Cerrado Gold Achieves Record Cashflow and Low Operating Costs at Its Minera Don Nicolas Mine in the Fourth Quarter 2021

(All numbers reported in US dollars)

Q4 2021 Minera Don Nicolas ("MDN") Operational Highlights:

• Record gold production of 15,008 ounces in Q4/21, a 48% improvement year-on-year ("yoy") Annual 2021 production of 42,267 ounces, a 155% improvement yoy
• Strong operating margin of $8.1 million and operating cash flows of $4.7 million in the fourth quarter
• AISC of $995 per ounce, a record low since the Cerrado acquisition and the fifth consecutive quarter of improvement

Mark Brennan, CEO and Co-Chairman stated: "It has been extremely gratifying to see the strong operating performance delivered by Cerrado's Argentinian team translating into strong cashflow generation during the fourth quarter. With the improved operating performance, we expect our Argentinian operations to continue to be self-supporting as we pivot to the next stage of growth at MDN and develop and grow our assets in Brazil."

Corporate Highlights

• On March 14, 2022, Cerrado announced the closing of a $20 million stream financing agreement with Sprott Resource Streaming and Royalty to fund to construction the Monte de Carmo gold project in Brazil.

Fourth Quarter 2021 Operational and Financial Performance

Table 1

To view an enhanced version of this table, please visit:
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The Company produced 15,008 ounces of gold and 27,579 ounces of silver during the three months ended December 31, 2021, as compared to 5,168 ounces of gold and 14,043 ounces of silver in the three months ended December 31, 2020. Production was 132% higher in the three months ended December 31, 2021 due to higher mining rates, throughput and higher grade. Production of 12,864 ounces of gold in the fourth quarter 2021 also represented a 27% improvement over the 10,168 ounces of gold produced in the third quarter of 2021.

The average gold head grade of 4.77 g/t was the highest recorded since the Cerrado acquisition and represents a 34% increase as compared to the average head grade of 2.38 recorded in the fourth quarter of 2020. The fourth quarter gold head grade of 4.77 g/t also represents a 34% improvement over the 3.57 gold head grade recorded in Q3 2021, Cerrado's previous high for gold head grade.

Mill throughput of 109,890 tonnes of ore represents a 40% increase in throughput as compared to the fourth quarter of 2020. Fourth quarter 2021 mill throughput also represents a 7% increase as compared to the third quarter of 2021.

The Company generated revenue of $23.1 million for the three months ended December 31, 2021, from the sale of 12,864 ounces of gold and 26,268 ounces of silver at an average realized price per gold ounce sold of $1,748 and price per silver ounce sold of $23.48 For the three months ended December 31, 2021, the Company generated revenue of $10.3 million from the sale of 5,552 ounces of gold and 15,369 ounces of silver. Revenue from sales of gold and silver for the current period was 124% higher than the three months ended December 31, 2020, due the higher gold sales despite the lower realized price in the current period as compared to the three months ended December 31, 2020 $23.84.

Cash operating costs per ounce sold was $764 per ounce in the three months ended December 31, 2021, which is the lowest achieved during Cerrado's ownership and fifth consecutive quarter of improvement. Fourth quarter 2021 cash operating costs per ounce sold represents a 29% reduction compared to Q3 2021 $1,075/oz and a 54% reduction compared to Q4 2020 $1,660/oz

Net income for the three months ended December 31, 2021, was $2.5 million as compared to a $5.2 million net loss for the three months ended December 31, 2020, an improvement of $7.7 million. The increase in net income is primarily a result of a mine operating margin of $3.5 million (an increase of $2.6 million) offset by an increase in general and administrative expenses of $0.8 million and an increase of other expense by $1.0 million. Net income in the fourth quarter of 2021 also represented a $3.9 improvement as compared to Q3 2021.

The Company incurred general and administrative expenses of $2.8 million for the three months ended December 31, 2021 a $0.3 million increase compared to the general and administrative expenses incurred during the three months ended December 31, 2020. During the three months ended December 31, 2021, the Company had increases in non-cash stock based compensation expenses which were offset by decreases in salaries and professional fees.

Other expense incurred of $0.9 million during the three months ended December 31, 2021, was $1.4 million higher than other expense recorded during the three months ended December 31, 2021. During the three months ended September 30, 2021, the Company recorded higher finance costs offset by foreign exchange gains.

Adjusted EBITDA was $8.3 million in the fourth quarter of 2021 which is a $10.5 million improvement as compared to the $2.2 million adjusted EBITDA loss recorded in the fourth quarter 2020. Adjusted EBITDA also represented a $5.6 million improvement as compared to the third quarter of 2021.

Basic and diluted earnings per share for the three months ended December 31, 2021, was $0.03, compared to the basic and diluted loss per share of $0.11 for the three months ended December 31, 2020, a $0.14 per share improvement as a result of the improved operating performance of the mine in 2021.

Technical Disclosure/Qualified Person

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 NI 43-101.

Mark Brennan
CEO and Co Chairman
Tel: +1-647-796-0023
mbrennan@cerradogold.com

Nicholas Campbell, CFA
Director, Corporate Development
Tel.: +1-905-630-0148
ncampbell@cerradogold.com

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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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.

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 the Minera Don Nicolas mine to independently fund its operations from cash flow. 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 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 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.