Cabral Gold Drills 20.9m @ 4.2 g/t Gold within Gold-in-Oxide Mineralization at the Central Gold Deposit, Cuiú Cuiú District

Vancouver, British Columbia--(Newsfile Corp. - July 7, 2022) - Cabral Gold Inc. (TSXV: CBR) (OTC PINK: CBGZF) ("Cabral" or the "Company") is pleased to provide assay results from ten diamond-drill holes in the southern part of the Central gold deposit within the Cuiú Cuiú Gold District, northern Brazil.

Highlights are as follows:

• DDH306 drilled on Section N20895 returned the following mineralized intervals:

• 20.9m @ 4.2 g/t gold from 23.1m in oxidized and weathered material, including 2.0m @ 32.3 g/t gold from 35.0m and 3.0m @ 4.8 g/t gold from 39.0m
• 23.5m @ 1.7 g/t gold from 50.5m in oxide material, including 2.0m @ 17.0 g/t gold from 68.0m
• 35m @ 1.2 g/t gold from 112.0m in fresh basement mineralization, including 1.7m @ 6.8 g/t gold from 121.0m

• DDH307 was drilled on Section N21045 and returned 30.9m @ 2.4 g/t gold from 42.0m within fresh rock, including 1.0m @ 38.7 g/t gold from 48.0m

• Other significant drill results from oxidized and weathered material at Central include;
  • DDH282: 38.0m @ 0.7 g/t gold from surface
  • DDH283: 80.0m @ 0.5 g/t gold from surface
  • DDH305: 49.2m @ 0.6 g/t gold from 33.9m
  • DDH269: 13.7m @ 0.5 g/t gold from surface and 17.7m @ 0.5 g/t gold from 64.4m
  • DDH280: 28.0m @ 0.5 g/t gold from surface
  • DDH284: 20.3m @ 0.6 g/t gold from surface

• Additional highlighted drill results from the primary basement gold mineralization at Central include;
  • DDH280: 37.0m @ 1.1 g/t gold from 80.7m, including 1.1m @ 15.0 g/t gold
  • DDH305: 55.0m @ 0.8 g/t gold from 123.0m, including 0.7m @ 24.3 g/t gold
  • DDH269: 16.9m @ 0.9 g/t gold from 92.2m, 31.2m @ 1.0 g/t gold from 117.9m and 5.6m @ 4.5 g/t gold from 167.8m, including 2.0m @ 12.0 g/t gold

Alan Carter, Cabral's President and CEO commented, "These latest high-grade drill results from the Central gold deposit indicate that at least two, possibly three high-grade veins exist within the broader Central gold deposit. These zones extend up to surface and have been weathered, resulting in high-grade oxide material, which is very similar to the situation at the MG gold-in-oxide blanket, where a higher-grade core sits directly above the underlying primary gold deposit. These drill results imply the presence of more high-grade material at Central than previously thought in both the near surface oxide mineralization and the underlying primary basement gold deposit."

Central Diamond-Drill Results

The Central gold deposit is located 5km northwest of the MG gold deposit and 2.5km southeast of the PDM target within the Cuiú Cuiú gold district (Figure 1).

Figure 1: Map showing the location of the Central and MG gold deposits, the PDM (Pau de Merenda) and Machichie gold targets, and other key gold targets (yellow circles) within the central portion of the Cuiú Cuiú district.

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/3900/130225_33d7987e0410aaee_002full.jpg

Diamond drilling at Central has been designed to: 1) better establish continuity and define high-grade, highly altered, brecciated and sheared zones within the primary basement deposit, 2) explore for additional high-grade mineralization in parts of the current resource with a low historic drill density, and 3) improve definition of the near-surface gold-in-oxide mineralization, a portion of the deposit that was largely undrilled historically.

Assay results are reported herein from ten diamond-drill holes recently completed on several sections of the Central deposit (Figures 2, 3, 4 and 5).

Figure 2: Map showing the outline of the Central gold deposit and the location of diamond-drill holes completed to date. Note the location of the three recently identified high grade zones (shown in red). Recently completed diamond-drill holes with results reported herein are highlighted.

To view an enhanced version of Figure 2, please visit:
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Section N20895

Three diamond-drill holes (DDH269, DDH280 and DDH306) were completed on Section N20895. (Figures 2 and 3, Table 1).

