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Cabral Gold Identifies New High-Grade Target and Provides Results on the First Three RC Holes from the Alonso Target, Cuiú Cuiú Gold District

Exploration Programs

Cabral Gold Identifies New High-Grade Target

and Provides Results on the First Three RC

Holes from the Alonso Target, Cuiú Cuiú Gold

District

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

Cabral Gold Inc.

(TSXV: CBR)

(OTC Pink: CBGZF)

("Cabral" or the

"

Company

") is pleased to announce the identification of a new

high-grade target, and assay results from the initial three RC holes drilled at the Alonso high-grade

boulder target at the Cuiú Cuiú gold

district in northern Brazil. Highlights are as follows:

Dona Moca target

- The ongoing regional reconnaissance program at Cuiú Cuiú has identified a

new high-grade target at Dona Moca which is located 1.6km ENE of the Medusa target. Surface

grab samples at Dona Moca returned gold values of

108.3 g/t, 32.0 g/t, 21.9 g/t and 3.9g/t gold

in surface cobbles

Medusa target

- Soil sampling in and around the Medusa target has identified a large coherent

gold-in-soil anomaly which extends at least 1.4km and has a pronounced ESE trend, extending

east of the previously reported high-grade boulders which range from

1.1 to 82.2 g/t

gold

. The

presence of this anomaly suggests that Medusa could be a significant mineralized zone and may

in part explain why so much placer gold was historically extracted from the adjacent stream which

drains to the north

Alonso target

- Results have been received on the initial three RC holes completed at the Alonso

target. Two of the three holes were drilled 150m east of the high-grade boulders at Alonso while

the third was drilled south of the target. These initial holes did not intersect any high-grade gold

mineralization. Results are pending on an additional twelve RC holes and the current drill program

is continuing

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

gold target at Dona Moca and a significant gold-in-soil anomaly at Medusa are both positive

developments that continue to highlight the potential for discovering additional gold deposits in the

eastern part of the Cuiú Cuiú concession area. The current drill program will test at least 10 different

targets at Cuiú Cuiú and will take several months to complete. Whilst the first three RC holes at the

initial Alonso target did not intercept high-grade mineralization at depth, results are pending on 12

additional drill holes, and we remain committed to identifying the source of the high-grade boulders on

surface".

Dona Moca Target

Ongoing regional reconnaissance work in the eastern part of the Cuiú Cuiú concession area has

identified another new high-grade target at Dona Moca which is located 1.6km ENE of the high-grade

Medusa target (see Figure 1 and press release dated 22

nd

April 2020).

Figure 1: Regional RTP 1VD magnetic composite map showing location of the Dona Moca target

relative to the existing deposits at MG and Central, and the Medusa and Alonso targets, as well as

recently identified

high-grade targets at Machichie SW and Jerimum North.

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/3900/66408_7a84117704ebd946_002full.jpg

Surface grab samples collected over an area of 65m in length at Dona Moca showed abundant visible

gold (Figure 2) and returned peak gold values of

108.3 g/t, 32.0 g/t, 21.9 g/t and 3.9g/t gold

. The

source of these grab samples is currently unknown and further soil sampling and surface trenching is

planned. It is significant that the samples were collected at the northern end of a major placer working

which extends at least 2km upstream to the south. A range of vein cobble types are seen in the drainage

suggesting a multi-phase hydrothermal event, with the grey quartz returning the highest grades.

Figure 2: Visible gold in quartz vein grab sample from the Dona Moca target.

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/3900/66408_7a84117704ebd946_003full.jpg

Medusa Target

Results have been received on 1,080 soil samples completed as part of a grid surrounding high-grade

boulders at the Medusa target and have identified a coherent gold-in-soil anomaly which extends for at

least 1.4km in an ESE direction (See Figure 3). This may indicate the presence of a large concealed

mineralized system at Medusa.

Drilling at Medusa is expected to commence in the next few days.

Figure 3: Detailed airborne magnetic map (RTP-1VD composite) showing Medusa and Dona Moca

targets with recently completed soil sampling grid and outline of ESE trending gold-in-soil anomaly.

Note major placer gold workings draining from south to north in eastern part of map area.

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/3900/66408_7a84117704ebd946_004full.jpg

Alonso Target Results and Ongoing Drill Program

In February, Cabral Gold identified the presence of extensive angular quartz vein boulders with visible

gold in a drainage with placer gold located 3km SE of the MG gold deposit. Twenty-three samples of this

boulder float material were collected and returned gold values of

11.6

to

200.3 g/t gold

(see press

release dated 11

th

February, 2020).

Whilst high-grade surface samples have been collected from other targets at Cuiú Cuiú, including the

new Dona Moca target described above, the number of samples and the grade of the samples collected

at Alonso were unusually high. As a result, the Company elected to drill this target first, even though there

were no previous drill holes and an almost complete lack of surface exposure, and considerable

challenges regarding access to certain areas of this target.

The initial round of RC drilling at Alonso is now almost complete with 15 holes completed to date.

Results have been received on the initial three holes (RC1-20 to RC3-20) and have not identified any

significant high-grade gold mineralization. RC1-20 was targeted to drill underneath the area of high-

grade boulders but was lost before intercepting the projected down-dip extension of the mineralized

zone. RC2-20 and RC3-20 were both drilled as part of a fence 150m east of the high-grade boulders

(Figure 4).

Access to the area where high-grade surface boulders have been identified, is challenging, and despite

the presence of waterlogged ground due to the proximity to a drainage, the Company was able to drill

two additional holes (RC6-20 and RC7-20) which were drilled on the same section as RC1-20. Two

additional holes RC4-20 and RC5-20 were completed on the fence 150m to the east. Results on these

holes are pending.

Another fence of six holes (RC8-20 to RC13-20) was also completed 950m to the west of the high-grade

boulders (western extension) where surface boulders are also mineralized and range from 1.0 to 7.7 g/t

gold (Figure 4). Results on these holes are also pending.

Two holes (RC14-20 and RC15-20) have been drilled 75m east of holes RC1-20, RC6-20 and RC7-20,

and have been designed to test the northern part of the structural corridor where the high-grade boulders

were identified on surface.

The Company remains committed to identifying the source of the extensive alluvial gold in the drainage

system at Alonso extending beyond the high-grade boulder occurrences, with the magnetics indicating a

significant array of structures and intersections points extending from these initial lines.

The rig will move to the Medusa target this week where drill platforms have already been prepared (see

above for discussion of the Medusa target).

Figure 4. Map showing structural corridors interpreted from airborne magnetic data and

RC holes

completed to date at Alonso target.

To view an enhanced version of this graphic, please visit:

https://orders.newsfilecorp.com/files/3900/66408_7a84117704ebd946_005full.jpg

The second drill rig will mobilize to Cuiú Cuiú this week. It is a truck mounted RC machine and has the

capability of drilling holes to 450m depth. The rig will initially target several of the recently discovered

veins in the Machichie SW and Machichie area which are outcropping on surface (see press release

dated 24

th

September 2020).

About Cabral Gold Inc.

The Company is a junior resource company and is 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.

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. The Medusa

gold in soil anomaly is defined by > 90

th

percentile gold in soil assay result (>15ppb gold to a peak

value is 382 ppb Au).

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

https://www.newsfilecorp.com/release/66408