CERT.V · 2022-07-14 12:00:00

Cerrado GOLD Reports Q2 2022 GOLD Production from Its Minera Don Nicolás MINE IN Argentina

Corporate Updates

July 14, 2022 www.cerradogold.com

CERRADO GOLD REPORTS Q2 2022 GOLD PRODUCTION FROM ITS

MINERA DON NICOLÁS MINE IN ARGENTINA

 Q2 2022 Gold production of 11,640 Gold Equivalent Ounces

 Gold Grades expected to improve going forward

TORONTO, ONTARIO - Cerrado Gold Inc. [TSX.V: CERT] [OTCQX: CRDOF] ("Cerrado" or the

"Company”) announces its production results for the second quarter of 2022 (“Q2 2022”) from the

Minera Don Nicolás Mine in Santa Cruz Province, Argentina (“MDN”). Full financial results are to be

released by the end of August.

Q2 Operating Highlights

 Gold Equivalent ounces (“GEO”) of 11,640 ounces produced in Q2 2022, in line with targeted

45,000 - 55,000 ounces of production for 2022

 3rd consecutive quarter of “normalized” operations despite continuing operating challenges

 Issues with explosives and spare parts resolved, availability of mining fleet now normalized

 Calandrias heap leach on track to commence construction in Q3 2022

The continued strong operational performance seen in Q2 2022 follows MDN’s record quarterly

production in Q4 2021 and strong production performance in Q1 2022. The mining team

experienced some setbacks due to a drop in head grade during the quarter as operations

transitioned to three new mining areas, namely: Chulengo, Baritina, and Esperanza which impacted

the near-term grade profile as these pits are in the initial stages of development. It is expected that

gold grades will increase with depth and that production levels will normalize in Q4, returning to

previous production levels achieved in Q1. Supply chain issues from the first quarter regarding the

availability of explosives and spare parts for vehicle maintenance were resolved early in the quarter.

Despite these issues the operation continued to meet its production targets in terms of tonnes

moved and recovery rates.

The numerous operational improvements implemented at the processing plant ensured consistent

mill throughput rates above 1,100tpd during Q2 2022. The development of new mining areas is

expected to result in a slight drop in head grade, resulting in an estimated gold grade between 3.0

– 3.5g/t for Q3 2022. That said, mine development and planning activities indicate that head grades

should return to targeted levels in Q4 2022, exceeding 4g/t.

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Construction activities for the new heap leach processing facility at Calandrias will commence during

Q3 2022. Detailed design of the process plant and heap leach pad are now complete.

Mark Brennan, CEO and Co-Chairman, commented, “Despite some challenges seen in the quarter,

we are pleased that the numerous operational improvements implemented by the team continue to

demonstrate a more sustainable and predictable production profile for MDN. The core focus at MDN

for 2022 remains the development of the heap leach operations at Calandria and ongoing

exploration programs to increase our resource base. Stable and growing production at MDN and

progress with the Feasibility Study at MDC in Brazil puts us on track for rapid production growth in

the coming years”.

Please see Table 1. below for a summary of key highlights from Q2 2022 and previous reporting

periods.

Table 1. Key Operating Information

MDN Operating Data Units

2022

2021

Ore Mined ktonnes 92 89 412 121 114 102 75

Waste Mined ktonnes 1,130 879 5,114 1,061 1,462 1,323 1,268

Strip Ratio waste/ore 12.32 9.85 12.42 8.81 12.88 12.94 16.81

Mining Rate tpd 14,381 10,760 15,983 13,312 18,173 16,119 16,387

Ore Milled ktonnes 103 99 414 110 102 107 95

Head Grade Au g/t 3.44 4.68 3.51 4.77 3.57 2.97 2.59

Head Grade Ag g/t 9.95 14.85 12.63 17.94 13.01 10.91 8.00

Recovery Au % 91% 89% 89% 89% 88% 87% 91%

Recovery Ag % 67% 58% 59% 57% 63% 57% 61%

Mill Throughput tpd 1,131 1,096 1,152 1,194 1,126 1,171 1,051

Gold Ounces Produced oz 11,296 13,007 42,268 15,008 10,168 9,607 7,485

Silver Equivalent Ounces (Au Equiv.) oz 344 381 1,291 360 381 327 223

GEO Production oz 11,640 13,499 43,559 15,368 10,549 9,934 7,708

Full financial results are to be released by August 29, 2022.

During the quarter, the Company continued to pursue its exploration activities at the Paloma

underground target, and has completed a drill program at Michelle, with results expected to be

released during Q3 2022. Work is progressing well on the Calandrias heap leach project and

construction activities are expected to commence shortly.

At the Company’s Monte do Carmo project in Brazil, the infill drill campaign is progressing well and

the Company is advancing numerous work streams to deliver the Feasibility Study in Q1 2023.

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Review of Technical Information

The scientific and technical information in this press release has been reviewed and approved by

Sergio Gelcich, P.Geo., Vice President, Exploration for Cerrado Gold Inc., who is a Qualified Person

as defined in National Instrument 43-101.

Mark Brennan Nicholas Campbell, CFA

CEO and Co Chairman Director, Corporate Development

Tel: +1-647-796-0023 Tel.: +1-905-630-0148

[email protected] [email protected]

About Cerrado Gold

Cerrado is a Toronto based gold production, development and exploration company focused on gold

projects in the Americas. The Company is the 100% owner of both the producing Minera Don Nicolás

mine in Santa Cruz province, Argentina and the highly prospective Monte Do Carmo development

project, located in Tocantins State, Brazil.

At Minera Don Nicolas, Cerrado is maximising asset value through further operations optimization

and continued production growth. An extensive campaign of exploration is ongoing to further

unlock potential resources in our highly prospective 334,000ha land package.

At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through Feasibility and

production. The Serra Alta deposit hosts Indicated Resources of 541 kozs of contained gold and

Inferred Resources of 780 kozs of contained gold. The Preliminary Economic Assessment

demonstrates extremely robust economics as well as the potential to be one of the industry’s lowest

cost producers. Cerrado also holds an extensive and highly prospective 82,542 ha land package at

Monte Do Carmo.

For more information about Cerrado please visit our website at: www.cerradogold.com.

Disclaimer

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS

DEFINED IN 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

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.

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Forward-looking statements contained in this press release include, without limitation, statements

regarding the business and operations of Cerrado. In making the forward- looking statements

contained in this press release, Cerrado has made certain assumptions, including, but not limited to

improving gold grades and the resolution of supply chain issues at MDN and continuing progress of

the Feasibility Study and infill drilling at MDC. 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 factors 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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