Announcement • Jul 16

Cerrado Gold Inc. Revises Timing for Completion of Mont Sorcier Feasibility Study to Incorporate Optimization Initiatives

Cerrado Gold Inc. announced that it has elected to extend the completion date of the Bankable Feasibility Study at its Mont Sorcier high grade iron project, led by Voyager Metals, a 100% owned subsidiary of Cerrado Gold, to review numerous optimization and trade off opportunities that have been identified during the BFS process as having the potential to materially enhance the overall value of the project. During recent quarters, work has continued to advance the Bankable Feasibility Study for the Company's high-grade Mont Sorcier iron project. As the BFS has progressed, the Company has identified several opportunities to further optimize project economics and reduce both capital and operating costs, despite ongoing industry-wide inflation. A number of trade-off studies are expected to be completed to evaluate and capture these improvements. The most significant opportunity to enhance the project has emerged from the ongoing mine planning process. An opportunity to enhance the overall mine plan and lower costs has been identified through a conversion of a modest amount of currently Inferred Resources to Measured Resources within a defined area to the east of the current planned pit. The material in this region is expected to be shallower and should materially reduce stripping and tailings management costs over the life of mine. The Company will undertake a small, targeted definition drill program in Third Quarter 2026 so that any resources which may be converted from inferred to measured may be incorporated into the optimized mine plan. Given the potential and material positive impact on project economics, the Company has determined that this should be incorporated into the BFS in order to deliver an optimal mining operation. Additional areas for detailed review and trade-off studies will be undertaken with respect to overall CAPEX and OPEX estimates that are currently seeing a material impact from rising inflationary pressures in the market. As such, a focus on life of mine tailing dam construction and other project infrastructure needs to reduce the overall size and construction material required is currently planned. A further area for review will be tradeoff studies to commence the operation producing a 65% grade iron concentrate versus the currently planned 67% grade iron concentrate. While current metallurgical test work supports the ability to produce the 67% higher grade concentrates that is desired by the Green Steel industry, the current price premium to the premium offered to 65% concentrate, being seen and forecast in the market today, may not be sufficient to justify the additional capital and operating cost requirements to deliver the 67% product. However, if high-grade price premiums were to increase, additional infrastructure could be added if economic. It should be noted that 65% grade iron concentrates remain a highly desired product in the market, receiving an approximate 20% premium over the more common 61-62% iron concentrate Index. Currently, 67% concentrates garner an approximate $20/t premium to the 65% Index as published by leading industry forecasters, subject to specific concentrate characteristics. The lower price would be offset by a higher weight recovery in the concentrator plant to deliver higher levels of production with a simplified flow sheet, reducing capital and operating costs. While the precise impact on the final completion date of the BFS remains uncertain at this time pending the completion of the drill program, the Company does not expect it to materially affect the timing of the Environmental and Social Impact Assessment, which is expected to be filed in Second Quarter 2027. The ESIA is a key project milestone, as its submission initiates the formal permitting process. On this basis, the Company continues to expect that the required permits could be granted around year-end 2028, suggesting construction could commence around the end of First Quarter 2029. The Company views this step as a prudent investment to optimize the project for all stakeholders and will provide further updates on timing as they become available.

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