Cerrado GOLD Announces Q4 and Year-End 2025 Production Results at Its Minera Don Nicolas MINE IN Argentina
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January 21, 2026 www.cerradogold.com
CERRADO GOLD ANNOUNCES Q4 AND YEAR-END 2025 PRODUCTION RESULTS AT ITS MINERA
DON NICOLAS MINE IN ARGENTINA
• Gold Equivalent Ounce ("GEO") Production of 13,806 GEO for the 4th Quarter 2025
• Full year production of 50,238 GEO; in line with guidance
• Underground Operations now delivering ore to the plant, supporting higher grade
throughput and growing production
• 2026 Production Guidance of 50,000 to 60,000 GEO weighted to H2/26
• Exploration Program positioned to support resource growth at MDN with four new
drill rigs now on site
• Development activities continue to progress at both the Lagoa Salgada and Mont
Sorcier projects
TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT] [OTCQX: CRDOF] ("Cerrado" or the
"Company") announces production results for the fourth quarter ended December 2025 ("Q3 2025")
and the full year from the Minera Don Nicolas Mine in Santa Cruz Province, Argentina ("MDN"). Full
quarterly and year end financial results are expected to be released prior to April 30, 2026.
Q4 Operating Highlights
• Q4 Production of 13,806 GEO vs 13,832 GEO in Q3 2025
• Heap leach production of 7,838 GEO impacted by low water availability, reducing
irrigation capacity
• Initial Underground production at Paloma achieved, underground development work
continues to increase access to new ore zones
• CIL plant received additional ore from underground development, mainly in
December, resulting in total production of 5,968 GEO in Q4 through CIL plant
Operational results for Q 4 2025 showed stable production relative to the previous quarter.
Production rates would have been higher, however, the irrigation of the heap leach pad was limited
due to water availability. This is being addressed by purchasing water delivered by trucks and by
drilling additional bore holes for new water sources. Average recovery rates were also down due to
increased amounts of primary ore placed on the leach pads as per the mine sequence. This was
offset by higher volumes and higher-grade ores from underground mining being processed via the
CIL plant, sustaining overall production rates . Ore crushed and placed on the leach pad continued
to benefit from the recent expansion of crushing capacity, both tonnage and recoveries (due to more
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consistent particle sizing ) improved over the quarter. As more water for irrigation becomes
available, the gold inventory on the pad that has not been fully irrigated will be recovered over time.
The underground development continued at a steady pace during the quarter , allowing access to
more material amount s of ore during December and for future development plans. During 2026 ,
underground ore development is expected to follow a cycle of development and then ore extraction,
as the underground workings follow the ore zone deeper under the current pit.
Production Guidance for 2026
The Company is providing 2026 annual production guidance of 50,000 to 60,000 GEO. It should be
noted that production is expected to be disproportionately higher in H2/2026 due to mining of lower
grade heap leach material in the early part of 2026, as per the mine plan and the underground
development and production cycle.
Growth Capital Plans for 2026
The Company recently approved its 2026 budget, which included total Growth Capital expenditure
of approximately $45 MM across all projects . The majority of funds are aimed at continued
development programs at MDN to position it for future growth, with supplemental funding for the
Lagoa Salgada and Mont Sorcier projects as they move forward with the completion of their
respective Feasibility Studies expected in H1 2026. Approximately $35 MM is allocated to MDN with
a 50,000 metre exploration program and the expansion of the tailing facility and leach pad to
support continued operations for several years. Additional funds are being allocated to equipment
upgrades and maintenance to position the mine for the longer term. Exploration funding accounts
for approximately $12 MM. The remainder of the funds are allocated to Lagoa Salgada and Mont
Sorcier as these projects move closer to a development decision.
Minera Don Nicolas Exploration Update
The Company continues to execute its exploration program at MDN focused on targets that have
the potential to material ly add to mine life to Heap leach operations, additional open pit and
underground operations.
Drilling in 2025 was slower than planned due to various operational issues with regard to suppliers
and spare parts that have now been resolved. The focus throughout 2025 was on the central Paloma
area near the high-grade open pit, and results to date are promising with signs of potential resource
expansion, although we continue to wait for full assay results to ensure critical mass. As previously
announced, the company is targeting a 50,000 metre drill program for 2026 with three Company
owned diamond drill rigs and one RC rig on site to support this program. This program is set to allow
several high value targets to be tested simultaneously, including underground exploration, all of
which aim to materially expand resources at MDN and extend the mine life.
Mark Brennan, CEO and Chairman commented, “We continue to be pleased with the overall
performance and progress being made at all of our operations. While water impacted production to
a modest degree at MDN, we were able to achieve our guidance, and we expect to recover the in-
situ gold in the near term. Further, as the underground production rates settle into a steady rhythm,
more consistent and predictable production should be the norm at MDN moving forward. Capital
programs completed this year, and the programs planned for 2026, should ensure MDN is well
positioned to rapidly exploit any additional resources being uncovered by our ongoing development
and exploration programs.”
