Cabral Gold Inc. (TSX-V: CBR) (OTC Pink: CBGZF) is pleased to provide assay results from seven more reconnaissance RC holes at the MG gold-in-oxide blanket, and a drilling update at the Cuiú Cuiú gold district in northern Brazil.

Highlights are as follows:

• Results have been received from seven additional follow-up RC drill holes testing the MG gold-in-oxide blanket target, which directly overlies the primary MG gold deposit. Drilling continues to return remarkably consistent gold grades over an area of at least 400 x 500m

• Significant results on two N-S sections through the middle portion of the blanket include 13m @ 0.6 g/t gold, 7m @ 0.5 g/t gold and 34m @ 0.7 g/t gold in RC-132 and 46m @ 0.5 g/t gold in RC-135. These recent drill results suggest that the blanket remains open to both the north and south in several areas

• Following the recent arrival of two more diamond drill rigs, the total number of rigs on site and currently operating at Cuiú Cuiú increased to five, including three diamond drill rigs and two RC drill rigs which are testing multiple targets

Alan Carter, Cabral’s President and CEO commented, “Following the identification of the initial gold-in-oxide blanket in unconsolidated material above the MG gold deposit at Cuiú Cuiú, we have moved swiftly to define the limits to this new mineralized zone and drilled a total of 52 holes to date from the planned 74-hole program. The results reported here continue to confirm the presence of an extensive gold-in-oxide blanket in unconsolidated material over an area of at least 400 x 500m, which is still open in several areas and is up to 50m in thickness, with excellent gold grades. The recent arrival of two additional diamond drill rigs will allow us to simultaneously test several high-grade and gold-in-oxide blanket targets at Cuiú Cuiú which is expected to generate significant news flow over the next few months.”

MG Gold-in-Oxide Blanket RC Drilling

Following the discovery of an extensive gold-in-oxide blanket in near surface unconsolidated material directly above the MG gold deposit in April of this year (see press release dated April 15, 2021 and Figure 1), Cabral has moved swiftly to define the limits to the mineralization and thus far defined a blanket up to 50m in thickness over an area of approximately 400 x 500m (Figure 2).

Figure 1: Map showing the location of the MG deposit and overlying MG gold-in-oxide target, as well as the Central gold deposit, the Pau de Merenda (PDM) gold-in-oxide blanket and other key targets within the Cuiú Cuiú district

A total of 52 holes of a planned 74-hole RC program designed to define this blanket have been completed thus far and the assay results are reported here for seven additional RC holes. Assay results are pending on 31 of the 52 completed RC holes drilled to date.

Assay results have been returned on holes RC-130 to RC-136 which were drilled within the middle portion of the blanket as currently interpreted. Holes RC-131 to RC-133 were drilled on section 553430 while holes RC-134 to RC-136 were drilled 75m to the east on section 553505 (Figure 2). All of the holes returned significant intervals of gold-in oxide mineralization within the overlying unconsolidated soils and sediments.

On section 553430 (Figure 3), RC-132 returned 13m @ 0.6 g/t gold from surface, 7m @ 0.5 g/t gold from 25m depth and 34m @ 0.7 g/t gold from 40m depth, all in oxide material. RC-133 returned 17m @ 0.4 g/t gold from surface also in oxide material. RC-133 was the most southerly hole drilled on this section indicating that the blanket remains open to the south.

Figure 2: Map showing the MG deposit (in yellow) together with the overlying MG gold-in-oxide blanket (in beige) and RC holes

Figure 3: Cross section (section 553430) through the MG deposit and overlying MG gold-in-oxide target, showing assay results from RC-131, RC-132 and RC-133

On section 553505 (Figure 4), RC-135, which is the most northerly hole drilled on section, intersected 46m @ 0.5 g/t gold from surface, indicating that the blanket on this section remains open to the north. Similarly, hole RC-136, which is the most southerly hole drilled on section, intersected 17m @ 0.4 g/t gold from surface indicating that the blanket on this section is open to the south.

Figure 4: Cross section (section 553505) through the MG deposit and overlying MG gold-in-oxide target, showing assay results from RC-134, RC-135 and RC-136

Table 1: Table of drill assay results for reconnaissance RC drill holes at the MG gold-in-oxide target, RC-130 to RC-136

Drilling Update

MG Diamond Drilling

Diamond drilling aimed at defining the high-grade zones within the primary MG gold deposit continues with assay results currently pending on eight holes.

Machichie SW Follow-up RC Drilling

Results are pending on six follow-up RC holes which were recently completed in the Machichie SW vein array where six NE trending high-grade veins have been identified 300m north of the MG gold deposit. Limited previous drilling from this area has returned high-grade drill results including 3.4m @ 36.9 g/t gold and 3m @ 13.2 g/t gold.

Pau de Merenda Follow-up Diamond Drilling

One of the new diamond drill rigs is currently in the process of drilling six follow-up holes at Pau de Merenda where an extensive gold-in-oxide blanket was recently identified which is still open in several directions. This blanket is approximately 300 x 800m in size and still open in several directions. The presence of such an extensive blanket begs the question as to where this gold is being eroded from.

Several historic drill holes suggest the presence of an underlying mineralized zone in intrusive rocks with historic holes returning values of 30m @ 1.1 g/t, 47m @ 1.8 g/t and 9m @ 5.1 g/t gold.

Alonso Reconnaissance Diamond Drilling

Diamond drilling is also in progress at the Alonso target which is located 3km SE of the MG gold deposit. Twenty-three samples of this boulder float material previously returned gold values of 11.6 to 200.3 g/t gold (see press release dated February 11, 2020). Shallow follow-up RC drilling conducted during late 2020 however failed to determine the source of the boulders due to high water in-flows. The current program of diamond drilling is designed to rectify those technical issues.

The Alonso target is located in low lying ground which is marshy during the wet season hence restricting access and the current program of six holes is being conducted during the dry season with a more suitable diamond drill rig.

Issuance of stock options

Cabral’s Board of Directors has approved the granting of stock options to various employees, directors, officers and consultants pursuant to the Company’s stock option plan. The stock options entitle the holders to purchase a total of 4,050,000 common shares in the capital stock of the Company at a price of $0.51 per common share. The stock options are exercisable for five years and are subject to vesting over 24 months.

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 @ 0.90g/t (200,000 oz) and Inferred resources of 19.5Mt @ 1.24g/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.