BB1 Acquisition Corp. and Cerrado GOLD Inc. Announce Closing of First Tranche of Special Warrant Offering FOR Gross Proceeds of US$5,352,000

BB1 ACQUISITION CORP. AND CERRADO GOLD INC. ANNOUNCE CLOSING OF FIRST

TRANCHE OF SPECIAL WARRANT OFFERING FOR GROSS PROCEEDS OF US$5,352,000

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offered have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S.

Securities Act”), or any applicable state securities laws and may not be offered or sold in the United

States or to, or for the account or benefit of, a person in the United States or a U.S. person (as defined

in Regulation S under the U.S. Securities Act) absen t registration under the U.S. Securities Act, and

any applicable state securities laws, or complianc e with an exemption therefrom. This press release

shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of

the securities in any state in which such offer, solicitation or sale would be unlawful.

FOR IMMEDIATE RELEASE

TORONTO, ONTARIO – August 27, 2020 – BB1 Acquisition Corp. (TSXV: BBA.P) (the “ Company”

or “BB1”) and Cerrado Gold Inc. (“Cerrado”) are pleased to announce that Cerrado has completed a first

tranche of a brokered private placement (the “ Offering”) of special warrants (“ Special Warrants”) for

aggregate gross proceeds of approximately US$5,352,000. Haywoo d Securities Inc. (the “ Agent”) acted

as sole agent in the Offering.

The Offering has been completed in connection with the proposed business combination (the

“Transaction”) between Cerrado and BB1 previously announced in a press rele ase of BB1 dated August

4, 2020, which transaction is intended to constitute BB1’s “Qua lifying Transaction” pursuant to Policy

2.4 of the TSX Venture Exchange (the “TSXV”).

Under the Offering, Cerrado issued an aggregate of 6,690,000 Sp ecial Warrants at a price of US$0.80 per

Special Warrant (the “ Offering Price ”) for gross proceeds of approximately US$5,352,000. The net

proceeds from the Offering will b e used to complete an updated NI 43-101 mineral resource report for

Cerrado’s Minera Don Nicolas mine (“ MDN’), to commence a 17,000 meter drill program to

substantially increase resources at Cerrado’s Monte de Carmo Go ld Project (“MDC”), to complete an

Initial Preliminary Economic Ass essment at MDC based on existin g resources prepared in accordance

with NI 43-101, and for general working capital purposes.

Each Special Warrant will be exercisable by the holder thereof at any time after the date of closing of the

Offering, without payment of any additional consideration there for, for one common share in the capital

of Cerrado (a “ Cerrado Share ”), subject to customary adjustm ents. Each unexercised Special Warrant

shall be deemed to be exercised for one Cerrado Share in connec tion with the completion of the

Transaction. Upon closing of the Transaction, each Cerrado Share shall be exchanged for a common share

in the capital of the Company, as described in detail in the Company’s press release dated August 4, 2020.

In the event that the Transaction has not occurred prior to 4:0 0 p.m. (Toronto time) on the date which is

180 days following the date of closing of the Offering (the “ Qualification Deadline”), each unexercised

Special Warrant will be deemed exercised and will automatically be exchanged for 1.1 Cerrado Shares

without further payment or action by the holder thereof.

On closing, Cerrado paid the Agent a cash commission together w ith a corporate finance fee totalling

approximately US$297,000. In addition, Cerrado issued to the Ag ent an aggregate of 370,515

compensation options and corporate finance fee options (collect ively, the “ Agent’s Options ”), each

entitling the Agent to purchase one Cerrado Share for a period of 24 months from the closing of the

Offering at the Offering Price. Should the Transaction not clos e prior to the Qualification Deadline, the

number of Cerrado Shares issuable pursuant to the Agent’s Optio ns shall by multiplied by 1.1. In

addition the Company paid a cash finder’s fee of US$85,900 and issued 107,375 finder’s warrants to an

eligible finder. The finder’s warrants were issued on the same commercial terms as the Agent’s Options.

Upon closing of the Transaction, t he Agent’s Options and finder ’s warrants will be exchanged for

warrants of BB1 in connection with the Transaction.

Unless permitted under securities legislation, all securities i ssued pursuant to the Offering are subject to a

hold period ending on the date that is four months and a day af ter the later of (i) August 27, 2020, and (ii)

the date that Cerrado became a reporting issuer in any province or territory.

About Cerrado

Cerrado is a gold mining and exploration company with assets in Argentina and Brazil. Cerrado was

continued under the laws of the Province of Ontario on October 3, 2017. In Argentina, the Company

owns Minera Don Nicolas, a well-established in-production gold mine. The mine commenced operations

in 2017 and is targeting to pro duce in excess of 50,000 oz per year via a 1,000 tpd CIL plant and related

facilities. In Brazil the company is exploring at its Monte do Carmo gold project in Tocantins state. The

project currently has a mineral resource prepared in accordance with NI 43-101 containing 813,000 oz

with significant upside expected via further exploration. The Board and management of Cerrado have a

long history of success having developed numerous projects from early stage exploration through

development and production.

Cerrado acquired MDN in March of 2020 for a purchase price of US$45MM, payable in staged payments.

Cerrado paid an upfront payment of US$15MM on closing (March 16 , 2020) with the remaining

US$30MM payable over a 5-year period as follows: US$10 million payable 24 months following closing

(March 16, 2022); US$10 million payable 48 months following clo sing (March 16, 2024); and US$10

million payable 60 months followi ng closing (March 16, 2025). T he operation is located in the mineral

rich and prolific Deseado Massif in the province of Santa Cruz, Argentina. MDN consists of an open pit

gold mine with an associated 1,000 tpd carbon in leach (CIL) go ld recovery plant, targeting to produce

50-60koz/yr gold doré per annum. Current operations are focused on two mining areas, La Paloma and

Martinetas, with material processed at a central plant facility . The project has significant exploration

potential with a land package in excess of 273,000 ha's.

