Cerrado Gold Receives Permits for the Las Calandrias Heap Leach Project in Argentina

• First gold pour scheduled for end of May 2023
• Primary resource recoveries confirmed; Life of Mine extended
• Feasibility study progressing extremely well at Monte do Carmo (Brazil) with completion targeted for May 2023; robust economics expected to follow strong PEA

TORONTO, March 6, 2023 - Cerrado Gold Inc. (TSX.V:CERT)(OTCQX:CRDOF) ("Cerrado" or the "Company") is pleased to provide an update on the progress of its development of the gold heap leach project at the Las Calandrias deposit in Santa Cruz, Argentina ("MDN").

As of March 3rd, 2023 Cerrado has secured all the required environmental permits relating to the development and operation of the Las Calandrias heap leach project. Construction work remains ongoing with first ore expected to be stacked on the heap leach pad during April and first gold pour is scheduled before the end of May. Please see photographs below of construction activities to date.

Additionally, metallurgical testing has confirmed gold recoveries with greater than 80% confidence from Oxide materials with at least 70% recovery, Transition ores have at least 50% confidence and the Primary ore has at least 36% recoveries. As a result, mine planning has been redesigned to add material from the primary ore zone which will expand resources for production and extend the mine life. The benefits of the higher grade in the Primary Zone will offset lower recoveries. This is in addition, to ongoing production from the CIL plant and the planned development of an underground operation at Paloma and a second heap leach operation at Martinetas later this year.

As outlined in a press release dated October 18 2022, the heap leach operation is targeted as part of the strategic growth to increase aggregate production rates at Cerrado's Argentina operations to 90,000 oz per annum from the 2022 production rate of 53,672 oz at MDN with reductions in AISC. Production growth and cost reductions are planned from the development of two heap leach operations; firstly at Las Calandrias and secondly at the Martinetas area. MDN is also expected to develop high-grade underground Resources that are currently known and available by directly accessing the resources from the base of the existing high-grade pits such as at Paloma.

Mark Brennan, CEO and Chairman commented "We are pleased to have been granted all the necessary approvals to commence operations at our initial heap leach facility at Las Calandrias which reflects the high quality of the work completed by the team on the ground at MDN. Construction is progressing extremely well and we are now one step closer to delivering on our production growth strategy at MDN to exploit the all available resources more fully."

He continued, "Development is proceeding exceptionally well at both MDN and at MDC (Brazil); we believe that the intrinsic value creation to shareholders will be strongly evidenced by the production growth at MDN by year end and the Feasibility Study in Brazil which is expected by the end of May."

Monte do Carmo ("MDC") Feasibility Study Progress

As previously released (see Press Release of February 27, 2023), all the infill drilling completed at the Serra Alta deposit has been completed with the objective of upgrading a significant component of the resources to the Measured and Indicated categories. Work is now focused on mine engineering, process plant design, tailing facilities and associated infrastructure. Completion of the Feasibility Study is expected by May 2023.

The quotational process for key operational contracts and capital equipment is well underway. Early indications suggest both capital and operating costs are expected to be in-line with the 43-101 Preliminary Economic Assessment, confirming expectations that Serra Alta is set to be a low capital cost project combined with low operating costs set to deliver robust economics as demonstrated in the Preliminary Economic Assessment completed in 2021.

All required works for the approval of the preliminary license are progressing according to schedule and we expect to receive said preliminary license imminently. The construction license is expected to follow in the following months. Additionally, the Company has also initiated discussions with various financial groups regarding Project Financing.

Photos: Las Calandrias Heap Leach pad preparation

Review of Technical Information

The scientific and technical information in this press release has been reviewed and approved by Clinton Swemmer, P.Eng., Vice President, Technical Services for Cerrado Gold Inc., who is a Qualified Person as defined in National Instrument 43-101.

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

David Ball
Vice President, Corporate Development
Tel: +1-647-796-0068
dball@cerradogold.com

About Cerrado

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 development project, Monte Do Carmo located in Tocantins State, Brazil.

At Minera Don Nicolas, Cerrado is maximising asset value through further operation optimization and continued production growth. An extensive campaign of exploration is ongoing to further unlock potential resources in our highly prospective land package.

At Monte Do Carmo, Cerrado is rapidly advancing the Serra Alta deposit through Feasibility and production. The Serra Alta deposit Indicated Resources of 541 k. Oz of contained gold and Inferred Resources of 780 k. ozs of contained gold. The Preliminary Economic Assessment demonstrates 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

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. In making the forward- looking statements contained in this press release, Cerrado has made certain assumptions, including, but not limited to the timing of production, rates of production, operating costs and capital costs of the Las Calandrias project, and expectations and timing of receipt of the preliminary license and construction license 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.

SOURCE: Cerrado Gold Inc.