Successful Completion Of Phase I Drill Program At Monte Do Carmo Project

TORONTO - Cerrado Gold Inc. has completed its Phase I Drill program of exploration and infill definition drilling at the Serra Alta deposit, at its Monte do Carmo (MDC) Project located in Tocantins State, Brazil. The final drill program saw 55 holes completed totaling 18,998 meters. The additional meters drilled, relative to the original targeted meters, were drilled to ensure Cerrado hit disclosed targets of upgrading and expanding the Company's maiden mineral resource estimate.

Mark Brennan, CEO and Co-Chairman, said, "We are pleased to have completed the Phase 1 drill program at Serra Alta successfully and efficiently, save delays of drill results from the labs due to Covid, and we look forward to delivering the results in the coming weeks with a new 43-101 resource estimate planned to underpin a new Preliminary Economic Assessment on what we anticipate will be a significantly larger resource base supporting a larger project scale than previously outlined. With Phase I now completed, we plan to commence our Phase 2 drill program of a further 14,000 meters targeting further expansion at Serra Alta and drilling a number of the highly prospective regional targets which we expect will support our view that the Monte Do Carmo property is indeed a new gold district."

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 the mineral resource estimate contained in the Company's current preliminary economic assessment (the "PEA"). The PEA, titled "Independent Technical Report - Preliminary Economic Assessment for Serra Alta Deposit, Monte do Carmo Project, Tocantins State, Brazil" and dated October 14, 2020 with an effective date of December 5, 2018, was prepared by Porfírio Cabaleiro Rodriguez, B. Terrence Hennessey, Bernardo Horta de Cerqueira Viana and Paulo Roberto Bergmann. The mineral resource estimate outlined in the PEA, completed in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), with an effective date of December 5, 2018, outlined an inferred resource totaling 813,000 oz of gold contained within 13,639,000 tonnes grading 1.85 g/t Au. The mineral resource statement reported therein was prepared in conformity with generally accepted CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines". 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. 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. Mineral resources that are not mineral reserves do not have demonstrated economic viability. For further details, including key assumptions, parameters, methods used to estimate the Inferred mineral resources at the MDC project and risks of determination associated with the foregoing, see the PEA available on SEDAR.

The Phase I program was designed as a definition drill program to upgrade and expand the maiden mineral resource estimate ("MRE"). It was initially planned to consist of approximately 17,000 meters of drilling; mainly step-outs and downdip drilling, 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 final drill program resulted in 55 holes totaling 18,998 meters with the additional meters drilled to ensure Cerrado hit its published targets of upgrading and expanding the maiden resource estimate.

Visible gold was reported in 34 (62%) out of the 55 holes drilled in this program. This is much higher than experienced in the 2018 program. The Phase I program also noted greater thickness in the altered granite near the contact with the overlying quartzite and volcanic rocks leading to greater thicknesses of the mineralized zones. The program has extended the mineralized envelope and added new mineralization.

When the results from the Phase I drill program and modeling are completed, they will be used to update the current mineral resource estimate as documented in the PEA. Timing of the drill result assays have been severely impacted by the COVID 19 pandemic at both the prep labs in Brazil and the analytical labs in Lima, Peru, resulting in longer than planned turnaround times. Additional results will be reported as they become available in the coming weeks. We expect all the results to be in by early June and we will provide additional updates if necessary. 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. Investors are cautioned that the resource target is conceptual in nature at this time.

Subsequent to the completion of the new MRE, the Company plans to undertake a new Preliminary Economic Assessment on what is anticipated could be a materially larger resource that can deliver either a longer mine life or support the development of a larger scale operation relative to previous studies. To date, the bulk of the drill results reported fall within the pit boundary as outlined in the PEA.

While work on the new mineral resource estimate and preliminary economic assessment commences, the Company plans to begin a further 14,000 meter Phase 2 drill program in the coming weeks looking at infill drilling at Serra Alta to upgrade and expand additional resources and drill testing of several of the highly prospective satellite targets known on the larger Monte Do Carmo property with the aim to further developing the understanding of the regional potential that the Company anticipates could add significant additional ounces in time.