Cerrado GOLD Reports Record Q4 and Annual 2021 GOLD Production Results from Its Minera Don Nicolas MINE IN Argentina

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January 10, 2022 www.cerradogold.com

CERRADO GOLD REPORTS RECORD Q4 AND ANNUAL 2021 GOLD PRODUCTION RESULTS

FROM ITS MINERA DON NICOLAS MINE IN ARGENTINA

• Record Q4 2021 production of 15,368 gold equivalent ounces and 2021 annual

production of 43,559 gold equivalent ounces

• 5th consecutive quarter of operational improvement despite severe ongoing Covid

restrictions

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

"Company”) is pleased to announce record production results for the fourth quarter of 2021 (“Q 4

2021”) from the Minera Don Nicolas Mine in Santa Cruz Province, Argentina (“MDN”). Full financial

results are to be released by March 31, 2022.

Q4 Operating Highlights

• Record production of 15,368 gold equivalent ounces in Q4 2021 increased 46% over Q3 2021

production of 10,549 gold equivalent ounces. Gold production of 15,008 ounces, increased

48% over Q3 2021.

• 2021 gold equivalent production of 43,559 ounces increased 61% above the previous MDN

mine record of 27,043 ounces (2019) and 94% above 2020 production of 22,472 ounces.

• Results demonstrate the o ngoing success of focusing on improving ore head grade to the

mill with an average grade of 4.77 grams per tonne gold achieved in Q4 2021. Ore mined and

mill throughput in Q4 2021 were 6% higher than in Q3 2021.

• Since Cerrado assumed control of Minera Don Nicolas in Q2 2020, gold production has seen

steady month over month increas es, highlighted by production of 5,751 gold equivalent

ounces in November 2021, a 27% improvement over 4,545 ounces produced in August 2021,

the previous best monthly production rate since Cerrado acquired MDN.

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Mark Brennan, CEO and Co-Chairman commented “We are extremely pleased with this new record

of quarterly gold production at MDN which reflects the tremendous effort from the entire operations

team despite a still very challenging COVID environment”.

He continued, “These results provide confidence of our investment thesis when Cerrado acquired

MDN for production expectations of 50,000 ounces of gold annually on a normalized basis. The team

are currently engaged in delivering a strategy to expand production from this core base case. We

would like to commend the MDN team for the exceptional performance they have delivered in what

remains a very difficult environment; it gives us great confidence in our ability to unlock the

substantial growth opportunities we have identified moving forward.”

The strong operational performance seen in Q4 2021 is a direct result of the continuous

improvement programs undertaken by the onsite team at MDN during 2021 . The mining tea m

continues to exceed produc tion and gold feed grade targets by focusing on reduced dilution and

improving ore head grades to the mill. Operational improvements around the processing plant have

ensured a sustained throughput increase of approximately 20% o ver the mill design capacity of

1,000 tpd. Process optimization work around the elusion circuit has also proven successful and as a

result, gold production capacity has increased from 4,000 to 6,000 ounces of gold per month

through this circuit.

Gold feed grades to the mill increased steadily during the year, culminating with an average mill

feed grade of 4.77 g/t Au reported for the 4th quarter 2021. Minera Don Nicolas has been operating

its on -site fire assay laboratory in house since January 2021. Sample turnaround times have

dramatically been reduced and as a result mine planning and ore control has been significantly

improved.

Gold production for the year was 42,268 ounces (43,599 gold equivalent ounces) , the highest for

any full production year in the history of Minera Don Nicolas (previous record was 26,520 ounces in

2019). The increase in gold production is the result of a transformation in the operating culture; with

all departments working as “One Team”, together exploring all opportunities for improvement and

for the completion of various projects and initiatives to improve production rates, reduce dilution

and improve gold grades.

As has been reported, the mine has now fully caught up with backlogs caused by previous COVID 19

issues and achieved steady state in Q4 . The expected gold equivalent production run rate is now

expected to be in excess of 50,000 ounces on a normalized annualized basis.

Please see below table for a summary of key highlights from all four quarters for 2021 as well as the

final three quarter average for 2020.

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Key Operating Information

Operating Data Unit

Apr to

Dec,

2020*

Q1 Q2 Q3 Q4 2021

Ore Mined ktonnes

61.0

75.4

102.3

113.5

120.5

411.6

Waste Mined ktonnes

886

1,268

1,323

1,462

1,061

5,114

Total Mined ktonnes

959

1,393

1,467

1,575

1,182

5,616

Strip ratio waste/ore

14.52

16.81

12.94

12.88

8.81

12.42

Mining rate tpd

10,495

15,476

16,119

17,308

12,844

15,387

Ore Milled ktonnes

80.7

94.6

106.6

102.4

109.9

413.5

Head Grade Au g/t

2.38

2.59

2.97

3.57

4.77

3.51

Head Grade Ag g/t

5.85

8.00

10.91

13.01

17.94

12.63

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

Recovery Ag % 63% 61% 54% 63% 56% 59%

Mill Throughput tpd 883 1,051 1,171 1,126 1,194 1,133

Gold ounces produced oz

5,515

7,485

9,607

10,168

15,008

42,268

Silver equivalent ounces

produced oz

150.3

223.0

327.2

381.4

359.5

1,291

Gold Geo Produced oz

5,665

7,708

9,934

10,549

15,368

43,559

* Values for 2020 represent average values for the last 3 quarters (Period from April 1 to December 31, 2020 at

Minera Don Nicolas when owned by Cerrado Gold)

Full financial results are to be released by March 31, 2022.

Review of Technical Information

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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 Gold is a public gold producer and exploration company with gold production derived from its

100% owned Minera Don Nicolás mine in Santa Cruz province, Argentina. It also owns 100% of the assets

of Minera Mariana in Santa Cruz province, Argentina. The company is also undertaking exploration at its

100% owned Monte Do Carmo project located in Tocantins, Brazil. For more information about Cerrado

Gold please visit our website at: www.cerradogold.com.

Disclaimer

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ACCURACY OF THIS RELEASE.

This press release contains statements that constitute “forward -looking information” (collec tively, “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 e xpected”, “anticipates” or “does not anticipate”, “plans”,

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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.

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

the business and operations of Cerrado Gold. In making the forward- looking statements contained in this press

release, Cerrado Gold has made certain assumptions, including, but not limited to ability of Cerrado to expand

its drilling program at its Minera Don Nicolas Project and increase its resources. Although Cerrado Gold 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 unk nown 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, econom ic, 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 Gold 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.