DDH306 was drilled from the SW to the NE and intersected multiple high-grade zones (Figure 3, Table 1). Two broad zones of mineralization were intersected within oxide material. The first was 20.9m @ 4.2 g/t gold from 23.1m, which included 2.0m @ 32.3 g/t gold from 35.0m and 3.0m @ 4.8 g/t gold from 39.0m. The second interval was 23.5m @ 1.7 g/t gold from 50.5m which included 2.0m @ 17.0 g/t gold from 68.0m. In addition, the hole intersected 35m @ 1.2 g/t gold from 112.0m within fresh unweathered basement, including 1.7m @ 6.8 g/t gold from 121.0m (Figure 3).

DDH269 and DDH280 were both drilled from the northeast towards the southwest and intersected the same high-grade zones that are evident in DDH306 within fresh bedrock (Figure 3, Table 1). DDH280 returned 37.0m @ 1.1 g/t gold from 80.7m including 1.1m @ 15.0 g/t gold. DDH269 returned 16.9m @ 0.9 g/t gold from 92.2m, 31.2m @ 1.0 g/t gold from 117.9m and 5.6m @ 4.5 g/t gold from 167.8m. The latter intercept included 2.0m @ 12.0 g/t gold.

Previous drilling on neighboring sections (Figure 2) also returned high-grade intercepts. For example, DDH268, drilled on Section N20870, immediately to the south, returned 9.6m @ 16.4 g/t gold, including 1.2m @ 112.0 g/t gold and 2.1m @ 11.5 g/t gold. Similarly, DDH250, drilled on section N20920, immediately to the north, returned 23.8m @ 5.5 g/t gold, including 0.7m @ 98.4 g/t gold and 1.2m @ 51.0 g/t gold.

The additional new drill results demonstrate the presence of multiple parallel high-grade zones at Central that can be interpreted to extend along strike for at least 120m and extend to depths of greater than 350m (Figures 1 and 3). These higher-grade zones are surrounded by broad lower-grade envelopes.

Figure 3: Section N20895 through the southern part of the Central gold deposit showing the location of diamond-drill holes DDH269, DDH280 and DDH306.

To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/3900/130225_33d7987e0410aaee_004full.jpg

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Section N20920

DDH305 was drilled on section N20920 (Figures 2 and 4). DDH250, which was previously reported from this section returned 23.8m @ 5.5 g/t gold, including two high-grade structures; 0.7m @ 98.4 g/t gold and 1.2m @ 51.0 g/t gold (see press release dated February 10, 2022).

DDH305 successfully tested the up-dip extent of the high-grade mineralization in the overlying weathered and oxidized material (Figure 4, Table 1). It cut 49.2m @ 0.6 g/t gold from 33.9m depth in the oxidized material, up dip from the previously reported intercept in DDH250. DDH305, also encountered another high-grade zone in fresh primary rock further to the north, returning 0.7m @ 24.3 g/t gold from 123.0m. This second high-grade zone also occurs within a lower-grade envelope of 55.0m @ 0.8 g/t gold from 123.0m.

The drilling on this section confirms the presence of at least two parallel high-grade zones within a broad envelope of lower-grade mineralization, and that the basement mineralization can be traced upwards into the extensive saprolitized and oxidized weathered basement profile.

Figure 4: Section N20920 through the south-central part of the Central gold deposit showing the location of diamond-drill hole DDH305 which intersected 49.2m @ 0.6 g/t gold from 33.9m depth in the oxidized material and 55.0m @ 0.8 g/t gold from 123.0m including 0.7m @ 24.3 g/t gold.

To view an enhanced version of Figure 4, please visit:
https://images.newsfilecorp.com/files/3900/130225_33d7987e0410aaee_005full.jpg

Section N21045

A single diamond-drill hole (DDH307) was completed on Section N21045 (Figures 2 and 5).

This section had only one historic hole (CC54) which was drilled oblique through the section. CC54 intersected 125m of continuous gold mineralization, comprising 22.2m @ 0.4 g/t gold in saprolite basement from 29.4m to 51.6m, and 102.7m @ 0.9 g/t gold in fresh basement rocks directly below, including 1.8m @ 5.7 g/t gold.

DDH307 also hit a significant high-grade mineralized interval. It returned 30.9m @ 2.4 g/t gold from 42.0m within fresh rock, including 1.0m @ 38.7 g/t gold from 48.0m (Figures 2 and 5). This is interpreted to be the northern extension of the same high-grade zone intersected in hole DDH306 located 150m further south on Section N20895 (see above) which returned 20.9m @ 4.2 g/t gold including 2.0m @ 32.3 g/t gold and 2.0m @ 17.0 g/t gold.

