Cerrado Gold Announces Third Quarter 2022 Gold Production from its Minera Don Nicolás Mine in Argentina

• Company reiterates annual production forecast of 45,000 to 55,000 GEO ounces for 2022
• Third quarter financial results release date – November 22

TORONTO, ON/ACCESSWIRE/October 20, 2022/Cerrado Gold Inc. (TSXV:CERT)(OTCQX:CRDOF) (“Cerrado” or the “Company”) announces production results for the third quarter of 2022 (“Q3 2022”) from the Minera Don Nicolas mine in the province of Santa Cruz, in Argentina (“MDN”). Full financial results will be released on November 22.

Third Quarter Operational Highlights

• Gold equivalent ounce (“GEO”) production of 11,284 ounces of gold in Q3 2022
• Gold grades improved by 28% from Q2 to Q3 at 4.40 g/t
• Gold production expected to exceed 13,000 ounces in the fourth quarter of 2022
• Calandrias Heap Leach will begin construction in Q4 2022

During the third quarter of 2022, operations at MDN continued under normalized operations for the fourth consecutive quarter, demonstrating the significant improvements that have been achieved at the site. That said, quarterly production was down slightly from the prior quarter from 11,640 GEO oz to 11,284 GEO oz in Q3 2022, primarily due to lower throughput caused by wet feed due to winter conditions. unfavorable. Although gold production was lower in the quarter, the higher grades caused gold inventories to increase by 1,300 ounces. Additionally, September production exceeded 4,000 ounces with an average head grade of 5.15 g/t. The average gold grade mined increased from 3.44 g/t in Q2 2022 to 4.40 g/t in Q3 2022, an improvement of 28%. The Company expects gold production to exceed 13,000 ounces in the fourth quarter of 2022.

Management reiterates its GEO production forecast of between 45,000 and 55,000 GEO for 2022. For the nine-month period ending September, production was 36,423 GEO ounces.

The company continues to advance the development of the Calandrias Heap Leach Project, which will begin construction in the fourth quarter of 2022. The heap leach operations will seek to utilize lower grade materials and increase annual production at the mine Minera Don Nicolas of approximately 20,000 to 25,000 ounces per year.

Mark Brennan, CEO and Co-Chairman, said: “The past year has been a building year for DND; while wWe are pleased with the consistency of the operation to achieve our 2022 production guidance of between 45,000 and 55,000 GEO oz and we continue to expect grades to increase and further improvement as we integrate the new pits. In the mine plan, the real focus of operations has been to develop a long-term strategy for MDN. Work on expansion plans via the heap leach projects is now underway, which should only improve MDN’s future and long-term results. At the same time, we continue to make rapid progress in completing the feasibility study for the Monte do Carmo project in Brazil. Once in service, the combined production of these two projects puts Cerrado well on the way to becoming a mid-tier producer.“

Please see Table 1 below for a summary of key highlights from Q3 2022 and prior reporting periods.

Table 1. Key Operating Information

Full financial results are to be released by November 22, 2022.

In addition, during the quarter, the Company continued its exploration activities on numerous targets at MDN, including the Paloma underground target. Construction activities for the Calandrias Heap Leach Project are expected to begin shortly. At the Company’s Monte do Carmo project in Brazil, the infill drilling campaign and incremental exploration activities continue to progress well and the Company is advancing numerous builds to deliver the feasibility study in the first quarter of 2023.

Review of technical information

The scientific and technical information contained 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.

About Cerrado

Cerrado is a Toronto-based gold production, development and exploration company focused on gold projects in the Americas. The Company owns 100% of the producing Minera Don Nicolás mine in the province of Santa Cruz, Argentina, and the very promising Monte Do Carmo development project, located in the state of Tocantins, Brazil.

At Minera Don Nicolas, Cerrado is maximizing asset value through further optimization of operations and continued production growth. An extensive exploration campaign is underway to further unlock the potential resources of our highly prospective land package of 334,000 ha.

At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through feasibility and production. The Serra Alta deposit contains indicated resources of 541 koz of contained gold and inferred resources of 780 koz of contained gold. The Preliminary Economic Assessment demonstrates an extremely robust economy as well as the potential to be one of the lowest cost producers in the industry. Cerrado also holds an extensive and very promising land package of 82,542 ha in Monte Do Carmo.

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

Disclaimer

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATORY SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE RELEVANCE OR ACCURACY OF THIS RELEASE.

This press release contains statements that constitute “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws, all statements, other than statements of historical facts, are forward-looking statements. and are based on expectations, estimates and projections as of the date of this press release. Any statement that discusses predictions, expectations, beliefs, plans, projections, goals, assumptions, future events, or performance (often, but not always, using expressions such as “s’ expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “expected”, “expects”, “estimates”, “believes” or “intends” or variations of these words and phrases or indicating that certain actions, events or results “may” or “might”, “would”, “might” or “will” be assumed to occur or be realized) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements in this press release include, but are not limited to, 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, production targets and continued progress of the study of feasibility and infill drilling at MDC. Although Cerrado believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the expectations in the forward-looking statements will prove to be correct. Known and unknown risks, uncertainties and other factors that may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. These 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 undertakes no obligation to update or revise forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting these forward-looking statements. looking for statements or otherwise.

THE SOURCE: Cerrado Gold Inc.