Cerrado Gold raises $10 million from Eric Sprott

Cerrado Gold Announces $10 Million Strategic Private Placement with Eric Sprott

TORONTO, Aug. 31, 2026 (GLOBE NEWSWIRE) -- Cerrado Gold Inc. [TSX.V:CERT][OTCQX:CRDOF] ("Cerrado" or the "Company") is pleased to announce that it has entered into an agreement for a strategic non-brokered private placement financing (the "Private Placement") with Mr. Eric Sprott for aggregate gross proceeds of C$10 million.

The Private Placement will consist of 4,000,000 units of the Company (the "Units") at a price of C$2.50 per Unit. Each Unit will consist of one common share in the capital of the Company (each, a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share (each, a "Warrant Share") at an exercise price of C$3.35 per Warrant Share for a period of 24 months from the closing date of the Private Placement.

Closing of the Private Placement is expected to occur on or about September 4, 2026 and remains subject to customary closing conditions, including the approval of the TSX Venture Exchange. All securities issued in connection with the Private Placement will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws and the policies of the TSX Venture Exchange.

The Company intends to use the net proceeds of the Private Placement for working capital and general corporate purposes.

Mark Brennan, CEO and Chairman, commented: "We are pleased to welcome Mr. Sprott as a strategic investor in Cerrado.”

The securities to be issued pursuant to the Private Placement have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Cerrado

Cerrado Gold is a Toronto-based gold production, development, and exploration company. The Company is the 100% owner of the producing Minera Don Nicolás and Las Calandrias mine in Santa Cruz province, Argentina. In Portugal, the Company holds an 80% interest in the highly prospective Lagoa Salgada VMS project through its position in Redcorp - Empreendimentos Mineiros, Lda. In Canada, Cerrado Gold is developing its 100% owned Mont Sorcier Iron project located outside of Chibougamau, Quebec.

In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas operation through continued operational optimization and is growing production through its operations at the Las Calandrias heap leach project. An extensive campaign of exploration is ongoing to further unlock potential resources in our highly prospective land package in the heart of the Deseado Massif.