Figure 5: Section N21045 through the south-central part of the Central gold deposit showing the location of diamond-drill hole DDH307 which intersected 30.9m @ 2.4 g/t gold from 42.0m within fresh rock, including 1.0m @ 38.7 g/t gold from 48.0m.

To view an enhanced version of Figure 5, please visit:
https://images.newsfilecorp.com/files/3900/130225_33d7987e0410aaee_006full.jpg

Table 1 showing the assay results from the diamond-drill holes DDH269, DDH280, DDH282 to DDH284
and DDH305 to DDH309. Oxide mineralization is denoted within grey highlights.

Interpretation and Observations

Establishing High-Grade Zones within the Central Gold Deposit

The current drill results confirm the presence of several parallel zones of higher-grade mineralization within the broader Central deposit. High-grade mineralization encountered on Sections N20920, N20870, N20870, N20845, and N20825, defines a strike length of 120m. Section N21045 shows a new high-grade intersection which may be part of a new zone further to the north. The location of this high-grade mineralization further supports the Company's thesis that there is a steeply dipping, northwest-trending high-grade corridor comprising at least two, possibly three separate high-grade structures in the southern - central portion, and the southwestern margin of the Central deposit. This corridor has now been traced more than 120m along strike and appears to be over 25m wide and extends at least 350m deep. It remains open along strike and down-dip.

Further drilling will be required to better define and expand the high-grade zones.

Determining the Extent of Central Oxide Mineralization

Recent drilling continues to indicate gold mineralization can be traced upwards from the basement, into an extensive, saprolitic and oxidized basement weathering profile that extends to depths of nearly 80m. This saprolite is unconformably overlain by a thin cover of mineralized oxidized sediment, artisanal tailings and soil, which is collectively referred to as a blanket. The entire weathered profile represents pre-strip for any future exploitation of the underlying basement deposit. Historic drilling did not routinely test this weathered material, and focused on drilling deeper fresh basement mineralization.

Recent column tests of similar oxide material at MG indicated 82% recoveries after 70 days (see Press Release, June 21, 2022). Like MG, the extensive saprolite profile and blanket at Central could be amenable to heap-leach processing. Some of it may also be free-digging, and will likely be much cheaper to mine and process than fresh hard-rock basement.

Additional drilling will be required to map out the extent, dimensions and grade of the oxidized cover sequence, along the 800m strike length of the Central deposit. Meanwhile material is being collected for metallurgical work to assess the heap-leach potential of the Central oxide gold mineralization.

Drilling and Trenching Update

Results are pending on 12 diamond-drill holes at MG.

Results for 30 RC holes are also pending at PDM.

Results are pending on 14 follow-up diamond-drill holes at Machichie and 12 trenches totaling 443 m and drilling is continuing.

Results are also pending on 6 diamond-drill holes at the Indio target and additional drilling is planned.

About Cabral Gold Inc.

The Company is a junior resource company engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil. The Company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil. Two gold deposits have so far been defined at Cuiú Cuiú and contain 43-101 compliant Indicated resources of 5.9Mt @ 0.90 g/t (200,000 oz) and Inferred resources of 19.5Mt @ 1.24 g/t (800,000 oz).

The Tapajós Gold Province is the site of the largest gold rush in Brazil's history producing an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest area of placer workings in the Tapajós and produced an estimated 2Moz of placer gold historically.

FOR FURTHER INFORMATION PLEASE CONTACT:

"Alan Carter"

President and Chief Executive Officer
Cabral Gold Inc.

Tel: 604.676.5660

Guillermo Hughes, MAusIMM and FAIG., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of the words "will", "expected" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This news release contains forward-looking statements and assumptions pertaining to the following: strategic plans and future operations, and results of exploration. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.

Notes

Gold analysis has been conducted by SGS method FAA505 (fire assay of 50g charge), with higher grade samples checked by FAA525. Analytical quality is monitored by certified references and blanks. Until dispatch, samples are stored under the supervision the Company's exploration office. The samples are couriered to the assay laboratory using a commercial contractor. Pulps are returned to the Company and archived. Drill holes results are quoted as down-hole length weighted intersections.

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