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He continued, “Cerrado also continued to make good progress to advance both the Lagoa Salgada
and Mont Sorcier projects, with completion of their respective feasibility studies targeted for Q1 2026
and Q2 2026. As these robust projects continue to be de -risked, we expect the strong underlying
economics to highlight the significant value gap that exists compared to assets in their respective
peer groups. We anticipate this should support a significant rerating for Cerrado shareholders in the
first half of the year.”
Lagoa Salgada Project Update
The Company continues to advance all the required works to complete the Optimized Feasibility
Study (OFS) at the highly prospective Lagoa Salgada VMS project in Portugal. Together with our
consultants, quotations for capital and operating equipment are being sourced , and the mine plan
and throughput optimization are underway. Due to the changeover of various consultant
employees, there has been a modest delay in the completion of the OFS , and we now expect the
OFS to be delivered during Q1/2026 . During the fourth quarter, the Company also saw the
completion of the EU Undercover program , using sophisticated geophysics to explore for deeper
resource potential. Results are expected to be available in the coming months , and a decision to
conduct additional exploration drilling will be made at that time. Cerrado continues to believe the
exploration potential of this property is largely untouched, as demonstrated by the recent stringer
mineralization discovered under the North Zone. In addition, the Company eagerly awaits the
issuance of the preliminary Environmental Permit.
Mont Sorcier Project Update
At the Mont Sorcier high -purity iron project , all key workstreams continued to progress on the
feasibility study, and the Company completed an infill drilling program to update sufficient resources
to the Proven and Probable categories for an expanded production scenario . Over 17,000 metres
were drilled with results to be incorporated into a new mineral reserve estimate to support the
feasibility study, which remains targeted for completion in Q2 2026. As noted in the Company’s
November 10, 2025, press release, the study is now targeting an increased production rate of 8 MM
tpa of 67% iron concentrate in a 2-stage phased development approach.
The Bankable Feasibility Study aims to provide a detailed updated economic study on the potential
for the project, as highlighted in the previous 2022 NI 43 -101 Preliminary Economic Assessment
("PEA") that delivered a project NPV 8% of US$1.6 billion based upon iron concentrates grading 65%
iron. As highlighted previously, new test work has now shown the ability to deliver a high-purity DRI-
grade Iron concentrate product of over 67% iron, enhancing the project's position delivering a highly
desired product to support growing demand from the Green Steel transition.
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Table 1. Key Operating Information
IR Services Agreement with Valpal Investment and Research
The Company also announces that it has retained Valpal Investment & Research. ("Valpal") to
provide research and investor outreach in accordance with TSXV policies and applicable securities
law.
Valpal will conduct, produce, and distribute in -depth management interviews following company
news and key events with a focus on the Nordic regions. Valpal will also assist in setting up marketing
meetings. In consideration of the services provided by Valpal, the Company will pay Valpal an annual
fee of US$14,000. No bonus fees or stock options will be paid to the consultant. Valpal is arm's
length to the Company.
Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by
Andrew Croal, P.Eng., Chief Technical Officer for Cerrado Gold, who is a Qualified Person as defined
in National Instrument 43-101.
About Cerrado
Cerrado Gold is a Toronto -based gold production, development, and exploration company. The
Company is the 100% owner of the producing Minera Don Nicolás and Las Calandrias mine in Santa
Cruz province, Argentina. In Portugal, the Company holds an 80% intere st in the highly prospective
Lagoa Salgada VMS project through its position in Redcorp - Empreendimentos Mineiros, Lda. In
2025
Operating Data Unit Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Jan to Dec
Heap Leach Operations
Ore Mined ktonnes 144 207 365 563 1,280 659 550 759 816 2,784
Waste Mined ktonnes 519 708 885 1,103 3,215 1,024 998 1,001 1,131 4,155
Total Mined ktonnes 663 915 1,250 1,666 4,494 1,683 1,549 1,760 1,947 6,939
Strip ratio waste/ore 3.60 3.42 2.43 1.96 2.51 1.56 1.81 1.32 1.39 1.49
Mining rate tpd 7,369 10,058 13,583 18,112 12,313 18,699 17,207 19,133 21,166 19,063
Ore PAD Feed Ktonnes 231 285 434 588 1,538 693 724 793 863 3,073
Head Grade Au g/t 0.59 0.85 0.75 0.73 0.73 0.80 0.86 0.81 0.79 0.81
Head Grade Ag g/t 9.82 12.39 10.04 9.96 10.41 15.95 12.13 11.68 13.59 13.29
Recovery Au % 25% 29% 31% 41% 34% 39% 37% 47% 32% 39%
Recovery Ag % 3% 9% 9% 15% 10% 8% 15% 24% 16% 16%
PAD Throughput tpd 2,565 3,134 4,715 6,394 4,214 7,700 7,953 8,621 9,380 7,700
Gold ounces produced oz 1,103 2,290 3,253 5,631 12,277 6,897 7,442 9,605 6,982 30,926
Silver equivalent ounces produced oz 29 130 150 325 633 331 422 824 856 2,432
Gold Geo Produced oz 1,132 2,420 3,403 5,956 12,911 7,228 7,864 10,429 7,838 33,358
High Grade CIL Operations
Ore Mined ktonnes 85 58 43 31 218 11 - 7,741 28,082 35,835
Waste Mined ktonnes 2,099 1,083 1,235 610 5,027 60 - - - 60
