Cerrado Gold Inc. has repurchased streaming agreements over its Minera Don Nicolas and Lagoa Salgada projects for an aggregate consideration of approximately US$31.34 million. The transaction, which closed on July 17, 2026, was completed with Sprott Private Resource Streaming and Royalty (B) Corp. and Sprott Private Resource Streaming and Royalty (Collector) LP. This move maximizes shareholder exposure to exploration and development efforts at both assets while reducing balance sheet leverage.

Transaction Details

The aggregate consideration is comprised of an upfront payment of approximately US$11.34 million and deferred payments of US$20 million. The upfront portion was satisfied with approximately US$8 million in cash and the issuance of 3,000,000 common shares of Cerrado. The deferred payments consist of US$8 million due on or before October 6, 2026, and US$12 million due on or before January 4, 2027. These obligations are evidenced by non-interest-bearing promissory notes secured by a general security agreement over Cerrado's assets.

Acquired Assets

The repurchased assets include the amended and restated metals purchase and sale agreement dated March 2, 2023, regarding the Minera Don Nicolas Mine (MDN Stream), and the metals purchase and sale agreement dated November 25, 2022, as amended on December 1, 2023, regarding the Lagoa Salgada project (LS Stream). The transaction also includes the secured note dated November 25, 2022, in the aggregate principal amount of US$19 million, bearing interest at 10% per annum. All acquired assets have been repurchased for cancellation.

Strategic Rationale

Mark Brennan, CEO and Chairman of Cerrado, stated that the transaction enhances long-term value for shareholders at a reasonable cost. The repurchase improves future cash flows, strengthens the balance sheet, and increases the company's leverage to commodity prices. Additionally, the company is considering the creation of its own streaming vehicle, which may include exposure to its own assets and potential third-party streams.

Financial Breakdown

The following table outlines the consideration structure for the transaction:

The common shares issued were priced at C$1.5719 per share, representing a 3% discount to the 10-day volume-weighted average trading price calculated five days before closing. The shares are subject to a statutory four-month hold period under applicable Canadian securities laws. Altitude Capital Partners acted as the sole financial advisor to Cerrado. The transaction has received conditional acceptance from the TSX Venture Exchange and remains subject to final acceptance.

Cerrado Gold has elected to extend the completion date of the Bankable Feasibility Study at its Mont Sorcier high-grade iron project to incorporate optimization initiatives identified during the study process. The company aims to enhance the overall value of the project by focusing on areas such as mine planning, tailings dam construction, and cost reviews. The optimization program is not expected to materially impact the overall project timeline, with the Environmental and Social Impact Assessment submission now expected in Q2/27.

The most significant opportunity to enhance the project has emerged from the ongoing mine planning process. The company identified a chance to improve the overall mine plan and lower costs by converting a modest amount of currently Inferred Resources to Measured Resources within a defined area to the east of the current planned pit. This material is expected to be shallower and should materially reduce stripping and tailings management costs over the life of mine. A small, targeted definition drill program is set for late Q3/26 to facilitate this conversion.

Additional areas for detailed review include overall CAPEX and OPEX estimates, which are currently seeing a material impact from rising inflationary pressures. The company plans to focus on life-of-mine tailings dam construction and other project infrastructure needs to reduce the overall size and construction material required. Trade-off studies will also commence to evaluate the operation producing a 65% grade iron concentrate versus the currently planned 67% grade iron concentrate.

The current price premium for 67% concentrate may not be sufficient to justify the additional capital and operating cost requirements to deliver the higher-grade product. However, 65% grade iron concentrates remain a highly desired product, 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, 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, the company does not expect it to materially affect the timing of the ESIA, which is expected to be filed in Q2/27. The ESIA submission initiates the formal permitting process, with required permits potentially granted around year-end 2028. Construction could commence around the end of Q1/29. The company views this step as a prudent investment to optimize the project for all stakeholders.

Key Optimization Focus Areas

The scientific and technical information in this press release has been reviewed and approved by Andrew Croal, P.Eng., Chief Technical Officer for Cerrado Gold, who is a Qualified Person as defined in National Instrument 43-101.