Cerrado Gold Reports First Quarter Results Highlighting Improved Operational Performance at Minera Don Nicolas Despite Ongoing Restrictions, and Strong Exploration Results at Serra Alta and Minera Don Nicolas to Expand Resources

Toronto, Ontario–(Newsfile Corp. – May 28, 2021) – Cerrado Gold Inc. (TSXV: CERT) (“Cerrado” or the “Company”) is pleased to announce its operational and financial results for the first quarter of 2021 (“Q1/21”). These financial results are reported and available on SEDAR as well as on the company website (

Key Operating Information

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Key Financial Information 

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Mineral Resource Estimate

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The PEA is based on the current Mineral Resource Estimate completed by MICON International Limited, and prepared in accordance with NI 43-101, with an effective date of December 5, 2018 which is outlined in the table below. It should be noted that mineral resources which are not mineral reserves do not have demonstrated economic viability.

The PEA summarized in this document is intended to provide only an initial, high level review of the project potential and design options. The PEA mine plan and economic model include numerous assumptions and the use of Inferred Mineral Resources. Inferred Mineral Resources are considered to be too speculative to be used in an economic analysis except as allowed for by Canadian Securities Administrators’ NI 43-101 in PEA studies. There is no guarantee the project economics described herein will be achieved.

On October 15, 2020, Cerrado announced the commencement of the 2020 drill program at MDC. The program focused on the Serra Alta deposit and consisted of approximately 19,000 metres of drilling utilizing 6 drills aimed at significantly expanding the total ounces in the current Mineral Resource Estimate on the deposit. Cerrado completed the drill program in April 2021, to be followed by an updated Mineral Resource Estimate for late June 2021 and new PEA Report for the end of July.

Cerrado has commenced a second phase drill program in April of 2021 to test the other similar analogous deposit targets along strike such as Capitao, 5 km to the south, Fartura and Ferradura, 2 and 5 kms to the northwest respectively.

First Quarter Financial Performance

In Q1/21, the Company generated revenues of $11.16 million as a result of the sale of 6,584 oz of gold. Average realized price per gold ounce sold was $1,639. Revenues in Q1/21 were up 9% over Q4/20 as a result of higher ounces sold, partially offset by lower average metal prices.

Net loss and basic and diluted loss per share in Q1/21 were $5.67 million and $0.10, respectively, compared to net loss and basic and diluted loss per share of $5.17 million and $0.11 in Q4/20, and $2.78 million and $0.07, respectively in Q1/20. Loss from mining operations in Q1/21 was $0.03 million.

Adjusted EBITDA loss for Q1/21 was $0.96 million, compared to adjusted EBITDA loss of $1.74 million in Q1/20 and adjusted EBITDA loss in Q4/20 of $2.47 million. Cash used in operations in Q1/21 was $1.69 million, compared to $15.34 million in Q1/20, which includes $15.0 million inflows due to the stream arrangement.

Total cash costs per ounce sold for Q1/21 was $1,363, representing a 18% decrease from $1,660 in Q4/20. The All-In Sustaining Cost (“AISC”) per ounce sold for the MDN mine was $1,747 in Q1/21, representing a 9% decrease from Q4/20 of $1,929.

Technical Disclosure/Qualified Person

The scientific and technical information contained in this press release has been reviewed and approved by Robert A. Campbell, M.Sc., P.Geo., Director for Cerrado Gold Inc., whom is a “qualified person” within the meaning of NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

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

Nicholas Campbell, CFA
Director, Corporate Development
Tel.: +1-905-630-0148
ncampbell@cerradogold.com

About Cerrado Gold

Cerrado Gold is a public gold producer and exploration company with gold production derived from its 100% owned Minera Don Nicolás mine in Santa Cruz province, Argentina. It also owns 100% of the assets of Minera Mariana in Santa Cruz province, Argentina. The company is also undertaking exploration at its 100% owned Monte Do Carmo project located in Tocantins, Brazil. For more information about Cerrado Gold please visit our website at: www.cerradogold.com.

Disclaimer

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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 Gold. In making the forward-looking statements contained in this press release, Cerrado Gold has made certain assumptions, including, but not limited to ability of Cerrado to expand its drilling program at its Minera Don Nicolas Project and increase its resources. Although Cerrado Gold 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 Gold 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.

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