Total Mined ktonnes 2,184 1,142 1,278 641 5,245 71 - 7,741 28,082 35,894
Ore Milled Ktonnes 90 66 99 93 348 92 97 93 93 374
Head Grade Au g/t 3.65 7.08 4.58 1.48 3.99 1.51 1.18 1.31 2.15 1.53
Head Grade Ag g/t 10.21 12.86 7.86 8.13 9.49 6.44 9.71 7.98 16.66 10.21
Recovery Au % 88% 91% 92% 90% 90% 92% 84% 86% 86% 87%
Recovery Ag % 56% 54% 63% 64% 59% 54% 62% 55% 52% 55%
Mill Throughput tpd 1,001 725 1,072 1,010 952 1,017 1,076 1,006 1,009 1,027
Gold ounces produced oz 9,879 13,648 13,022 4,312 40,861 3,821 3,378 3,253 5,626 16,078
Silver equivalent ounces produced oz 193 187 179 163 722 115 195 150 342 802
Gold Geo Produced oz 10,072 13,835 13,201 4,475 41,583 3,936 3,573 3,403 5,968 16,880
Consolidated Gold Produciton
Gold Geo Produced oz 11,204 16,255 16,604 10,431 54,494 11,163 11,437 13,832 13,806 50,238
Gold Geo Sold oz 10,331 15,775 15,844 10,108 52,058 11,468 10,866 12,897 13,752 48,983
Average realized price per gold ounce sold $/oz 1,970 2,199 2,329 2,371 2,226 2,520 2,684 3,182 3,464 2,983
- High grade CIL, Ore milled - Ore mined = low grade feed from stockpile
Quarter 3 and Quarter 4 2025, ore mined from underground
Key Operating Information
20252024 Jan to Dec,
2024
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Canada, Cerrado Gold is developing its 100% owned Mont Sorcier Iron project located outside of
Chibougamau, Quebec.
In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas ("MDN") operation
through continued operational optimization and is growing production through its operations at the
Las Calandrias heap leach project. An extensive campaign of exploration is ongoing to further unlock
potential resources in our highly prospective land package in the heart of the Deseado Masiff.
In Portugal, Cerrado is focused on the development and exploration of the highly prospective Lagoa
Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. The Lagoa Salgada project
is a high -grade polymetallic project, demonstrating a typical mineralization endowment of zinc,
copper, lead, tin, silver, and gold. Extensive exploration upside potential lies both near deposit and
at prospective step -out targets across the large 7,209 -hectare property concession. Located just
80km from Lisb on and surrounded by exceptional infrastructure, Lagoa Salgada offers a low -cost
entry to a significant development and exploration opportunity, already showing its mineable scale
and cashflow generation potential.
In Canada, Cerrado is developing its 100% owned Mont Sorcier high -purity, high-grade, Direct
Reduced Iron project, located on the traditional Cree territory of Eeyou Istchee James Bay in the
municipality of Chibougamau. The Mont Sorcier project has the potential to produce a premium
iron concentrate over a long mine life at low operating costs and low capital intensity. Furthermore,
its high grade and high purity product facilitates the migration of steel producers from blast furnaces
to electric arc furnaces, contributing to the decarbonization of the industry and the achievement of
sustainable development goals.
For more information about Cerrado please visit our website at: www.cerradogold.com.
Mark Brennan
CEO and Chairman
Mike McAllister
Vice President, Investor Relations
Tel: +1-647-805-5662
Disclaimer
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES 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 applicable Canadian securities legislation.
All statements, other than statements of historical fact, are forward -looking statements and are
based on expectations, estimates and projections as at the date of this news release. Any statement
that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future
events or performance (often but not always using phrases such as "expects", or "does not expect",
“is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”,
“estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain
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actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be
achieved) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements
regarding the business and operations of Cer rado, production forecasts for 20256, estimated
operating and capital costs, the potential for additional crushing capacity and production potential
of MDN’s underground mining operations, the exploration and development plans and expectations
at MDN, the potential to produce iron concentrate grading in excess of 67% at Mont Sorcier and the
potential results of the project’s feasibility study and the anticipated timing to complete and
potential of the optimized feasibility study for the Lagoa Salgada Project . In making the forward -
looking statements contained in this press release, Cerrado has made certain assumptions. Although
Cerrado 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, and other facto rs which may cause the actual
results and future events to differ materially from those expressed or implied by such forward -
looking statements. Such factors include, but are not limited to general business, economic,
competitive, political and social uncertainties. Accordingly, readers should not place undue reliance
on the forward -looking statements and information contained in this press release. Except as
required by law, Cerrado disclaims any intention and assumes no obligation to update or revise any
forward-looking statements to reflect actual results, whether as a result of new information, future
events, changes in assumptions, changes in factors affecting such forward -looking statements or
otherwise.
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