Discovery New Zone At Serra Alta Deposit

TORONTO - Cerrado Gold Inc. reported the discovery of a new mineralized zone, named E3, located approximately 150m to the east of the previously outlined East Zone at Serra Alta and new assay results from its ongoing infill/condemnation and extensional drill program at the Serra Alta deposit at its Monte do Carmo Project located in Tocantins State, Brazil.

The drill program commenced in Q4 2021 with the aim to upgrade the bulk of the resources into Measured and Indicated categories, target new satellites, extensional zones, condemn areas of project infrastructure and support the ongoing Feasibility Study. This phase of drilling has been extended to Q4, to target several extensional zones such as Gogó de Onça to be incorporated into the feasibility study and further define the newly discovered E3 zone. The Company is currently reporting assay results from 31 drill holes, totaling 10,647m completed from June to September 2022. As of November 2022, a total of 172 drill holes, totaling 42,068m have been completed as part of the 2022 program, including 137 holes at Serra Alta; and 35 holes in the satellite exploration areas. The Company currently has 5 drill rigs on site and plans to complete the current phase of drilling by Mid-December.

Mark Brennan, CEO and Co-Chairman, commented "The new E3 mineralized zone is the second satellite discovery announced at Serra Alta this year as part of the infill drill program. Serra Alta continues to show its strong mineral endowment and the successive satellite discoveries point to the wider exploration potential we see at Monte do Carmo."

E3 is considered a newly discovered mineralized zone that is located to the East of the East zone at distances between 100 and 200m. Very importantly, besides the granite hosted gold bearing quartz veins, some of the mineralization in E3 is hosted by felsic volcanic rocks and by a granitic porphyry. In general, the felsic volcanics act as a cap to the mineralization at Serra Alta with minor mineralization extending beyond the contact with the underlying granites.

Cerrado's main working hypothesis for having mineralized volcanics in E3 relates to the presence of a granitic porphyry dyke swarm zone with a general west/Northwest direction, that seems to provide a permissive host rock and fluid conduits to upper stratigraphic levels. The results reported today and the geological logging of additional holes with assays still pending allow us to infer a preliminary North-South strike length of approximately 250m for E3, with no constrains yet in terms of the down dip dimensions. Additional holes are required to fully validate the direction of the main mineralization trend, which at this point is believed to follow the Serra Alta North-South direction, oblique to the porphyritic dyke direction. It is presumed that E3 will provide fresh ounces to the resource inventory. Additionally, the occurrence of gold in higher stratigraphic levels, reverts the trend of deepening of mineralization towards the east (East Zone). This is positive in terms of mining optionality and development costs both in an open pit or underground scenario.

Hole FSZ-008, considered the discovery hole, was drilled as a condemnation hole to assess the western margin of a possible waste rock facility. FSZ-008 includes 13m at 5.53g/t Au from 333m, including 3m at 24.39 g/t Au from 343m. Gold mineralization in this hole is identical to Serra Alta (associated to quartz veins) but is mainly hosted by granitic porphyritic rock. Some of the quartz veins in the porphyritic host exhibit sinuous borders that might indicate very close temporal proximity between the porphyry emplacement and cooling and the quartz vein formation.

Hole FSA-283, drilled approximately 100m to the south of the discovery hole, intercepted 48m at 2.01 g/t from 362m. Quartz veins in this interval are hosted both by felsic volcanics and by granitic porphyries. Cerrado is aggressively drilling E3 to establish the controls of the mineralization, continuity, shape, and size.

Cerrado disclosed the discovery of Gogo in June with additional results in September. Further drilling has now been completed on the target providing a high confidence level that incremental ounces can be incorporated into the ongoing Feasibility study. Eleven new holes are reported today for Gogo, highlighting hole FGO-014, located approximately 250m to the north of the discovery hole FGO-001. FGO-014 intersected 4m at 59.97g/t Au from 171m. This intersection is associated with a mineralized shear zone that extends beyond the Gogo main zone where better lateral continuity of parallel veins occurs.

Drill holes FSA-250, FSA-272, FSA-274, FSA-275, FSA-279, FSA-284, FSA-285, FSA-287, FSA-288 were collared in the East Zone. The best reported intercepts in the East Zone correspond to holes FSA-274 and FSA-288 collared in the southern and central segments of the East Zone respectively. Hole FSA-274 confirmed the high-grade nature of the southern edge of the East Zone, in the proximity of the F1 faulted contact. FSA-274 contains 9m at 10.89 g/t Au from 88m, including 4m at 25.68 g/t Au from 90m. The best results of FSA-288 compromise 24m at 1.85 g/t Au from 195m, including 4m at 4.36 g/t Au from 199m.

Pit Norte - Drill Hole FSA-280 was collared in the southern edge of the Pit Norte. The best intercept included 12m at 1.54 g/t Au from 84m. Pit Sul - Drill Holes FSA-289 and FSA-292 were collared in the central part of Pit Sul aiming to convert any remaining gaps of inferred blocks. Hole intercepted 37m at 4.16g/t Au from 35m, including 7m at 15.46 g/t Au from 38m. This interval is almost contiguous to the preceding shallow segment of the hole that includes 25m (almost from surface) of 0.54 g/t Au. Hole FSA-292 is remarkable in confirming the extent and tenor of the shallow segments of the deposit that will most probably constitute the early feed in the payback mining period. Drill holes FSZ-006 and FSZ-007, were collared in the Eldorado area, southeast of the existing resources to condemn an area that could be used for waste rock facilities, returning no mineralized intercepts.