with gold

contents up to 137.8 g/t gold, recently taken at the Indio target located 1.5km SE of the MG gold

deposit

To view an enhanced version of Figure 2, please visit:

https://orders.newsfilecorp.com/files/3900/72372_a6733345a4985baf_003full.jpg

Tracaja Target

Reconnaissance drilling using Cabral's ASV ST-50 Multipower reconnaissance RC rig at the recently

identified high-grade Tracaja target has identified several quartz vein structures with abundant sulphide

trending NE. Tracaja is located 1.8km NNE of the Medusa target (Figure 1) and has never been drill

tested.

Surface sampling at Tracaja during November and December 2020 returned gold values of

24.2 g/t to

165.0 g/t gold and averaging 74.9 g/t gold

from nineteen surface float samples collected over an area

of 150m diameter (see news release dated December 3, 2020).

Results have been received from the initial five reconnaissance drill holes and include 1m @ 0.61 g/t

gold from 51m and 7m @ 0.45 g/t gold from 82m in hole 50, and 2m @ 0.70 g/t gold from 55m in hole

51, and 1m @ 0.64g/t gold from 28m in hole 52 (Figure 3). Whilst these gold values are lower than the

blocks sampled on surface, the presence of a mineralized structure is significant and will require further

follow up drilling. It is also important to note that hole 50 is currently the most northerly hole drilled at the

Tracaja target, and was drilled north of the boulders, and hole 52 was drilled 200m south of hole 50, and

south of the mineralized boulders. Phase I drilling is now complete at Tracaja. Results are pending for

hole 53, drilled to test across-strike from the principal vein trend.

Figure 3: Detailed map of Tracaja target showing location of surface float samples (yellow triangles)

and six initial reconnaissance RC drill holes with interpreted trend of mineralized zone

To view an enhanced version of Figure 3, please visit:

https://orders.newsfilecorp.com/files/3900/72372_a6733345a4985baf_004full.jpg

Mineralized samples identified at Tracaja are associated with historical alluvial placer workings. The

Tracaja area was extensively worked over a 950m portion of the NE-trending drainage system, with the

workings emanating from a position where the now-established NE-trending vein structure is cut by a

concealed E-W structure which is evident from the airborne magnetic data (Figure 4). This part of the

Cuiú Cuiú gold district has never received the detailed ground-magnetic follow-up. Ground magnetics

was effective in assisting targeting within the core part of the project area, where the Central and MG

deposits were delineated. A ground magnetic survey will be completed prior to Phase II drilling at

Tracaja.

Figure 4: Map showing Tracaja target, 1VD RTP airborne magnetic data (grey scale), surface rock

chip results (yellow triangles), recent drilling (blue) and targets for follow up (red ellipses) which

indicate intersecting structures

To view an enhanced version of Figure 4, please visit:

https://orders.newsfilecorp.com/files/3900/72372_a6733345a4985baf_005full.jpg

About Cabral Gold Inc.

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

of mineral properties, with a primary focus on gold properties located in Brazil.

The Company has a

100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in

northern Brazil. Two gold deposits have so far been defined at Cuiú Cuiú and contain 43-101 compliant

Indicated resources of 5.9Mt @ 0.90g/t (200,000 oz) and Inferred resources of 19.5Mt @ 1.24g/t

(800,000 oz).

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 estimate 2Moz of placer gold historically.

FOR FURTHER INFORMATION PLEASE CONTACT:

"Alan Carter"

President and Chief Executive Officer

Cabral Gold Inc.

Tel: 604.676.5660

Dr Adrian McArthur, B.Sc. Hons, PhD. FAusIMM., a consultant to the Company as well as a Qualified

Person as defined by National Instrument 43-101, supervised the preparation of the technical

information in this news release.

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 results of exploration.

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.

Notes

Gold assays have been determined by SGS method FAA505 (fire assay; 50 charge). Analytical

quality is monitored by certified references and blanks. Until dispatch, samples are stored in the

Company's supervised exploration office. The samples are couriered to the assay laboratory using a

commercial contractor. Pulps and rejects are returned to the Company and archived.

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

https://www.newsfilecorp.com/release/72372