Phase 1 Drill Program At Monte Do Carmo Open Pit Gold Project

TORONTO - Cerrado Gold Inc. reported assay results from a further six drill holes from its ongoing 17,000-meter Phase 1 definition drilling program at the Serra Alta deposit, at its Monte do Carmo ("MDC") gold Project located in Tocantins State, Brazil. Highlights: FSA108 - 6.84m at 1.93g/t Au, from 167.61m; FSA110 - 24.16m at 2.45g/t Au, from 122.47m, Including 9.54m at 5.22g/t Au from 130.25m; 6.83m at 5.56g/t Au from 197.62m; and 7.26m at 5.57g/t Au from 249.92m; FSA112 - 9.31m at 3.50g/t Au, from 123.58m; and including 4.73m at 5.98g/t Au from 128.16m; FSA114 - 15.25m at 1.79g/t Au, from 69.50m, Including 4.25m at 3.90g/t Au from 69.50m.

Mark Brennan, CEO and Co-Chairman, said, "The new results received from the current drill program at Serra Alta continue to add further confidence in our ability to significantly expand and potentially improve the overall grade of the existing resource at Serra Alta. The results from the Phase 1 drill program, which is expected to be completed imminently, are expected to achieve the Company's aggressive target to grow the resource to 1.5MM ounces. An updated 43-101 resource will be published shortly after all assay results have been received. We will start our Phase 2 drill program immediately upon completion of drilling the Phase 1 program, which is targeted to grow the resource base to between 2.0-2.5MM ounces by year end."

The drill results were received up until March 19th, 2021 and represent complete results for FSA 100, FSA 107, FSA108, FSA 110, and partial results for FSA 112 and FSA114. The results indicate that the drill holes have been successful in confirming and expanding the mineralization. Cerrado has completed 15,900 meters of its ongoing phase I drill program targeting 17,000-meters and is on track to complete the program by the end of March 2021. Subsequent to the completion of this Phase 1 drill program, the Company plans to commence a further 14,000 meter Phase 2 drill program looking at further resource expansion at Serra Alta and includes drilling several satellite targets with the aim to further expand the resource potential on the greater Monte Do Carmo property.

The current drill holes intersected broad zones of hydrothermal alteration with abundant points of visible gold. The alteration is typical for the Serra Alta deposit, including the abundance of quartz veinlets, potassic, chloritic and sulphides (py, spl, and gal) with visible gold.

The drill results reported fall within the open pit boundary as outlined in the Preliminary Economic Assessment ("PEA") of the current resources defined at the Serra Alta deposit at its Monte Do Carmo gold project in Tocantins State, Brazil.

The first phase of the current drill program at Serra Alta, which began at the end of September 2020, follows the success of the 2018 drill program which resulted in a maiden NI43-101 compliant resource estimate with an effective date of December 5, 2018 of an Inferred resource totaling 813,000 oz of gold contained within 13,639,000 tonnes grading 1.85 g/t Au.

This new Phase 1 program is expected to consist of approximately 17,000 meters of drilling; mainly step-out and downdip to define additional ounces and a modest amount of infill drilling to upgrade a portion of the resource base to the Measured and Indicated resource categories focusing on the known Serra Alta deposit. The Serra Alta deposit is 1.5 kilometers long, 400m wide, and remains open along strike and at depth and represents only the first of 4 known additional targets which are targeted to grow the resource on the overall Monte Do Carmo project land package.

The drilling and supporting assay results will build upon the success of Cerrado's earlier drilling program. Cerrado is targeting to define a resource between 1.2 million and 1.6 million ounces at an average grade of between 1.5 g Au/t to 2.0 g Au/t. Cerrado expects this program to be completed by end of March 2021. Investors are cautioned that this resource target is conceptual in nature at this time and there has been insufficient exploration to define a new mineral resource.

A new PEA shall follow the new resource and is expected to be completed by the end of June. The PEA is preliminary in nature, includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.