Construction of mine and related facilities was completed in 20 17 and the operations have been ramping

up to full capacity during 2018 and 2019. The project currently supports 325 employees and contractors

on a fly-in fly-out basis. Don Nicolas has strong local and reg ional backing having signed agreements

with the two neighboring commun ities and has received strong su pport from the government of Santa

Cruz.

The gold deposits at MDN are classified as an epithermal gold v ein style of deposit typical of the region

which is host to numerous large -scale gold operations. Cerrado has commenced a new exploration

program to confirm the current resource base and to focus on ex panding the mine life through further

exploration on surface and at depth.

The MDC project is located in the state if Tocantins, Brazil, i mmediately east of the town of Monte do

Carmo. Currently work has focused on the Serra Alta deposit, h owever, numerous analogs remain to be

fully defined. The Monte do Carm o property consists of 11 expl oration permits totaling 52,213 ha's. The

property has access to excellent local infrastructural with lim ited garimpeiro activity on site and strong

local support from the community.

Regional investment in mineral exploration in the area, by others, is reported to have amounted to US$4.7

million from 1985 through 1995, and over US$20.0 million from 1996 to 2018 by various operators.

Cerrado acquired the MDC project from Monte Sinai Mineracao Ltd a (“Monte Sinai’) in 2017 and since

then has undertaken various drilling and other exploration acti vities on site over the past couple of years.

To date a mineral resource report prepared in accordance with N I 43-101 dated December 5, 2018 has

outlined an initial mineral resource of 13.7 million tonnes gra ding 1.85 g/t, for contained gold of 813,000

oz. Continued exploration is p lanned at Serra Alta and the sur rounding area with the objective to rapidly

expand this mineral resource base to support a significant open pit mining operation.

The technical information contained in this news release was re viewed and approved by Robert Campbell

(M.Sc., P.Geo) who is a Qualified Person (“ QP”) under National Instrument 43-101 - Standards of

Disclosure for Mineral Projects (“NI 43-101”).

About BB1

BB1 is a capital pool company within the meanings of the polici es of the TSXV and does not have any

operations and has no assets other than cash. BB1’s business is to identify and evaluate businesses and

assets with a view to completing a Qualifying Transaction under the policies of the TSXV.

Forward Looking Information, Disclaimer and Reader Advisory

All information provided in this press release relating to Cerr ado has been provided by management of

Cerrado and has not been independent ly verified by management o f the Company. As the date of this

press release, the Company has not entered into a Definitive Ag reement with Cerrado, and readers are

cautioned that there can be no assurances that a Definitive Agreement will be executed.

Completion of the Transaction is subject to a number of conditi ons, including but not limited to, TSXV

acceptance and if applicable pursuant to TSXV requirements, maj ority of the minority shareholder

approval. Where applicable, the transaction cannot close until the required shareholder approval is

obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, ex cept as disclosed in the manage ment information circular or filing

statement to be prepared in connection with the transaction, an y information released or received with

respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the

securities of a capital pool company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed upon the mer its of the proposed Transaction and

has neither approved nor disapproved the contents of this press release. Neither the TSX Venture

Exchange nor its Regulation Serv ices Provider (as that term is defined in the policies of the TSX Venture

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

This press release contains statements that constitute “forward -looking information” (collectively,

“forward-looking statements”) within the meaning of the applica ble Canadian securities legislation, All

statements, other than statements of historical fact, are forwa rd-looking statements and are based on

expectations, estimates and projections as at the date of this news release. Any statement that discusses

predictions, expectations, belie fs, plans, projections, objecti ves, assumptions, future events or

performance (often but not alw ays using phrases such as “expect s”, or “does not expect”, “is expected”,

“anticipates” or “does not anticipate”, “plans”, “budget”, “sch eduled”, “forecasts”, “estimates”,

“believes” or “intends” or variations of such words and phrases or stating that certain actions, events or

results “may” or “could”, “would”, “might” or “will” be taken t o occur or be achieved) are not statements

of historical fact and may be forward-looking statements. Forwa rd-looking statements contained in this

press release include, without limitation, statements regarding : the exchange of the Special Warrants into

Cerrado Shares, the terms, conditio ns, and completion of the Tr ansaction; use of funds; and the business

and operations of the Company upon completion of the Transactio n. In making the forward- looking

statements contained in this press release, the Company has made certain assumptions, including that: due

diligence will be satisfactory; all applicable shareholder, and regulatory approvals for the Transaction will

be received. Although the Company believes that the expectations reflected in forward-looking statements

are reasonable, it can give no assurance that the expectations of any forward-looking statements will

prove to be correct. Known and unknown risks, uncertainties, an d other factors which may cause the

actual results and future events to differ materially from thos e expressed or implied by such forward-

looking statements. Such factors include, but are not limited t o: results of due diligence; availability of

financing; delay or failure to receive board, shareholder or re gulatory approvals; and general business,

economic, competitive, political and social uncertainties. Acco rdingly, readers should not place undue

reliance on the forward-looking statements and information cont ained in this press release. Except as

required by law, the Company di sclaims any intention and assume s no obligation to update or revise any

forward-looking statements to reflect actual results, whether a s a result of new information, future events,

changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

For more information please contact BB1’s Chief Executive Offic er, Stephen Shefsky at +1-416-366-

4200 or Cerrado’s Co-Chairman and CEO, Mark Brennan at +1-647-796-0023.

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